1. Intro to Austin
FUNDRAISING
by @joshuaBaer

2. Joshua Baer
Founder & Executive Director

3. Disclaimer

4. Disclaimer
• I’m not a lawyer

5. Disclaimer
• I’m not a lawyer
• I’m not a financial advisor

6. Disclaimer
• I’m not a lawyer
• I’m not a financial advisor
• This isn’t investment advice

7. people move
here every day150

8. top of every list

9. What’s different
about Fundraising in
Austin?

10. Bootstrap
first

11. revenue
focused

12. EXPERIENCED
Teams

13. How to meet investors
1. Leverage your personal network
2. Go where the investors are - bars, coffee shops, events, Capital Factory
3. Follow them on Twitter
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

14. Twitter

15. Startup Lawyers
• KHGR Evan Kastner
• Jones-Spross Brian Spross
• Wilson Sonsini (WSGR) Brian Beard & Paul Tobias
• Andrews-Kurth Matt Lyons
• DLA Piper Paul Hurdlow
• Sprinkle Law Steve Sprinkle (IP)
• Jose Ancer

16. venture capital
• Silverton Partners @Jon_Bassett, Morgan Flager
• Live Oak Venture Partners @VShamapant (Venu)
• Mercury Fund @TexasVC (Aziz Gilani) @NedHill
• S3 Ventures (enterprise + health) @RajivBala
• Sante Ventures (biotech) Kevin Lalande
• Offset Ventures Chris Pacitti (Austin Ventures)

17. venture capital
• 500 Startups @DaveMcClure
• Disruption @PaulSingh
• ff Ventures @John_Frankel
• First Round @JoshK (Kopelman)
• FLOODGATE @M2Jr (Mike Maples, Jr.)
• Mohr Davidow @BDStolle (Bryan Stolle)
• Sutter Hill Ventures @SamPullara

18. Angel investors
• Capital Factory Fund @JoshuaBaer @MelliePrice @AndrewBusey
• ATXSeed Chris Shonk
• Individual Angels @RossInAustin (Ross Buhrdorf) @BazaarBrett
(Brett Hurt) @maharg (Dan Graham) @seats (Jason Seats)
@AmericanCEO (Joel Trammell) @DeepEddyCEO (Clayton Christopher),
Rony Kahan, Joe Liemandt, Tom Meredith

19. • One of the most active angel groups in the country
• Not just tech
• Quarterly application cycle
• Monthly office hours
• Rick Timmins is the Chairman (and CF Mentor)
• Claire England is the new Executive Director

22. Find investors, introductions & advice at
Epic office hours

23. 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

24. Accelerators
• Austin Technology Incubator (UT affiliated) @ATI_UT
• Bunker (veterans) @TheBunkerAustin
• Capital Factory (tech) @CapitalFactory @JoshuaBaer
• International Accelerator @IntlAccelerator
• Longhorn Startup Lab (UT Austin students) @LonghornStartup
• SKU (consumer packaged goods) @SKUatx (formerly Incubation Station)
• SXSW Accelerator
• Techstars (tech) @Techstars @Seats
• Medical Innovation Labs (medical devices)
• Unltd USA (social good) @UnLtdUSA
Intro to Austin Accelerators 2nd Tuesday of each month at 4pm

25. Pitch Events
• Texas Venture Labs Investment
Competition (February)
• SXSW Accelerator (March)
• Capital Factory Demo Day at
SXSW (March)
• Techstars Demo Day (June
2015?)
• Global Venture Labs Investment
Competition (May)
• Capital Factory Demo Day at
Startup Week (October)
• Innotech Beta Summit (October)
• SKU Demo Day
• ATI Clean Tech & Wireless
Forums
• CTAN Presentation Day (5x)
• House of Genius

26. Blogs
• Paul Graham - How to Raise Money
paulgraham.com/fr.html
• VentureHacks
venturehacks.com/archives
• Wealthfront - VC Economics
blog.wealthfront.com/venture-capital-economics/
• Brett Hurt - Lucky7
lucky7.io
• Gordon Daugherty - Shockwave
shockwaveinnovations.com
• Kip McClanahan - ReOverthinking
reoverthinking.com
• José Ancer - Silicon Hills Law
siliconhillslawyer.com
• Joshua Baer - Austinpreneur
austinpreneur.com

28. capital factory
Austin’s Center of Gravity for Entrepreneurs
Last year 32,000 entrepreneurs, programmers
and designers gathered day and night for
meetups, classes and coworking.
Entrepreneurs come to Capital Factory to
Hone skills meetups and hackathons
Find a co-founder
Build a Minimum Viable Product
Meet angel investors and VCs
Find lighthouse customers
Keep costs low
Grow your team

