Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 1

Run for Your Money Raising money from angels and VCs A

What to expect when you’re expecting (to raise funds)

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It’s damn hard. Most entrepreneurs are overwhelmed by the difficulties. Common process and success rates:

Only 5-10 in 1,000 Business plans get funded

~5% of B. Plans are read beyond the executive summery

~10% of proposals pass initial screening

~10% of pre-screened proposals pass due diligence

1.

Raising funds from an investor = Marriage!

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“Who” is just as important as “How Much”

Look for experience, management role,

connections and personal chemistry

Do your homework !

2.

What Investors want to know

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How much can I make?

How much can I lose?

Who says this thing will work?

How big is the market?

How do I get My Money out and when?

3.

20%

30%

50%

Idea Business Construct People

Valuation

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4.

Avoid the repulsive clichés investors know

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“Our projections are conservative”

“We are expecting to sign an agreement with X next week”

“Key employees will join as soon as we get funded”

“Our largest competitor is to old / big / stupid / slow to be a threat”

“Patents are defending our business”

“All we need to do is get 1% market share”

5.

Copyright 2014 @ Yair Friedman. All Rights Reserved 7

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