Y Combinator Startup Class #19 : How to talk to investors 2/2

Talking to Investors December 2014 Dalton Caldwell - Michael Seibel - Qasar Younis

What we will discuss: -‐ Before the meeting (Michael) -‐ During the meeting (Dalton) -‐ After the meeting (Qasar) -‐ Q&A

Overview 1. 30 second pitch 2. 2 minute pitch 3. When to fundraise 4. How to setup investor meetings 0/4 How to Pitch

1 30 second pitch How to Pitch What does your company do? How big is the market? How much traction do you have? 1/4

2 minute pitch How to Pitch • Clear 30 second pitch • Unique insight • How you make money • Team • The Big Ask ($$$) 2/4

When to Fundraise How to Pitch Growth Real World :( Ideal World :) 3/4

How to Setup Investor Meetings How to Pitch $ Think Parallel $ 1 Team Member $ Warm Intros 4/4

Mock pitch sessions -‐ The goal is to highlight good and bad behavior (not mimic a real conversation) -‐ Focused on seed stage capital, first time founders -‐ Dalton = Investor, Qasar = Founder -‐ 2 sessions: weak pitch and a good pitch

Avoid common mistakes Introduction: Make sure the listener understands what you’re working on. Progress: Know your numbers! Market size: Ideally build bottom up analysis Insights: You should understand something that is counter intuitive Team: Your team should be uniquely suited for this business Asking for money: Drive the conversation to a conclusion

Hallmarks of a good pitch -‐ Capture interest, told an interesting story, engage with the listener -‐ Demonstrate insights and command of the market, passionate not dismissive -‐ Collaborative meeting more than an interrogation -‐ Actually ask for money

After the meeting -‐ Follow up (anything by a check is a “No”) -‐ Work on creating deal heat (supply / demand) -‐ Do diligence on the investors -‐ Know when to stop (addicted to fundraising) -‐ Build your company! (fundraising is not the goal)

Thank you.

Y Combinator Startup Class #19 : How to talk to investors 2/2

Fabien Grenet

Y Combinator Startup Class #19 : How to talk to investors 2/2