funding through angels and vc's - sunny gupta

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Funding Through Angels and VC's

Sunny Gupta – CEO, Apptio

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Topics

Starting a Company Fundraising Examples Funding Options What Drives Good Fundraising? Build A Great Company

© 2008 Apptio Inc. All rights reserved. Proprietary and confidential

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Starting a Company

Deciding to leave a great job & career Entrepreneurial “DNA” , have financial upside, grow

dramatically

Mental toughness Compelling market opportunity

Validations with customers who are willing to pay money for?

• Incredible team that is complementary• Financing Strategy

• Self funded, Customer $$, Angels, VCs


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My Story

Started “Vigor” in 1996 No Angel/No VC – self funded via consulting $ Used consulting revenues to drive product Acquired in 1998 by Rational Software – Public Company

Founded “iConclude” in 2005 – 12M Raise Angel & VC -> Series A (Madrona) -> Series B (Greylock/Shasta) Acquired in 2007 by Opsware/HP – 70M Exit

Founded “Apptio” in 2007 – 37.5M Raise Series A (Madrona/Greylock) -> Series B (Shasta/Andressen) ->

SeriesC Growing & scaling the business


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Fund-Raising - iConclude

• Team & credibility - 2

• Customer pain point

• 5+ customer validations

• Product Mockup

• Product ship timeline

• Financial Model

Angel = 500K VC Series A = 2.5M

• Expanded Team - 8

• Alpha Product

• 2 Early Adopter Customers

• 20+ Customer Validations

• Go-to-market model

Series B = 9M

January 20051 Week

July 20053 Months

•Completed Team •VP Marketing •VP Development•Sales Team & proven model

•Shipping Product

•4 Paying Customers

•1M+ Pipeline

•Capital Efficiency

April 20061 Month

Venture can help you build bigger value faster = 2007

February = 70Million

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Fund-Raising - Apptio

• Team & previous experience

• Customer pain point

• 40+ customer validations

• Product Mockup

• Product ship timeline

• Financial Model

VC Series A = 7M VC Series B = 14M

• Expanded Team - 30

• Shipping Product

• Exceeded plan by 300%

• 15+ Paying Customers

• Go-to-market model

Series C = 16.5M

October 20071 Week

June 2009< 1 month

•Completed Team

•Great Market traction

•50+ customers

July 20101 Month

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Funding Options

Not all businesses are venture businesses Big market opportunity, great teams, time to scale

Bigger Pie Theory - Dilution Strategic Value Add

Customer introductions, Business plan, Venture Introduction, scale, Recruit board members

Exit options

Control & Governance


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What Drives Good Fundraising? Great Team, Market Opportunity,

Execution Strategic Positioning Validation of the market opportunity------------------------------------------------------------

-- Competition, Backdoor references Series A – Bet on team, market Series B – Bet on team, market validation, execution Series C – Validated customer/revenue ramp


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Build A Great Company

Customer Validations Great Team Start Selling Early Frugality Experiment & Fail Fast


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