Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

of

Mike Wilner (AWS) - Fundraising 201 Slide 1 Mike Wilner (AWS) - Fundraising 201 Slide 2 Mike Wilner (AWS) - Fundraising 201 Slide 3 Mike Wilner (AWS) - Fundraising 201 Slide 4 Mike Wilner (AWS) - Fundraising 201 Slide 5 Mike Wilner (AWS) - Fundraising 201 Slide 6 Mike Wilner (AWS) - Fundraising 201 Slide 7 Mike Wilner (AWS) - Fundraising 201 Slide 8 Mike Wilner (AWS) - Fundraising 201 Slide 9 Mike Wilner (AWS) - Fundraising 201 Slide 10 Mike Wilner (AWS) - Fundraising 201 Slide 11 Mike Wilner (AWS) - Fundraising 201 Slide 12 Mike Wilner (AWS) - Fundraising 201 Slide 13 Mike Wilner (AWS) - Fundraising 201 Slide 14 Mike Wilner (AWS) - Fundraising 201 Slide 15 Mike Wilner (AWS) - Fundraising 201 Slide 16 Mike Wilner (AWS) - Fundraising 201 Slide 17 Mike Wilner (AWS) - Fundraising 201 Slide 18 Mike Wilner (AWS) - Fundraising 201 Slide 19 Mike Wilner (AWS) - Fundraising 201 Slide 20 Mike Wilner (AWS) - Fundraising 201 Slide 21 Mike Wilner (AWS) - Fundraising 201 Slide 22 Mike Wilner (AWS) - Fundraising 201 Slide 23 Mike Wilner (AWS) - Fundraising 201 Slide 24 Mike Wilner (AWS) - Fundraising 201 Slide 25 Mike Wilner (AWS) - Fundraising 201 Slide 26 Mike Wilner (AWS) - Fundraising 201 Slide 27 Mike Wilner (AWS) - Fundraising 201 Slide 28 Mike Wilner (AWS) - Fundraising 201 Slide 29 Mike Wilner (AWS) - Fundraising 201 Slide 30 Mike Wilner (AWS) - Fundraising 201 Slide 31 Mike Wilner (AWS) - Fundraising 201 Slide 32 Mike Wilner (AWS) - Fundraising 201 Slide 33 Mike Wilner (AWS) - Fundraising 201 Slide 34 Mike Wilner (AWS) - Fundraising 201 Slide 35 Mike Wilner (AWS) - Fundraising 201 Slide 36 Mike Wilner (AWS) - Fundraising 201 Slide 37 Mike Wilner (AWS) - Fundraising 201 Slide 38 Mike Wilner (AWS) - Fundraising 201 Slide 39 Mike Wilner (AWS) - Fundraising 201 Slide 40 Mike Wilner (AWS) - Fundraising 201 Slide 41 Mike Wilner (AWS) - Fundraising 201 Slide 42 Mike Wilner (AWS) - Fundraising 201 Slide 43 Mike Wilner (AWS) - Fundraising 201 Slide 44 Mike Wilner (AWS) - Fundraising 201 Slide 45 Mike Wilner (AWS) - Fundraising 201 Slide 46 Mike Wilner (AWS) - Fundraising 201 Slide 47 Mike Wilner (AWS) - Fundraising 201 Slide 48 Mike Wilner (AWS) - Fundraising 201 Slide 49 Mike Wilner (AWS) - Fundraising 201 Slide 50 Mike Wilner (AWS) - Fundraising 201 Slide 51 Mike Wilner (AWS) - Fundraising 201 Slide 52 Mike Wilner (AWS) - Fundraising 201 Slide 53 Mike Wilner (AWS) - Fundraising 201 Slide 54 Mike Wilner (AWS) - Fundraising 201 Slide 55 Mike Wilner (AWS) - Fundraising 201 Slide 56 Mike Wilner (AWS) - Fundraising 201 Slide 57 Mike Wilner (AWS) - Fundraising 201 Slide 58 Mike Wilner (AWS) - Fundraising 201 Slide 59 Mike Wilner (AWS) - Fundraising 201 Slide 60 Mike Wilner (AWS) - Fundraising 201 Slide 61 Mike Wilner (AWS) - Fundraising 201 Slide 62 Mike Wilner (AWS) - Fundraising 201 Slide 63 Mike Wilner (AWS) - Fundraising 201 Slide 64 Mike Wilner (AWS) - Fundraising 201 Slide 65 Mike Wilner (AWS) - Fundraising 201 Slide 66 Mike Wilner (AWS) - Fundraising 201 Slide 67
Upcoming SlideShare
What to Upload to SlideShare
Next
Download to read offline and view in fullscreen.

