One of the most critical issues facing entrepreneurs is deciding if and when it makes sense to raise outside capital. Access to capital cannot only help accelerate product development and sales, but in many cases, partnering with the right investors can influence the trajectory of a business. This series will help students understand term sheets, initial rounds of investment, and how to retain value and control. We’ll also discuss what to do with that money once you have it so you can create exit opportunities and potential for future funding. Want to learn more? Join Front Row today and access on-demand videos, livestreams, and much more: http://bit.ly/1aqAivV

1. RAISING STARTUP
CAPITAL
Arie Abecassis
Venture Partner, Founder: Dreamit, Appstori

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3. RAISING STARTUP CAPITAL
‣
Market Validation vs Scaling
‣
Industry Economics & Business Model
‣
Founder Objectives
‣
Timing considerations (External vs Internal)
‣
Company readiness

4. RAISING STARTUP CAPITAL
TRUE OR FALSE?
The best time to raise money
is when you don’t need it

5. RAISING STARTUP CAPITAL
THE ACCELERATOR OPTION
‣
Validation, Credibility & Networking
‣
Key Considerations: Relocation, Equity
‣
Evaluating various Accelerator Programs
‣
It’s only the beginning

6. RAISING STARTUP CAPITAL
TRUE OR FALSE?
Accelerators have proven to be
an “epic fail”

7. RAISING STARTUP CAPITAL
TARGETING THE RIGHT INVESTOR
‣
Is my startup “venture-worthy”?
‣
Angels vs VCs
‣
Value of “Smart” money
‣
Firm vs Partner Relationship
‣
Governance

8. RAISING STARTUP CAPITAL
TRUE OR FALSE?
All VCs are evil

9. RAISING STARTUP CAPITAL
THE APPROACH
‣
Discovery & Due Diligence
‣
Referrals are the best way in
‣
Develop relationships early and build them
‣
“March of the Penguins”
‣
Help them help you (“nail the pitch”)

10. RAISING STARTUP CAPITAL
TRUE OR FALSE?
It’s not what you know,
it’s who you know

11. RAISING STARTUP CAPITAL
HOW TO DETERMINE VALUATION
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Valuation = Pricing + Terms
‣
Growth drives price
‣
Identify private and public co comps
‣
Play within “The Band”
‣
Maximization techniques

12. RAISING STARTUP CAPITAL
TRUE OR FALSE?
You should always go with the
highest price

13. RAISING STARTUP CAPITAL
CONVERTIBLE NOTES
‣
Why they’re popular
‣
Tradeoffs for Entrepreneurs
‣
When to best use them
‣
Implications for Series A

14. RAISING STARTUP CAPITAL
TRUE OR FALSE?
You should use a Convertible
Note if you can’t negotiate a
favorable valuation

15. RAISING STARTUP CAPITAL
CROWDFUNDING & THE FUTURE
‣
Crowdfunding for benefits vs equity
‣
Horizontal platforms: KickStarter, IndieGoGo
‣
Vertical platforms: AppStori
‣
JOBS Act

16. RAISING STARTUP CAPITAL
TRUE OR FALSE?
Crowdfunding is best when
I can’t get friends and family
funding

17. RAISING STARTUP CAPITAL
GOOD TIMES, EH?

19. RAISING STARTUP CAPITAL
USEFUL LINKS
‣
The Business Insider Angel 100: Top Angels
‣
Top NYC-area VCs: Top NYC VCs
‣
Top US-based Accelerators: Top Accelerators
‣
Why Convertible Notes Can Be Bad: Tech Crunch
‣
Next Wave of Crowdfunding: VentureBeat: Crowdfunding 2.0
‣
Neat blogs: Fred Wilson, Chris Dixon, Charlie O’Donnell, Chris Fralic