Learn how to raise capital for your startup with Lili Balfour! Lili Balfour is the founder and CEO of the SoMa-based financial advisory firm, Atelier Advisors, creator of Lean Finance for Startups, Finance Boot Camp for Entrepreneurs, and How to Crowd Fund a Million Dollars, author of Master the Finance Game, and host of the Finance for Entrepreneurs broadcast on Spreecast. After spending fifteen years in investment management and investment banking, she decided to develop a firm to cater to the specific needs of early-stage companies. At Atelier Advisors, Lili advises leading brands across industries: from tech to consumer goods. In the past, she has advised over 100 brands, including: Bag, Borrow, or Steal, Visual IQ, Alpha Theory, Derivix, Practice Fusion, Peeled Snacks, Sustainable Minds, Firescope, Chix 6, Duchess Marden, Erin Fetherston, Eckart Tolle, and Stuart Skorman (founder of Reel.com, Elephant Pharmacy, Hungry Minds, and Clerk Dogs (sold to Netflix)). While advising companies at Atelier Advisors, she observed a common theme - -brilliant founders avoided finance. She began writing about entrepreneurial finance to solve this problem. As a native of Silicon Valley and a first generation Mexican American, Lili understands the importance of imparting wisdom learned in Silicon Valley to the rest of the world. Her goal is to teach the entire planet about entrepreneurial finance.

1. http://meetup.com/igniter
Igniters Meetup
Hack Finance for Your Startup
Speaker: Lili Balfour
Sponsored by:
Hosted by:
http://www.vorkspace.com
- Workspace of the Future

2. Hack Finance for
Your Startup
Hacker Dojo
Mountain View
August 20, 2014

3. What + Why
Build a profitable company and raise the
right type of capital by focusing on the right
financial information.

4. Financial Statements
The Salient Six:
① Revenue
② Cost of Revenue/Goods (COGS)
③ Research and Development (R&D)
④ Sales, General, and Administrative (SG&A)
⑤ Operating Income (Loss)
⑥ Cash

5. Income Statement
 Monitor five components for financial performance.
 We must understand metrics that drive performance.

6. Balance Sheet - Cash
 With $500,000, you will run out of capital in month seven.
 You should secure capital by month six.

7. Standard Metrics
Standard Metrics
ARPU Average Revenue Per User (Customer)
CAC Customer Acquisition Cost
DAU Daily Active Users
MAU Monthly Active Users
Churn Rate The % of users/customers lost
Viral Coefficient Effectiveness of digital promos

8. Determine Source of Capital
Look at amount needed and fit.
$10k to $3 million $3 million to $50 million
 friends + family
 angel investors
 crowd funding
 venture capital
 hedge funds
 private equity

9. Finding Investors
Find the right type of investor.
Create a list for outreach.
 Identify 100 to 200 leads to execute your
funding strategy.

10. Source Angel Investors
How to Find Angel Investors
Who Will Help You Win
Use free resources to
develop a list of relevant
angel investors.

11. Source VCs
How to Locate Venture Capital Funds
That Want to Fund Your Company
Use free resources to
develop a list of venture
capital funds that have
capital and are ready to
invest in your company.

13. Funding Materials
Develop Your Story.
Standard materials used:
 Refine elevator pitch, executive summary, pitch
deck, and business model.

14. 10 Basic Slides
Pitching to Investors
① Problem/Opportunity
② Solution
③ Market Size
④ Team
⑤ Sales, Marketing + Distribution
⑥ Customers/Traction
⑦ Competitive Landscape
⑧ Press/Testimonials
⑨ Financials
⑩ Capital Needs

15. Introduce Yourself
Develop Outreach Plan
Angel investors
 master the art of cold calling.
 expand networking circles.

16. Get Social
Get comfortable reaching out
to people you don’t know.
Move beyond social media
and go where your target
investors congregate.
Treat investors as you would
potential customers.

17. Laws of Nature
You need to fail to succeed.
Plan to fail 70% of the time.
The more people you reach, the higher your chances for
success.

18. VC Dance
Associates vs. Partners
Turn Maybe into Yes
Funding Process

19. Stay in Touch!
Spreecast
www.spreecast.com/users/lilibalfour
YouTube
www.youtube.com/user/lilibalfour
Udemy
www.udemy.com/u/lilibalfour
PopExpert
www.popexpert.com/lilibalfour
Use HACKERDOJO to receive 60% to 100% off Udemy.

20. http://meetup.com/igniter
Igniters Meetup
Hack Finance for Your Startup
Speaker: Lili Balfour
Sponsored by:
Hosted by:
http://www.vorkspace.com
- Workspace of the Future