Digital Outlaws presents:

Funding 101
F bis VC
or Why an idea is really not enough

2x

som
e
for

Redesign

Understanding

Financing Options
Bootstrapping
F - Family Friends & Fools
Business Competitions
Crowd Funding / Crow Investing
Business Angels
Accelerators / Incubators
Bank Loans
Subsidies & Development Loans
Venture Capital (strategic & nonstrategic)

Getting funding is one of the hardest

challenges why?

4
4

Each seed is the dream of a new life...

5
5

...and the road ahead is tough

5% rise and 25 Celsius

(NOT)
=
VERY tough way

Comfort Zone

Roadmap
1. Idea
2. Mockup
3. Wireframe
4. MVP (Minimum Viable Product)
5. Friendly Testers
6. Hostile Testers
7. Beta Market (Revenue)
8. Cash Flow positive
9. Anchor Market rdy to scale
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Each piece leaves

the comfort zone...
(safe airplane)

...success is achieved when EVERYTHING

fits

And success relates to financing probability

Risk

Idea

Therm
onucle
ar
Unstab
le

MVP

Market

Pivota
l Point

Risky

Scaling

Success
(Product,
Market, Cash
Flow, etc.)

nt
e
tm lity
s
e
i
Inv bab
pro

Safe
Time

Investors in power position

Startup has gained power

position
10

Therefore: an idea
is not enough
Investors believe in facts
and extrapolate from there
99% Execution 1% Idea
its more like 70% to 30%
Team = execution = success
Success = ROI
Therefore: Team = ROI
A idea B team vs B idea A
team
Teams w/ track record will

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Traction beats
anything

No, I really mean it

ANYTHING.

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6 : 339
The success ration of reaching
the top of Mount Everest
Dream Idea MVP Market
proof
1 of 10 VC backed startups will
deliver a profit
Investors ponder carefully which
basket to place their eggs

Investing is about
safe bets (its not gambling)

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How & When to

get Which Investor
Idea

Bootstrapping, F,
Business Competitions

MVP

+ Biz Angels, Crowd

Funding,
Crowd Invest,
Accelerator,
+ Bank Loans, Subsidies,
Incubator
Development Loans, VC

Market

Scaling

+ Structured Finance, IPO,

Revenue Share
14

Accepting Green
If you accept external money,

1+1 2
2
is mandatory!
Faster scaling, better processes,
cheaper procurement, etc.
15

Some Words of
Caution
SAFE, Pre Liq, Anti-Dilution, DragAlong, Tag-Along, positive vs. negative
vesting...
ONLY smart money
Time: 3-6-9 (minimum-good-regular)
Time bomb: ripe fund
VC network equals VC traction
Next round follow up network
Cap table tea club no foam party
If syndicate, than symbiotic:

national international industry

technology

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 DIGITAL OUTLAWS
BY SUBLIME INVESTMENTS
C/O ALEXANDER MARTEN, ESQ.
ERICH-OLLENHAUER-STRASSE
40595 DSSELDORF

am@sublime.vc
@Galil3o
http://linkd.in/1CkkDHB
http://fb.me/digital.0utlaws
http://goo.gl/GpLwD2

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