1. Alexander M. Orlando, DBA
HOW FOUNDERS MEET FUNDERS
Alexander M. Orlando, DBA

3. ABOUT ME

4. The life of many start-up

5. The four S of Innovation
4 types of innovators
Seeders
Solvers
Individuals that inspire through their wishes innovation
Professionals that utilize their skills and knowledge to propose innovative solutions for a prize.
Sellers
Seekers
Inventors or innovators that seek to to sell, license, or fund their inventions.
Entrepreneurs, organizations, and investors that are looking for new ideas, solutions, or inventions.

6. The 4 Personality Styles
Amiable
Analytical
Extroverted
Pragmatics

7. What You Need To Know About Raising Venture Capital

8. What Makes A Company Successful?
Team
Idea
Finance
How you finance your company matters!

9. Is VC Right For Your Startup?
High
Weak Barriers: Venture Capital
Venture Capital Build a Giant Co
Strong Barriers: Bootstrap
Scalability of Business
Bootstrap Own 80% of a Small Co
Not Viable
Low
Low
High
Capital Required to Achieve Breakeven Cash Flow

10. Why VC Is Helpful? Friends & Family Angels Venture Capitalists Capital
Low
Friends & Family
Angels
Venture Capitalists
Capital
Advice
Connections
High

11. X Are You Ready For VC? Great Team Huge Market Product in Market
Seed ($50K - $1M) X
Series A (>$1M – 5M)

12. How Do You Get The Meeting?
Most Effective
Direct Introduction
Mutual Contact
LinkedIn
Cold
Spam
Least Effective

13. What is the objective of the first meeting?
To get the second meeting.

14. How Can You Guide The Meeting?
Typical Non-Linear Meeting
Set The Tone Up Front
Product?
Product: Technology that solves…
Addressable Market: $2.5B
Competitive: Significant technology barrier
Team: 35 years relevant experience
Market?
Competition?
Team?

15. How Can You Maintain Momentum?
Industry News
Milestones
Internal Materials

16. question
can you do an elevator pitch?
your idea…

17. a stage…

18. and an audience…

19. to be inspired…

20. 90 seconds

21. IMPOSSIBLE?

22. 3 keywords and your name to
describe
your idea

23. introduce yourself
and...

24. …your background

25. start with something catchy
a rhetorical question, a picture, a story, an example or any exciting information.

26. picture your idea
an effective elevator pitch is illustrative and tangible.

29. introduction sec
problem sec
vision sec
requirements sec

30. MAKE YOUR IDEA UNDERSTANDABLE

31. be concise
An effective elevator pitch contains as few words as possible and does not go into too much unnecessary detail.

32. YOUR ATTITUDE
be confident have fun show passion show integrity

33. your pitch should be clear rather than being filled with …
MBA-speak
acronyms
ten-dollar words

34. APPEARANCE
dress as usual and feel yourself comfortable

35. Technique

36. keep your eyes shut while someone reads your text out loud

37. Your guide

38. 10 Erogenous VC Zones 1. Elevator Pitch 2. The Problem
Teaser Image
Goes Here
1. Elevator Pitch
2. The Problem
3. Your Solution
4. Market Size
5. Business Model
6. Proprietary Tech
7. Competition
8. Marketing Plan
9. Team / Hires
10. Money / Milestones
Money Shot
Goes Here

39. Business Model (How Do You Plan to Make Money?)
Describe Top 1-3 Revenue Sources
Prioritize by Size, Growth, and/or Potential
Cite current market activity / customer behavior as proof
Show How You Get to Break-even (or Profitable)
Ideally, on the current round of funding you’re raising
Common Revenue Models
Direct: ecommerce, subscription, digital goods, brands
Indirect: advertising, lead gen, affiliate / CPA

40. Proprietary Tech / Expertise (What is your Unfair Advantage?)
VCs *really* like unfair advantage
big market lead
experienced team
ex-Google PhDs
core / “breakthrough” tech
“defensible” IP / patents
“exclusive” partnership
great sales/marketing

41. Competition (+ why they all suck, why you’re different, yellow, better)
List all top competitors
(especially top ones; we’ll find them anyway)
Say how you’re better, or at least different
If not better or different -> “NICHE TO WIN”
position(-ing) matters
2-axis graph is trite, but still useful
see next page for example
useful comparisons / differentiation:
simple vs complex
value vs cheap (tougher to prove tho)
cheap vs expensive (but careful you don’t race to bottom)
consumer vs enterprise
open vs proprietary (in this case, open usually better… but not always)

