1. ENTREPRENEURS
THINK AND ACT GLOBAL!
A STEP-BY-STEP GUIDE TO RAISING FOREIGN
INVESTMENT FOR YOUR STARTUP BUSINESS

2. ENTREPRENEURS THINK AND ACT GLOBAL!
Why Go Global? 100x more startup seed capital… soon to be 500x
Steps & Resources to Build a Global Identity and Corporate Structure
Bootstrapping & Surviving the first few years with little or no money
Investors invest in momentum – How to create it.
Investors invest in the team – How to build it?
A STEP-BY-STEP GUIDE TO RAISING FOREIGN INVESTMENT FOR YOUR STARTUP BUSINESS

3. My Background as a serial entrepreneur & startup CEO
Developed four fully-branded online companies in Silicon Valley & Brasil with
100+ million combined registered users and $1.7+ billion combined peak market value
Cofounded Freelotto.com
World's 11th largest Internet site in the
1990's
CEO, Flogao
formerly Brasil’s largest photo site & top
ten site in Brasil
Cofounded Qool.com
Third largest auction site after eBay and uBid
Founder & CEO, Power.com
o Brasil’s first global technology startup
o Brasil’s first company to create
Internationally recognized consumer brand
with tens of millions of users worldwide
o Brasil’s first company to receive venture
funding from top Tier-1 Silicon Valley VC firms
and angels

4. Looking for Investors ? Think Global!
100x more ANGEL
and
SEED INVESTORS
outside of Brasil
Angel and Seed INVESTORS
B R A Z I L : Estimated 6000
U S & G l o b a l : Estimated 600.000
SOURCE: ANGEL LIST/CRUNCHBASE/LINKEDIN

5. ESTIMATED MARKET SIZE OF EARLY
STAGE INVESTMENT IN THE US,
2012
o 600.000 new startups (out of > 6
million) sought outside financing
o 60.000 startups got $22.5 billion in
angel financing
o 1500 startups got $8 billion in
early stage venture financing

6. approx. 1 in 10 New US Startups Gets
angel Financing
approx. 1 in 400 New US Startups
Gets VC Financing

7. ESTIMATED MARKET SIZE OF EARLY
STAGE INVESTMENT IN THE Brasil,
2012
o 60.000 new startups (out of > 1
million) sought outside financing
o 600 startups got $200 million in
angel financing
o 60 startups got $ 200 million in
early stage venture financing

8. approx. 1 in 100 Brazilian Startups Gets
Angel Financing
approx. 1 in 1000 Brazilian Startups
Gets VC Financing

9. Comparison Between Early Stage Investments in
US vs. Brazil, 2012
“
A Startup is 10 Times More Likely to get External Financing in the US Relative to Brazil…
Soon to be 50 times with crowdfunding
”

10. WHAT IS CROWDFUNDING? The collective effort of individuals who network and pool
their money, usually via the Internet, to support efforts initiated by other people or
organizations” - for example, disaster relief, political rallies and business startups

11. WHAT DO THE NEW US CROWDFUNDING LAWS ALLOW?
Every US citizen and other global investors can invest
small amounts in startup companies
Every company can advertise and promote their company
to everyone online

12. New CROWDFUNDING LAWS will change everything
“10
million new startup investors are expected, investing an additional
$100 billion in new startups
”
$100 billion
77.5%
$22.5 billion
current investment
projected investment

13. NEW CROWDFUNDING LAWS WILL CHANGE EVERTHING. Like Kickstarter / Indiegogo,
Crowdfunding will be done online via the Internet

14. New CROWDFUNDING LAWS will change everything
Location, location, location - actually,
NOT that important on the Internet!

15. New CROWDFUNDING LAWS
will change everything
Social media
validation and momentum companies will need to carefully manage their
online investment
profile on
LinkedIn, IndieGogo, AngelList, and dozens of other
crowdfunding sites and
“stock exchanges”
emerging

16. THINK and ACT GLOBAL! Raise $$
Online, Part I
Start thinking as a global company
targeting all global investors online

17. THINK and ACT GLOBAL! Raise $$
Online, Part I
You are NOT in Brazil - you ARE part of
the global online community.
Position yourself for the new world of
online crowdfunding today!

18. Your Global Corporate Identity and Legal Structure, Part I
Incorporate US Delaware
corporation online in minutes for
$279 at
www.delawareinc.com

19. Your Global Corporate Identity and Legal Structure, Part II
Alternatively, incorporate British Virgin Islands company for $1000
www.wwincorp.com

20. Set Up Your Corporation in Minutes - No Lawyer Necessary!
Free and customizable
US Startup corporate legal
templates for your
new corporation at
www.foundersworkbench.com

21. Set Up Your Investment Documents Easily Too
Standardized investment
documents to raise money from
global investors
are available at
www.seriesseed.com
&
www.ycombinator.com/seriesaa.html

22. If your Startup does not need to operate in Brazil
Incorporate solely in
Delaware, USA or the
British Virgin Islands

23. Have a Brazilian Product or Service ?
o Incorporate in Delaware or British
Virgin Islands while in startup and
development phase
o Wait until your product is launched,
you have more than 10 employees, and
real customers generating real
revenues, then create Brasil co…

