WEBVTT 1 00:00:00.000 --> 00:00:06.880 Welcome, everyone, back to our GVR Masterclass. 2 00:00:06.880 --> 00:00:14.200 We are in week four, and I am so excited because we have Kim Seals here, and she is going to 3 00:00:14.200 --> 00:00:16.640 be teaching on Venture 101. 4 00:00:16.640 --> 00:00:22.600 I know in the beginning of our Masterclass, our GVR kickoff, some of you asked about specific 5 00:00:22.600 --> 00:00:23.600 terms and topics. 6 00:00:23.600 --> 00:00:29.880 Kim is going to break it down for you, so I hope you all are ready for a wealth of knowledge. 7 00:00:29.880 --> 00:00:34.400 I'm just excited to hear it because she always brings so much information for us to gather 8 00:00:34.400 --> 00:00:35.400 and to process. 9 00:00:35.400 --> 00:00:39.960 So without further ado, Kim, I'm going to go ahead and bring you up for the class. 10 00:00:39.960 --> 00:00:40.960 Hi, everybody. 11 00:00:40.960 --> 00:00:41.960 Thanks, Siobhan. 12 00:00:41.960 --> 00:00:47.520 I appreciate the welcome, and happy to join everybody here tonight as part of the Get 13 00:00:47.520 --> 00:00:50.640 Venture Ready program. 14 00:00:50.640 --> 00:00:56.440 Wanted to share my presentation, and hopefully everybody can see that and talk a bit about 15 00:00:56.440 --> 00:01:00.960 what we're going to cover today in our Venture Capital Funding 101. 16 00:01:00.960 --> 00:01:07.680 This is intended to be a beginning to maybe moderately intermediate resource for you as 17 00:01:07.680 --> 00:01:11.440 you're thinking about the different ways that you can fund your business. 18 00:01:11.440 --> 00:01:16.600 I'm going to structure this today where we have about, I'd say, about 45 minutes of content, 19 00:01:16.600 --> 00:01:21.240 and then I want to save some time at the end for any questions you may have for topics 20 00:01:21.240 --> 00:01:25.920 that I don't cover in the deck or anything you might need some clarification on. 21 00:01:25.920 --> 00:01:29.720 But first, just to finish out the introductions, I'm Kim Seals. 22 00:01:29.720 --> 00:01:36.920 I've been investing in early-stage startups across many different industries since 2013. 23 00:01:36.920 --> 00:01:40.120 I am one of the general partners of the Junk Fund. 24 00:01:40.120 --> 00:01:47.120 We are a micro-venture capital investing firm that has helped fund more than 30 women-led 25 00:01:47.120 --> 00:01:52.240 companies headquartered in the southeast of the United States, and we've invested across 26 00:01:52.240 --> 00:01:54.520 two different funds. 27 00:01:54.520 --> 00:02:01.280 My background, I also have experience in HR, talent strategy, and M&A-type roles, which 28 00:02:01.280 --> 00:02:07.360 also helps as I coach the entrepreneurs in whom we've invested. 29 00:02:07.360 --> 00:02:10.880 Happy to be here with you today and encourage you to check out our website to learn more 30 00:02:10.880 --> 00:02:16.960 about some of the companies that we've invested in through the Junk Fund. 31 00:02:16.960 --> 00:02:21.640 As we kick off tonight's discussion or today's discussion, depending on where you are, one 32 00:02:21.760 --> 00:02:26.280 thing to really keep in mind is that as you as an entrepreneur and as someone starting 33 00:02:26.280 --> 00:02:31.720 your business or looking to grow or scale your business, the funding decisions that 34 00:02:31.720 --> 00:02:35.000 you make are about a series of trade-offs. 35 00:02:35.000 --> 00:02:37.080 How much will this money cost you? 36 00:02:37.080 --> 00:02:38.920 How would you pay it back? 37 00:02:38.920 --> 00:02:41.600 What will you be spending the money on? 38 00:02:41.600 --> 00:02:45.820 What do you want to do about overall ownership and control of your company? 39 00:02:45.820 --> 00:02:50.520 So today, we'll be talking about all of these elements so that at the end of this, you should 40 00:02:50.520 --> 00:02:56.000 be able to take a view of your company, where you are, and what type of funding might make 41 00:02:56.000 --> 00:03:00.640 sense for you. 42 00:03:00.640 --> 00:03:05.680 Before you decide on your funding strategy, it's really important that you identify the 43 00:03:05.680 --> 00:03:10.160 end goal you have for the company that you've started. 