Fundraising Demystified

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  • Fundraising Demystified

    Angela Lee

    Founder, 37 Angels

    Assoc. Dean & Chief Innovation Officer, Columbia Bus. School

  • What well cover today

    VCs and Angels whats the difference?

    New York, New York

    Pitching pitfalls

    2

  • Venture Capital

    Decision

    maker

    GP

    LP LP LP LP LP

    How they

    make moneyGPs: mgmt. fee & carry

    LPs: fund returns

    Networks: dues

    Angels: returns

    FlavorsStandalone

    CorporateStrategic

    Financial

    Solo

    Networks

    Geog.

    Sector

    Affinity

    Angel Investing

    A A A A

    A A A A

    3

  • Other differences

    4

    Investment thesis

    Speed

    Cat herding

  • What well cover today

    5

    VCs and Angels whats the difference?

    New York, New York

    Pitching pitfalls

  • Valuations

    6

  • Got data?

    Angel List Valuations

    7

  • 8

    angel.co/valuations

  • Valuations

    Level of syndication

    Equity vs. notes

    9

  • What well cover today

    10

    VCs and Angels whats the difference?

    New York, New York

    Pitching pitfalls

  • What do you look for in diligence?

    Progress Price

    People Problem

    11

  • What do you look for in diligence?

    Progress Price

    People Problem

    12

  • 13

  • Who is their customer?

    14

  • Who is the customer?

    Demographic

    Gender

    Age

    Income

    Location

    Psychographic

    Personality

    Interests

    Values

    Lifestyle

    15

  • Who is the customer?

    Demographic

    Gender

    Age

    Income

    Location

    Psychographic

    Personality

    Interests

    Values

    Lifestyle

    Use case

    Pain point

    Problem solved

    Value added

    Message to use

    16

  • Who is the customer?

    All hotels are booked

    I want a cheaper option

    I want a home away from home

    I desire a unique travel experience

    17

  • Who is the customer?

    18

  • What do you look for in diligence?

    Progress Price

    People Problem

    19

  • How are you acquiring customers?

    Weve done no

    marketing!

    We only need to

    capture 1% of

    the market.

    20

  • Example 1 B2C

    Campus

    Tabling

    Response best with x

    message at y time

    Direct

    MailSEO

    Influencer

    MarketingEmail

    Campus ambassador = $40/hr

    Cost to acquire customer (CAC) = $20

    ($40 + $20 in other costs / 3 customers)

    Customer lifetime value (CLV) = $100

    (Box costs $20, 5 months typical)

    100 parents walk by in 1 hour

    20 give email address

    10 open email

    3

    Cust.

    21

  • Example 2 B2C

    Email

    Email 10,000 people

    1,000 open email

    200 click call to action

    100

    Cust.

    We tested message A/B/CMessage C works best

    Direct

    MailSEO

    Influencer

    Marketing

    Campus

    Tabling

    CAC = $30

    CLV = $100

    X months later, how

    many customers active?

    22

  • Example 3 B2B

    Cold

    Calling

    Identified decision maker

    and path to them / purchase

    Direct

    MailSEO

    Trade

    shows

    Referral

    Partners

    Salesperson salary = $10K/mo

    CAC = $10K

    CLV = $30K?

    Retention rate in year 2 = ?

    50 cold calls a month

    10 meetings with leads

    4 meetings with

    purchaser

    1 Client

    Team knows timing to

    close (SMB / enterprise)

    23

  • TractionBook.com

    24

  • Tractionbook.com

    25

    1) Viral Marketing

    2) Public Relations (PR)

    3) Unconventional PR

    4) Search Engine Marketing

    5) Social and Display Ads

    6) Offline Ads

    7) Search Engine Optimization

    8) Content Marketing

    9) Email Marketing

    10) Engineering as Marketing

    11) Target Market Blogs

    12) Business Development

    13) Sales

    14) Affiliate Programs

    15) Existing Platforms

    16) Trade Shows

    17) Offline Events

    18) Speaking Engagements

    19) Community Building

  • Testing your MVP

    26

    *Landerapp.com and Launchrock.com have templates for creating landing pages

  • Testing your MVP

    27

    Letter of Intent

    This year, we will conduct an

    unpaid pilot with startup ABC.

    When features x, y, and z are built,

    we will pay $x per employee, or $y

    a month to use their tool / platform.

  • Resources

    10 Pitch Slides (Slideshare AngelaWLee) 16 Startup Metrics (Andressen Horowitz)

    Lean Startup by Eric Reis Traction by Gabriel Weinberg

    http://www.slideshare.net/angelawlee/37-angels-10-slide-pitch-deckhttp://a16z.com/2015/08/21/16-metrics/

  • 37angels.com/resources