2.5 KiB
2.5 KiB
Section 3| Lesson 18 - What is a VC / How to Raise Money
Notes
| year | who |
|---|---|
| 1-2 | angel investors |
| 2-3 | equity investors |
angel investors
- people that fund early stage companies
- about 100k in general
banks
- never use them
- if you miss one payment they will seize everything
- they are blood suckers
equity investors
- high worth individuals
- venture capitalist firms
- want equity
"A" Round
- first round of venture capital money
- make sure to present correctly
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
- have they sold companies in the past
-
their employees like them
- glassdoor.com and do a search
- search linkedin if you can find someone who can vet these guys
- past performance is VERY indicative of future performance
- they want to back someone who made a company
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
- your university
- your current zip code
-
ask for help
- send a short message "John hope all is well. I am also from Canada/ also went to NYU/ etc. Please let me know if you have time for a coffee in the next few weeks. thanks"
in meeting
-
first half
-
get to know them
- business is about relationships
-
talk about what you have in common
- city
- university
-
-
final part
- thank you for your time
- please let me know if I can ever call upon you as an advisor now and then
- great, Ill call upon you every now and then thanks
follow up
-
meet up every 3 to 6 months
- remember something you talked about that was interesting to the person
- follow up by sending them a message / email/ etc with something interesting on that topic
-
add value by sending messages
- in months ahead every now and then
- that help them out with their business
- based on something you talked about