Raising Startup Capital | New York City
About this class
One of the most critical issues facing entrepreneurs is deciding if and when it makes sense to raise outside capital. Access to capital cannot only help accelerate product development and sales, but in many cases, partnering with the right investors can influence the trajectory of a business. This three-hour intensive workshop will help students understand term sheets, initial rounds of investment, and how to retain value and control. We’ll also discuss what to do with that money once you have it so you can create exit opportunities and potential for future funding.
Session I - [Raising Startup Capital]
- Determine capital requirements and whether outside funding is appropriate
- Learn to identify and approach potential investors
- Discover the pros and cons of raising funds from angels vs venture capitalists
- See what methodologies to use in determining valuation and terms
- Explore the value of accelerators as a source of capital and leverage
- Understand the emerging role of online crowd-funding platforms
Session II - [Negotiating the Term Sheet]
- Review the standard components of a term sheet
- Learn how valuations are determined, and how pricing can be maximized
- Understand the role of investor mix in influencing deal pricing and structure
- See how dividends, liquidation preferences and anti-dilution rights impact the "effective" valuation of a startup
- Hear about protective provisions typically sought by outside investors
- Learn best practices in establishing governance
Session III- [Use of Proceeds: Achieving Capital Efficiency]
- Cover the typical cost structure for a software startup, and how that may vary by industry and customer segment
- Review fixed costs, variables costs and operating leverage
- Discuss economic and strategic trade-offs associated with building a technology team vs outsourcing
- Discover best practices associated with customer acquisition and retention
- Learn how to assess the merits of raising additional rounds of capital
- Tap into alternative, non-equity sources of capital
