11/23/2014 1

DoDo’’s + Donts + Dont’’s of Fundings of Funding

| Kiran Bettadapur || Kiran Bettadapur |

Part Part -- 11

11/23/2014 2

GambleGamble

�� OverOver--Rated:Rated:

�� Not ClairvoyantNot Clairvoyant

�� Not TechNot Tech--

Savvy...OftenSavvy...Often

�� Picks = GuessworkPicks = Guesswork

�� 1:100 1:100

�� Ideas : Execution : Ideas : Execution :

SerendipitySerendipity

MODELMODEL

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PerseverancePerseverance

�� 20 Attempts 20 Attempts

�� DFJDFJ�� US$ 300KUS$ 300K

�� Exit: US$ 400 Mil.Exit: US$ 400 Mil.

�� 00--12 Mil. in 1.5 yrs.12 Mil. in 1.5 yrs.

�� 70 Mil. Internet 70 Mil. Internet

UsersUsers

�� Rejection= Rejection=

ConvictionConviction

SELFSELF--BELIEFBELIEF

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AstrologyAstrology

�� No Method 2 MadnessNo Method 2 Madness

�� Divine Help OKDivine Help OK

�� AllAll--iziz--FairFair

�� Do What Do What You ThinkYou Think It It

TakesTakes

THOROUGHTHOROUGH

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UtilityUtility

�� Pain PointsPain Points

�� Use Case ScenariosUse Case Scenarios

�� 3WH: Who? When? 3WH: Who? When?

Why? How?Why? How?

�� Market... Not Market... Not

TechnologyTechnology

�� 3030--sec. Elevator Pitchsec. Elevator Pitch

DETAILEDDETAILED

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TimingTiming

�� Never Too LateNever Too Late

�� Mover v. ShakerMover v. Shaker

�� Seduction... SlowSeduction... Slow

�� Innovation: Innovation: TrojanTrojan

....Better Execution!....Better Execution!

HURRYHURRY

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SuperioritySuperiority

�� DisruptionDisruption

�� Compelling Compelling

...Value Proposition...Value Proposition

�� IPR...IPR...Fence/FortressFence/Fortress

�� EvergreeningEvergreening

IMPACTIMPACT

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RevenueRevenue

�� Broken Laser PointerBroken Laser Pointer

...Pez Candy Dispensers...Pez Candy Dispensers

�� Revenue Model?Revenue Model?

�� Easily Understood?Easily Understood?

�� Planning FailsPlanning Fails

�� Newsworthy Story...Newsworthy Story...

MONETISEMONETISE

11/23/2014 9

TechnologyTechnology

�� Murphy: Murphy:

Things Happen...Things Happen...

World Changes...World Changes...

�� Risks... Bets go wrong!Risks... Bets go wrong!

�� WhatWhat--IfIf

�� Course CorrectionCourse Correction

�� Contingency PlanContingency Plan AA--BB--CC

AGILEAGILE

11/23/2014 10

ProjectionsProjections

�� Simple, Logical MathSimple, Logical Math

�� Use ThumbUse Thumb--rulesrules

�� $1 L = $8 C$1 L = $8 C

�� Formula 100Formula 100--100100

�� Believable, yet... Believable, yet...

Aggressive, AchievableAggressive, Achievable

�� Not ConservativeNot Conservative

REALISTICREALISTIC

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ManagementManagement

�� Whose Money?Whose Money?

�� Rev = $0.6 mil.Rev = $0.6 mil.

�� Ad Spend = $12 mil.Ad Spend = $12 mil.

�� IPOIPO--Ch. XI = 250 Ch. XI = 250

days days

�� Blown: $300 Mil.Blown: $300 Mil.

�� Biz Fundamentals?Biz Fundamentals?

�� PP--SS--PP--S & DS & D

FUMBLEFUMBLE

11/23/2014 12

ValuationValuation

FINEPRINTFINEPRINT�� Vulture... Funding TrapVulture... Funding Trap

�� Cash + Sweat + Assets Cash + Sweat + Assets

+ Relationships+ Relationships

�� Tangible & IntangibleTangible & Intangible

�� Client, Supplier & Client, Supplier &

ChannelsChannels

�� Multiple (Rev. or Profit)Multiple (Rev. or Profit)

�� Good LawyerGood Lawyer

11/23/2014 13

CommandmentsCommandments

�� Focus on Business ModelFocus on Business Model

�� Have SelfHave Self--BeliefBelief

�� Be ThoroughBe Thorough

�� Drill Down on Use CasesDrill Down on Use Cases

�� Be DisruptiveBe Disruptive

�� Focus on CashflowsFocus on Cashflows

�� Change, if Needed, with Change, if Needed, with

AgilityAgility

�� Be RealisticBe Realistic

�� Tread CarefullyTread Carefully

DO’sDO’s

�� Don’t Rush ThingsDon’t Rush Things

�� Don’t ScrewDon’t Screw--up After up After

FundingFunding

DONT’sDONT’s

11/23/2014 14

Thank You!Thank You!