24. If you Absolutely must have a Brazilian Company …
Create a Brazilian subsidiary owned 100% by your global corporation

25. Need Legal Help? Contact Brazil’s top International startup lawyer:
Felipe Herrera at www.herreraadvogados.com

26. Keep Your Data Secure! Use www.Box.net Dataroom service to securely store all your
corporate documents

27. Get a Virtual Address To! Get a New York or San Francisco virtual address with email
scanning service through www.earthclassmail.com

28. Set Up VOIP
Set Up
New York
or
San Francisco
number through Skype.
VOIP Phone

29. Need a US Bank Account?
Set up an account with Silicon Valley Bank at SVB.com or HSBC.com or
HSBC Offshore (HSBC has direct same-day transfer service to Brazilian
HSBC accounts)

30. StartUp Legal Documents
For all startup legal
documents, including US employment
and contractor agreements, Google “ORRICK STARTUP
FORMS”

31. How To Find Us and Silicon Valley Investors? Find mentors, advisors, and angel investors
through LinkedIn, Crunchbase and AngelList

32. CROWDFUNDING
will change everything
Create a strong global presence for your startup on
AngelList, KickStarter/IndieGogo
and other emerging crowdfunding sites

33. How To Get More Global Friends in the StartUp World? Spend 3 months in the US with an
accelerator to kick-start your company - www.F6s.com has a comprehensive list of
accelerators and startup programs

34. Catering to the Brazilian Market, Part I
o Global investors want to see local
advisors, mentors, and partners whom
they trust
o If you’re servicing the Brazilian
market, it’s much easier to recruit noninvestor global partners - such as a
cofounder, mentors, advisors,
accelerators etc

35. Catering to the Brazilian Market, Part II
o Seek out strong local Brazilian
mentors/advisors/accelerators from
the Silicon Valley with a very strong
network, credibility and reputation for
working with foreign investors - for
example, 500 Startups (Bedy Yang),
21212 Accelerator, Serendipity
Ventures, Felicis Ventures (Renata
Streit), Simon Olson (Google/formerly
DFJ/Fir Capital)

36. Get a Non-Brazilian Cofounder with Complementary Skill Sets
FOUNDER2BE.com
COFOUNDERSLAB.com
Techcofounder.com
FOUNDERSSPACE.com

37. Ideal BootStrapped StartUp, Part I
Burn rate as close to $0 as possible!
3 complementary
founders, who
are …

38. Ideal BootStrapped StartUp, Part I
o 100% committed
o founders have eliminated almost
all personal overhead
o able to work with little or no salary
for 2 years

39. Ideal BootStrapped StartUp, Part II
TIP: It always takes much longer
than you think to build momentum
with a new startup.
If possible, live in one apartment stocked with food and drinks
and stay there until you successfully launch your product or
service and get some momentum going.

40. Don’t plan on external funding being easy to get - until you have a
viable product, a strong founding team and have gained some
initial momentum.

41. Momentum Is When You Can Prove You Can Acquire
Costumers Profitably, Part I
PROVE YOU CAN GO VIRAL MILLIONS OF CUSTOMERS AT NO COST
ACQUIRE

42. Momentum Is When You Can Prove You Can Acquire
Costumers Profitably, Part II
Global Brazilian Corporation
PROVE YOU CAN GET SUSTAINABLE SEARCH
ENGINE RANKINGS - GROW ORGANICALLY AT NO COST

43. Momentum Is When You Can Prove You Can Acquire
Costumers Profitably, Part III
PROVE YOU CAN SPEND $1 & EARN $3 AND SCALE
THAT - GET ALL THE MARKETING DOLLARS YOU NEED FROM INVESTORS

44. A Great Founding Team Should Have, Part I
A NATURAL BORN ENTREPRENEUR

45. A Great Founding Team Should Have, Part II
A PRODUCT/TECHNOLOGY STRATEGIST/VISIONARY - Who consistently envisions and
develops groundbreaking products, technology ideas, product strategies and user
experiences.

46. A Great Founding Team Should Have, Part III
THE ROCKSTAR CODER/HACKER - Versatile, ambitious, fearless, brilliant coder who
finds ingenious and disruptive solutions - and who can be a one-man show or quickly
inspire and attract admiration from other star coders

47. A Great Founding Team Should Have, Part IV
A PRODUCT & LOGISTICS MANAGER - who never misses a detail, really understands a
good product and knows all about the level of attention and detail needed to lead and
manage all to create and execute a great end-product.

48. A Great Founding Team Should Have, Part V
AN INTERNET MARKETER (VIRALITY, SEO, WELL OPTIMIZED CONVERSION RATES) This person truly understands the art and science of all types of online marketing and
organic growth and appreciates product driven marketing.
They will make sure that your product, user experiences, and everything else in the
company is built for virality, SEO and well optimized conversion rates.

49. A Great Founding Team Should Have, Part VI
A PASSIONATE STRATEGIC SALESMAN –This person is often a natural born
entrepreneur and can sell your company and your product to partners, investors, future
employees and everybody else. Your voice and spokesperson internally and externally.