lounge47 do's & dont's of funding #1
TRANSCRIPT
12/19/14 1
Do’s + Dont’s of FundingDo’s + Dont’s of Funding
| Kiran Bettadapur || Kiran Bettadapur |
Part - 1Part - 1
12/19/14 2
GambleGamble Over-Rated:Over-Rated:
Not ClairvoyantNot Clairvoyant Not Tech-Not Tech-
Savvy...OftenSavvy...Often Picks = GuessworkPicks = Guesswork
1:100 1:100 Ideas : Execution : Ideas : Execution :
SerendipitySerendipity
MODELMODEL
12/19/14 3
PerseverancePerseverance 20 Attempts 20 Attempts
DFJDFJ US$ 300K US$ 300K Exit: US$ 400 Mil.Exit: US$ 400 Mil.
0-12 Mil. in 1.5 yrs.0-12 Mil. in 1.5 yrs. 70 Mil. Internet 70 Mil. Internet
UsersUsers Rejection= Rejection=
ConvictionConviction
SELF-BELIEFSELF-BELIEF
12/19/14 4
AstrologyAstrology No Method 2 MadnessNo Method 2 Madness
Divine Help OKDivine Help OK All-iz-FairAll-iz-Fair Do What Do What You ThinkYou Think It It
TakesTakes
THOROUGHTHOROUGH
12/19/14 5
UtilityUtility Pain Points Pain Points Use Case ScenariosUse Case Scenarios
3WH: Who? When? 3WH: Who? When? Why? How?Why? How?
Market... Not Market... Not TechnologyTechnology
30-sec. Elevator 30-sec. Elevator PitchPitch
DETAILEDDETAILED
12/19/14 6
TimingTiming Never Too LateNever Too Late Mover v. ShakerMover v. Shaker Seduction... SlowSeduction... Slow Innovation: Innovation: TrojanTrojan
....Better Execution!....Better Execution!
HURRYHURRY
12/19/14 7
SuperioritySuperiority
DisruptionDisruption Compelling Compelling
...Value Proposition...Value Proposition IPR...IPR...Fence/FortresFence/Fortres
ss EvergreeningEvergreening
IMPACTIMPACT
12/19/14 8
RevenueRevenue Broken Laser PointerBroken Laser Pointer
...Pez Candy Dispensers...Pez Candy Dispensers Revenue Model?Revenue Model?
Easily Understood?Easily Understood? Planning FailsPlanning Fails Newsworthy Story...Newsworthy Story...
MONETISEMONETISE
12/19/14 9
TechnologyTechnology Murphy: Murphy:
Things Happen...Things Happen...World Changes...World Changes...
Risks... Bets go wrong!Risks... Bets go wrong! What-IfWhat-If Course CorrectionCourse Correction
Contingency PlanContingency Plan A-B-CA-B-C
AGILEAGILE
12/19/14 10
ProjectionsProjections Simple, Logical MathSimple, Logical Math Use Thumb-rulesUse Thumb-rules
$1 L = $8 C$1 L = $8 C Formula 100-100Formula 100-100
Believable, yet... Believable, yet... Aggressive, AchievableAggressive, Achievable Not ConservativeNot Conservative
REALISTICREALISTIC
12/19/14 11
ManagementManagement Whose Money?Whose Money?
Rev = $0.6 mil.Rev = $0.6 mil. Ad Spend = $12 mil.Ad Spend = $12 mil. IPO-Ch. XI = 250 IPO-Ch. XI = 250
days days Blown: $300 Mil.Blown: $300 Mil.
Biz Fundamentals?Biz Fundamentals? P-S-P-S & DP-S-P-S & D
FUMBLEFUMBLE
12/19/14 12
ValuationValuation
FINEPRINTFINEPRINT Vulture... Funding TrapVulture... Funding Trap Cash + Sweat + Assets + Cash + Sweat + Assets +
RelationshipsRelationships Tangible & IntangibleTangible & Intangible Client, Supplier & ChannelsClient, Supplier & Channels
Multiple (Rev. or Profit)Multiple (Rev. or Profit) Good LawyerGood Lawyer
12/19/14 13
CommandmentsCommandments
Focus on Business ModelFocus on Business Model Have Self-BeliefHave Self-Belief Be ThoroughBe Thorough Drill Down on Use CasesDrill Down on Use Cases Be DisruptiveBe Disruptive Focus on CashflowsFocus on Cashflows Change, if Needed, with Change, if Needed, with
AgilityAgility Be RealisticBe Realistic Tread CarefullyTread Carefully
DO’sDO’s Don’t Rush ThingsDon’t Rush Things Don’t Screw-up After Don’t Screw-up After
FundingFunding
DONT’sDONT’s
12/19/14 14
Thank You!Thank You!