Are you looking for funding? Would you like to learn more about how to attract and convince potential investors? Then you should definitely mark the date monday the 23rd of June at 09:00 am in your calendar. Come listen to MESH's very own Erling Løken Andersen talk about raising money at MESH in Tordenskiolds gate 3. Erling has previously raised around 10m NOK from various investors in Oslo and Silicon Valley. He also sold Biip.no for 75m NOK in 2008. Erling will give a presentation on how to find, approach and convince investors that your project is worth his/her time and money, giving you guidelines on how to build and present a solid pitch deck. You'll also learn the do's and dont's of an investor presentation - and the basics of accelerators and incubators.

1. How
to
A'ract
Investors,
then
Convince
Them
You're
Not
A
Loser.
(WORLD
PREMIERE)
Erling
Løken
Andersen
MESH
+
Omega
Media
+
Listnerd,
Inc.

2. Who
am
I?
• Erling
Løken
Andersen
• Web
Designer
since
1999,
Internet
Entrepreneur
from
2005.
• Started
Biip.no
in
2005,
sold
it
for
75
mill.
NOK
to
Egmont
and
TV2
in
2008.

3. What
have
I
raised?
Project
Funds
raised
(approx.)
Investors
• Biip.no
AS
2m
NOK
3
private,
1
company
• Spill.no
1.5m
NOK
2
companies
• Gul
Index
AS
2.5m
NOK
6
private
• Mobia
AS
300k
NOK
1
private
• Listnerd,
Inc.
2m
NOK
4
private,
1
company
– Incubator:
TINC
by
InnovaUon
Norway
– Accelerator:
Plug
&
Play
Tech
Camp
by
Plug
&
Play
Ventures
• Various
other
projects
1m+
NOK
4
private,
2
companies

4. Where
are
we?
• MESH
–
Oslo's
premiere
innovaUon
hub
• 150
entrepreneurs,
90
companies,
25
naUonaliUes
• Founded
by
Audun
Ueland
and
Anders
Hordvei
Mjåset
in
2012
• Offers
private
office
spaces
and
coworking
memberships
starUng
from
just
1.190
kr
/
month.

5. Goal
of
this
presentaSon
1. Give
you
the
tools
to
successfully
raise
funding
for
your
project.
2. Professionalize
Norway's
entrepreneurial
scene.

6. Tweet
this!
At
@meshnorway
listening
to
@stormen
blahblahblah
#siliconXord

7. What
types
of
investors
exist?
Private
investors
• Financial
• Angels
• Friends,
fools
and
family
(FFF)
• (Crowdfunding)
Company
investors
• Financial
• Industrial
• Accelerators
Government
grants
• Grants
• Loans
• Incubators
Own
funds
• Savings
• Loans

8. Private
investors
Financial
Looking
for
financial
gain.
Treats
the
investment
in
a
economic
majer.
Invests
in
almost
any
niche,
as
long
as
the
opportunity
is
good.
Not
easily
swayed
by
emoUons.
Angels
Semi-­‐professional
investors.
Olen
invests
with
"their
gut".
Tends
to
invest
in
their
professional
niche.
Friends,
Fools
&
Family
Usually
not
professional.
Ruled
by
emoUon
and
trust.
Comes
with
both
benefits
and
disadvantages.

9. Company
investors
Financial
Looking
for
financial
gain.
Treats
the
investment
in
a
economic
majer.
Includes
investment
companies
and
VC's.
Strategic
/
Industrial
Players
in
a
certain
niché.
Olen
does
defensive
investments.
Think
Facebook
buying
Instagram;
or
Electronic
Arts
buying
Playfish
in
Trondheim.
Accelerators
Takes
a
small
stake;
gives
you
a
small
investment.
Looking
for
long-­‐
term
financial
gain.
Makes
a
lot
of
bets;
only
some
of
these
are
successful.
Prepared
for
you
to
fail;
but
pleasantly
surprised
if
you
make
it.

