19. How to Raise
a Round
Pitch
Tips
Execution &
Scaling Tips
Founders
Tips
20. VALUE BUILDS IN STEPS
Team
Product Development
Market Demand
Product / Market Fit
Business Model
Execution
See www.techcrunch.com/2015/06/24/running-out-of-money-isnt-a-milestone
30. SCENARIO 1: COFFEE SHOP
Instructions for Audience
You love everything the pitcher tells you.
You get so excited that you repeatedly
interrupt them, trying to finish their
sentences.
31. SCENARIO 2: GROCERY STORE
Instructions for Audience
You ripped your pants 5 minutes ago.
So you desperately want to leave and try
to end the conversation with the pitcher
ASAP.
38. TYPICAL PARTS
Overview Problem Solution Market
Traction
Marketing
Strategy
Team
Competition Conclusion
Financial
Projections
(high level)
Money Being
Raised and
Use of Funds
Revenue Model
& Business
Model
59. GO FOR THE ASK
• Approach your top candidates at the same time
• Run conversations in parallel
• Decide whether / when to tell investors about each
other
60. CREATE URGENCY
• Anchor investor acts as the first domino
• “Triggering events” to get a (or better) term sheet
62. STRUCTURE
• Preferences over common
• Board seat or 2
• Option pool
• Liquidation preference
• Control over sale, new options
• Debt that becomes preferred equity
when you raise it
• No valuation, but the “cap” is a
ceiling
• Interest accrues, rate <10%
• Conversion discount
Equity
Preferred Stock
Debt
Convertible Notes, SAFEs
65. VALUATION & DILUTION
37%
See www.ownyourventure.com
Raise $1M on $5M pre
33%Raise $1M on $3M pre
34%Raise $1.5M on $5M pre
Dilution: what’s your end stake?Valuation ($M)
Seed A B
$15
$6
$1
$30
$12
$5
66. FINAL DEAL POINTS
• Rolling close vs. set close
• Not done until money is in
the bank
Key terms
❑ Board composition
❑ Option pool
❑ Voting rights
❑ Founder vesting
❑ Change of control
❑ Redemption rights
❑ Information rights
❑ Anti-dilution
67. HOW LONG DOES IT TAKE?
• Longer than you expect
• 3-6 months
• Speed limited by access to investors
• Your ability to find them
• Calendar availability (surprisingly hard)