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Raising capital

Raising capital. Or no matter how much you think you know about this, it’s never enough. Babs Carryer, LaunchCyte LLC. Sources of funds. Self. Debt instruments. Friends and family. Venture Capital. Angels. Uses of funds. High salaries Perks Unrealistic financial model

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Raising capital

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  1. Raising capital Or no matter how much you think you know about this, it’s never enough. Babs Carryer, LaunchCyte LLC

  2. Sources of funds Self Debt instruments Friends and family Venture Capital Angels

  3. Uses of funds • High salaries • Perks • Unrealistic financial model • Fancy offices and furniture • Retreats • Founder loan payback • Hiring • Basic needs • Product development • Market testing • Customers

  4. Tools you need • Poor business plan • No business model • Unrealistic financial model • Non-compelling market opportunity • Unclear strategy • Inexperienced management team • Good • Better • Best

  5. Must haves • Funding strategy – source and why • PPM (private placement memorandum) • Business plan • Risk factors • Term sheet • Valuation ideas • Answers to questions

  6. Help • Be a cowboy • Hire a marketing consultant • Professionals • Advisors • Board

  7. The pitch Intro Compelling market need Market opportunity Innovative solution A+ team Market size Viable business model Return on investment Technology Competitive analysis Competitive advantages Management team Finances

  8. Core elements Strong sales proposition Visually stimulating not slick Short & to the point Good public speaking skills Reasonable & supportable No bullshit Key elements included Say what you want

  9. Fundraising then … • Plenty of money • Herd mentality • Internet sex appeal • Minimal materials • Seed stage money easier

  10. Fundraising now … • Conservative • Solid business model • Fear of the dot com • Back to the basics • Seed stage money almost impossible to find

  11. LaunchCyte challenges • Thank god we’re bio • Incubator stigma • Unique and complex model • Unproven market space • High risk • Inexperienced management team • Local money from individuals

  12. What we did • Raised FFF (friends, families and fools) and angel round, then a convertible debt round • Used professionals to help • Reached our maximum • Spent wisely • Addressed core issues • Pushed the business along • Developed fundraising strategy for next round • Tested strategy

  13. Where we are • Fundraising in a lousy climate • First strategic round • Accelerating development of business • More preparation of plan • Getting help again • Still testing our fundraising strategy

  14. Elevator pitch • 2 minutes • Concept • Market • Technology • Competitive advantage(s) • Management • Profitability

  15. Samples • Yahoo • amazon.com • Coke • Proctor and Gamble • 3 Com • Gap • General Motors

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