10. Nordic
VC's

11. How
do
VC's
work?
LP
VC
fund
Startup
A
Startup
B
Startup
C
Startup
D
Startup
E
VC

12. Government
grants
Grants
Lots
of
different
types
of
grants.
Norway
has
stuff
like
Skajefunn,
IFU
and
Etablererstøje.
EU
also
has
lots
of
grants;
olen
niché-­‐
specific.
Loans
InnovaUon
Norway,
Forskningsrådet
and
other
governmental
agencies
can
issue
project-­‐
and/or
companyspecific
loans.
Incubators
Doesn't
take
a
stake
in
the
company.
Olen
comes
with
an
entrance
fee.
Their
goal
is
to
accelerate
companies
in
the
desired
poliUcal
niché.

13. QuesSons?

14. What
do
you
need
to
begin?,
vol.
1
Idea
+
Company
Business
plan
+
budget
forecast
13
slide
pitch
deck
Start
pitching
the
right
people

15. What
do
you
need
to
begin?,
vol.
2
Source:
Pitching
Hacks
by
Venturehacks.com

16. What
do
investors
look
for?
• Not
neccessarily
a
good
idea,
but
a
good
business
opportunity.
• There
are
lots
of
bad
ideas
out
there,
with
brilliant
execuUon
and
massive
profits.
• What's
Skeidars
differenUator?
Nothing,
it's
just
well
run.
• Investors
look
for
return
on
their
money
and
the
highest
possible
certainty
of
success.
The
chance
of
success
in
the
execuUon
of
the
idea
is
strengthed
by
a
good
team.

17. "For
investors,
the
product
is
nothing."
-­‐
Marc
Hedlund

18. "It's
less
about
the
idea,
more
about
the
team
behind
it.
Thinking
outside
the
box
is
not
difficult.
Implemen>ng
outside
the
box,
on
the
other
hand,
is
what
will
make
or
break
an
idea."
-­‐
Northzone.com

19. High-­‐concept
pitch.

20. "Summarize
the
company’s
business
on
the
back
of
a
business
card."
-­‐
Sequoia
Capital

21. Some
examples
• “Friendster
for
dogs.”
• “Tinder
for
Shoes.”
• “Youtube
for
music.”
• “Flickr
for
video.”
• “We
network
networks.”
• “The
Firefox
of
media
players.”
• “Massively
MulUplayer
Online
Learning.”
• “The
entrepreneurs
behind
the
entrepreneurs.”
• “Create
your
own
social
network.”

22. QuesSons?

23. The
Pitch
Deck.

24. The
13
slide
pitch
• First
introduced
by
David
Rose.
• I
was
taught
it
by
Nathan
Gold
(www.democoach.com)
based
in
San
Mateo.
• A
simple
framework
for
pitching
to
investors.
• Many
investors
in
Silicon
Valley
prefer
and
insist
on
this
standarized
pitch
framework.

25. The
13
slide
pitch
1. Company
logo
&
Opening
2. The
Problem
(Business
Overview)
3. Team
4. The
Market
/
Market
Opportunity
5. The
SoluUon
(Product)
6. Business
Model
7. Strategic
RelaUonships
(and
customers)
8. CompeUUon
9. Barriers
to
Entry
/
USP
10. (TracUon)
11. Financial
Overview
12. Use
of
Proceeds
13. Capital
Request
14. Contact
info
&
Close

26. "Prac>ce
makes
perfect
beFer:
Pitch
from
day
one.
The
more
people
you
pitch
your
idea
to,
the
sharper
your
thinking
will
be."
-­‐
Northzone.com

27. AIRBNB
FOR
STARTUPS
Erling
Løken
Andersen
Head
of
Coworking
&
Partner
RelaUons
1
/
14

28. The
Problem
• Offices
in
Oslo
are
expensive.
• They
olen
require
12,
24
or
36
month
contracts.
• You
have
to
pay
large
up-­‐front
fees
and
guarantees.
• Startups
have
lijle
capital;
and
the
lijle
capital
they
have
they
don't
want
to
Ue
up.
2
/
14

29. Team
Erling
Løken
Andersen
Head
of
Coworking
&
Partner
Rela>ons
Co-­‐founded
Biip.no
in
2005;
exit
of
75m
NOK
in
2008.
Anders
Hordvei
Mjåseth
CEO
and
Founder
of
MESH
Co-­‐founded
PramPack;
exit
of
millions
to
Stokke
in
2010.
3
/
14

30. The
Market
21
000
000
000
1
680
000
000
Yearly
rental
cost
Total
commercial
office
space
in
Oslo
Office
space
currently
in
use
by
startups
4
/
14
• 104.000
registered
businesses
in
Oslo
and
Akershus.
• 7.280
(7%)
of
these
moves
to
a
new
office
every
year.
• An
esUmated
50%
of
these
(3.640)
aligns
with
MESH's
target
audience.