1 Like

Share

Download to read offline

Mike Wilner (AWS) - Fundraising 201

Download to read offline

Startup Grind NYC presents Mike Wilner from the AWS Early Stage Startups Team on December 16, 2020. Mike walks founders through the practical steps of how to authentically generate a sense of urgency with investors, control your fundraising narrative, and stack the deck in your favor in order to create fundraising momentum and close investors quickly. Whether you are getting ready to fundraise, are currently fundraising, or are considering fundraising in the future, this workshop will prepare you to run a more efficient fundraising process.

The workshop walks through the fundraising process comprehensively, including:
- Knowing when to raise money
- Ground rules when approaching a seed round
- Drafting round composition and allocation
- Crafting your fundraising narrative
- Building a funnel
- Initiating fundraising mode and stacking meetings
- Pitching and closing

Startup Grind Local features incredible talks with entrepreneurs from Startup Grind’s worldwide network. Startup Grind is a global startup community designed to educate, inspire, and connect entrepreneurs.
- Subscribe to Startup Grind Local: https://www.youtube.com/user/StartupGrindLocal
- Startup Grind on YouTube: https://www.youtube.com/user/StartupGrind
- Follow us on Twitter: https://twitter.com/StartupGrind
- Like us on Facebook: https://www.facebook.com/StartupGrind
- Find a Startup Grind event in your area: www.startupgrind.com

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Mike Wilner (AWS) - Fundraising 201

