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Resources
Raising Funding
You’ve tested the idea and formed a solid core team – now you need to get financial backing to take your plans to the next level.
How to Get Funded
File added 2 years agoThis presentation provides an overview of the fundraising process and lessons learned from theThe .406 team, who as entrepreneurs, have raised more than $125M in capital.
Download the FileDavid S. Rose on Pitching to VCs
Link added 2 years agoA great video in the TED series where serial entrepreneur turned VC David Rose discusses the VC Pitch.
Visit the LinkSBIR Grant Funding
Link added 2 years agoGrant funding is a great non-dilutive source of funding that helps bridge the gap between the lab and the marketplace. Most government agencies participate in the Small Business Innovation Research (SBIR) program which mandates investment in early stage technology ventures. While there are many positives to the SBIR program, it takes roughly 12 months between submitting the proposal and getting funding so it should be used for non-time-sensitive projects.
Sample Legal Docs
Link added 2 years agoThe National Venture Capital Association puts out model legal docs, which .406 and many other venture firms use as their basis to ensure maximum transparency during the drafting process.
Term sheet Overview
File added 2 years agoThis presentation provides a basic overview of term sheets.
Selecting Funding Partners
Article added 2 years agoOrignially published the Foley Hoag Perspectives newsletter, in this article Maria describes how she thought about selecting funding partners when she was an entrepreneur.
Read the full ArticleDo your homework
- The investor will do diligence on you – make sure you do diligence on them as well. The best way is to speak with entrepreneurs who have worked with the investors previously. Be sure to call some that don’t appear on the potential investor’s reference list.
- Investment buys milestones. Ensure that you raise enough money to accomplish significant milestones as quickly as possible, but not more money than you need.
Target the right investors
- Venture is not right for everyone. Venture capital is meant to back companies that swing for the fences and are likely to have an exit in less than 10 years.
- Find investors who can add tremendous value beyond capital.
- Momentum plays a role in raising funding. Make sure that you approach the right investors at the right time—the right investors are often investors who have invested in and/or shown an interest in your space.
Make a great first impression
- Develop as much evidence of customer demand as possible before raising capital. If your company is pre-revenue, MOUs, LOIs and even customers willing to become references are helpful.
- Leverage your networks to get a warm introduction to prospective investors.
