Startup Finance. From Crowdfunding to Debt and Equity
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STARTUP FINANCING FROM CROWDFUDNING TO DEBT & EQUITY Tytus Cytowski, Managing Partner ICT Summit WARSAW, POLAND December 3, 2014
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Transcript of Startup Finance. From Crowdfunding to Debt and Equity
STARTUP FINANCINGFROM CROWDFUDNING TO DEBT & EQUITY
Tytus Cytowski, Managing Partner
ICT Summit
WARSAW, POLAND
December 3, 2014
CYTOWSKI LLC
Disclaimers
Any US federal tax advice contained in this presentation is not intended to be used,and cannot be used, to avoid penalties under the Internal Revenue Code or topromote, market or recommend any transaction or matter addressed herein.
This material is for informational purposes only and do not constitute advertising, asolicitation, or legal advice and should not be construed as legal advice for anypurpose whatsoever.
Information contained herein is not intended to create, and receipt thereof doesnot constitute formation of, an attorney-client relationship.
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TYTUS CYTOWSKI
Attorney at Law
EDUCATION
• HARVARD LAW SCHOOL (LLM)
• WARSAW UNIVERSITY (Mag Iur)
EXPERIENCE
• STARTUPS
• VENTURE FINANCING
• FUND FORMATION
ADVISOR
• STARTUPWISEGUYS (Estonia)
• DEFY VENTURES (NYC)
CLIENTS
• EU, USA
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DANKE!
WWW.CYTLAW.COM
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STARTUP FINANCE
IS NOT …
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DANKE!
WWW.CYTLAW.COM
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FUNDRAISING HARD WORK
LETTER TO SANTA CLAUS
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Friends &
Family
Angel
Investment
Seed VC VC – Series A
Round Size $10 G - $100 G $100G - $1 M $500G - $1.5M $5M -$15M
Investment Size $5 G - $25G $25G - $75G $250 - $750G $3M - $5M
Valuation < $1 M $1 - $5 M $5 - $10M $10M - 25M
Stage - Idea
- B-Plan
- Full time Founders
- Detailed B-Plan- Customers,
pilot, revenue?- Legal
Documents
- Full time Founders
- Detailed B-Plan- Customers,
pilot, revenue?- Legal
Documents- Income- Next Funding- Business Model- Brake Even
- Big Client
- Growth Potential
- Income
- Angels
-Key Management
DANKE!
WWW.CYTLAW.COM
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CAP TABLE
DANKE!
WWW.CYTLAW.COM
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VALUATION
STARTUP FINANCE - 101
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BUILD
RELATIONSHIPs/COMMUNITY
THEN… RAISE MONEY
DANKE!
WWW.CYTLAW.COM
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ART OF PRICING
RISK
STARTUP FINANCE – 101
MORE RISK
= NEED TO
GIVE MORE
UP11STARTUP FINANCE - 101
DANKE!
WWW.CYTLAW.COM
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YO
YOU CAN SELL A LOT
OF THINGS FOR MONEY?
STARTUP FINANCE – 101
EQUITY
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DEBT
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DANKE!
WWW.CYTLAW.COM
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PRODUCTvia crowdfunding
DANKE!
WWW.CYTLAW.COM
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CROWDFUNDING
FINANCE IS EASY
WHAT ABOUT
US TAX?
DANKE!
WWW.CYTLAW.COM
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INCOME?
DANKE!
WWW.CYTLAW.COM
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NON-
TAXABLE
GIFT?
$14 G
EXCLUSION
DANKE!
WWW.CYTLAW.COM
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STATE SALES
TAX
DANKE!
WWW.CYTLAW.COM
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CONVERTIBLE
DEBT
DANKE!
WWW.CYTLAW.COM
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SAFE
KISS
DANKE!
WWW.CYTLAW.COM
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HOW DO
YOU
CONVERT
DEBT INTO
STOCK?
DANKE!
WWW.CYTLAW.COM
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DISCOUNT
DANKE!
WWW.CYTLAW.COM
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CAP
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EQUITY
LIQUIDATION
PREFERENCE26
DANKE!
WWW.CYTLAW.COM
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SIZE
MATTERS
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SIZE OF
EQUITY
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SIZE OF EXIT
DANKE!
WWW.CYTLAW.COM
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OPTION POOL
LIKE US ON FACEBOOK!
www.facebook/cytowskillc
FOLLOW ON TWITTER
@tcytowski
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