} 1. They want to make money.

} 2. Their most precious asset is their time.

} Proof of concept (POC)

} Market validation } Regulatory path } Reimbursement plan } IP including FTO } Customer economics } Payer economics } Believable plan } Team to get there } Exits / comparables

} Answers to their objections •  Address their biggest objections up front

} Be ready for diligence •  Advisors / prospective customers to call. •  Details of POC •  Detailed financial plan •  Detailed development plan •  FTO analysis •  License / option agreements…

} Because you need >$10 MM

} Or >$3 MM in any round

} The good •  Deep pockets, networked to other investors •  Sophisticated board members (sometimes)

} The bad and the ugly •  Bad board members (sometimes) •  They like to spend money. •  They may replace you. •  They may wipe you out.

•  They want it nearly done before they give you money

} Make sure they are appropriate: •  Have money •  No conflicts •  Similar portfolio companies •  Right sized

} Get a warm introduction •  CEO of current / former portfolio company •  Any former CEO, other VC, other entrepreneur…

} Write small email description.

} Bring your team, dress well, arrive early, ask how much time you have

} Stand up. Present in 20 minutes.

} Have answers / back-up slides •  OK to schedule a follow up meeting for deep dive

} Ask for when you should follow up } Respond immediately to diligence requests.

} If they are not doing work, they have passed.

} You only need 1-3 rounds of <$3 MM each

} You want to make some money at the exit.

} The good •  Straightforward terms (1x pref., non-participating…) •  Rolling closes •  Follow-on rounds are easy •  No VC games, no forced CEO replacements •  You own more at exit

} The bad and the ugly •  No deep pockets •  Herding cats •  Don’t expect a big salary

} Gust.com to find groups } Find a sponsor } Go to a meeting or two

} Start small (<$2 MM) } Pre money <<$5 MM

} Make sure you have the right sponsor } Prepare, apply, present

} Bring your team, dress well, arrive early, } Present in allotted time. } Have answers / back-up slides for all

questions. •  OK to refer things to diligence meeting

} Respond immediately to set up diligence meetings

} Don’t ask a group to sign an NDA } Don’t use more than a handful of words on a

slide and do not use any small font sizes } Don’t claim you have no competitors } Don’t think that you will grow by “social

media” or “going viral”

} What if you need $1 MM now and then $10+ MM and too early for VC’s

} Most angel groups will not do it. } Need super angels, early VC’s, Angel friendly

VC’s, friends and family, SBIR