際際滷s harvard i lab funding strategies to go hte distance proceso up
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This document discusses factors to consider when determining how much funding to raise for a startup. It recommends calculating needs based on milestones and assumptions, and either raising just what is needed close to need, or raising more than needed well in advance. Timing is important to plan. It also suggests defining milestones like product beta, customers, and 18 months of runway. Non-financial proofs like metrics, customers, and execution should be evaluated along with financial projections.
際際滷s harvard i lab funding strategies to go hte distance proceso up
- 1. HOW MUCH DO YOU NEED RUN THE NUMBERS BUILD ASSUMPTIONS ASSES THE DEPENDENCES DEFINE THE MILESTONES WHAT SHOULD YOU RAISE STRATEGY #1 DILUTION SENSITIVE RISK TOLERANCE RAISE JUST WHAT YOU NEED JUST BEFORE YOU NEED IT STRATEGY #2 DILUTION INSENSITIVE RISK INTOLERANT RAISE MORE THAN YOU NEED WELL BEFORE YOU NEED AND MANY POINTS IN BETWEEN EITHER WAY TIMING IS EVERYTHING TO PLAN HOW MUCH DO YOU WANT ENOUGH TO MAKE BUILD REAL VALUE DEFINE THE MILESTONES KEY HIRES PRODUCT BETA, SHIP FIRST CUSTOMERS CHANNEL PARTNERS 18 MONTHS OF RUNWAY DONT JUST VALUE-EVALUATE PROOFS: METRICS, MILESTONES CUSTOMERS PARTNERS, GTM, PRODUCT, BM ALLOW FOR UNKNOWS, TIME TO FUNDRAISE FACTORS PREDICTABILITY OF YOUR BUSINESS YOUR EXECUTION MARKET ADOPTION CASH FLOWS POTENTIAL OUTCOME COMPETITORS BALANCE SHEET VALUATION ULTIMATE EXIT POTENTIAL POTENTIAL ACQUIRERS THEIR MOTIVATIONS RECENT TRANSACTIONS INDEPENDENT BEYODND IPO COMPARABLE VALUATIONS MORE IMPORTANT THAN SPREADSHEET INVESTORS TERMS OWNERSHIP GOVERNANCE DILUTION EXITS A VALUATION METHODS DCF . . . . . A ADVANCED/DETAILED PROCESS EXIT STRATEGIES A INTANGIBLE VALUATION STARTUPS VALUATION . . . . . . A FINANCING GROWTH SOURCES RISK COST REQUIREMENTS RAISING DECISIONS TYPE OF VCS OWNERSHIP AFTER THE FUNDING ROUND TIMING OF FUNDING (NEW)EXIT STRATEGY THE FUND COMMITMENT PORTFOLIO SIZE TYPE & STRUCTURE $ $