diff --git a/mba-main.org b/mba-main.org index 403ef0d..434840b 100644 --- a/mba-main.org +++ b/mba-main.org @@ -18,3 +18,5 @@ ** Section 3 - Venture Capital part 1: How to Raise Money *** [[./mba/ch18.org][Chapter 18. What is VC, How to Raise Money, Get Board of Advisors]] +*** [[./mba/ch19.org][Chapter 19. Recap]] +*** [[./mba/ch20.org][Chapter 20. Sales technique]] diff --git a/mba/ch18.org b/mba/ch18.org index 0ccf1ab..356b38c 100644 --- a/mba/ch18.org +++ b/mba/ch18.org @@ -9,36 +9,40 @@ * Notes +** Intro + | year | who | |------+------------------| | 1-2 | angel investors | | 2-3 | equity investors | -** angel investors +*** angel investors - people that fund early stage companies - about 100k in general -** banks +*** banks - never use them - if you miss one payment they will seize everything - they are blood suckers -** equity investors +*** equity investors - high worth individuals - venture capitalist firms - want equity -** "A" Round +*** "A" Round - first round of venture capital money - make sure to present correctly -** most important investment characteristic +** Equity Investors / Venture Capitalists + +*** most important investment characteristic - NOT "good business model" - it is MANAGEMENT - business model is irrelevant - management team is the MOST important thing -** how to find out if the team is good +*** how to find out if the team is good - have they sold companies in the past - their employees like them - glassdoor.com and do a search @@ -46,7 +50,8 @@ - past performance is VERY indicative of future performance - they want to back someone who made a company -** how to get a board of advisors +** How to Meet High Quality People +*** how to get a board of advisors - go to linked in and do an advanced search - enter the keywords that are relevant - keyword of interest @@ -76,3 +81,85 @@ - in months ahead every now and then - that help them out with their business - based on something you talked about + +** VC Capital Raising and Terms +*** Who are the Investors / LPs? +- high net worst investors + - big endowments + - pension funds + +*** What are the Terms? (2 and 20) +- generally 2% annual fee, this pays for maintanence +- 20% buyout when you sell + +*** How do you harvest and investment? +- go public +- get sold (to another company) + +*** returns +- 5 by 5 +- 500% return within 500 years +- because most investments go belly up + - most companies declare bankruptcy in 5 years + +*** valuation +- in five years, is this company going to be more or less relevant than it is today +- long term vision + - you actually prefer downturns so you can buy cheaper + +** Investment Stages +*** initial | seed +- angel investors +- family + +*** venture capital +- A Round + - need to grow your business + - hire more engineers + - early stage vc firm + - about a 1.5-2 years + +- B round + - second stage vc firm + - another 1.5-2 years + +- C round + - final stage vc firm + +*** final | IPO - Initial Public Offering +- revenue grown slows +- still positive + +** How to Pitch to a VC +*** prepare 3 pitches 30-5-30 +- 30 second pitch + - most important + - simple to understand + - understanding in one sentence + - if people understand it, you'll get your first meeting + +- 5 minute pitch +- 30 minute pitch + +*** sell yourself +- you are what they are actually buying + +*** discuss what is different about your product + +*** be ABLE to discuss competition and market +- know the size of the TAM - Total Adjustable Market +- if you don't, they'll assume you don't know what you are talking about + +*** have basic financials ready for discussion +- a few annual revenue expense line items + +*** what are your partners, investors and advisors +- talk about them + +*** show the product +- most people dont +- show it right away + +*** keep it simple +- be passionate +- speak from the heart diff --git a/mba/ch19.org b/mba/ch19.org new file mode 100644 index 0000000..01fcd32 --- /dev/null +++ b/mba/ch19.org @@ -0,0 +1,24 @@ +#+HTML_HEAD: +#+HTML_HEAD: + +#+title: Section 3| Lesson 19 - How to Improve Your Management Team + More + +* Links +- [[./../mba-main.org][ +#+HTML_HEAD: + +#+title: Section 3| Lesson 20 - Sales technique + +* Links +- [[./../mba-main.org][