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How To Raise Venture Capital

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Mark Davis
Mark Davis

An overview of key considerations that entrepreneurs should understand when devising and executing their fundraising strategy.

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What You Need To Know About Raising Venture Capital
Who Is DFJ Gotham Ventures? www.dfjgotham.com DANNY SCHULTZ MARK DAVIS ROSS GOLDSTEIN THATCHER BELL Focus Sectors Digital Media Financial Technologies E-commerce Mobile Technologies Network Infrastructure Early Stage First institutional round Nominal or no revenue Demonstrable technology Global Presence Leverage DFJ Network
Who Does DFJ Gotham Invest In?
What Is The DFJ Network? 23 funds, >$6 billion in capital 150 professionals, 600 portfolio companies Unique access, insight and deal flow
Markpeterdavis.com Chapters : VC Overview Developing A Fundraising Strategy Picking The VCs Preparing Your Materials The Pre-Fundraising Process Getting The Meeting The First Meeting After The First Meeting The Due Diligence Phase Doing The Deal The Entrepreneurs Guide To Raising Venture Capital
What Makes A Company Successful? How you finance your company matters! Team Idea Finance
Is VC Right For Your Startup? Scalability of Business Capital Required to Achieve Breakeven Cash Flow High Low High Low Venture Capital Build a Giant Co Bootstrap Own 80% of a Small Co Not Viable Weak Barriers: Venture Capital Strong Barriers: Bootstrap
Can Your IT Company Scale? Technology Barriers Examples Tech-lite ( Old Tech Re-Applied ) Facebook, eBay, Twitter Data scale (e.g., Web 2.0 data) Network effects (e.g., SocNets) Tech-heavy ( New Tech ) Microsoft Office, Adobe, Skype Data scale Network effects Econ. Of scale Intellectual Property Hybrid Business Information Business Technology Business Tech-heavy ( New Tech ) Google, Oracle, Microsoft OS, Akamai Economies of Scale Intellectual Property
Why VC Is Helpful? Low High Friends & Family Angels Venture Capitalists Capital Advice Connections
Are You Ready For VC? Great Team Huge Market Product in Market Seed ($50K - $1M) X Series A (>$1M 5M)
What Materials Do You Need? Get the meeting Executive Summary Create interest Presentation Explain how Financial Model
What Topics Do You Need To Cover? Executive Summary Presentation Location Mission Overview Addressable Market Competitive Landscape Barriers Achievements Financials Capital Raised Objectives Management Bios
What Topics Do You Need To Cover? Location Mission Overview Addressable Market Competitive Landscape Barriers Achievements Financials Capital Raised Objectives Management Bios Be sure to include these Not market size State why youre better May be more than you think
How Do You Get The Meeting? Mutual Contact LinkedIn Cold Email Spam Most Effective Least Effective Direct Introduction
What Is The Objective Of The First Meeting? To get the second meeting. What is the objective of the first meeting?
How Can You Guide The Meeting? Product? Market? Competition? Team? Typical Non-Linear Meeting Set The Tone Up Front Product: Technology that solves Addressable Market: $2.5B Competitive: Significant technology barrier Team: 35 years relevant experience
How Can You Maintain Momentum? Industry News Milestones Internal Materials
How Do You Know Youre Close To A Term Sheet? Can you come meet the rest of my partners? How do you feel about these terms?
What Should You Expect In A Term Sheet? An Exploding Offer Exclusivity 30 day Due Diligence Participating Preferred Stock Liquidity Preference Founders Equity Vesting
What Happens After The Investment? On The Same Side Of The Table
Contact Info Mark Davis DFJ Gotham Ventures (212) 279-3980 Blog: markpeterdavis.com twitter.com/markpeterdavis