31. The
SoluSon
• MESH
is
a
2500
sq.
m.
innovaUon
hub
in
downtown
Oslo.
• MESH
houses
more
than
150
entrepreneurs
in
more
than
90
companies.
• MESH
consists
of
a
coworking
department,
14
individual
offices,
an
event
space,
a
night
club
and
a
café.
• At
MESH,
entrepreneurs
gets
cheap
office
space
combined
with
a
creaUve
environment.
5
/
14

32. Business
model
• Coworking
membership
fees
20%
– Average
membership
fee:
2.000
NOK
– Average
lifespan
of
member:
6
months
– Average
lifeUme
value
of
member:
12.000
NOK
• Private
office
rentals
15%
• Revenue
from
the
eventspace
and
nightclub
50%
• Corporate
sponsors
8%
• Government
grants
7%
6
/
14

33. Strategic
partnerships
7
/
14

34. CompeSSon
Name
Niché
Est.
yearly
revenue
Profit
• Regus
Norge
AS
Corporate
55m
NOK
9,5m
NOK
• MESH
Startup
+
events
15m
NOK
1,0m
NOK
• Workhouse
Startup
5m
NOK
1,0m
NOK
• Startup
Lab
Corporate
+
startup
5m
NOK
0,5m
NOK
• 657
Norge
Startup
3m
NOK
0,5m
NOK
• Gründernes
Hus
Startup
2m
NOK
0m
NOK
We
expect
that
low-­‐end
real
estate
market
catering
specifically
to
startups
will
to
conUnue
to
grow
and
that
several
new
compeUtors
will
emerge
in
the
next
3-­‐5
years.
8
/
14

35. Barriers
to
Entry
&
Our
USP
• Difficulity
finding
suitable
office
space
in
downtown
Oslo.
• Labour-­‐intensive
startup
period.
• Difficult
differenUaUon
strategy;
MESH
has
established
itself
as
"the"
innovaUon
hub
in
Oslo.
• Low
price
point
for
startup
offices
with
few
profitable
players;
only
MESH
is
backed
by
night
club,
event
space
and
café
revenue.
9
/
14

36. TracSon
Featured
on:
10
/
14

37. Financial
Overview
2014
2015
2016
2017
2018
Income
15m
20m
25m
30m
40m
Expenses
14m
16m
19m
25m
32m
Profits
1,0m
4,0m
6,0m
5,0m
8,0m
11
/
14

38. Use
of
Proceeds
• MarkeUng
1m
NOK
• New
hires
and
staff
improvements
0.5m
NOK
• AcquisUon
of
compeUtors
0.5m
NOK
• Free
cash
pool
0.5m
NOK
• TOTAL
2.5m
NOK
12
/
14

39. Capital
request
Pre-­‐funding
• Funds
from
founders
• Establishment
of
the
MESH
house,
contracts,
hires,
etc.
2,0m
NOK
Seed
Round
• On-­‐going,
gives
24
month
runway.
• Equity
to
grow
the
MESH
house
and
increase
reach.
2,5m
NOK
Series
A
Round
• Further
development
of
the
company
and
brand,
with
possible
exit
to
established
market
player.
5,0m
NOK
13
/
14

40. AIRBNB
FOR
STARTUPS
Erling
Løken
Andersen
Head
of
Coworking
&
Partner
RelaUons
Mobil:
(+47)
943
28
901
Email:
erling@meshnorway.com
14
/
14

41. Typical
investment
run
MVP
financed
by
Founders
Seed
Round
50
-­‐
500k
USD
Series
A
1
-­‐
3m
USD
Series
B,
C
and
D
5m+
USD

