OCTOBER 2016 TECHNOLOGY ENTREPRENEURSHIP BOOT CAMP

Transcription

1 OCTOBER 2016 TECHNOLOGY ENTREPRENEURSHIP BOOT CAMP

2 Cole Wollak Manager Geekdom Fund Engineer with FlashScan3D Past: Program Manager, Techstars Trinity University, B.S. in Engineering

3 IANAL

4 What structure is right for your en2ty? Sole Proprietorship General Partnership (GP) Corporation C-Corp S-Corp Limited Partnership (LP) Limited Liability Company (LLC)

5 C-Corp

6 Corpora2on Shareholders Ownership Board of Directors Strategy/Direc=on/ Du=es to Shareholders Officers: President, Vice President, CEO, CFO, Secretary, Treasurer Implementa=on/ Signing Authority Employees/Opera=ons/ Contracts Liabili=es

7 Raising Money

8 Funding Documents Convertible Note/Equity Right to purchase equity in future Low cost 2 8 pages Fast Kicks the valuation can down the road Equity Financing Purchase of equtiy NOW $$$ ~1/4 birch tree s worth of paper Slow Valuation can opened

9 Funding Terms Convertible Note Cap Discount Inerest Term Not many more Equity Financing Valuation (pre/post) Others Board Seat Information Rights Many many more

10 Funding Terms, Negotiation, Getting a Deal Done Affiliate Link: hip://bit.ly/iqt6zt

11 Funding Rounds Series Seed Series Second Seed Series A Series AA Series A2 A(pick a number <3) Series B Series C Series (pick a letter <= Z)

12 Sources of Funding Crowd Funding (Product) Crowd Funding (Equity) Bootstrap Friends & Family Angel Micro VC Botique VC VC Strategic Partner Grants

13 Crowd Funding (Product) What? Kickstarter, Indiegogo, etc. When? Product or working prototype Manufacturer identified Costs known Why? Prove early adoption Retain equity ownership

14 Crowd Funding (Product) What? Seedinvest, MicroVentures, Angel.co Pool of accredited investors looking for deals ~4-6 vetted deals/mo When? Series Seed, A, B Have1/3-2/3 of current round hard committed Why? Prove early adoption Retain equity ownership

15 Bootstrap What? You opertate on Your savings Product Sales/Profit When? You don t need outside capital Why? You don t need outside capital You don t want to give up equity

16 Friends & Family What? When? Why? Your friends and family give you early money $25k - $100k You don t have customers and need some early money to get your first customers You are having trouble raising outside capital You need early money to get to the point where you can raise outside capital or reach profitability

17 Angel What? Usually first money Typically invest in what they know Typically invest when they can make and impact $25 - $250k When? You have initialy traction Why? Angels can add expertise you don t have You need the capital

18 Accelerator What? Techstars, Y Combinator, others 3 Month program to help you get off the ground 10 companies from applicants $100k+ When? You have initial traction Why? To avoid first time founder mistakes Capital Strategic help & huge network

19 Micro VC What? First or Second money Strategic Access to other capital/advisors/mentors $50k - $250k When? You have initial traction You have the potential for high growth Why? You need capital to further prove traction & growth You need strategic help

20 Boutique VC What? Strategic investors, invest in what they know $250k-$750k with follow-ons When? You fit their portfolio and strategy You need strategic money Why? Strategic help could get you to the next level You need money

21 VC What? Strategic investors $1MM+ When? You found product market fit You have customers You have the conical hockey stick Why? Join the big leagues Need gasoline for the fire You are on a rocket ship and need a bigger engine

22 Strategic Partner What? When? Why? Strategic investor Money Sales & distribution channels Strategic development You need sales & distribution channels you can t build on your own (or cost prohibitive) You could use their strategic development The channel makes sense Refer to When? category

23 Government Grants What? When? Why? Non-dilutive funding SBIR/BAA $150,000 - $1MM (Phased) You have a big technical hurdle to overcome Technical challenge needs to be overcome before productization You want to retain equity

24 NSF I-Corps What? When? Why? $50,000 Investigate the commercialization of universty research You know about interesting reasearch that you think could be commercialized $50,000

25 Tips Pitch Deck version (Stand alone) Pitch version Know your audience Angel vs VC Know your terms Read Venture Deals Use my affiliate link Hustle You are either in or you are out

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28 Questions?