society3 equity fundraising webcast july 23 2015 by startup socials

© Copyright Society3 - 2015 #Society3

Online Equity Fundraising Everything You Need to Know

#Society3

2 © Copyright Society3 2015 Copying or distribution is prohibited

#Society3

San Francisco, CA + 1 (650) 384-0057

Cannes, France + 49 (30) 2023-8748 Society3 Group – http://Society3.com - http://XeeMe.com/Society3

© Copyright Society3 - 2014

Unique 360° startup offering

S3 Pitch Events growing community by 200

startups per month

S3 Accelerator provides intense six week program

in San Francisco and Berlin

S3 FundersMart, the most advanced equity

fundraising platform (exit anytime – smart money)

Alliances with partners and sponsors providing

additional programs and services

http://society3.com/


#Society3

Our Own Story

Pioneered Online Equity Fundraising in 1997

Raising our initial round from partners and customers

Over 100 investors signed up and we oversubscribed

Raised 3 consecutive rounds – the largest: $5Million

We offered anybody to sell if they needed to

Even investment funds loved the concept

Four years experience incl. investor relations

Raised money for four companies (all successful)

Mentioned in dissertations, Financial Times…

as inventor of equity based crowd funding


#Society3

Capitaliz

ation S

trate

gy

Still own 50.1% by the time you IPO

Give no more than 15% in seed rounds

Keep 70% after the a-round …


#Society3

How could the Facebook team retain majority?


#Society3

A $100 Million exit - BUT

It’s not about being greedy

It’s not about being a control freak

But you need to be able to steer your business


#Society3

No matter what investors tell you

It is NOT better to have

10% of a $100 Million company than

100% of a $1 Million company

Once investors take over the company the

company is going to be sold or merged with

99% probability


#Society3

Structure your rounds before you go

Seed 15% 85% | 25% 75%

A 15% 72% | 25% 56%

B 10% 65% | 30% 39%

C 8% 59% | 20% 31%

D 6% 56% | 15% 26%

E 3% 54% | 10% 24%

IPO


#Society3

Be

Pre

pa

red


#Society3

10 Tips For Fundraising Success

Getting $250,000+ funding goal

Have a bold vision

Have an amazing team

Have a stellar video from founders and team

Positive customer/user sentiments online

Have a clean cap table

Know exactly how much you need and why

Have the use of proceeds clearly defined

Build an active investor relationship

Mobilize your investors to support you

Provide weekly updates to investors


#Society3

Due Diligence Process

Legal due diligence

Conducted by one of our lawyers

Incorporation documents, tax filings

Business due diligence

Team composition

Online presence and sentiments

Technical due diligence

Only for growth stage companies

Technical review through experienced CTOs


#Society3

Fu

ndra

isin

g O

nlin

e


#Society3

How much can be raised

We raised $5 Million already in 1998

There are limits by program

US $5 Million round under Title II (Filing Form D)

$20 / $50 Million under Title IV (More regulations)

A $50 MM round ~ a quarter billion valuation

SEC calls Title IV tier II Mini-IPO

Follow on rounds same size

This is in particular interesting down the road


#Society3

What stage?

Idea Stage very very few investors

Concept stage few investors

Build / Beta stage some investors

Traction stage most interesting investors

Growth stage most investors

Expand stage Conservative investors


#Society3

Fund Raising

Preparation

Know how much you need – never ask for more

Have your story perfectly down

Have all your financials prepared

Ready for a due diligence

Have a perfect deck for a 5 minute presentation


#Society3

Timing

Angel Fundraising is quite an intense project

Expect 4 weeks preparation

Expect to be 8 weeks on tour presenting !!!

Expect 4 weeks individual due diligence,

negotiation, legal process and funding completion

Somewhere between 10 to 100 pitches

Online fundraising process

Expect 4-6 weeks preparation & due diligence

Expect 4 weeks for the first part of funding


#Society3

In search of investors Hard to find

Hard to get a deal done

To o few out there


#Society3

A New Investment Marketplace

Investors need a smarter way to

“Exit Anytime”

Startups need a better way to get

“Smart Money”


#Society3

Financial Services Transformation

From lockup to Exit Anytime Paving the way for a new exit model

Quadrupling investor network for entrepreneurs

Opening the 90% accredited investors segment

A market place where shareholders find buyer


#Society3

Smart Money Matcher

From random to Smart Money Profiling system that help startups find Smart Money

Investors with access to their industry, ability to

weave connections, subject matter expertise…


#Society3

Fu

nd

ers

Ma

rt


#Society3

Opening doors for 95% of accredited investors

Exit Anytime

Smart Money Matcher

From commission to subscription

Starting in June

Fu

nd

ers

Ma

rt


#Society3

Your company will shape up much faster

With a broader investor landscape

Expect 30 investors helping you instead of 3

Expect 0.5% ownership per investor not 10%

Expect smart money because you can select

Expect a faster process


#Society3

Next steps?

1. Grab any of us (415) 656-8700 or online

[email protected]

@Society3grp | fb.com/society3

2. If you are going fundraising any soon, we’ll

work with you individually to help you get

ready beyond the pitch

mailto:[email protected]

https://twitter.com/society3grp

https://www.facebook.com/Society3

https://society3.com/fundersmart


#Society3

Society3.com/presentations


#Society3

© 2015, Society3. all rights reserved. This content is protected under the copyright law of the United States. It is prohibited to make full or partial copies or extractions of this documentation without the explicit written approval from the Society3 Group Inc.

S3 Accelerator, a Society3 organization | 201 Mission St, S1200 | San Francisco, CA 94105 | (650) 384-0057

+1 (415) 656-8700 society3.com/AxelS

Society3.com

Online presences: http://society3.com/society3

http://society3.com/society3

http://society3.com/society3

https://society3.com/fundersmart


#Society3

By building harbors and aqueducts, Pharaoh Ramses was first in

creating unimaginable wealth. Role model for all Kings and Caesars

for nearly 5,000 years. (Society1)

In the industrial revolution incremental value created unimaginable

wealth for tens of thousands of people (Society2)

Millions of startups will create even more incremental value, now all

over the world and unimaginable wealth for everybody (Society3)

From one – to many – to all

What gave us the name Society3

society3 equity fundraising webcast july 23 2015 by startup socials

Business

society3 structure

society3 beprepared

comsociety3 copyright

society3 san francisco

society3 group http

amazing team

facebook team

inventor of equity