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
11/23/2014 8
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
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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
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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
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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!