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Venture for canada talk july 15

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This document provides guidance on getting investor ready from SurePath Capital Partners, an advisory firm for emerging technology companies. It outlines a 4 phase process: 1) Plan funding needs and determine readiness for investors. 2) Prepare key documents like an executive summary, pitch deck, and financials. 3) Pitch to investors while building relationships and demonstrating traction. 4) Secure funding and celebrate. Tips are provided on targeting the right investors, common roadblocks, and evaluating investors to find the best fit.

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July, 2015 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 Getting Investor Ready Mark MacLeod, Founder, SurePath Capital Partners Inc. @startupcfo July 28, 2015 SurePath Capital Partners Inc.
Introducing SurePath The premier strategic advisor to today’s emerging technology leaders Funding, growing and exiting venture-backed startups since 1999 Raised over $100M in VC in the US, Canada and Asia ◆ 3 years as a VC (Real Ventures) Worked corporate development and exited many companies ◆ Airbnb Blackberry Rackable Systems Return Path & others 14 years as CFO for some of Canada’s leading technology companies ◆ FreshBooks Shopify Tungle & many others SurePath Capital Partners Inc.
EXPERIENCE( SurePath Experience Working with leaders in the Canadian technology market SurePath Capital Partners Inc.
2 3 4 6 7 8 9 1 0 1 1 1 2 1 3 1 4 Getting Ready : SurePath Capital Partners Inc.
4 phases Plan Prepare Pitch Party! SurePath Capital Partners Inc.
1. Plan Bootstrap Angel yes (seed)VC Stop! no Ready? no yes Prep Roadshow SurePath Capital Partners Inc.
Investor Readiness... YOU KNOW: How much? Who from? (angel vs. VC) Why? (what for? Milestones?) YOU HAVE: Docs: Exec Summary, Pitch Deck, Basic Financials Deal team Pipeline SurePath Capital Partners Inc.
Angel vs. VC... Opportunity Size < $20M $ 100M Capital needs 2 rounds max As much as it takes Finance Strategy Get to Cashflow Positive Invest in growth Angel VC Micro / Seed VCs ??? SurePath Capital Partners Inc.
2. Prepare Document Checklist: Executive Summary Pitch Deck Financial Model Bonus: Roadmap Competitive landscape Team Bios & hiring plan SurePath Capital Partners Inc.
Exec Summ 1 - 2 pages max Sales document One purpose - get a meeting! http://www.docstoc.com/docs/120015412/Executive-Summary SurePath Capital Partners Inc.
Pitch Deck Ten Buckets Model 10 - 15 slides Sell, don’t explain How I evaluate pitches... Clear personalized problem statement Evidence of domain expertise Known target customer with $ Can touch and feel the product Clear ask http://www.startupcfo.ca/2011/04/the-vc-presentation-grader/ SurePath Capital Partners Inc.
Financials Baseline: Expense Plan (hires, customer acquisition, overhead) Months’ runway Better: 2 year model with key assumptions (monthly yr 1, quarterly yr 2) Unit economics and drivers Sensitivity Analysis Examples: http://foresight.is/ SurePath Capital Partners Inc.
Final Preparations Deal Team Lawyer Advisors / Mentors Pipeline Qualified list of investors that “fit” Path to get intros SurePath Capital Partners Inc.
3. Pitch! Tips ✓ Be prepared - all docs & deal team ready ✓ Roadshow - parallel, not serial ✓ Running start - build relationships *before* pitching ✓ Start early enough (3 - 6 months) ✓ Target the right investors ✓ At the right time ✓ Build trust ✓ All about traction… (The three “T”s) SurePath Capital Partners Inc.
Pitch Do’s and Don’ts DO! ✓ Talk about yourself - we invest in people! ✓ Summarize - make it easy & memorable ✓ Be different / yourself! ✓ Tell a story ✓ Impress ✓ Commit - full time effort! SurePath Capital Partners Inc.
Pitch Do’s and Don’ts DON’T! ★ Disagree with yourselves ★ Make me read ★ Read your own slides ★ Target everyone - 1% of a B users... ★ Be alone - no competition = no market ★ Avoid phone if possible ★ No agents / intermediaries SurePath Capital Partners Inc.
The Three Ts of Funding Round Team Tech Traction Seed A B Nothing closes rounds faster than traction SurePath Capital Partners Inc.
Angel List http://angel.co/ Great for finishing a round, not starting Go there when - you have a lead - 2/3 of round committed - traction (aka Social Proof) SurePath Capital Partners Inc.
Evaluating Investors... What do I want from this relationship? Have they walked the talk? What is their track record? Do they have deep pockets? Will they support me for future funding? Can they put together high quality investor syndicates? Can they help in building my organization? Can they improve my company’s profile and bring in high standards of governance? Is the valuation fair for both sides? And, ABOVE ALL: Is there mutual respect and can the VC be my sounding board? SurePath Capital Partners Inc.
Common roadblocks Nobody wants to lead Roll your own term sheet Convertible note Pitching a note to investors that prefer equity Secure the $, then optimize the deal Investors are dragging their feet Plan a catalyzing event (launch, key hire, event, etc) Build traction Concerns over milestones Raise more or spend less SurePath Capital Partners Inc.
Questions? Web: http://www.surepathcapital.com/ Blog: http://www.startupcfo.ca/ Social: https://twitter.com/startupcfo SurePath Capital Partners Inc.