11/23/2014 15

| Kiran Bettadapur || Kiran Bettadapur |

DoDo’’s + Donts + Dont’’s of Fundings of Funding

Part Part -- 22

11/23/2014 16

InvestorInvestor

�� 33--FF

�� FamilyFamily

�� FriendsFriends

�� F_ _ L _F_ _ L _

�� 33--EE

�� ExEx--trepreneur... trepreneur... Walked the TalkWalked the Talk

�� ExEx--Executive... Executive... Talked the WalkTalked the Walk

�� Excelutive... Excelutive... No Walk or TalkNo Walk or Talk

�� A.D.D.SA.D.D.S

11/23/2014 17

Shun the Shun the ‘‘--Shuns'Shuns'

DifferentiationDifferentiation

CompetitionCompetition

ValidationValidation

ConvictionConviction

MissionMission

TractionTraction

AttractionAttraction

ExecutionExecution

DevotionDevotion

VisionVision CohesionCohesion

AmbitionAmbition

INTUITIONINTUITION

COGNITIONCOGNITION

PASSIONPASSION

AGGRESSIONAGGRESSION

11/23/2014 18

MarketMarket--CentricCentric

�� Understand:Understand:

�� UserUser

�� Use CasesUse Cases

�� CustomerCustomer

�� MarketMarket

�� CompetitionCompetition

�� PositioningPositioning

�� DifferentiationDifferentiation

�� SegmentationSegmentation

�� Avoid:Avoid:

�� Functionality Functionality

TrapTrap

�� TriageTriage--like like

PrioritisationPrioritisation

�� Product Product

ManagementManagement

11/23/2014 19

Getting VC AttentionGetting VC Attention

�� PostPost--HOMAXHOMAX

�� Make them Make them

RedundantRedundant

�� Cheap Money = Cheap Money =

Available Fast Available Fast

�� Reality Shock:Reality Shock:

�� 95% Funding... 95% Funding...

Thro’Thro’ OSB or EC OSB or EC

NetworksNetworks

�� No ColdNo Cold--CallingCalling

�� Cherry Pick VCCherry Pick VC

�� Intro... Intro...

�� LinkedInLinkedIn

�� DO HOMEWORKDO HOMEWORK

�� PortfolioPortfolio

�� InterestsInterests

�� AmountAmount

11/23/2014 20

Most ImportantMost Important

�� YOU...YOU...

�� Tangibles:Tangibles:

�� ExperienceExperience

�� KnowledgeKnowledge

�� SkillsSkills

�� EducationEducation

�� Leadership RolesLeadership Roles

�� IntangiblesIntangibles

�� PassionPassion

�� IntegrityIntegrity

�� VisionVision

�� RealisticRealistic

�� Team PlayerTeam Player

�� RESILIENTRESILIENT

�� COMMITTEDCOMMITTED

11/23/2014 21

The PitchThe Pitch

�� IntroIntro

�� TeamTeam

�� Short Biz OverviewShort Biz Overview

�� MarketMarket

�� OpportunityOpportunity

�� CompetitionCompetition

�� Product (HighProduct (High--

level)level)

�� Business ModelBusiness Model

�� Biz RelationshipsBiz Relationships

�� ValidationValidation: :

�� Beta? Clients? Beta? Clients?

Paying? Press?Paying? Press?

�� Cashflows & Cashflows &

ProjectionsProjections

�� Entry BarriersEntry Barriers

�� How Much? Why?How Much? Why?

11/23/2014 22

RememberRemember

You Are Not Working, IfYou Are Not Working, If

...You Are NOT Networking!...You Are NOT Networking!

Network Is Network Is

Your Your

True NetTrue Net--Worth!Worth!

Journey Matters... Journey Matters...

Destination Just Happens!!Destination Just Happens!!

11/23/2014 23

Thank You!Thank You!