42. How
do
I
price
my
new
idea/company?
• Impossible
to
answer,
but:
• Setup
a
budget
for
the
next
3
years.
• MulUply
your
profit
in
year
2
or
3
with
8
-­‐
15x,
and
use
that
as
an
esUmated
market
cap
(valuaUon)
for
100%
of
the
stocks
in
the
seed
phase
of
your
company.
• If
you're
selling
20%,
the
investor
should
pay
20%
of
the
total
valuaUon.
• In
the
end,
your
idea
or
company
is
worth
whatever
somebody
is
willing
to
pay.

43. Venture
Funding
Hacks:
Get
tracSon
before
launching
• Dropbox
made
a
3
minute
video
explaining
the
concept.
• No
product
launched.
• WaiUng
list
of
5.000
people
went
up
to
75.000
people.
• Funding
of
$1.2m
USD
shortly
aler;
then
they
built
the
product.
• Recently
raised
$350m
USD
in
their
Series
C;
then
$500m
in
Debt
Financing.

44. Venture
Funding
Hacks:
Establish
an
Advisory
Board
• An
Advisory
Board
"social-­‐proofs"
your
company
and
team.
• It
establishes
trust,
lezng
investors
know
that
other
entrepreneurs
and
investors
"vouches"
for
your
company.
Your
Advisory
Board
can
also
open
doors,
market
access
and
contribute
to
networking.
• Advisors
are
typically
compensated
with
stock
opUons,
ranging
from
0,1-­‐1%,
depending
on
their
profile
(plus
travel
expenses
to
meeUngs
and
similar).
2-­‐4
years
vesUng
is
also
normal.

45. Venture
Funding
Hacks:
Go
for
strategic/industrial
investors
• Gezng
money
from
the
"big
players"
in
the
same
niche
as
you
is
usually
easier
than
gezng
money
from
VC's.
• Same-­‐niche
players
understands
the
game
you're
in
and
can
do
defensive
investments.
• Pro-­‐Up:
Look
for
the
biggest
players
in
your
niche.
They
might
be
very
interested
in
a
small
stake
in
a
company
that
represents
"the
future"
of
their
own
niche.
• Some
companies
have
even
set
up
own
vechicles
for
these
kind
of
investments.

46. Venture
Funding
Hacks:
Do
not
ask
for
money
...or
wait
as
long
as
possible.

47. QuesSons?

48. Accelerators

49. What
are
incubators
and
accelerators?
Plug
And
Play
(accelerator)
• 4%
stake
in
company
• $20k
USD
investment
(mcap
of
$500k
USD)
• Free
offices
for
3
months
• Free
mentoring
and
networking
• "Demo
day"
at
the
end
(200+
investors
present)
• Goal:
Accelerate
company
and
earn
P&P
money
TiNC
(incubator)
• 0%
stake
in
company
• Roughly
60.000
NOK
cost
for
parUcipants
• Free
offices
and
living
space
in
USA
for
2
months
• Free
mentoring
and
networking
• "Demo
day"
at
the
end
(50+
investors
present)
• Goal:
Accelerate
company
in
desired
poliUcal
niché
(Norwegian
tech
company)

50. Demoday

51. How
does
accelerators
work?
Value
of
successful
company
Company
X
P&P
invests
in
100+
companies
with
relaUvely
low
valuaUon,
but
with
high
risk
per
company
Risk
is
miUgated
through
diversified
investments;
only
1
has
to
"take
off"
to
jusUfy
the
other
investments
Exit
of
$1b
USD

52. The
math
behind
accelerators
• 100
investments
x
$40.000
USD
=
$4m
USD
• 100
investments
with
4%
ownership
stake
• 90
of
the
companies
fail
=
$0
USD
value
• 9
of
the
companies
goes
okay:
9
x
($10m
USD
x
4%)
=
$3.6m
USD
• 1
of
the
companies
goes
extremely
well:
$1b
USD
x
4%
=
$40m
USD
in
value

