The Art of Startup Fundraising E-Book

Alejandro Cremades

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2016

Seitenzahl: 294

Beschreibung

Startup money is moving online, and this guide shows you how it works. The Art of Startup Fundraising takes a fresh look at raising money for startups, with a focus on the changing face of startup finance. New regulations are making the old go-to advice less relevant, as startup money is increasingly moving online. These new waters are all but uncharted--and founders need an accessible guide. This book helps you navigate the online world of startup fundraising with easy-to-follow explanations and expert perspective on the new digital world of finance. You'll find tips and tricks on raising money and investing in startups from early stage to growth stage, and develop a clear strategy based on the new realities surrounding today's startup landscape. The finance world is in a massive state of flux. Changes are occurring at an increasing pace in all sectors, but few more intensely than the startup sphere. When the paradigm changes, your processes must change with it. This book shows you how startup funding works, with expert coaching toward the new rules on the field. * Learn how the JOBS Act impacts the fundraising model * Gain insight on startups from early stage to growth stage * Find the money you need to get your venture going * Craft your pitch and optimize the strategy * Build momentum * Identify the right investors * Avoid the common mistakes Don't rely on the "how we did it" tales from superstar startups, as these stories are unique and applied to exceptional scenarios. The game has changed, and playing by the old rules only gets you left behind. Whether you're founding a startup or looking to invest, The Art of Startup Fundraising provides the up-to-the-minute guidance you need.

Leseprobe

Contents

Cover

Praise for

The Art of Startup Fundraising

Title Page

Copyright

Dedication

Foreword

Acknowledgments

Chapter 1: Everything Started with Onevest

Chapter 2: Raising Capital for Your Startup

Speeding Up the Machine

It's Not as Easy as Reading an Article on TechCrunch

The 18- to 24-Month Plan

Milestones

Breaking Even

Expectations of Investors

Outperform the Competition

Marketing

Storytelling

Leveraging Help

Divide and Conquer

The Rollercoaster of Emotions

Learn to Love Rejection

Connect the Dots

The Pros and Cons of Raising Capital

Don't Underestimate the Need for Capital

Chapter 3: Setting Yourself Up for Success

Investors Don't Want to Invest

The Core of Your Business

Experienced and Talented Management

Organize Your Corporate Structure with a Legal Team

Helpful Advisors

Building Momentum

Team Alignment

Show Your Competitive Advantage

Know Your Terms

Vision

Attracting Investors Requires Patience

Chapter 4: Crafting the Pitch

The Business Plan Problem

Get the Message Straight and Your Team behind It

The Elevator Pitch

The Pitch Deck

Awesome, Effective Pitch Deck Design

The One Pager

Chapter 5: The Due Diligence Package

The Interview and the Visit

Find Balance

Chapter 6: Sources of Capital

Bootstrapping

Credit Cards

Business Loans

Friends and Family

Crowdfunding

Angel Investors and Super Angels

Angel Groups

Family Offices

Venture Capital

Venture Debt

Chapter 7: Understanding the VC Game

Defining Roles in a VC Firm

The Process of Getting Funded by a VC

How VCs Monetize

VC Involvement in Your Company

Understanding the Value a VC Brings

Cutting through the VC Noise

Differences between Venture Capital and Private Equity

Chapter 8: Investment Rounds Explained

Friends and Family

Micro Seed Round

Seed Round

Series A Round

Series B, C, D Investment Rounds

Initial Public Offering (IPO)

Research Is Critical

Chapter 9: Deciding Investment Amounts and Prospects

Needed, Realistic, and Ideal Investment Levels

Your Valuation versus Market Valuation: The Asking Price

Persuading Investors with a Financial Forecast

Identifying Prospective Investors

Six Ways to Contact Investors

Creating a Buzz around Your Startup

Chapter 10: PR: Creating a Storm and Building Momentum

The Rainmaker Code

Journalist Outreach

Self-Distributed Press Releases

More Buzz-Building Tactics for Smart Startups

Chapter 11: What to Look For in an Investor

Why Selecting the Right Investors Is So Critical

Three Factors You Should Be Looking For in Investors

Three Factors to Avoid in Investors

Six Key Questions to Ask Potential Investors

Speed Is a Two-Way Street

Arming Yourself with Answers

Chapter 12: Term Sheets and Terms

Term Sheets 101

Terms within Term Sheets That You Need to Know

Term Sheet Tactics

Smart Term Sheet Strategies

If Things Don't Go Forward

Chapter 13: Closing the Deal

The Importance of Urgency

Creating a Completion Schedule

Managing Expectations

Updating Your Investors

Closing the Deal Is Not the End of the Deal

Chapter 14: Avoiding Common Fundraising Mistakes

Failing to Connect

Clarity and Doing What You Say

Self-Sabotage in the Deal-Making Process

Chapter 15: Understanding the JOBS Act

The Game Changer

The JOBS Act

Implications for Startups and Raising Money Online

Implications for Individual Investors

Chapter 16: Recommended Tools for Fundraising

Using the Right Tools

Organization

Research

Social Media

Outsourcing

Sales and Administration

Finding Your Investors

Chapter 17: Red Flags

Key Red Flags for Startups

Glossary

About the Author

Index

End User License Agreement

List of Illustrations

Figure 8.1

Guide

Cover

Table of Contents

Begin Reading

Chapter 1

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Praise for The Art of Startup Fundraising

“Alejandro's The Art of Startup Fundraising is a must read for any entrepreneur. Clear and concise, he outlines in today’s startup community the steps to successfully fundraise. This is the golden era for entrepreneurs, any good idea with proof of concept can get access to money. Know your options!”