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Venture for canada talk july 15

  • 1. July, 2015 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 Getting Investor Ready Mark MacLeod, Founder, SurePath Capital Partners Inc. @startupcfo July 28, 2015 SurePath Capital Partners Inc.
  • 2. Introducing SurePath The premier strategic advisor to today’s emerging technology leaders Funding, growing and exiting venture-backed startups since 1999 Raised over $100M in VC in the US, Canada and Asia ◆ 3 years as a VC (Real Ventures) Worked corporate development and exited many companies ◆ Airbnb Blackberry Rackable Systems Return Path & others 14 years as CFO for some of Canada’s leading technology companies ◆ FreshBooks Shopify Tungle & many others SurePath Capital Partners Inc.
  • 3. EXPERIENCE( SurePath Experience Working with leaders in the Canadian technology market SurePath Capital Partners Inc.
  • 6. 1. Plan Bootstrap Angel yes (seed)VC Stop! no Ready? no yes Prep Roadshow SurePath Capital Partners Inc.
  • 7. Investor Readiness... YOU KNOW: How much? Who from? (angel vs. VC) Why? (what for? Milestones?) YOU HAVE: Docs: Exec Summary, Pitch Deck, Basic Financials Deal team Pipeline SurePath Capital Partners Inc.
  • 8. Angel vs. VC... Opportunity Size < $20M $ 100M Capital needs 2 rounds max As much as it takes Finance Strategy Get to Cashflow Positive Invest in growth Angel VC Micro / Seed VCs ??? SurePath Capital Partners Inc.
  • 9. 2. Prepare Document Checklist: Executive Summary Pitch Deck Financial Model Bonus: Roadmap Competitive landscape Team Bios & hiring plan SurePath Capital Partners Inc.
  • 10. Exec Summ 1 - 2 pages max Sales document One purpose - get a meeting! http://www.docstoc.com/docs/120015412/Executive-Summary SurePath Capital Partners Inc.
  • 11. Pitch Deck Ten Buckets Model 10 - 15 slides Sell, don’t explain How I evaluate pitches... Clear personalized problem statement Evidence of domain expertise Known target customer with $ Can touch and feel the product Clear ask http://www.startupcfo.ca/2011/04/the-vc-presentation-grader/ SurePath Capital Partners Inc.
  • 12. Financials Baseline: Expense Plan (hires, customer acquisition, overhead) Months’ runway Better: 2 year model with key assumptions (monthly yr 1, quarterly yr 2) Unit economics and drivers Sensitivity Analysis Examples: http://foresight.is/ SurePath Capital Partners Inc.
  • 13. Final Preparations Deal Team Lawyer Advisors / Mentors Pipeline Qualified list of investors that “fit” Path to get intros SurePath Capital Partners Inc.
  • 14. 3. Pitch! Tips ✓ Be prepared - all docs & deal team ready ✓ Roadshow - parallel, not serial ✓ Running start - build relationships *before* pitching ✓ Start early enough (3 - 6 months) ✓ Target the right investors ✓ At the right time ✓ Build trust ✓ All about traction… (The three “T”s) SurePath Capital Partners Inc.
  • 15. Pitch Do’s and Don’ts DO! ✓ Talk about yourself - we invest in people! ✓ Summarize - make it easy & memorable ✓ Be different / yourself! ✓ Tell a story ✓ Impress ✓ Commit - full time effort! SurePath Capital Partners Inc.
  • 16. Pitch Do’s and Don’ts DON’T! ★ Disagree with yourselves ★ Make me read ★ Read your own slides ★ Target everyone - 1% of a B users... ★ Be alone - no competition = no market ★ Avoid phone if possible ★ No agents / intermediaries SurePath Capital Partners Inc.
  • 17. The Three Ts of Funding Round Team Tech Traction Seed A B Nothing closes rounds faster than traction SurePath Capital Partners Inc.
  • 18. Angel List http://angel.co/ Great for finishing a round, not starting Go there when - you have a lead - 2/3 of round committed - traction (aka Social Proof) SurePath Capital Partners Inc.
  • 19. Evaluating Investors... What do I want from this relationship? Have they walked the talk? What is their track record? Do they have deep pockets? Will they support me for future funding? Can they put together high quality investor syndicates? Can they help in building my organization? Can they improve my company’s profile and bring in high standards of governance? Is the valuation fair for both sides? And, ABOVE ALL: Is there mutual respect and can the VC be my sounding board? SurePath Capital Partners Inc.
  • 20. Common roadblocks Nobody wants to lead Roll your own term sheet Convertible note Pitching a note to investors that prefer equity Secure the $, then optimize the deal Investors are dragging their feet Plan a catalyzing event (launch, key hire, event, etc) Build traction Concerns over milestones Raise more or spend less SurePath Capital Partners Inc.
  • 21. Questions? Web: http://www.surepathcapital.com/ Blog: http://www.startupcfo.ca/ Social: https://twitter.com/startupcfo SurePath Capital Partners Inc.