The Art of Startup Fundraising: Pitching Investors, Negotiating the Deal and Everything Else Entrepreneurs Need to Know

Alejandro Cremades, Barbara Corcoran

ISBN: 9788126572588

224 pages

Exclusively distributed by Pan Macmillan

 

Description

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.

Foreword by Barbara Corcoran

Acknowledgments

 

1 Everything Started with Onevest

 

2 Raising Capital for Your Startup

  • Speeding Up the Machine  
  • It's Not as Easy as Reading an Article on Tech Crunch  
  • 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

 

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

 

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

 

5 The Due Diligence Package

  • The Interview and the Visit
  • Find Balance

 

6 Sources of Capital

  • Bootstrapping
  • Credit Cards
  • Business Loans
  • Friends and Family
  • Crowd funding
  • Angel Investors and Super Angels
  • Angel Groups
  • Family Offices
  • Venture Capital
  • Venture Debt

 

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

 

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

 

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

 

10 PR: Creating a Storm and Building Momentum

  • The Rainmaker Code
  • Journalist Outreach
  • Self-Distributed Press Releases
  • More Buzz-Building Tactics for Smart Startups

 

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

 

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

 

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

 

14 Avoiding Common Fundraising Mistakes

  • Failing to Connect
  • Clarity and Doing What You Say
  • Self-Sabotage in the Deal-Making Process

 

15 Understanding the JOBS Act

  • The Game Changer
  • The JOBS Act
  • Implications for Startups and Raising Money Online
  • Implications for Individual Investors

 

16 Recommended Tools for Fundraising

  • Using the Right Tools
  • Organization
  • Research
  • Social Media
  • Outsourcing
  • Sales and Administration
  • Finding Your Investors

 

17 Red Flags

  • Key Red Flags for Startups

 

Glossary

About the Author

Index