Module 5: Focus Questions

Thinking to Learning Thoroughly

Discuss your answers on the following questions briefly:
1. How to create an Online Persona for your company?
The first thing that investors are going to ask is, “who are these people?” The second
thing they’ll do is search for your company on the internet. Investors want to see how you
engage your audience even before you have a product to sell. You can use online tools such as,
twitter, LinkedIn, Facebook, and a website to create a public persona before you begin
fundraising. Doing so greatly helps people remember who you are and what your company does.
Imagine having a hundreds or thousands of people who are excited about a release of your
product weeks before it’s actually available. Excited crowds don’t occur spontaneously: they’re
created, just like boy bands. For many audiences, the engagement of choice is intellectual,
political, creative or inspiring.
Whereas in the past, social media may have seemed like a waste of time – something for
kids who just want to text, chat, and send pictures back and forth – today, it’s a must for
business.

2. What are the things to be considered in creating a website?

Buying a web address and having a page hosted doesn’t cost very much- less than $100 per
year- but be sure to avoid cheap looking templates that may do more harm than good. You can
also use website design services that make putting together a web page very easy (you don’t need
any programming skills). Many easy-to –use and free inexpensive website building tools are
available. When you create your website, do the following:

● Pick a name for your site that makes sense, is related to your business, and isn’t
ridiculous or offensive when read phonetically. Choosing the web address can be a
challenge if your name is common word or common name. Above all, make sure that
your website name is easy to remember and does not have ambiguous or complex
spelling that will drive browsers to someone else’s site.
Follow these guidelines:
● Pick a name that people can remember and spell
● If your site name spelling is ambiguous, be sure to register every possible variation on
the name that you can think of and redirect all those names to your main website.
● Be sure that your company name is on the website and that your products or potential
products are visible.
● Provide contact phone number or email address so that people can get in touch with you.
3. Provide the examples of online tools for real-life funding.
As if LinkedIn, twitter, Facebook, your website, and your community campaigning
weren’t enough exposure to alert the community and potential investors that you’re looking to
raise capital, you can post your company on online investor platform such as Gust (http:/
/www.gust.com) and AngelList (http:/ /angel.com) Gust and AngelList are social media site that
allow you to share the details of your fundraising platform. This focus is different from
mainstream social media.

4. What is Gust and Angel List? Provide some highlights about Gust.
Gust is a powerful tool for angels to collaborate and syndicate on deals. You can create a
profile on Gust and then submit that profile to angel groups who have accounts with Gust. These
groups will then either invite you to pitch with their group or ask for more information. Gust
charges investors a fee, so they don’t tend to use the platform as individuals. Instead, angel group
administrators manage Gust accounts. They use the service to vet, share and accept applications
based on the group’s unique requirements.
Here are some highlights about Gust:
● It’s a powerful tool you can use to connect with angel groups.
● Its collaborative features allow angels to perform the diligence more quickly.
● Investors can share deals with other groups, helping you close your round faster.
● Your profile becomes a standard 2- page executive summary that you can print and share
with investors in person.
● It’s free to entrepreneurs.
Angel List
It is an online platform for start- ups to connect with investors, mentors and employees.
You can sort by location, market product and jobs. Angel List uncovers the otherwise secret
world of start- up investing.

5. Provide the three basic types of angels.

● Visible angels are some angels are very experienced and totally immersed in the start-up
world. Consider investors in this group visible angels because they tend to be visible in
the community, either because of their investments or because they are founders of
successful ventures. They partner with other referrals from one another.
● Angels in a group of an angel group is a club or entity that handles the sourcing and
vetting of deals. An administrator facilities meetings and sometimes does the Legal work
of putting the deals together.
 ● Invisible angels are occasionally, companies work with angels who single- handedly the
whole seed round for the company. These angels prefer to invest alone, quietly, and
without fanfare, working under the radar.

6. What is the best cold call?

The best cold call is the follow-up call. Send you’re application materials to the VC (be
sure to follow all the directions) and then call to tell the VC that you’ve submitted materials.
Doing so may seem a little silly, but it’s actually very nice to on the receiving end of that phone
call.By calling, you’re letting the admin at the VC office hear your pleasant voice, which will
remind him that you’re a real person, not just another voiceless business plan. Also, you’ve
saved him the bother of explaining the application process because you’ve already applied.

7. In providing a key information, what are the common materials to be sent to VC firm?
Although each VC firm you plan to contact may have unique rules about what and how to
submit materials, most request that you send one of the following:

● The pitch deck: Most firms request that you e- mail the pitch deck to them. Be sure that
you have included all of the points about how you will make money, how much money
you can make, and how you’ve come.
● Executive summary: The executive summary is typically one to two page documents with
a brief description of your company, product, market, team, and details of the deal (such
as the amount you are raising, pre- money valuation, use of funds, and so on.) many VC’s
prefer the executive summary as a way to screen the deal because the high- level
information tells them whether the deal is in their area, makes sense, and is worth giving
a closer look.
● Business plan: Not too many investors require the 50- page business plan anymore. The
VC will ask various portions of your business plan as he goes through the due diligence
process, but it’s not necessary to send the whole thing as an introduction. Updating VC’s
on your company’s progress You may not hear anything after you send materials to a VC

8. How long to build relationship with investors? What is the importance of building
relationships?
Chances no one will fall in love with your deal at first sight. That’s why you want friends
with investors. A VC investment last for many years and investors want to make sure that they
like you before investing. If you can get friendly with a VC, you’ve taken your fundraising
potential a step farther. The goal is to stay in touch and shows potential investors that you can be
a great long-term investment.

9. What is a Non-Disclosure Agreement?

Most VCs won’t even discuss signing a non-disclosure agreement early on in the
conversation and companies that push this issue put themselves at a disadvantages by showing a
lack of understanding of the investing environment and norms. When you first talk with
investors, determining what you should share and what you should keep secret can be hard. Let
us make it easy: if it’s secret, keep it secret. Generally, intellectual property protection covers
some aspect of the technology. You really don’t need to share the details until you are deeply
into due diligence.

10. Why a need to keep a secret sauce a secret?

Even with a signed NDA, you can- and- should – keep some secrets under wraps.
Consider which secrets are truly protected by patents (and therefore okey to share with investors)
and which should simply remain trade secrets until the VC has invested. Talk to your patent
attorney to determine which is which.