the 10 step method to finding investors · prioritize your investor search (know you/know industry)...
TRANSCRIPT
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The 10 step method
to finding investors - for early stage startups
NICOLAJ HØJER [email protected]
0045 25 46 25 80
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Nicolaj Højer Nielsen
Serial entrepreneur
Investor
External lecturer at Copenhagen
Business School within entrepreneurship
Consultant/advisor for multiple startups
(fundraising, commercial strategy)
Author of the Startup Funding Book
(www.startupfundingbook.com)
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Investment portfolio
Sold to Intel (2015)
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10 steps to success with your
fundraising
1. Bootstrapping and team!
2. Investors invest in different phases – in which are you?
3. Which risk/reward are you offering?
4. Do you really have a VC case?
5. Prioritize your investor search (know you/know industry)
6. Get introduced by mutual contacts
7. Understand what is the investor searching for,
8. Don’t write a long business plan!
9. Find investors that are not famous!
10. (The secret 10th step)
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Step 1: No-ones invest in a “business
idea” => team and bootstrapping
Source: www.startupfundingbook.com
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It’s all about trust
...in the beginning trust in you!
Source: www.startupfundingbook.com
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Case: Supwiz
(team and bootstrapping)
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Step 2: Investors invest in different
phases - in which are you in ?
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Banks – don’t blame them!
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Friends & Family: The first investors
often know you
Source: www.startupfundingbook.com
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Step 3: What risk/reward are you
offering investors?Source: www.startupfundingbook.com
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Different investors have different
appetite for risk/rewardSource: www.startupfundingbook.com
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What determines the risk/reward
profile in a startup
Source: www.startupfundingbook.com
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Two examples…same markets but
different risk/reward
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Step 4: Venture Capital – do you really
have what they are looking for ?
Source: www.startupfundingbook.com
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And VC’s invest much later than
you think
Source: www.startupfundingbook.com
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Step 5: Prioritize your investor search:
Likelihood of investing depends on..
Source: www.startupfundingbook.com
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Focus on investors that…
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Step 6: Get introduced by mutual
contacts (if possible)
Source: www.startupfundingbook.com
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The three important steps when
reaching out to potential investors
Source: www.startupfundingbook.com
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What happens if you just mail
people in the “red” area…
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Step 7: Many early-stage investors
(and angels) are driven by more
than money
Source: www.startupfundingbook.com
Source: www.startupfundingbook.com
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Public fund investments:
(bad for investor, good for society)Source: www.startupfundingbook.com
Investor “Society”
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PUBIC FUNDING?
Sold to Intel (2015)
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Step 8: Don’t write a long business
plan!
It’s too long (you spend to much
time making it)
It’s full of irrelevant details
It’s out of date
(investors in some
countries/regions still want one)
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Material #1 : An executive summary
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Executive summary (2/2)
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Ps. Don’t ask the receiver to sign a
NDA!!!
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The pitch deck (replaces the
business plan)
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Step 9: Find private investors that
are not famous!Source: www.startupfundingbook.com
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Ps. Trust takes time
…Dragon’s Den is fake
Source: www.startupfundingbook.com
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A real Linkedin message from
TODAY
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The secret 10th step
Confidential
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The secret 10th step
Read my book ☺
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Step 10: A lot of hard work!
Case: Recon Instruments
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Recon Instruments (founded 2008)
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Prioritized search:
INSEAD + Skiing + Business Angel
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N=200... Now the real work begin
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Executive summary to interested people
N = 100
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Further material, calls and discussions
N = 30
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Further material sent
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Signed deals
N = 9
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Ps. They are all very happy now
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Ps. Do you need the money...now?Source: www.startupfundingbook.com Source: www.startupfundingbook.com
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Wrap-up!
1. Bootstrapping and team!
2. Investors invest in different phases – in which are you?
3. Which risk/reward are you offering?
4. Do you really have a VC case?
5. Prioritize your investor search (know you/know industry)
6. Get introduced by mutual contacts
7. Understand what is the investor searching for,
8. Don’t write a long business plan!
9. Find investors that are not famous!
10. (The secret 10th step)
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Back-up
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Quick walk-through of pitch deck
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1. The intro (Capdesk)
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2. The team (Capdesk)
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3. The pain (Motilitycount)
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3. The solution (Motilitycount)
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4. The unfair advantage (Sepior)
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5. Competition (Sepior)
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5. Competition (Capdesk)
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6. Business model (Recon Instruments)
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6. Business model (Capdesk)
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7. Traction (Capdesk)
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7. Traction (Recon Instruments)
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8. Market (Motilitycount)
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8. Market (Sepior)
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9. Go to market (Motilitycount)
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9. Go to market (Sepior)
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10. Financials (Motilitycount)
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11. Financials (Recon Instruments)
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12. Milestones (Motilitycount)
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13. The ask (Recon Instruments)
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13. The ask (Sepior)
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14. Summary (Capdesk)