42. Economics of VC Firm Management Fees (typically 2-2.5% of AUM)
Charge a management fee to cover the costs of managing the committed capital.
Carried Interest (typically 20-25%)
"Carried interest" is the term used to denote the profit split of proceeds to the general partner.
Example $100m fund
4x return and 2 and 20%
$2m per year in management fee
(($100m x 4) - $100m) * 20% = $60m in carried interest

43. What do VC’s want
This depends on stage – let’s focus on early stage since that is what we do.
Team
Domain expertise with core technical strength and knowledge of given market opportunity
History of collaboration and success
A willingness to allow VC’s to help build the team
Market
Emerging and fast growing market
Bad markets make for bad companies
Business model
How will you make money, how will you sell
Technology
Defensible technology/IP that can be protected to form competitive barriers over time

44. What Should Founders Expect: Reduce Prob. of Failure
Codified best practices
FP&A/budgeting, KPI, templates, back office infra
Acceleration
Shorten cycle time for hiring, partnering, selling, PR, capital raising
Objectivity and Insight
Sanity check, check and balance

45. Suggested Playbook Be committed…. Hire a great Valley lawyer
Figure out what stage and sector you are
Identify 4-5 firms that focus on this stage
Identify which partner you think is most relevant
Get an introduction to that partner
Prepare a 1-2 page overview to send him/her
Prepare a slide presentation to give in a minute timeframe if they ask you to present
Only goal of the first meeting is to get a second meeting.

46. What to Expect 12-16 week process Prepare Investor Package
First meeting to close
1st mtg  diligence  partner meeting  TS negotiation  close
Prepare Investor Package
Presentation
Financial Plan
Personal references
Customer references
Market references
Cap Table
Market research
Product documentation
Competitive Analysis
Investors will seek:
20-50% of the company
Valuation function of targeted raise, ownership, and stage,
Preferred Equity securities, with key terms:
BoD seat
Liquidation Preference
Anti-dilution Protection
Participation
Pro Rata rights
Protective Provisions
Vesting terms for founders and employees

47. What to Consider Is the idea sufficiently baked?
Optimal time is 6 months of iteration
Pick your co-founders very carefully
Test fit with VC
Personality, values, knowledge of market
Optimize for best deal not best price
Consider the downstream effects of the financing
High-post moneys can by Pyrrhic victories if company misfires
Angel financing can be a mixed blessing – be careful

48. Approaching VC’s
Investing is a people business, and getting a meeting is all about “who you know”
Best way to approach a VC is some form of introduction
If you don’t know a VC, find someone who knows you who does and get them to introduce you
Entrepreneur, professor, attorney…
Sending a plan to is a waste of time

49. Tips Don’t take rejection personally, the odds are against you.
Every VC is “interested” – force them to do work to test their level of interest.
Don’t waste time trying to change the mind of someone who says “no”.
Don’t shop to multiple partners in a firm if the first rejects you.
Don’t ignore the junior partners – they can really help.
There are lots of VC firms, focus on a firm that has some connection to you.

71. Decisions That Drive Product Success? ?
The team has generated dozens of names which have been narrowed to 18
Name
What is the right attitude?
What is the right emphasis?
Tagline ? ?
What product line offerings combine to maximize appeal and support the concept?
Functional Variety
What is the right sentiment? Driven by convenience or throughout the day dosing?
Consumer Insight
Better-For-You Mints ? ?
What product form best supports the concept? Traditional or new? Simple or special?
Product Form
What is best articulation and focus of the benefit? Convenience? Better than mints?, Boost when needed?
Umbrella Benefit ?
Custom pack - or will a standard form do? Which package type best fits the positioning?
Packaging 71 71

72. The Content Matrix The Content Matrix 72 Name 1 Consumer Insight 3
Tagline 2
Umbrella Benefits 4
Functional Variety (show 3) 5
Product Form 6
Packaging 7
The Content Matrix
The Content Matrix
Harmonies
ImproveMints
Life Mints
Mints+Plus
OptiMints
ReplenishMints
Mint*Wells
NutriMints
ReinforceMints
TuneUps
AchieveMints v1
AdvanceMints v2
BetterMints v3
Boosters v4
emBodyMints v5
EmpowerMints v6
EnhanceMints v7
FitMints v8 v9
v10
v11
v12
v13
v14
v15
v16
v17
v18
Name
Tagline
Functional Variety
Consumer Insight
Product Form
Umbrella Benefit
Name 1
Packaging
Tagline 2
Consumer Insight 3
Umbrella Benefits 4
Functional Variety (show 3) 5
Product Form 6
Packaging 7 72 72

