Good Bad and Ugly of Taking Investor Money
Over the past few years, there has been a shift in how startups are built and funded, with more emphasis on getting investor money. However, the document's authors discuss that not enough is said about life after taking investor money. They share their experience of taking on investors after 4 years in business. Some of the challenges included investors becoming like bosses with no industry experience and compromising the reasons for starting the business. The authors provide tips for pitching to investors, emphasizing showing traction, keeping the pitch simple at 10 slides, demonstrating the product or vision, and making it entertaining over just discussing plans. They also discuss vetting investors to ensure a good cultural fit and defining exit plans before signing a term sheet.
Good Bad and Ugly of Taking Investor Money
- 1. Good, Bad & the Ugly of VC funding Felecia Hatcher & Derick
- 2. Felecia lost all her hair after taking on investors
- 3. 3 Over the past few years we have seen a shift in entrepreneurship and how businesses are built or the perception of how they should be built. There is an obsession with getting investor money and the big SELL OFF. But know one talks about life after the term sheet. How much it will change your life, how you may compromise the very reasons you became an entrepreneur. Or the fact that you just took a very big check in exchange for a boss with no experience in your industry. We couldn’t find this information before we took the money so we are sharing some 411 will you today. Here is the good bad and the ugly... Here is the good bad and the ugly... Here is the good bad and the ugly... 3
- 4. 4 After being In Business for 4 years we brought on investors in 2012... we’re spilling the beans we’re spilling the beans we’re spilling the beans 4
- 5. Follow us on Twitter ? @FeleciaHatcher ? @PearsonDerick ? @YoungandConnected ? Twitter Hashtag #YCVCgoodbadugly for Questions ?
- 6. There’s more Fiction then Fact ? Myth 1: Angel/VC funding is the Primary Source of Startup Funding ? Myth 2: Innovators and Investors are the same thing ? Myth 3: All VC’s will provide valuable advice and mentoring ? Myth 4: Investments will Generate Big Returns ? Myth 5: In VC, Bigger is Better ? Myth 6: Investors Take a Big Risk When They Invest in Your Company
- 7. 6 Things I Didn’t Know About Investors Before I Took the Money ? Taking an investment is essentially a marriage but more like a shot gun wedding. ? There’s no such thing as a silent partner it’s more like loud whispers or yelling. ? Vet your potential investor to make sure they are truly a good fit for your business culture. ? You will need more then Money ? Define your exit plan before you sign the term sheet, because they have. ? Grow Organically! IF YOU DON’T HAVE TO TAKE THE MONEY DON’T!
- 8. If you must insist... Tips for Pitching to Investors Tips for Pitching to Investors ? Don’t Pitch the Past Pitch the Vision- Investors already know what you’ve done they aren’t investing in your past they want a piece of what your future holds and your first born :) ? 10 狠狠撸 Rule- Keep is Simple ? Put on a Show-Don’t be boring put on a show let your personality shine through, if your product is live make it very clear. You are pitching to humans not robots make it entertaining and peak their interest. ? Traction, Traction, Traction- Its better to be about it then just talk about it. Create an MVP and paint the vivid picture or put it in the judges hands