Maher Hakim - Startup Fundraising

1. Startup Fundraising
What do investors look for and why?
Maher Hakim, Ph.D.
mhakim@qrdi.org.qa
drmaherhakim@gmail.com
www.linkedin.com/in/drmaherhakim
Chief Innovation Advisor, Qatar Research, Development & Innovation Council
Executive Director, CIRTIS Innovation Center, University of California Berkeley
Partner, 212.vc
Founder & President, Innovation Foundry

2. Agenda
Do you need to raise money? Why?
Multi-stage financing 101
Not all investors are created equal
So, what do investors look for?

3. Copyright @ 2019 Maher Hakim. All Rights Reserved
Let’s Play a Game!

4. Types of “Startups”
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5. Innovation Startup Stages
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6. Multistage Financing 101

7. Yelp’s Story 2004
0 revenue
No Web site
No employees
2 FOUNDERS!
1 IDEA!
TODAY
$700M Annual Revenue
150M Monthly Visitors
Five Continents
~$2.9B Market Cap
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8. Simple Scenario
$1M $4M
Founders: $4M EACH
A Investors: 10X
B Investors: 2X
Employees: Ferraris
Series A Price: $0.125
Series B Price: $0.57
Step-up: 4.5X
Year 0: 2 Founders 50/50 with 25% for employees
Year 1: Raised $1M for 50%
Year 3: Raised $4M for 30%
Year 5: $30M exit vs. $10M exit
Copyright @ 2019 Maher Hakim. All Rights Reserved

9. Types of Investors
https://www.linkedin.com/pulse/startup-investors-good-bad-ugly-
why-do-some-tech-startups-maher-hakim

10. Investors Types
VC/Private Funds Angels
StrategicPublic Incubators
The Crowd
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11. So, what do they look for?

12. ALL
1.
2.
3.
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13. Versus
ALL
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14. ALL
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15. ALL
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16. VC/Private
Funds
Success Rate of VC
Investments
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17. It’s About Big Winners
VC/Private
Funds
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18. My Money?
Angels
The Good The Bad The Ugly
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19. Looking Good!!
Public Incubators
Rule 1 - Follow
the Rules
Rule 2 - Put On
A Show
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20. What IF?
Strategic
Fear #1
Fear #2
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21. The Herd!
The Crowd

22. Yelp’s ROI?
We Paid $0.1 Per Share
in 2004
We Paid $0.45 Per Share
in 2005
We Paid $4 Per Share
in 2008
Share Price Today
= $35
Copyright @ 2019 Maher Hakim. All Rights Reserved

23. Q&A