73. The Content Matrix 73 Tagline 2 A fresh perspective on wellness v1
better breath | better body v2
breath protection | body fortification v3
Fortified confidence v4
Fresh breath and beyond v5
Fresh breath never felt so good v6
Live tastefully well v7
Mints that make a difference v8
The better-for-you mint v9
The mint with more
v10
Tagline 2
Consumer Insight 3
Umbrella Benefits 4
Functional Variety (show 3) 5
Product Form 6
Packaging 7 73 73

74. The Content Matrix 74 Consumer Insight 3
I am happy to see that grocery products and restaurants are paying more attention to healthier ingredients. It gives me more options to lead a healthier lifestyle. v1
I have a busy life. I wish there was a more convenient way to supplement my diet with a nutritional boost - when I need it, wherever I am. v2
I like to think that I lead a healthy life. I'm sure I could benefit from getting more key nutrients in my diet, but who has the time to figure out a regimen, let alone follow one? v3
I'm too busy to be a health nut. But, given easy options like drinking diet cola instead of regular, I'm likely to choose the healthier option. v4
Little by little I am making small choices to lead a healthier life, like taking the stairs at the mall instead of the escalator. I believe these small choices can add up. v5
They say small meals and healthy snacking throughout the day is better for your body. Then why do I take supplements only once a day? v6
Consumer Insight 3
Umbrella Benefits 4
Functional Variety (show 3) 5
Product Form 6
Packaging 7 74 74

75. The Content Matrix 75 Umbrella Benefits 4
[name] are the most convenient way to get the fortified nutrients you want for specific wellness benefits. v1
[name] deliver targeted nutrients to your body for specific wellness benefits throughout the day. v2
[name] freshen your breath while delivering nutrients to help strengthen your body's systems when you need the support. v3
[name] help support your body's critical systems while naturally freshening your breath. v4
Unlike typical candy mints, [name] is fortified with targeted nutrients. It’s another smart choice you can make that leads to a healthier lifestyle. v5
Why eat regular mints when you can get fresh breath PLUS wellness benefits from the fortified ingredients of [name]? v6
Umbrella Benefits 4
Functional Variety (show 3) 5
Product Form 6
Packaging 7 75 75

76. The Content Matrix 76 Functional Variety (show 3) 5
Antiox - a balanced blend of 7 key antioxidants v1
Bones - Calcium, Vitamin D, and Soy v2
Calm - B Vitamins, Omega-3, St. John's Wort v3
Cardio - Vitamin E, Omega-3, Cranberry Extract v4
Dental - Green Tea, Calcium, and Xylitol v5
Digestion - Peppermint Oil, Ginger, and Chicory Root v6
Digestion - Probiotics and Prebiotic Fiber v7
Energy - Vitamin B and Taurine v8
Immunity - Vitamin C, Zinc, and Ginseng v9
Skinny - Green Tea and Chromium
v10
Smarts - Gingko Biloba, Ginseng, Omega-3
v11
Vitality - Vitamins A, B, C, D, and E
v12
Functional Variety (show 3) 5
Product Form 6
Packaging 7 76 76

77. The Content Matrix 77 Product Form 6 Cubes v1 Dented Discs v2 Discs v3
Drops v4
Flat Tacs v5
Gel Caps v6
Gel-Filled Drops v7
Geometric Shape v8
Pillows v9
Squares
v10
Product Form 6
Packaging 7 77 77

78. The Content Matrix 78 Package Form 7 Sliding Tin v1 Hinged Tin v2
Small Hinged Tin v3
Blister Pack v4
Plastic Tube v5
Paper / Foil Roll v6
Plastic Shaker v7
Paper Flip-top Box v8
Plastic Compact v9
Square Plastic Tube
v10
Packaging 7 78 78

79. (7.8 million concept alternatives)
The Content Matrix 79 79

80. The Content Matrix (7.8 million concept alternatives)80 80

81. The Content Matrix (7.8 million concept alternatives)81 81

82. Top Concepts 82 Top Concept 1 Why Not? Top Concept 2 Nutrition
Place TC1 Image Here
2.32 x 3.25
Place TC2 Image Here
2.32 x 3.25
Top Concept 3
Easy Help
Top Concept 4
Smart Choice
Place TC3 Image Here
2.32 x 3.25
Place TC4 Image Here
2.32 x 3.25 82 82

83.
@alexmorlando n