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  • B007 - How Much To Raise. When, How and Why

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    Vijay Anand
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    Vijay Anand The Startup Centre what is tech entrepreneurship? Adopt what seems to work for others, to your own scenario. A Startup is a lean organization riding on a whole lot of assumptions.

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    B007 - How Much to Raise. When, How and Why

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    Vijay Anand The Startup Centre what is tech entrepreneurship? Adopt what seems to work for others, to your own scenario. A Startup is a lean organization riding on a whole lot of assumptions.

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    1K views38 pages

    B007 - How Much To Raise. When, How and Why

    Uploaded by

    Vijay Anand
    Vijay Anand The Startup Centre what is tech entrepreneurship? Adopt what seems to work for others, to your own scenario. A Startup is a lean organization riding on a whole lot of assumptions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 38

    Howmuch to raise:Whe n,Why andHow

    VijayAnand |TheStartu pCentre

    Disclaimer
    Youcannotplanentrepreneurship.Buttherearede=initelybest practiceswhenbuildinganenterprise.Adoptwhatseemstowork forothers,toyourownscenario.

    VijayAnand|TheStartupCentre

    BacktotheBasics

    VijayAnand|TheStartupCentre

    WhatisTech Entrepreneurship?
    AnapproachtoManagementthatstartswith Opportunity

    Technology/ Opportunity

    Entrepreneurship

    Value

    VijayAnand|TheStartupCentre

    Entrepreneurship: ThePursuitofOpportunity beyondtheresourcesyou currentlycontrol

    VijayAnand|TheStartupCentre

    TheEntrepreneursTask: MobilizePeople,Technology andMoney


    People

    Money

    Technology
    VijayAnand|TheStartupCentre

    StagesofaVenture
    Pure Entrepreneurship
    Assumptiondriven BornoutofanInsight Prototype

    EarlyStage
    ValueProposition Solidi=ied BetaCustomersList? Productv0.1? StrategicFocus Knowswhatbusiness wearein

    Emerging Company
    ProductLaunched RevenueTrickling SignsofaModel Feedbacklook established Knowswhatbusiness weareNOTin SystemsBuilding

    GrowthStage
    WellDe=inedProduct TimetoPivotto enlargeUserbase TweakRevenuefunnel OptimizeConversion costs Makethedollargo furtherbranding HiringOutsiders

    VijayAnand|TheStartupCentre

    VisioningtheFutureintothe Present
    ThePitch

    VijayAnand|TheStartupCentre

    Cash=lowScenario

    VijayAnand|TheStartupCentre

    WhyFundinSteps?
    SeriesC SeriesB SeriesA (Mezanine) Seed Angel

    VijayAnand|TheStartupCentre

    ValueCreation Case:Manufacturing/Pharma
    Market Introduction Regulatory Approvals Manufacturing Prototype Working Prototype Patents? Conceptand Feasibility

    VijayAnand|TheStartupCentre

    +MarketValue Case:Manufacturing/Pharma
    Satis=ied Customers MarketLaunch BetaTest Technical Reports Published Backlog

    Concept Testing Market Analysis PublishedData Qualitative Research

    VijayAnand|TheStartupCentre

    +ManagementValue Case:Manufacturing/Pharma
    CFO Manufacturing VP President Technologist MarketingVP Controller SalesManager Human Resources Manager

    VijayAnand|TheStartupCentre

    AStartupisalean organizationridingona wholelotofassumptions, provingitshypothesisone stepatatime.


    VijayAnand|TheStartupCentre

    TechnologyxPeoplexMoney xConcept=ValueCreation
    FirstEquation

    VijayAnand|TheStartupCentre

    OpportunityScreening Framework
    HighPotential Market Harvest Competitive Management Current,Musthave Need Near,HighMargins HighBarriers LowPotential Weak.Needstobe developed Far,LowMargins SeverePricing Pressure

    Complete,Strong(with InappropriateNeeds experienceinsimilar tobeproven =ield) None Oneormore

    FatalFlaws

    Timmons,NewVentureCreation

    KindsofCapital

    Loan(Debt)

    Equity

    Convertible(Hybrid)

    LoveMoney
    CapitalfromFriendsandFamily.NoreturnGuarantee

    Ownpersonalmoney.

    TheWrongCapitalatthe wrongstage,canprovetobe veryexpensive.

    VijayAnand|TheStartupCentre

    Investortermsheetsare designedtoreverse,andto grabcontrolifcompanygoes outofcontrol

    VijayAnand|TheStartupCentre

    WhatstheTrigger?
    ItstheProjectionsmadeduringfundraising. Moststartups,nevermeettheprojectionstheybelievein.

    VijayAnand|TheStartupCentre

    Donotignorethe AssumptionsDashboard.
    FirstSteponceyoumovefromPrototypetoProductwiththeaim ofbuildingastartup.

    VijayAnand|TheStartupCentre

    DoIneedabusinessplan?

    VijayAnand|TheStartupCentre

    Wherewillmy=irstroundof fundscomefrom?
    AngelInvestmentpredominantlyhappensbecauseoftrustonthe entrepreneur,thantheplan.

    VijayAnand|TheStartupCentre

    AreyouLookingtoraise funds?
    Howsureareyouaboutyourmodel? ExperimentwiththecheapestformofCapital Raiseaslittlecapitalrequired,withtheleastamountofequitythat youcanpartwith.

    ThreeStepsofaVenture FundableCompany

    EquityDilution

    VijayAnand|TheStartupCentre

    Vesting

    VijayAnand|TheStartupCentre

    TermSheets

    VijayAnand|TheStartupCentre

    Agoodvaluationcan sometimescometobiteyou back

    VijayAnand|TheStartupCentre

    HowmuchShouldIraise?

    VijayAnand|TheStartupCentre

    BetterQuestion: WhydoIneedmoney?
    ToGofaster?ToProveanAssumption?Orjustbecause?

    VijayAnand|TheStartupCentre

    Discussions

    ThankYou.

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