How To Get Funded By Angels and Angel Networks Slide Download

How To Get Funded By Angels and Angel Networks

Get the scoop on investor funding from angels and angel networks.  Learn insight about the funding funnel and how it impacts a startups ability to raise investor capital.  Also, hear directly from an angel investor on the funding funnel.

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Networking Your Way To Get Funded

How To Work The System To Get Funded (part 3 of 4)

The third part in a four-part series.  Learn how entrepreneurs need to leverage connections in order to get funded.  Find and connect with the right people in the VC and angel communities. This eLuminate Mastermind Session on Getting The Wallet’s Out Of Investor’s Pockets is presented by Jeanne Sullivan.

The relationships you develop with even your lawyer and accountant can be instrumental in helping you get funded. Angels and VCs typically have deep networks, so if you get out and interact in your regional startup community you should be successful in meeting the right people.

Jeanne Sullivan lays out a clear pathway for you to build relationships with angels and VCs, through several key sources:

  1. Events and Classes
  2. AngelList
  3. Twitter and Blogs
  4. Your network
  5. Accelerators
  6. Founder Intros

 

Sources: eLuminate Mastermind Session | Getting The Wallet’s Out Of Investor’s Pockets is a title by Jeanne Sullivan | some slides by RRE Ventures

Part 1-3 of this 4 part series are released, please make sure you are logged in: http://bit.ly/1cqMtbQ – Please check back for part 4.

 

Evidence-Based Entrepreneurship – How Investors May Evaluate Your Startup

Evidence-Based Entrepreneurship

Evidence-Based Entrepreneurship means for the first-time ever using lean principles get early evidence of how a startup is progressing before obtaining users and revenue.

Startups are not smaller versions of large companies. Startups search for a business model and need to be out in the public testing their hypotheses with real people. The only way to know whether the idea has potential is to setup experiments to test the hypothesis and gather data. This is the foundation of the lean startup.

Check Out This Top Lean Startup Resource:

Steve Blank, shares how investor readiness can be tracked and measured through nine levels, from hypothesis-to-key metrics.  If you are seeking capital, potential investors may use the concept of investment readiness as an indicator of your progress.

Check Out These Top Steve Blank Resources:

     

Can This Fantasy Gaming Product Survive?

Just in time for the NFL playoffs, a new Stanford startup is changing the way fantasy sports players experience the games they love with a new gaming product. After an electric beta period where its early adopters placed 1.5 million predictions in just three months, Boom Fantasy has launched a real-money fantasy sports gaming product.

How Will They Compete

Instead of drafting a lineup and then waiting a day to see how you do, players can compete in 10-minute fantasy sports leagues that are centered around live events fans can watch on TV.

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“Just as DraftKings and FanDuel improved upon the old fantasy sports model, we are doing the same with daily fantasy sports,” said Stephen A. Murphy, co-founder and CEO of the fantasy gaming startup. “At Boom, we cater to real fans who actually want to watch the games – not necessarily the number-crunchers who use complicated algorithms to outperform other lineups.”

The startup does away with the drafting process and instead allows players to answer questions like “Will LeBron James score more than 8 points this quarter?” or “Will Adam Vinatieri make this 50-yard field goal?” during live events. All real-money tournaments incorporate multiple events, but are centered on a primary game where players compete against one another by answering between 7 to 50 questions, depending on the tournament format.

Photo: PR Newswire

Photo: PR Newswire

Fantasy Gaming Product Structure

The company “has been very smart in how they have structured their product,” said Jeff Ifrah, an attorney who advises top gaming product operators, including the leaders of the daily fantasy sports space. Also, they are “operating under the same federal and state requirements as the market leaders, but the company has formatted its gameplay in a completely unique way.”

The startup launched its real-money product in 12 U.S. states and will roll out its real-money gaming product to additional states later. Residents of all states can participate in free-to-play tournaments.

