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Capital-Efficient Funding After the Bubble. Glenn Carter Entrepreneur in Residence STARTech Early Ventures 7/30/2003. Let’s Define our Terms. Funding Sources Funding Structure What is the “bubble”? How do you get funded? What does it look like now?. Funding Sources. Friends and family
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Capital-Efficient Funding After the Bubble Glenn Carter Entrepreneur in Residence STARTech Early Ventures 7/30/2003
Let’s Define our Terms • Funding Sources • Funding Structure • What is the “bubble”? • How do you get funded? • What does it look like now?
Funding Sources • Friends and family • Angels • Venture Capital
What is a VC • General partner • Limited partners • Likes risky investments? • ROI • ROI • ROI
Structure of VC Investments • Seed Round • Series A • Series B… • What is “cram down”?
How do you get funded? • Business plan • Problem solved • Technical • Value proposition • Market size • Customers • Capital efficient • 2 Minutes • “This is a good thing that should be done!” NOT • Compete for scarce resources based on ROI
What’s next • Who knows! • Seems to be getting better • Fruit stand model