53. Some
P&P
companies

54. The
Approach

55. "VCs
are
generally
bombarded
by
requests
for
mee>ngs,
so
a
warm
introduc>on
helps
an
entrepreneur’s
request
float
to
the
top
of
the
list."
-­‐
Chris
Wand

56. How
do
I
approach
investors?
• Financial
investors
like
VCs
and
prominent
angels
are
pitched
100
Umes
per
day.
• They
will
not
answer.
They
will
not
return
calls.
They
will
not
see
your
presentaUon.
• Do
not
cold-­‐call
investors.
It
won't
work.
• Use
your
connecUons.
Hustle.
Network.
Ask
people
for
introducUons
and
recommendaUons.
• Setup
an
Angellist
profile.
Send
your
pitch
deck
to
your
business
partners.
Talk
with
your
friends.
If
you
haven't
got
any
well
connected
friends,
get
new
ones.
• Why
should
an
angel
use
Ume
on
a
presentaUon
from
a
stranger,
when
his
friend
wants
to
show
him
"a
really
fantasUc
product
with
a
great
team
behind
it"?

57. Investor
profiles
• Different
VC's
invest
in
different
categories.
• Check
their
website
to
make
sure
that
your
product
is
in
the
space
they're
operaUng
in.
• It's
terribly
unprofessional
to
approach
an
e-­‐health
focused
VC
with
(for
example)
a
social
media
product.

58. Do's:
• Setup
an
Angellist
profile
• Make
a
great
pitch
deck
• Use
your
network
• Go
to
tech
and
network
events
• Go
to
events
related
to
your
product
• If
you
believe
in
your
product,
ask
for
money
from
your
friends,
fools
and
family.
If
you
succeed,
they'll
become
rich.
If
you
fail
and
they
get
mad,
they
were
never
your
true
friends.
• If
a
potenUal
investor
says
"no",
ask
them
who
they
would
talk
to
next.
Perhaps
they
have
a
friend
interested
in
invesUng
in
the
space?
Approaching
–
Do's
and
Dont's:
Don'ts:
• Don't
cold
call;
it's
a
waste
of
everybody's
Ume.
• Don't
start
approaching
investors
unUl
you
have
a
company;
it's
unprofessional.
• Don't
assume
you
have
a
brilliant
idea
–
there
are
a
million
of
them.
ExecuUon
is
everything.
• Don't
badger
people
–
if
they
say
no,
ask
them
if
you
can
contact
them
when
you're
doing
your
Series
A.
• Don't
approach
investors
outside
of
their
investment
profile
(check
their
homepage!)

59. The
Perfect
Pitch
Mail
Subject:
Introducing
Ning
to
Blue
Shirt
Capital
Hi
Steve,
Thanks
for
offering
to
introduce
us
to
Blue
Shirt
Capital.
I've
ajached
a
short
presentaUon
about
our
company,
Ning.
Briefly,
Ning
lets
you
create
your
own
social
network
for
anything.
For
free.
In
2
minutes.
It's
as
easy
as
starUng
a
blog.
Try
it
at:
hjp://ning.com
We
built
Ning
to
unlock
the
great
ideas
from
people
all
over
the
world
who
want
to
use
this
amazing
medium
in
their
lives.
We
have
over
115,000
user-­‐created
networks,
and
our
page
views
are
growing
10%
per
week.
We
previously
raised
$44M
from
Legg
Mason
and
others,
including
myself.
Before
Ning,
I
started
Netscape
(acquired
by
AOL
for
$4.2B)
and
Opsware
(acquired
by
HP
for
$1.6B).
Blue
Shirt’s
investments
in
companies
like
Extensive
Enterprises
tell
me
that
they
could
be
a
great
partner
for
Ning.
We're
starUng
meeUngs
with
investors
next
week,
and
I
would
love
to
show
Blue
Shirt
what
we're
building
at
Ning.
Best,
Marc
Andreessen
xyz@ning.com
/
415.555.1212

60. In
summary:
Idea
+
Company
Business
plan
+
budget
forecast
13
slide
pitch
deck
Start
pitching
the
right
people

61. Erling
Løken
Andersen
Add
me:
Erling
Løken
Andersen
@stormen