Levée de fonds: Turning entrepreneurs into gladiators !


The startups that are part of TheFamily, they succeed raising funds thanks to our expertise and support We have a good network of investors We have a good network of lawyers We have a network of business angels We know how to drive them within the fundraising process from A to Z. To provide this to our portofolio is great of course That’s why they are part of TheFamily as well Like everything else at TheFamily If we can provide entrepreneurs with ressources that help nurture the whole ecosystem… We do it. If we give the ability to the ecosystem and the best entrepreneurs to raise funds in the best conditions… The current issue of raising funds is: the best at raising funds win, no the best at building great companies… So if we give the ability to the best entrepreneurs to raise funds in the best conditions… It will help mature the ecosystem with better entrepreneurs and startups, better funded. And that’s why we’ve come up with Koudetat Fundraising First of all, you must understand that you are not alone trying to raise funds… At TheFamily, we see in our radar about 5,000 new startups every year A lot raise funds of course with business angels or venture capitalists… A french venture capital firm, in average, receives between 1,500 and 2,000 startups in its inbox And more and more every year… Because to start a company has become a commodity. To generate an initial traction has also become easier and faster… They are more and more startups generating traction but venture capitalists don’t make more deals. A general partner in a french VC firm is making in average 2 to 3 deals maximum every year And a french VC firm is composed of 3 to 5 general partners, which means… The VC firm will make 10 to 15 deals per year Except firms like Partech or Elaia which have seed funds which can make up to 20/30 deals per year But this is not common! There isn’t much more money available, neither a lot more deals But there are a lot more startups So you can’t be just good, you must be excellent, you must be the best all the way… That’s why we’re doing Koudetat Fundraising, because you’re not the only one raising funds You need to maximize your chances The second reason what we’ve come up with that program is because to raise funds takes time… We try to accelerate the fundraising process for the startups of our portfolio Truth to be told, it always takes some time A fundraising takes 3 to 6 months, up to 8 months or more… Whatever you do, you can apply all the rules that apply to a successful fundraising… At the end of the day, one only achieves a successful fundraising through a unique resilient path The mission of Koudetat Fundraising for 8 weeks, every saturday from end of january til end of march… It’s to teach how not succeed at taking that unique and resilient long path. In fundraising, we see emerge a lot of initiatives like angel.co, more business angels, more seed funds… However, truth to be told, there is no innovation within the world of startups financing There are always the same operations Seed it’s 100k to €300k, Pre-Series A is €800k to €1.5M/2M Series A starting at €2M We hope that large corporations will invest massively in the startups’ ecosystem, this is not happening… We hope that from the commoditisation of the startup culture will emerge more business angels, this is not happening neither… There is no innovation whatsoever within the world of startups financing One can’t hijack his fundraising path towards other ways of financing The means are always the same However, entrepreneurs often fail at exploring all the possibilities Our goal through Koudetat Fundraising is also to show all the possibilities that are all along the way… That we talk about business angels, funds, syndicates and so on… All the options you’ve got An entrepreneur who can really say that he failed raising funds if he explored all the options If an entrepreneur did not explore all the options, he can only say that he failed in his fundraising mission and this is the worst.. That’s why we want to empower entrepreneurs so they can actually say they did explore all the options If you apply all the rules and explore all the possibilities, you’ll be able to say you really did the job You don’t have a second chance to make a first good impression And because you don’t have this second chance, we want to make you don’t blow it up… …at every step of the process You close a deal after the 4th or the 5th meetings You need to rock every sentence, every minute of your meetings whether they last 45 min or 3 hours I’m assisting an entrepreneur who is currently closing a deal. I’m with him on facebook messenger every 2hrs… …for the past two weeks Everytime an email is sent to an investor, I check every sentence, every data, the way he’s negotiating… he’s about to close a great deal with a great valuation and great conditions Truth to be told, if he had led this operation by himself, he would not be here today We are going to make sure you are the best at every minute of every meeting with every single investor during an event, sending an email, tweeting or meeting up in private… Another important thing is the network. You need to know the investor to pitch him You’re not going to pitch him by sending an email at the general address [email protected]… It does not work To get to know them, you have several options. You can go to events just like all the entrepreneurs who are going there to connect with investors too… Or you can try to create rebound through twitter by replying to a tweet…be smart or you’re screwed. You can contact them through their blog. They often make typo errors and it’s a good, simple, fast way to connect to them… It shows attention to details. your name is now in his inbox and his mind… You do it once, twice, three times…And the fourth time when you pitch your startup, he will read and should reply to your email That is how I connected from scratch with one of the most respected VC in the US I’ve built yet a a very tiny but trusted link with him During Koudetat Fundraising, we will organize private placement. We will analyze every single startup… We will match them with french and international investors depending on the startup, its stage and the investment thesis of each investor we aim at maximizing the access to our network of investors as fast and as efficiently as possible And that you want to raise funds within 6, 12 or 18 months… The sooner you build your network, the more solid it will be when you’ll need to raise funds It is never too early to learn the fundraising mechanisms and processes. The sooner the better first because it requires that you ask yourself good questions about your startups second, because investors need to create links and that’s why you need to create that network early on finally, understand that to raise funds takes time and investors have a complicated agenda therefore, the momentum is complicated. If you fail at creating competition, motivation, urgency… you’ll never close the deal and depending on when you decide the deal must be sealed, it will either make you win or lose the deal don’t get it wrong. There are too many startups which are failing the first time and which must wait 18 months before to restart the process, all over again Make the difference between building a relationship with an investor and being in active fundraising mode when you raised funds, you are in war mode 100% The momentum is very important, you have to spot the right moments to activate urgency and competition among the investors Out of the 20 deals i have closed between 2010 and 2014, I received only one term sheet for 16 of them But for 100% there was an apparent competition… …An imaginary competition 😉 But is was the only way to negotiate and it’s really important… An investor who feels the compeitition he will be a lot more keen to make the deal This is basic human being behavior, trivial psychology Finally, you never negotiate unarmed Investors are making deals on a regular basis, they know how to deal with valuation, with legal stuff… There are many things you have to learn how to deal with. The shareholders’ agreement with a tier-1 fund based in the UK has more than 100 pages of legal stuff that you won’t understand if you’re not trained And how can you negotiate something you don’t understand… On the contrary, an entrepreneur who knows how to negotiate his shareholders’ agreement gains the respect from the investor Because usually the entrepreneur negotiates business points with the investor and let his lawyer negotiates the legal terms but if you know the legal aspects before your lawyer steps up in the conversation, you will create a strong natural leadership in the negotiation with the investor that’s why you have to learn about the legal terms During Koudetat Fundraising we will receive two great law firms law firms, 11.100.34 and Jones Day Most of the entrepreneurs think they can execute once they have raised funds You can’t imagine how many startups died because they listened too much their investors There is no such thing as smart money smart money is bullshit. Money is spent to create more value, at a faster pace. That’s it On the contrary, investors have either always advices to give or no advice to give at all. You are the one who must pull information from your investors, ask the right questions A good entrepreneur knows how to drive his board of investors, with transparency and honesty You have only 1% chance to actually raise funds That’s why we came up with Koudetat Fundraising End of january til end of march, every saturday. Why every saturday? Because from Monday to Friday, you have a startup to run And on saturday, you have nothing else to do 😉 8 weeks, it’s actually pretty short if you miss a session, don’t worry, they are filmed and put online the week after for the participants However try not to miss the sessions regarding the legal aspects and the private placement

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