Bootstrapping & Fundraising

The Founder InstitutePresented by: Nestor Villalobos

Methods

1. Bootstrapping

Advantages•Min Equity Sacrifice•Liability to Others •100% Dedicated to Biz•Spend Wisely •Customer Focus

Disadvantages•Growth Speed •Outside Help •Personal Risk •Competition •Compensation

2. Friends & Family

• Just ASK!!! • Have a Biz Plan/Exec Sum• Thanksgiving Dinner (Risk)• Well Documented (Contracts)• Create a Email Distribution List

3. Angels

Requirements •Projections, Pitch Deck•Business Plan/Exec Sum.•Skin in the Game•Experienced Management•Minimum Viable Product•Revenue or Rev. Potential•Coachability

3. Angels (cont.)

Develop a Network•Create an Investor Database •Conferences and Events•LinkedIn •Referrals •Articles •Online Sites (Angel.co, Gust)

4. Venture Capitalists

• Next Stage after Angels • Will Look for at Least $1m in Sales • High Equity Stake • Start Networking @ Startup Stage• Average Deal > $15M

5. Banks

• Last Stage of Investment• Low Risk Tolerance • High Collateral Requirements• Personal Guarantees • Requires a Track Record • Credit Rating Requirements

Exit Strategy

• Know Your Exit Strategy• Sale of the Business or IPO • Investors Want a ROI• 3 - 6 Year Holding Period • Angels Expect 10x+ Returns

Milestones

• MVP • Beta Test• Time• Revenue • Profit • Growth Rates

Milestones (cont.)

How to Choose Milestones•Ask your Investors! •Use your Gut•Brainstorm •Based on Projections

Contact Information

Nestor Villalobosnes@nestorv.com

www.nestorv.com (LinkedIn)www.nestorvillalobos.com (Blog)