preparation tips for an angel funding ask
DESCRIPTION
Presentation for Intersect 2013 conference, Omaha NE.TRANSCRIPT
April 12, 2013 Karen Linder
PREPARATION TIPS FOR AN ANGEL FUNDING ASK
Karen Linder,Angel Investor
TIP: PREPARE, DON’T RUSHTeam, Product/Service, Market
Supporting Documents
You, yourself
Pitch Quality and Clarity
Angel.co
Gust.com
Investor Search Engine
Share Your Profile with Multiple Groups
Track Investor Interest
1. One Line Pitch
“This is what we do / make.”
(and why we’re great)
One Line Pitch
“A time saving tool Moms love”
“We capitalize on the return of mass marketmanufacturing to the US and competition that isbound to rising costs of imported product.”
“Helps small business owners grow and retain their customer base.”
“Organic agriculture company seeks $25K seed capital at $3m valuation to complete $6.5m Series A at $10m valuation.”
“Food / Drink”
“X” is a development stage biotechnology company based on licensed technology focused on providing gene technology for developing high-performance cell lines used in the bioproduction of fuel ethanol, industrial enzymes, and pharmaceutical products; and for creating transgenic plants that are resistant to a broad spectrum of diseases and environmental stresses.”
One Line Pitch
“”X” is a development stage biotechnology company based on licensed technology focused on providesing gene technology for developing high-performance cell lines used in the bioproduction of fuel ethanol, industyrial enzymes, and pharmaceutical products; and for creating transgenic plants that are resistant to a broad spectrum of diseases and environmental stresses agriculture.”
One Line Pitch – Edit!
PROFILE, CONT…
2. Business Summary
3. Management Team
4. The Problem
5. Your Solution to the Problem
TIP: HAVE A BETA / PROTOTYPE
Nebraska Pre-seed Fund (Prototype fund)
neded.com
TIP: EVEN BETTER, HAVE SOME IP
PROFILE, CONT…
6. Target Market
7. Current Customers
8. Sales / Marketing Strategy
TIP: PRODUCTION & SALES TIMELINE
Nitride Solutions, 2010
PROFILE, CONT…
9. Business Model
10. Competitors
11. Competitive Advantage
PROFILE, CONT...
12. Executive Summary
13. Current Cap Table
TIP: Founders should have “skin” in the game to share the risk with the investor.
If you ask investors to assume all the risk,
they need to be rewarded with a higher
amount of equity.
14. Business Plan
15. Financials
PROFILE, CONT…
TIP: FINANCIAL HISTORY > PROJECTIONS
Tip: Conservative
AND
Wild Projection
Visual Projections
ADDITIONAL PIECES TO APPLICATION
16. Investor Slides
17. The $ Ask
18. Company Valuation
19. Use of Funds
IF MULTIPLE FUNDING SOURCES
• Current Term Sheet• Permission to Share Due Diligence
20. Exit Plan
Acquisition?IPO?Share repurchase?
PITCH TIPS:
Handout
Samples
Demonstration and Visuals
SkyVu Biz Plan 2008
2013
“A picture is worth a thousand words.
A video is worth a million.”
Tip: Have Well-Designed Company Website and Pitch Deck
LIGHTENING ROUND PITCH TIPS
Visual over textLess techo-babble, more numbers
Practice and time your pitch
Consider suggestions, recommendations
LIGHTENING ROUNDPITCH TIPS
Think BIG
Prepare Answers for all Possible Questions
Prepare to Quit other Jobs
Don’t Exaggerate (Lie)
LIGHTENING ROUND TIPS
Be Nice. Act professionally.
Unethical behavior = No 2nd chance.
