five random tips on fundraising
TRANSCRIPT
TM
Logistics Operations Made Easy
Fundraising: The Best Advice You Never Got
Wicked Wednesday, 25 Mar 2015 @ N-HouseShamir Rahim, Founder & CEO
We are the for Logistics companies.
Customer Relationship Management (CRM)
Logistics Operations Management
.com
TM
Investor Founder𝑅𝑎𝑖𝑠𝑒𝑑𝑐𝑎𝑝𝑖𝑡𝑎𝑙% 𝑜𝑓 𝑐𝑜𝑚𝑝𝑎𝑛𝑦
=¿ Post-money valuationEg. $700,000 for 35% of the company
$700,0000.35
=¿$2M Post-money valuationPre-money valuation = $2M - $700,000 = $1.3M Pre-funding = 1,000,000 shares in total Founder A = 500,000 shares ie. 50% of the startup
𝑥1,000,000+𝑥
=0.35
Solving for= 538,462 new shares to issuePost-funding = 1,538,462 shares Founder A = 500,000 shares ie. 32.4% of the startup
A
B
~
Bonus: Is there a ‘shortcut’ formula?
The Negotiation!!
Fundraising | 101
Good Advice:Look beyond valuation.
Better Advice:Assess value-add and networks.
Best Advice:Speak with portfolio founders.
#1
Fundraising | 101
Good Advice:Get out of the building.
Better Advice:Iterate MVP with customers.
Best Advice:Collect sales orders. Show them.
#2
Good Advice:It’s a process, not an event.
Better Advice:Socialize early.
Fundraising | 101
Best Advice:Get an awesome mentor.
Ask for intros.
#3
Good Advice:Raise money when you don’t need it.
Better Advice:At least 6 months before you run out.
Fundraising | 101
Best Advice:Bootstrap every last cent from Day 1.Double all time-to-money projections.
#4
Good Advice:Build a beautiful deck.
Better Advice:Craft a compelling story.
Fundraising | 101
Best Advice:Bring a customer into the room (or their signed sales orders).
#5