How to use 500 Startups to fundraise and how 500 can/will help them. Presented to Batch 6 of the Accelerator program. (Spring 2013)

1. How 500 Will Help You Raise Money
How to Hack 500 to
Raise Money

2. NOT 500
#NoFairyGodmother

3. 500!!!
#Hustle

4. Case Study:
Founders: Ben Jabbawy, Jake Cohen
Start of Batch 5: small F&F raised
End of Batch 5: $1M closed, led by notable VC angel.co/privy
1ST WEEK @ 500: Built pipeline of 120+ investors. (investors of
startups in similar space, relevant 500 mentors, etc) Prioritized
each investor, identified warm connections, then HUSTLED.
Sat down w/ Christine to review pipeline, ask for advice on
prioritizing, suggestions for investors to add. Introduced them to
3-4 investors that (1) she had a good relationship with, (2) thought
were a strong fit for Privy.
Tapped into 500 Mentors. Built strong relationship w/ one mentor,
who ended up doing 1st angel investment in them.
VCs/angels back home (Boston) became very interested once they
joined 500. Privy sent regular updates to folks. One VC who said
no before 500, now is leading their round.
Scoured Demo Day attendee list.

5. Case Study:
Founders: Tracy Lawrence, Jeff Schenck
Start of Batch 5: $0 (sans 500’s investment)
End of Batch 5: $1M closed, led by
Lowercase Capital (Chris Sacca)
Built investor pipeline, then sat down
w/ Christine to review/prioritize.
Made direct intros to a small # of
investors she knew well.
Hustled to build relationships within
500 - attended most talks & met angel.co/chewse
speakers, actively used mentor office
hours, sat down w/ 500 team.
Got to know fellow 500 founders.
Most effective intros came from
successful founders that an investor
had invested in.

6. Use The Power of 500
1. You’re now a 500 Startups company. Milk that for all it’s
worth.
2. First build relationships w/ 500 companies & mentors, and
yes EVEN 500 [INVESTMENT] PARTNERS. Don’t make “the
ask” until you do that.
3. Sit down w/ 500 Partner & review your fundraising
strategy & investor pipeline. We will offer our advice. 500
will also do direct intros, but selectively.
4. Groom your AngelList profile. Help each other trend. 500 will
approve connections, but selectively. (and YMMV)
5. Demo Days: We will share the attendee lists beforehand. Take
advantage of this.
6. Mentor Notes: Mentors can invest in Batch 6 companies (you
make the final call). However, refer to Bullet #2 above.

7. Parting Words
Relationships are everything. 500 is a family, but you need
to get to know people too.
Fundraising is hard. Hustle, persistence, and follow-
through are key. Track everything. Always be CLOSING.
Nothing is ever a closed door. Stay optimistic.
You can’t convince people to invest in a crappy product &
team. So don’t forget about #1.