Ingredients of a Successful Start Up
- Founder team is passionate and committed
- Put ego aside and do the right things for business
Common Mistakes in Seeking Funding
- Balance between professional delivery and perfection
Key Startup Risks -
Good Ideas Alone Don't Ensure Success
- Great talents that work together
Getting Funded the First Time
Takes One or More of The Following
- Product ready for customer trial or purchase
- Have some brand name customers now or soon
- Proprietary and defensible IP
- Rich uncle(s)
- Underestimated the time needed for fund raising
- Pitch too early: weak team, progress, plan, and presentation
- Raise too little money to pass key milestone
- Borrow too heavily from friends and family
- Changing business plan unexpectedly during campaign
- Fail to close financing or cut off the campaign before it stales
- Focus too much on dressing up for funding instead of products
- Our Story - Market, model, competitive advantages, ROI to investors.
- Vision - Optional.
- Team - You need to recruit a skeleton team. Contingent members are OK. If you
cannot identified them at this time, telling the investors you know where and how to
recruit them after funding.
- Market - Market size, market drivers, ecosystems, etc. hy do individuals or
- Solution - Describe it. Where is the innovation or differentiation?
- Overall Strategy
- Development Plan - Strategy, milestones, man-power, $, partners, etc.
- Service delivery - Strategy, milestone (esp. for service company)
- Competition - This is the one section that are often missing.
- Financial Projections - Early months and first 2-3 years.
- Summary - Why Investors should invest in this deal!
- Demo - At the end or at the beginning, but show only a stunning one.
- Your solution
- Business model
- Underlying magic/technology
- Marketing and sales
- Projections and milestones
- Status and time line
- Summary and call to action
Alternative VC Presentation Outline
- Don't open with a joke. Use a grabber, like a quote, anecdote
- Don't overdo details and data
- Don't be a performer
- Don't wear out your welcome. Less is more.
VC Presentation Outline from Guy Kawasaki
When Your Present
Favorite Investor's Questions for Seed Rounds
- Are the team members full time?
- Show me a big market that capture my attention
- Any paying customers?
- How much have you spent on this venture?
- Other than investor capital and government grant, how do you get your
money from the customers to scale
- How do you get customers to sign up and what is the sales /mktg costs
- Who touches your revenue first -- selling to enterprise or consumers?
- Do you look (are you) physically healthy and energetic?
- How you showed it to local VC or angels? Results?