More Related Content

How To Raise Venture Capital

  • 1. What You Need To Know About Raising Venture Capital
  • 2. Who Is DFJ Gotham Ventures? www.dfjgotham.com DANNY SCHULTZ MARK DAVIS ROSS GOLDSTEIN THATCHER BELL Focus Sectors Digital Media Financial Technologies E-commerce Mobile Technologies Network Infrastructure Early Stage First institutional round Nominal or no revenue Demonstrable technology Global Presence Leverage DFJ Network
  • 3. Who Does DFJ Gotham Invest In?
  • 4. What Is The DFJ Network? 23 funds, >$6 billion in capital 150 professionals, 600 portfolio companies Unique access, insight and deal flow
  • 5. Markpeterdavis.com Chapters : VC Overview Developing A Fundraising Strategy Picking The VCs Preparing Your Materials The Pre-Fundraising Process Getting The Meeting The First Meeting After The First Meeting The Due Diligence Phase Doing The Deal The Entrepreneurs Guide To Raising Venture Capital
  • 6. What Makes A Company Successful? How you finance your company matters! Team Idea Finance
  • 7. Is VC Right For Your Startup? Scalability of Business Capital Required to Achieve Breakeven Cash Flow High Low High Low Venture Capital Build a Giant Co Bootstrap Own 80% of a Small Co Not Viable Weak Barriers: Venture Capital Strong Barriers: Bootstrap
  • 8. Can Your IT Company Scale? Technology Barriers Examples Tech-lite ( Old Tech Re-Applied ) Facebook, eBay, Twitter Data scale (e.g., Web 2.0 data) Network effects (e.g., SocNets) Tech-heavy ( New Tech ) Microsoft Office, Adobe, Skype Data scale Network effects Econ. Of scale Intellectual Property Hybrid Business Information Business Technology Business Tech-heavy ( New Tech ) Google, Oracle, Microsoft OS, Akamai Economies of Scale Intellectual Property
  • 9. Why VC Is Helpful? Low High Friends & Family Angels Venture Capitalists Capital Advice Connections
  • 10. Are You Ready For VC? Great Team Huge Market Product in Market Seed ($50K - $1M) X Series A (>$1M 5M)
  • 11. What Materials Do You Need? Get the meeting Executive Summary Create interest Presentation Explain how Financial Model
  • 12. What Topics Do You Need To Cover? Executive Summary Presentation Location Mission Overview Addressable Market Competitive Landscape Barriers Achievements Financials Capital Raised Objectives Management Bios
  • 13. What Topics Do You Need To Cover? Location Mission Overview Addressable Market Competitive Landscape Barriers Achievements Financials Capital Raised Objectives Management Bios Be sure to include these Not market size State why youre better May be more than you think
  • 14. How Do You Get The Meeting? Mutual Contact LinkedIn Cold Email Spam Most Effective Least Effective Direct Introduction
  • 15. What Is The Objective Of The First Meeting? To get the second meeting. What is the objective of the first meeting?
  • 16. How Can You Guide The Meeting? Product? Market? Competition? Team? Typical Non-Linear Meeting Set The Tone Up Front Product: Technology that solves Addressable Market: $2.5B Competitive: Significant technology barrier Team: 35 years relevant experience
  • 17. How Can You Maintain Momentum? Industry News Milestones Internal Materials
  • 18. How Do You Know Youre Close To A Term Sheet? Can you come meet the rest of my partners? How do you feel about these terms?
  • 19. What Should You Expect In A Term Sheet? An Exploding Offer Exclusivity 30 day Due Diligence Participating Preferred Stock Liquidity Preference Founders Equity Vesting
  • 20. What Happens After The Investment? On The Same Side Of The Table
  • 21. Contact Info Mark Davis DFJ Gotham Ventures (212) 279-3980 Blog: markpeterdavis.com twitter.com/markpeterdavis

Editor's Notes

  1. Early stage technology investors, focus on digital media and other sectors 5 investment professionals in NYC First institutional investor when there are no customers New investments are the future Sampling of portfolio companies
  2. Early stage technology investors, focus on digital media and other sectors 5 investment professionals in NYC First institutional investor when there are no customers New investments are the future Sampling of portfolio companies