 

Securing Funding From Angel Investors

Angel Investors and Angel Networks (part 1 of 2)

Angel investor Elizabeth Crowell demystifies the process of seeking funding from angels and angel networks. She breaks down angel math, due diligence, and how to communicate with angels post-funding.

Capital comes at a cost: You give up ownership and control to get funded. The process of getting funded can be challenging, but often people glamorize startup funding successes.  The success stories that you read in the paper about startups getting funding are outlier cases. The majority of startups don’t get valued at tens of millions of dollars.

If you are seeking funding it is important to note that seed, early stage, and growth are not the only ways to get capital. You should exhaust all other possibilities before seeking funding, including friends-and-family and bootstrapping.

Find angels by tapping into your network and attending angel network events. Angels are high network individuals who are typically successful business people and/or entrepreneurs.  A small percentage of the population fits this criteria, so building relationships with angels can take time.

Unlike venture capitalists, angels are not professional investors. They don’t get compensated for their investments unless the startup that they invest in succeeds.  However, a VC generally gets a salary from the firm with which they work.  The timeline in an angel investment can be 3-10 years and they may not realize revenue from their startup investment until 5-10 years down the road.

Key takeaways:  Plan how you will approach an angel by doing your homework and understanding that no two angels are alike. Research and understand the angel’s criteria for taking an investment and understand the dynamics of the angel math.

 

Source: Elizabeth Crowell via eLuminate Entrepreneur Mastermind Session

To view Part 2 of this series, please check back tomorrow.  You will need to make sure you are logged in.  Access presentation slides: bit.ly/1gxmrEO

 

What Venture Capitalist Expect From Startups

eLuminate Entrepreneur Network Mastermind Series

5 Tips Entrepreneurs Must Follow To Get Funding

By Sharon R. Brown

Venture capitalist, Jeanne Sullivan, speaks at the eLuminate Mastermind Session on Getting The Wallet’s Out Of Investor’s Pockets. Two key questions are answered; how does venture capital work? And, what do VC’s need and/or expect from entrepreneurs seeking funding?

Straight talk from former StarVest Partners managing partner, Jeanne Sullivan, on what investors like to see in the pitch deck. One key thing includes the flow of dollars into the business.  You must be clear on what the numbers should look like, before you go in front of an investor.

Jeanne highlights that is essential for a founder to get a good numbers person who understands venture math.  Not knowing the answers to simple questions, such as “what is the pre-money valuation?” or “how much capital will be required over time?” will kill any deal before you get it off the ground.

If you are an entrepreneur seeking funding, you need to have a great strategy story and a great team with a track record. A great product is vital, but the primary thing is the ability to demonstrate that you can execute. Sullivan, notes that venture capital firms like StarVest Partners, “invest in CEO’s that know what to do and how to do it.”

Venture capitalist need a liquidity event in order to get their money back, so startups in which VC’s invest typically have one of the following outcomes: sold, IPO, or dividend payments. Selling a company or an initial public offering (IPO) are the two primary ways that profits are released to investors.

Most VC’s want you to know how you are going to exit the company. The exit is important. Successful founders will figure out whom their strategic partners and potential acquirers are, so they can plan how they will bring their company’s to exit.

5 Key Tips From a Venture Capitalist:

  1. Founders must be clear on their numbers.
  2. Entrepreneurs seeking funding need a great strategy story and a great team with a track record, with the ability to demonstrate that they can execute.
  3. Venture capitalist need a liquidity event in order to get their money back.
  4. Selling a company or an initial public offering (IPO) are the two primary ways that profits are released to investors.
  5. Most VC’s want you to know how you are going to exit the company. The exit is important.

 

Sources: eLuminate Mastermind Session | Getting The Wallet’s Out Of Investor’s Pockets is a title by Jeanne Sullivan | some slides by RRE Ventures
 
About Sharon
Sharon is founder & CEO eLuminate Entrepreneur Network, content creator,
tech entrepreneur, speaker and author. She can be reached via Twitter @sharonRbrown1

 

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