—Angelo J. Robles, Founder and CEO of Family Office Association

“One of the biggest crimes in the startup community is to watch good ideas and good teams to go unfunded because the fundraising process isn't friendly to first-time entrepreneurs. The Art of Startup Fundraising is Alejandro's contribution to the ecosystem that does a masterful job filling in knowledge gaps and giving entrepreneurs the best chances of raising the capital they need.”

—Frank Rotman, Founding Partner at QED Investors

“The Art of Startup Fundraising delivers a smooth ride on the bumpy road of raising capital and starting a business. Alejandro Cremades delivers up-to-date details and a clear vision—an important guide for any entrepreneur who seeks to build and scale a business today.”

—Jeanne M. Sullivan, Co-founder, StarVest Partners

“Fundraising can be an incredibly frustrating experience for startup founders because they are at a fundamental disadvantage: they know very little about the process, and investors know a lot. Luckily, Alejandro has taken the time to assemble a detailed blueprint of how it works behind the scenes that will help any founder level the playing field and navigate the process like a pro. If you are raising money for your startup, don't start without reading this book.”

—Pedro Torres-Picon, Founder and Managing Director at Quotidian Ventures

“The Art of Startup Fundraising translates art into science. By sharing proven formulas, strategies, and case studies that work, Alejandro Cremades provides a needed service to future entrepreneurs.”

—John Cohen, Managing Partner at City Light Capital

“This ought to be a reading requirement for all entrepreneurs when building a business and raising capital. This is a very well written and informative book, by a man who is a testament to dedication and creativity when confronted with the challenges of being an entrepreneur and raising capital.”

—Carter Caldwell, serial entrepreneur and Principal at Cross Atlantic Capital Partners

“Alejandro is on the bleeding edge of equity crowdfunding today. When he talks about fundraising, startups listen.”

—Andrew Ackerman, Managing Director at Dreamit Ventures

“Starting a company is full of ups and downs for an entrepreneur and foremost among them can be how to raise money for it. There is no magic bullet to make the process easy, but Cremades comes close in The Art of Startup Fundraising by at least making it intuitive and accessible.”

—Weston Gaddy, Principal at Bain Capital Ventures

“Raising capital can be tough. Alejandro provides a step-by-step guidebook to all entrepreneurs that rather spend their time thinking about changing the world instead of thinking of how to raise funds.”

—Tobias P. Schirmer, Managing Partner of JOIN Capital

“A superb book on fundraising. Alejandro's guidance should arm entrepreneurs with the necessary tools to close with success a meaningful round of financing.”

—Ellen Weber, Executive Director at Robin Hood Ventures

“Raising money is hard. But startup founders all over the world can make it exponentially easier by educating themselves on the process of raising equity capital before they dive into it. The practical, hands-on advice from Alejandro Cremades in this book provides a solid foundation in that self-education process. Delivered in an approachable format with a key lesson to take away every few pages, The Art of Startup Fundraising is essential reading for entrepreneurs everywhere.”

—Allen Taylor, Managing Director at Endeavor

“There are very few complete resources available to entrepreneurs today to help them navigate the world of fundraising. Alejandro Cremades does a great job of explaining and demystifying the fundraising process. The Art of Startup Fundraising will, without question, provide entrepreneurs with a great jump off point.”

—Sid Paquette, Managing Director, OMERS Ventures

Pitching Investors, Negotiating the Deal, and Everything Else Entrepreneurs Need to Know

The Art of Startup Fundraising

Alejandro Cremades

Cover design: Wiley

Copyright © 2016 by Alejandro Cremades. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Names: Cremades, Alejandro, author.

Title: The art of startup fundraising : pitching investors, negotiating the deal, and everything else entrepreneurs need to know / Alejandro Cremades.

Description: Hoboken, New Jersey : John Wiley & Sons, Inc., [2016] | Includes index.

Identifiers: LCCN 2015048158| ISBN 9781119191834 (hardback) | ISBN 9781119191858 (ebk); ISBN 9781119191841 (ebk)

Subjects: LCSH: Venture capital. | New business enterprises–Finance. | Entrepreneurship. | BISAC: BUSINESS & ECONOMICS / Entrepreneurship.

Classification: LCC HG4751 .C78 2016 | DDC 658.15/224–dc23 LC record available at http://lccn.loc.gov/2015048158