DSW 2017 - Brian Parks, "Getting Ready for Your Capital Raise"

Transcript

1. None

2. GETTING READY FOR YOUR CAPITAL RAISE 9/27/17

3. Image credit: aliexpress.com

4. LET’S HAVE A CONVERSATION • Intros: DSW/Sponsors, Panelists • Panelist

   Q&A • Audience Q&A

5. DENVER STARTUP WEEK IS AWESOME • Sixth year • Largest

   free entrepreneurial event of its kind in North America • Inspiration and model for startup weeks across the country • Share the greatness using #DENStartupWeek

6. TITLE SPONSORS FOUNDER TRACK SPONSOR SPONSORS (AND VOLUNTEERS) MAKE IT

   ALL HAPPEN

7. MEET THE PANEL

8. WE’RE HERE TO ANSWER TWO QUESTIONS 1. “Should I raise

   money for my business?” a. NOT a foregone conclusion b. NOT one size fits all 2. “If I am going to raise, what do I need to do to be successful?” a. Internal preparation b. External presentation c. The process

9. THE SIREN CALL OF VENTURE CAPITAL • We’re inundated with

   financing events and the constant drumbeat of venture capital. • How much attention should a Founder pay to this news/noise?

10. THE REALITY • VC’s fund ~1,500 companies in the U.S.

    a year • Angels fund ~50,000 • VC investment rate ~0.25%, angels ~ 2.5% (400 / 40 looks)

11. FRIENDS/FAMILY, ANGELS AND VENTURE CAPITALISTS • Friends & Family: Natural

    supporters, personal connection, hope to be part of something fun and maybe make some money • Angels: Opportunistic with a broader scope, risk capital bucket of overall assets and less stringent (lower) return expectations • Venture Capitalists: More focused with set themes, more deal flow and higher return expectations (it’s not their money…)

12. TO RAISE OR NOT TO RAISE 1. What role does

    capital play in a startup? 2. What types of businesses should raise capital and why? 3. What traps do you see Founders falling victim to?

13. OK, I’M RAISING!…NOW WHAT??? 1. Who do I approach and

    when? (Stages of financing) 2. How do I get to them? (friends/family, angels, institutional investors) 3. What do they want / expect from me? 4. How do I need to behave? What if I’m not a natural pitcher?

14. • Several dedicated months to run a capital raise process

    • A LOT of bad, first dates • Discouraging (“nobody loves me”) • Distracting (“Can I go back to building my business now?”) • Exhausting (or possibly exhilarating?) FOUNDERS

15. THE OTHER SIDE OF THE TABLE 1. What’s your job

    as an investor? 2. How many opportunities will you evaluate and how many investments will you make in a year 3. How do you make decisions? How do you compare opportunities? 4. What gets you excited about an investment opportunity? Examples? 5. What turns you off?

16. • What makes me and my company stand out in

    the sea of companies and Founders out their raising money? STANDING OUT

17. • Not understanding the process and players • Not preparing

    and staying on top of all moving parts • Not committing • Not having a business that’s ready FOUR THINGS THAT KILL A CAPITAL RAISE