2. 2012
2010
2007
2005
Consultant Expert Commentator Networker
Digital product strategy Sky News, access to people, Chairman, UK’s largest
development and delivery write books, give talks network for tech start-ups
3.
4. Download: slideshare.net/ftuk
Comment: twitter.com/holloman
Disclaimer
There is no guaranteed way to secure venture capital. The information given in this presentation is for
general guidance on matters of interest only. The application and impact of the information given can
vary widely based on the specific facts involved. While we have made every attempt to ensure that the
information in this presentation has been obtained from reliable sources, First Tuesday is not
responsible for any errors or omissions, or for the results obtained from the use of this information. All
information in this presentation is provided "as is", with no guarantee of completeness, accuracy,
timeliness or of the results obtained from the use of this information, and without warranty of any kind,
express or implied, including, but not limited to warranties of performance, merchantability and fitness
for a particular purpose. In no event will First Tuesday, its related partnerships or corporations, or the
partners, agents or employees thereof be liable to you or anyone else for any decision made or action
taken in reliance on the information in this presentation or for any consequential, special or similar
damages, even if advised of the possibility of such damages.
5. Agenda
1. Do you really need it?
2. Be good
3. Look good
4. Create pull
5. Research
6. Solve right problem (market
size/growth)
7. Demo your solution (USP)
8. Validated Revenue Model
9. Validated Customer Acquisition
10. Team & Exit
6. 1. DO YOU
NEED IT?
a. Cost of diluting
b. Free money
c. Collaborations
d. Grants
e. Bootstrap your life
f. Bootstrap your company
g. Family and friends
h. Business angels
7. 1. DO YOU
NEED IT?
CAPITAL NEEDS Growth
IPO
Formal
Venture
Capital
High Risk Business
Proof of Angels
Concept,
Grants & Low Risk
Friends, Loans
Family &
Fools TIME
Seed Start-up Early Growth Sustained Growth
8. 2. BE
GOOD
a. Be a nice person
b. Contagious enthusiasm
c. Use easy to understand
language
d. Have a relevant background
e. Grow your network
f. Be prepared
9. 3. LOOK
GOOD
a. Sleek corporate identity
b. Check your facts, validate your
claims
c. Update your business plan
10. 4. CREATE
VC
PULL
You
a. Do everything on the previous
slides
b. Set up advisory board
c. Network, spread the word
d. Enter awards
e. Become a sector expert
f. PR
g. Get introduced
h. Entertain/befriend VC first
11. 5. RESEARACH
YOUR VC
a. How a VC works
b. Where to look
c. What do they invest in?
d. Who works there (skillset,
interests)
e. ROI
f. Call/email/approach at event
12. 6. RIGHT
PROBLEM
a. Is it the right problem?
b. VC can relate
c. How big is the problem (Market
size/growth)
d. Validate
13. 7. SHOW YOUR
SOLUTION
a. Live demo (prepare for no wifi)
b. Video
c. Screenshots
d. “Great products get you Laid (sex),
paid (money) and made (power”)
e. True USP (list all competitors) /
Patents
f. Validate
15. 9. ACQUSITION
MODEL
a. Write your marketing plan
b. Volume/Cost/Conversion
c. Don’t rely on Google
d. Why will they come, and why will
they come back
e. Validate
16. 10. TEAM &
EXIT
a. Have a team
b. Track record to deliver
c. Complimentary skills
d. Motivations
e. Exit strategies
f. Recent exists in your
space
18. How to attract VC funding:
1. Be good
2. Look good
3. Create pull
4. Research the VC
5. Solve right problem (market size/growth,
Validate )
6. Demo your solution (USP, Validate)
7. Validate Revenue Model
8. Validate Customer Acquisition
9. Good Team & Exit
Validate!
19. Download: slideshare.net/ftuk
Comment: twitter.com/holloman
Disclaimer
There is no guaranteed way to secure venture capital. The information given in this presentation is for
general guidance on matters of interest only. The application and impact of the information given can
vary widely based on the specific facts involved. While we have made every attempt to ensure that the
information in this presentation has been obtained from reliable sources, First Tuesday is not
responsible for any errors or omissions, or for the results obtained from the use of this information. All
information in this presentation is provided "as is", with no guarantee of completeness, accuracy,
timeliness or of the results obtained from the use of this information, and without warranty of any kind,
express or implied, including, but not limited to warranties of performance, merchantability and fitness
for a particular purpose. In no event will First Tuesday, its related partnerships or corporations, or the
partners, agents or employees thereof be liable to you or anyone else for any decision made or action
taken in reliance on the information in this presentation or for any consequential, special or similar
damages, even if advised of the possibility of such damages.
Notas del editor
Cost of dilutingIf you don't understand how equity dilution works, you can find yourself working very hard…for very little.The Social Network, you may remember the powerful scene when Facebook founder, Mark Zuckerberg’s friend, Eduardo learned he was practically ‘diluted’ out of any substantial ownership of the new company.Free moneySeedcampStartupbootcampOxygen AcceleratorShell Livewire (under 30)GoogleGrantsNESTA Bootstrap your lifeMove back to parentsCut credit cards / change bad habitsGo Tesco ValueDo part-time contracting work alongside your workBoostrap your businessLoansEnterprise Finance Guarantee (£1k-1m)(The Enterprise Finance Guarantee (EFG) is a loan guarantee scheme intended to facilitate additional bank lending to viable SMEs lacking adequate security for a normal commercial loan.)Expensive loans (Credit Cards)Family and friendsBusiness Angels
Be a genuinely nice guy/girlContagious enthusiasm-eg. Be passionate, have funUse easy to understand languaeHave the relevant backgroundCredible carExpand your networkPrepareGateway 2 Investment (being replaced, but register)British Library Business & IP Centre
Emily HowardGet a corporate identify (http://graphicriver.net) Update your business plan regularly
If you absolutely want VC money, you don’t want to be asking for it. You want to be offered it!NetworksFirst TuesdayMeetupAwardsFirst Tuesday AwardThe PitchSector expertFounder of Getmein, 2nd hand ticket, started PRHave good stories to tell, befriend bloggers/journosEntertain/befirend VCGet on their radar, go where they go, think of reason they should attend something you organise. Like they say, people do business w people. Let them get to know you.
How a VC worksWhere to look?What do they invest inWho works there (skillset)The ROI they are looking forVenture investors seek to earn between 5 and 10 times their initial investment within a 5-8 year investment horizon
Is it the right problem? Make it obiousGoals – make VC relateHow big is the problem (customer validation/research)Bigger is better
VC’s like unfair advantagesYou need to be better or different then all your competitors
Performindivudially and as groupPlan to fill skill gapsGeeks with tech skillsEntereprnurs that have sold companiesSales/Mkt who can bring in customers
