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The Art of Startup Fundraising

Book Description

Startup money is moving online, and this guide shows you how it works.

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.

The finance world is in a massive state of flux. Changes are occurring at an increasing pace in all sectors, but few more intensely than the startup sphere. When the paradigm changes, your processes must change with it. This book shows you how startup funding works, with expert coaching toward the new rules on the field.

  • Learn how the JOBS Act impacts the fundraising model
  • Gain insight on startups from early stage to growth stage
  • Find the money you need to get your venture going
  • Craft your pitch and optimize the strategy
  • Build momentum
  • Identify the right investors
  • Avoid the common mistakes

Don't rely on the "how we did it" tales from superstar startups, as these stories are unique and applied to exceptional scenarios. The game has changed, and playing by the old rules only gets you left behind. Whether you're founding a startup or looking to invest, The Art of Startup Fundraising provides the up-to-the-minute guidance you need.

Table of Contents

  1. Cover
  2. Praise for <i xmlns="" xmlns:epub="" xmlns:m="" xmlns:svg="" xmlns:ibooks="">The Art of Startup Fundraising</i>
  3. Title Page
  4. Copyright
  5. Dedication
  6. Foreword
  7. Acknowledgments
  8. Chapter 1: Everything Started with Onevest
  9. Chapter 2: Raising Capital for Your Startup
    1. Speeding Up the Machine
    2. It's Not as Easy as Reading an Article on TechCrunch
    3. The 18- to 24-Month Plan
    4. Milestones
    5. Breaking Even
    6. Expectations of Investors
    7. Outperform the Competition
    8. Marketing
    9. Storytelling
    10. Leveraging Help
    11. Divide and Conquer
    12. The Rollercoaster of Emotions
    13. Learn to Love Rejection
    14. Connect the Dots
    15. The Pros and Cons of Raising Capital
    16. Don't Underestimate the Need for Capital
  10. Chapter 3: Setting Yourself Up for Success
    1. Investors Don't Want to Invest
    2. The Core of Your Business
    3. Experienced and Talented Management
    4. Organize Your Corporate Structure with a Legal Team
    5. Helpful Advisors
    6. Building Momentum
    7. Team Alignment
    8. Show Your Competitive Advantage
    9. Know Your Terms
    10. Vision
    11. Attracting Investors Requires Patience
  11. Chapter 4: Crafting the Pitch
    1. The Business Plan Problem
    2. Get the Message Straight and Your Team behind It
    3. The Elevator Pitch
    4. The Pitch Deck
    5. Awesome, Effective Pitch Deck Design
    6. The One Pager
  12. Chapter 5: The Due Diligence Package
    1. The Interview and the Visit
    2. Find Balance
  13. Chapter 6: Sources of Capital
    1. Bootstrapping
    2. Credit Cards
    3. Business Loans
    4. Friends and Family
    5. Crowdfunding
    6. Angel Investors and Super Angels
    7. Angel Groups
    8. Family Offices
    9. Venture Capital
    10. Venture Debt
  14. Chapter 7: Understanding the VC Game
    1. Defining Roles in a VC Firm
    2. The Process of Getting Funded by a VC
    3. How VCs Monetize
    4. VC Involvement in Your Company
    5. Understanding the Value a VC Brings
    6. Cutting through the VC Noise
    7. Differences between Venture Capital and Private Equity
  15. Chapter 8: Investment Rounds Explained
    1. Friends and Family
    2. Micro Seed Round
    3. Seed Round
    4. Series A Round
    5. Series B, C, D Investment Rounds
    6. Initial Public Offering (IPO)
    7. Research Is Critical
  16. Chapter 9: Deciding Investment Amounts and Prospects
    1. Needed, Realistic, and Ideal Investment Levels
    2. Your Valuation versus Market Valuation: The Asking Price
    3. Persuading Investors with a Financial Forecast
    4. Identifying Prospective Investors
    5. Six Ways to Contact Investors
    6. Creating a Buzz around Your Startup
  17. Chapter 10: PR: Creating a Storm and Building Momentum
    1. The Rainmaker Code
    2. Journalist Outreach
    3. Self-Distributed Press Releases
    4. More Buzz-Building Tactics for Smart Startups
  18. Chapter 11: What to Look For in an Investor
    1. Why Selecting the Right Investors Is So Critical
    2. Three Factors You Should Be Looking For in Investors
    3. Three Factors to Avoid in Investors
    4. Six Key Questions to Ask Potential Investors
    5. Speed Is a Two-Way Street
    6. Arming Yourself with Answers
  19. Chapter 12: Term Sheets and Terms
    1. Term Sheets 101
    2. Terms within Term Sheets That You Need to Know
    3. Term Sheet Tactics
    4. Smart Term Sheet Strategies
    5. If Things Don't Go Forward
  20. Chapter 13: Closing the Deal
    1. The Importance of Urgency
    2. Creating a Completion Schedule
    3. Managing Expectations
    4. Updating Your Investors
    5. Closing the Deal Is Not the End of the Deal
  21. Chapter 14: Avoiding Common Fundraising Mistakes
    1. Failing to Connect
    2. Clarity and Doing What You Say
    3. Self-Sabotage in the Deal-Making Process
  22. Chapter 15: Understanding the JOBS Act
    1. The Game Changer
    2. The JOBS Act
    3. Implications for Startups and Raising Money Online
    4. Implications for Individual Investors
  23. Chapter 16: Recommended Tools for Fundraising
    1. Using the Right Tools
    2. Organization
    3. Research
    4. Social Media
    5. Outsourcing
    6. Sales and Administration
    7. Finding Your Investors
  24. Chapter 17: Red Flags
    1. Key Red Flags for Startups
  25. Glossary
  26. About the Author
  27. Index
  28. End User License Agreement