Financing Your Idea Charlie Kiser Chief Reality Officer

Financing Your Idea Charlie Kiser Chief Reality Officer Sell. Strategy Consulting

Summary �Cycle of Fund Raising �Types of Fundable Businesses � Who are the Investors? �Trends In Early Stage Financing �State Initiatives �How do I get started? �Startup Resources

Cycle of Fund Raising �Bootstrap – Self Funded $5 -50 K �Friends and Family - $25 -100 K �Seed Stage/Angel Investors - $50250 K ◦ Incubator/Accelerator $25 -50 K �“A Round” Venture Capital – $3002 mm �“B Round/Follow On” Venture Syndicate -$2 mm-5 mm �“C Round” $10 mm-50 mm, (Revolution)

Types of Fundable Businesses �Disruptive ideas that address a scalable market and have global impact or reach �Ideas that challenge existing structure that has been resistant to change �Health IT, Education, Policy/Politics, Cloud Big Data, Security �NOT Fundable – Lifestyle Business. Salon, Retail, Coffee Shop, Food Truck, Services, Staffing.

Who are the Investors? Angel Investors �Interested in Ideas they are familiar with �Like to Invest where they also add value �Often have sold business but are in holding pattern �Will come in after Lead Investor has issued term sheet �Where are they? Dingman Center, Pitch Events, Tech Meetups etc.

Who are the Investors? Incubator/Accelerator �Offer mentorship and hands on assistance �Provide $25 -50 K in exchange for < 10% stake in business �Require a 2 -6 month commitment on site �Some fee for space usage �Work to help build team and get traction �Promote to other VCs �Good for inexperienced startups

Who are the Investors? Venture Capital �Interested in Team, Product and Market �Want to be the “first mover” �Work with other VC’s to arrange syndicate �Offer first Valuation of your business �Grotech, CORE, Revolution, In-Q-Tel, Valhalla, New Markets, NEA

Trends In Early Stage Financing �Traditional Venture Cap is changing �Angel Investors taking larger roles �Cost of development is shrinking �JOBS Act opening door to crowdfunding, general solicitation and potential access to public markets �Incubator/Accelerator Overload

State Initiatives ◦ CIT Gap Funds◦ State Initiative funding VA based startups. Act as Angel and VC ◦ Jennifer Daniels ◦ Invest. Maryland ◦ Raised $84 MM for MD based startups. Leveraging VC’s and state agencies to disperse funds

How do I get started? �Exercise your Idea �Develop prototype product or service �Find initial traction – “Ties for Rent” �ITERATE �Share your idea- harness the “human cloud” �Pitch �Quit your job, commit and don’t look back!

Resources �www. fosterly. com - Adam Zuckerman �Dc Tech Meetup – Peter Corbett �Tech Cocktail tech. co – Frank Gruber �Tech. Crunch �Mashable �Angel. co, Ange. List �Paul Singh, Jonathon Perrelli, Evan Burfield, Glen Hellman

�Charlie Kiser �sellstrategy@gmail. com �@charliekiser