@JoshuaBaer@ATXStartupScene

ATXStartupScene.com

How to meet Angel Investors

by @JoshuaBaer

Find this Onlinehttp://ATXStartupScene.comhttp://slideshare.net/joshuabaerhttp://youtube.com/austintechlive

Do your homework online• Paul Graham on Fundraising

paulgraham.com/fr.html

• VentureHacksventurehacks.com/archives

• VC Economics from Wealthfront blog.wealthfront.com/venture-capital-economics/

• Sam Altman’s Startup Class interview withMarc Andreessen, Ron Conway, & Parker Conradclip.mn/video/yt-uFX95HahaUs

• Sam Altman’s Startup Playbook playbook.samaltman.com

Books to read

What’s different about Fundraising in

Austin?

bootstrap first

revenue focused

experienced

teams

How to meet angel investors1. Leverage your personal network

2. Go where the investors are - bars, coffee shops, events, Capital Factory

3. Follow them on Twitter twitter.com/joshuabaer/lists/austin-angels

4. Create an AngelList profile (and email it to me)

5. Post to Austin Angel Investors Facebook group

6. Office Hours with CTAN

7. Epic Office Hours at Capital Factory

8. Apply for an Accelerator

9. Participate in pitch events and competitions

Step by Step1. Do your homework online

2. Create a 1-2 page PDF overview of your team, product and progress

3. Find a friendly angel investor or entrepreneur to give feedback

4. Create a real pitch deck and get lots of feedback

5. Get your first few angel investors on a convertible note

6. Apply to an Accelerator

7. Raise $500k to $1.5m on the convertible note from angels, angel groups, and VCs

8. Raise $3-6m Series A from a VC

• One of the most active angel groups in the country

• Not just tech

• 5x/year application cycle

• Monthly office hours

• Rick Timmins is the Chairman (and CF Mentor)

• Claire England is the Executive Director

Find investors, intros & advice at

Office Hours

Office Hours• Think of this as speed dating

• Don’t expect them to commit on the first date

• Research their background beforehand

• Professional on LinkedIn

• Investments on AngelList

• Personality on Twitter and Facebook

• Ask for a followup meeting to show progress

Program Funding Equity Focus

Athena Health MDP $50,000* 3%* Health

Capital Factory $100,000 3%* Tech

International Accelerator $50,000 15% International

SKU $8,000 4% or 8% CPG

Techstars $120,000 9% Tech

UnLtd, USA $5,000 0% Social Good

Austin Accelerators

* actual amount varies from company to company

Valuation• Average is $3m (it’s double in Silicon Valley)

• On a note, think of the cap as the valuation

• Higher because of traction or track record - up to $8m

• Higher because it is capital intensive

• If you have to justify it, then it’s too high

• Bigger is not always better

Time

• Usually takes 6-12 months

• Really fast is 2-3 months

• If only 2-3 investors can happen in 1 month

• Sometimes drags out over 18 months

• Entrepreneurs usually think it’s going to happen faster

Get used to hearing

NO

Say you’re going to do something. Then do it.

Ask Us Anything