  1. 1. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Fundraising 201: Raising a seed round efficiently Mike Wilner AWS Startup BD @mwil20
  2. 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. What is seed funding?
  3. 3. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. It’s more than just Venture Capital Non-VC • Non-dilutive grants • Friends and Family • Angels • Angel Funds and Groups • Accelerators VC • Pre-seed VCs • Seed VCs • Multi-stage VCs • Corporate VCs
  4. 4. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. How long should fundraising take?
  5. 5. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Experienced founders can put a seed round together in as quickly as a month
  6. 6. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. The Secret Generate authentic competition for your round, giving investors FOMO (fear of missing out) and a sense of urgency
  7. 7. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. What we’ll cover 1. When to raise seed capital 2. Establishing ground rules 3. Drafting your round composition 4. Crafting your fundraising narrative 5. Building your initial funnel 6. Initiating fundraising mode and stacking meetings 7. Pitching and closing
  8. 8. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 1. When To Raise Seed Capital
  9. 9. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Don’t fundraise because you think you should; only do it as a means to an end.
  10. 10. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Only raise money when the following are true: 1. You have a compelling fundraising narrative and capital is the constraint to achieving your next milestone 2. You’re standing on solid ground (either momentum or optionality) 3. You have strong conviction that you’ll be successful fundraising (which usually means you know a few investors who would be in)
  11. 11. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 2. Four Ground Rules for Raising a Seed Round
  12. 12. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Rule #1: You’re either in full fundraising mode or you’re not
  13. 13. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Rule #2: Fundraising should be one person’s full-time job
  14. 14. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Rule #3: Fundraise in parallel (not in sequence) and put yourself in a position to say “no”
  15. 15. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 3:1
  16. 16. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Rule #4: Time kills all deals
  17. 17. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 3. Drafting your round composition
  18. 18. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Create scarcity by working backwards from your ideal cap table $2M Seed round 1 Lead VC: $800k 2 Follow VCs: $600K 5 Angels: $600K
  19. 19. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Understanding types of investors
  20. 20. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Being a successful VC is hard $10M Fund size 33 # of investments
  21. 21. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Being a successful VC is hard 10 Startups fail 11 1x 6 3x 3 5x 2 20x 1 50x
  22. 22. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. The Seed VC Rule of Thumb: Every investment needs to have the potential to return the entire fund (~50x)
  23. 23. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Seed VCs will want you to keep climbing the VC path
  24. 24. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Understanding Angel Investors
  25. 25. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Angel Investors have more diverse motivations
  26. 26. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Angel Investors have a lower bar for a “good” outcome
  27. 27. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Angel Investors may be more passively involved
  28. 28. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Round composition takeaways • Understand how the investor’s business works • Make sure your goals are aligned with investors’ • Be deliberate about the types of investors you want in your round • Draft your round composition before you start talking to investors
  29. 29. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 4. Crafting your fundraising narrative
  30. 30. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. What is a fundraising narrative? A concise explanation of what you do, what’s most compelling about your business, why you’re raising money, and your long-term vision.
  31. 31. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. A good narrative can do the following in 30 seconds First 15 seconds 1. Simply explain what you do 2. Communicate the central thesis behind the investment (AKA why you will win) Second 15 seconds 3. Outline your progress-to-date, future milestones, and long-term vision
  32. 32. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Bad example “We provide data and analytics in a comprehensive project management suite, enabling audio content creators to glean insights that inform decisions throughout the production cycle.”
  33. 33. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. “We’re an analytics tool for podcasters” Good example
  34. 34. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 2. Communicate the central thesis behind the investment (AKA why you will win) What is the one reason that an investor should invest? • Unlocked traction • The ideal team • Unique insight on distribution or workflow adoption • Case Study proving incredible efficacy • Customer Feedback showing you’ve built something people love
  35. 35. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Good example “We’re an analytics tool for podcasters, and we’re a team of former podcast producers who produced 5 of the 20 most downloaded podcasts of all time.”
  36. 36. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 3. Articulate “milestones of de-risking” to show your progress and future plans 1. Progress to date – what have you figured out? 2. Next milestone – what is the biggest risk you need to address? 3. The future – if you de-risk that, what could the future hold?
  37. 37. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Bad Example “We have 20 customers and we’re raising $2M to continue building out our product and hire a sales team.”
  38. 38. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Good example “We’ve found product market fit on a small scale with 20 independent podcasters paying for our product and using it for all of their shows. Now, we’re raising $2M to find a repeatable customer acquisition strategy so we start dominating the independent podcaster market. Once we do that, we can go upmarket to podcast studios which will give us the most advanced podcast dataset in the world.”
  39. 39. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Support your narrative with a financial model Goal #1: Verify the story you’re telling Goal #2: Show the assumptions you’re making
  40. 40. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Fundraising narrative takeaways • Keep it simple and concise • Frame progress and future milestones in terms of de-risking • Back up your narrative with math
  41. 41. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 5. Building your initial funnel
  42. 42. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Create scarcity by working backwards from your ideal cap table $2M Seed round 1 Lead VC: $800k 2 Follow VCs: $600K 5 Angels: $600K
  43. 43. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Work backwards from the 3:1 rule Lead VC’s (20) Follow VC’s (40) Angels (100) Lead VC: $800k Follow VC #1: $300k Follow VC #2: $300k Angel #1: $120k Angel #2: $120k Angel #3: $120k Angel #4: $120k Angel #5: $120k Cap table Prospect (20:1) Initial Meeting (10:1) Final Diligence (3:1) Closed (1:1)
  44. 44. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Staggering can work to your advantage Lead VC’s (20) Follow VC’s (40) Angels (100) Lead VC: $800k Follow VC #1: $300k Follow VC #2: $300k Angel #1: $120k Angel #2: $120k Angel #3: $120k Angel #4: $120k Angel #5: $120k Cap table Prospect (20:1) Initial Meeting (10:1) Final Diligence (3:1) Closed (1:1)
  45. 45. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. People > Firms • Fundraising is about relationships • Focusing on people is more effective than firm-hunting • People have different roles and investment focuses
  46. 46. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Prospecting Tactics
  47. 47. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Prospecting Tactic #1: Research
  48. 48. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Prospecting Tactic #2: Other Founders
  49. 49. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Tips for building relationships pre-fundraise • Spend 10% of your time building relationships with value-adders • Genuinely seek help from those who can help with specific challenges • Show them the ROI of their time/advice/network • Allow them to look like someone with early access to startups
  50. 50. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Prospecting takeaways • 20 prospects for every spot available • Focus your prospecting on people – not just firms • Get prospects through research and relationships • Build genuine relationships with investors and founders before raising
  51. 51. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 6. Initiating fundraising mode and start stacking meetings
  52. 52. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 1. Build relationships before turning on fundraising mode
  53. 53. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 2. Make sure you have your materials • Teaser deck • Full Presentation deck and Readable deck • Supporting financial model • SAFE/Convertible note
  54. 54. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 3. Quietly close at least one investor, then turn on fundraising mode
  55. 55. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 4. Keep filling the top of the funnel
  56. 56. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 7. Pitching and closing
  57. 57. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Goals for the first meeting 1. Discover if there’s goal alignment 2. Learn about their decision-making process 3. Get them excited about the opportunity
  58. 58. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Rules for the first meeting
  59. 59. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. First Meeting Rule #1: Ask questions before you start pitching
  60. 60. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. First Meeting Rule #2: Don’t discuss valuation
  61. 61. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. First Meeting Rule #3: Keep it conversational
  62. 62. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Questions you should ask in the first meeting • What is a good outcome for you? • What is your typical check size and/or ownership target? • What is your investment process?
  63. 63. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Typical VC Process
  64. 64. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. “No” is better than “maybe”
  65. 65. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Summary • You’re giving up scarce equity in your company, not asking for money • Create a sense of urgency by cultivating authentic competition • Startup <> Investor fit goes both ways • Build relationships before you need to fundraise • Put yourself in a position where you’ll have to say “no” to investors • This is a full-time process that should be done as quickly as possible • Remember the 3:1 rule
  66. 66. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Experienced founders can put a seed round together in as quickly as a month
  67. 67. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Questions?
  • ShaharSilbershatz

