SDFI 2016 Fundraising Oien

8/18/2019 SDFI 2016 Fundraising Oien

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Fundraising and

BootstrappingDerrick Oien - April 21, 2016



High level Thoughts• If I could, I would always bootstrap.

• Once you raise capital, your startup is “onthe clock”.

• Everything will take longer and cost morethan you think.

• Do your homework. There is a lot.

•Fundraising is an important part ofstartups but it is not an “accomplishment”.

• My comments are on consumer based

businesses.



My experiences - Intercasting

• Bootstrapped with 3 co-founders. We capitalizedwith $400K.

• Built product over a year.Launched with Verizon.

• Raised $17.5 million over tworounds from VCs like Venrock

and strategics like Sprint.

• Sold to Good Technology.



My experiences - ScoreStream

• Small note from VCs at start.

• Bootstrapped for 2 years with

moonlighting and consulting.• Raised a note from NEA and

Avalon Ventures.

• Series Seed from SinclairBroadcasting and others.

• Working on a Series A now.



Why Raise? (Or Why Not)• Startups usually pivot many times.

• When you raise early in the life of acompany, your investors are betting onthe rst path. Will they support thepivot?

• To me, you raise after product market tand you need to accelerate.

• Raising money can take 75% or more ofyour time. Time not spent on thebusiness.



Who should I raise from?• Opinions vary. I won’t raise from friends

and family.

• I prefer traditional VCs and partners/ strategics.

• Angels are good as long as they areexperienced.

• The key thing is to get to know people.

People invest in people they know. The

longer they know you the better.

• Tons of new options (crowd funding, kickstarter). Do your homework.



When should I raise?

• As late as possible! The more

progress the greater valuecreated.

• Ideally once you nd trueproduct market t.

• Plan on roughly 6 months toget a raise done.



Where should I raise?

• Depends on where you are

located and where there iscapital.

• Depends on the type ofbusiness you have. Forexample we are TV/media sowe go to LA & NY.

• The San Diego problem.



What should I raise?

• There is an art tofundraising.

• Issues to consider. Howmuch do you need?What is market for roundsize? For terms? Howmuch dilution? How

hard to raise the nextround? What happens ifthings take too long?



How do I raise?

• There is a ton of homework todo…

• I use Mattermark. I use my VC network. I use myentrepreneur network. I usemy service provider network.

• Intercasting - Early stage,consumer, wireless, socialnetworking.

• ScoreStream - Early stage,consumer, sports, media.



Epilogue

• ScoreStream today

• Growth - 5X year over year for2 years.

• Business Development - Almost all TV, cable, radioand newspaper companies

• Revenue - Signing rstrevenue deals.

• Fundraising is still hard.



Q&A

Derrick Oien [email protected]

Twitter - @Derrick (858)205-3730

Documents

SDFI 2016 Fundraising Oien