Equity and Funding

Antony Tikhonov,
Seedrs 1
Startup Revenue Startup Financing Options

Pre-seed Seed Early-Stage Growth Expansion Maturity

Private Equity

IPO

Debt (P2P and Banks)

Venture Capital

Crowdfunding (Equity or Rewards-Based)

Business Angels

Accelerator/Incubator

Friends and Family

Startup Development Stage

2
Startup Revenue Startup Financing Options

Pre-seed Seed Early-Stage Growth Expansion Maturity

Private Equity

IPO

Debt (P2P and Banks)

Venture Capital

Crowdfunding (Equity or Rewards-Based)

Business Angels

Accelerator/Incubator

Friends and Family

Startup Development Stage

3
Raising from VCs

4
What is a VC

Venture capital funds are investment

funds that manage the money of
investors who seek private equity
stakes in startups with strong growth
potential. These investments are
generally characterized as high-risk/
high-return opportunities.

5
 How do VCs differ from each other?

Vertical Stages (and Geography

(industry focus) investment
ticket size)

TIP: Do your research before approaching (eg. Crunchbase, Pitchbook) 6

Typical VC Roles

General Partner
(GP)

Partner

Principal

Senior Associate

Associate

Analyst
7
Typical VC Roles

General Partner Decision Maker and Firm Representative.

(GP)

Partner General Partner in Training.

Principal Partner in Training.

Apprentice to Principals and Partners. Senior Associate

Sourcing, Deals, and Portfolio. Associate

Number Cruncher and Research Monkey. Analyst

TIP: Be aware of the decision-making process 8
What VCs look for

“ We invest in smart-ass
teams with a kick-ass “
product in a big ass market
Jeff Clavier from Uncork Capital

9
The T’s of Investing

TIP: Know acronyms and typical VC vocabulary 10

Source: Eric Lagier https://medium.com/byfounders/what-we-look-for-when-investing-d14c6e3e1b1
Raising from a VC

●  Do your homework (fund vertical, check size, fund cycle)

●  Get a “warm introduction”
●  Connect with people and build a long-lasting relationship
●  Get to a decision maker quickly
●  Be aware the funding process
●  Understand the term sheet

TIP: VCs are not the only ones who should be doing DD 11
Crowdfunding for Your Startup

12
Types of Crowdfunding

Rewards Debt Equity

Money in exchange for interest Money in exchange for shares
Money in exchange for perks
yielding returns

Best for growth-focused companies in

Best for creative products and to pre- Best for businesses with a track record
areas where there’s potential for
sell products of revenues
return

Backers Lenders Investors

Altruistic Lower Risk High Risk

13
Types of Crowdfunding

Rewards Debt Equity

Money in exchange for interest Money in exchange for shares
Money in exchange for perks
yielding returns

Best for growth-focused companies in

Best for creative products and to pre- Best for businesses with a track record
areas where there’s potential for
sell products of revenues
return

Backers Lenders Investors

Altruistic Lower Risk High Risk

14
 Why Businesses Use Crowdfunding

Money Validation Community Marketing Speed

Engagement

15
How to Successfully Crowdfund

16
 Key Elements for Success

+ + =

Private Network Business Community Platform Investors 100%+ of Target

17
Step 1: Own your Private Network

●  Friends
●  Family
●  Professional network ie. LinkedIn
●  Friends of the business
●  Events
●  Moonshot investors

18
 Step 2: Build a Community

Customer Feedback Cycle Email Newsletter Loyalty Schemes & Rewards

19
Step 3: Appeal to platform investors

Head Heart Little Kid

20
5 Crowdfunding Myths

21
Crowdfunding myth #1

“ Crowdfunding is an easy
way to get investment
“

22
Crowdfunding myth #2

“ Businesses crowdfund
because they can’t raise “
from VCs or angels

23
Crowdfunding myth #3

“ The crowd is
‘dumb money’
“

24
Crowdfunding myth #4

“ Managing lots of
small investors will “
be time consuming

25
Crowdfunding myth #5

“ Businesses looking to
raise from the crowd “
are overvalued

26
Thanks!

Antony Tikhonov
Business Development Manager, Seedrs

antony.tikhonov@seedrs.com

in /antonytikhonov

27
Resources (Crowdfunding-related)

https://www.seedrs.com/academy/

https://www.seedrs.com/academy/marketing-toolkit/

https://docs.google.com/presentation/d/163qufXV560fBwofBdqyJVho-
jRxyr1c_SCAg6O6mIzw/pub?start=false&loop=false&slide=id.g14405881d8_0_533

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Resources (VC-related)
https://www.deutsche-startups.de/2013/06/28/venture-capital-twitter/

https://medium.com/swlh/how-to-create-a-winning-investor-pitch-deck-794022ac4c59

https://kftechstars.novoed.com/#!/courses/venture-deals-spring20/flyer

https://www.entrepreneur.com/article/242702

https://www.venturedeals.com/resources/

https://www.linkedin.com/pulse/list-115-vcs-dach-region-arnas-br%C3%A4utigam/

https://www.slideshare.net/Sky7777/the-venture-capital-process

https://medium.com/paua-insights/do-you-speak-vc-30-jargons-and-acronyms-you-should-know-cfeca9e37945

https://a16z.com/2015/08/21/16-metrics/

https://medium.com/point-nine-news/deconstructing-vcs-decision-making-frameworks-70fa12058145 29