    Mar. 26, 2021

Startup Grind NYC presents Mike Wilner from the AWS Early Stage Startups Team on December 16, 2020. Mike walks founders through the practical steps of how to authentically generate a sense of urgency with investors, control your fundraising narrative, and stack the deck in your favor in order to create fundraising momentum and close investors quickly. Whether you are getting ready to fundraise, are currently fundraising, or are considering fundraising in the future, this workshop will prepare you to run a more efficient fundraising process. The workshop walks through the fundraising process comprehensively, including: - Knowing when to raise money - Ground rules when approaching a seed round - Drafting round composition and allocation - Crafting your fundraising narrative - Building a funnel - Initiating fundraising mode and stacking meetings - Pitching and closing Startup Grind Local features incredible talks with entrepreneurs from Startup Grind’s worldwide network. Startup Grind is a global startup community designed to educate, inspire, and connect entrepreneurs. - Subscribe to Startup Grind Local: https://www.youtube.com/user/StartupGrindLocal - Startup Grind on YouTube: https://www.youtube.com/user/StartupGrind - Follow us on Twitter: https://twitter.com/StartupGrind - Like us on Facebook: https://www.facebook.com/StartupGrind - Find a Startup Grind event in your area: www.startupgrind.com

Views

Total views

83

On Slideshare

0

From embeds

0

Number of embeds

62

Actions

Downloads

3

Shares

0

Comments

0

Likes

1

×