31. 46,000 Square Feet full of
Entrepreneurs

32. programmers and
entrepreneurs
700Meetups and
Hackathons
32,000

33. classroom
teaching skills startups need

34. Some of the meetups

35. THe Blueprint
• Community Center
• Coworking pace
• Mentoring
• Fund
VIDEO STREAMING
Follow @Austintechlive

36. coworking
starts at $200/month

37. As your company starts to grow reserve
Dedicated Desks

38. Private offices
Sound proof and secure

39. Private offices
teams from 2-10 people

40. phones and tablets available in the
Device Lab

41. Google glass available in the
Device Lab

42. DEVICE Lab
3D Printers and more

43. DEVICE Lab
3D Printers and more

44. Find investors, introductions & advice at
office hours

45. Peer Roundtables
Learn from other entrepreneurs

46. SXSW and startup week
demo dayS

47. sxswStartup Village

48. Happy hours
bringing people together

49. DENSITY DRAWS IN EVERYONE THAT
STARTUPS WANT TO MEET

50. VIP Guests
• Bram Cohen, founder of BitTorrent
• Michael Dell, founder of Dell
• Richard Garriott, founder of Ultima Online
• Bob Metcalfe, inventor of Ethernet
• Alexis Ohanian, founder of Reddit
• Peter Thiel, founder of Paypal
• Slash, Guns & Roses
• Stephen Wolfram, founder of Mathematica

51. Accelerator
• Introductions to angel investors, mentors, customers,
strategic partners, employees
• First priority on offices and desks at Capital Factory
• Access to $50,000+ in matching funds
from Capital Factory, Silverton, FLOODGATE and our
AngelList Syndicate

52. Cratejoy Syndicate

53. Revolutionizing the $24 Billion
self storage industry
180 employees - $26 million funding insight Partners

54. wordpress hosting
Platform for business
150 employees - $18 million funding Northbridge

55. $6 Million Funding CHarles River Ventures, A16Z

56. Lots more…
• Aceable
• Goodybag
• Chiron Health
• Zing
• Nuve
• Pristine.io
• Smart Picture Tech
• Lynx Laboratories
• LanternCRM
• Impossible Ventures
• eRelevance Corp
• Pingboard
• Togga
• Curb
• Kenguru
• Aunt Bertha
• Weeva
• RealMassive
• ManagerComplete
• ihiji
• TripChamp

57. Apply online
• Coworking
http://capitalfactory.com/join
• Accelerator
http://angel.co/capitalfactory/apply
• Back the Syndicate
http://angel.co/capitalfactory/syndicate

58. equity or
Convertible note?
• Most companies begin with a convertible note and then do
a priced round (then repeat)
• Convertible notes are entrepreneur-friendly
• Only do a priced round with an experienced investor to
lead and set the price
• SAFE docs

59. Valuation
• Average is $3m
• 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

60. 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

61. Get used to hearing
NO

62. Say you’re going to do
something. then do it.

63. if you found
this helpful
Please help
someone else
http://atxstartupscene.com

64. ask me anything
• Angel Investors
• Venture Capital
• Incubators/Accelerators
• Banks
• Lawyers
• Dev Shops
• Associations
• Hack-a-thons
• Finding a Co-Founder
• Blogs
• Hardware
• Women in Tech
• Capital Factory
• Where do investors
hang out?

65. Entrepreneur training
• ATI SEAL
• Rice Alliance Entrepreneur’s Workshop
• Tech Ranch VentureForth
• General Assembly
• IronYard
• MakerSquare

66. Banks
• Chase Jonathan Lee, chase.com
• Silicon Valley Bank Jonathan Miller
• Square 1 Bank
• Comerica

68. paperwork
• Company Formation
• Bank Account
• Vesting
• Docusign

69. Up and coming
• DrillingInfo
• Edgecase
• Eagle Eye Networks
• Impossible Ventures
• Main Street Hub
• Outbound Engine
• PostUp
• Spredfast
• Sparefoot.com
• Spiceworks
• Umbel
• uShip
• WP Engine

70. Recent Success
• Black Locus > Home Depot
• Dachis Group > Spriklr
• Food on the Table > Food Network
• Gazzang > Cloudera
• Mass Relevance > Spredfast
• MapMyFitness > Under Armor
• Ridescout > Car2Go
• Spanning > EMC

71. First Time

72. Experienced teams

73. Syndicates

74. angels vs. VC’s

75. Crowdfunding
• Kickstarter
• Indiegogo
• Able
• Onevest
• Microventures

76. Lines not dots

77. FACEBOOK
• Austin Startups
http://facebook.com/groups/austinstartups
• Capital Factory Members
http://facebook.com/groups/cfcoworking
• Austin Angel Investors
http://facebook.com/groups/atxangelinvestors

78. COST
• At least $5,000 in legal fees, as much as $100,000
• Consumes a lot of time. Meetings after meetings.

79. Smart Money
• Brings some benefit other than the cash
• Introductions to customers
• Relevant industry experience
• Help with recruiting talent

80. Bad Money
• Comes from illegal source
• Pain in the ass
• Unresponsive

81. if you found
this helpful
Please help
someone else
http://atxstartupscene.com