44 00:03:10.160 --> 00:03:16.760 For example, you may be building what we consider to be a lifestyle business, which is a profitable, 45 00:03:16.760 --> 00:03:20.440 sustainable company that you don't intend to exit. 46 00:03:20.440 --> 00:03:23.000 You're not looking to sell it to someone else. 47 00:03:23.000 --> 00:03:26.000 You're not looking to give away equity in the company. 48 00:03:26.000 --> 00:03:32.080 This business is for you and your family, and that's the way that you want to approach 49 00:03:32.080 --> 00:03:34.080 building out this business. 50 00:03:34.080 --> 00:03:40.920 That is a great goal, and there are ways you can fund the business when that's your goal. 51 00:03:40.920 --> 00:03:43.320 So we'll talk about that tonight. 52 00:03:43.320 --> 00:03:47.760 Also, you may start a business and say, look, I want to build this business. 53 00:03:47.760 --> 00:03:51.320 I want to grow and scale it, but I really want to position it to sell it to another 54 00:03:51.320 --> 00:03:52.320 company. 55 00:03:52.320 --> 00:03:57.720 I'm really in it to help start this company, solve a problem, and then turn it over to 56 00:03:57.720 --> 00:04:00.920 another company that can take it to the next level. 57 00:04:00.920 --> 00:04:06.040 So if you're looking to get acquired, again, that drives maybe a different funding strategy 58 00:04:06.040 --> 00:04:08.520 for how you'll think about your business. 59 00:04:08.520 --> 00:04:11.840 And then the third most common thing is you may say, look, I'm in it all the way to the 60 00:04:11.840 --> 00:04:12.840 end. 61 00:04:12.840 --> 00:04:15.720 I'm going to start this business, grow it, scale it, and then I want to take this company 62 00:04:15.720 --> 00:04:17.279 public. 63 00:04:17.279 --> 00:04:21.959 So that certainly is a great admirable goal as well, and we'll talk about what that might 64 00:04:21.959 --> 00:04:24.120 mean for you when it comes to funding. 65 00:04:24.120 --> 00:04:31.000 But the primary note here is be sure to decide on your funding strategy before you ever take 66 00:04:31.000 --> 00:04:40.120 a dollar of outside money, because how you are approaching this will make the difference. 67 00:04:40.120 --> 00:04:41.960 So how might you think about funding? 68 00:04:42.360 --> 00:04:47.600 Well, here are some of the most common options for funding your business. 69 00:04:47.600 --> 00:04:51.080 You could obtain a bank loan or a credit card line of credit. 70 00:04:51.080 --> 00:04:57.320 A lot of companies are started on credit card spend in order to finance building out an 71 00:04:57.320 --> 00:05:00.040 MVP or getting some initial product ready. 72 00:05:00.000 --> 00:05:06.680 So, certainly, that is one way that entrepreneurs go to fund their business. 73 00:05:06.680 --> 00:05:13.400 Another is small business grants from the SBA, the Small Business Association, or perhaps 74 00:05:13.400 --> 00:05:18.620 a local city fund that has grants that are targeting investing in the area in which you're 75 00:05:18.620 --> 00:05:21.280 building your business. 76 00:05:21.280 --> 00:05:25.840 If you graduated from a university that has an entrepreneurship program, you might want 77 00:05:25.840 --> 00:05:30.280 to go back to that program and inquire about whether they have grants that are available 78 00:05:30.280 --> 00:05:33.800 to those who are graduates of their university. 79 00:05:33.800 --> 00:05:41.000 Of course, signing a paying customer, that's always a great way to get some money for funding. 80 00:05:41.000 --> 00:05:45.560 You could join a startup or an incubator, a startup, an incubator, or accelerator, like 81 00:05:45.560 --> 00:05:52.680 a TechStars or a Boomtown Accelerator, there are a number of them out there, and they can 82 00:05:52.680 --> 00:05:57.000 sometimes give you cash to join their incubator or accelerator. 83 00:05:57.000 --> 00:06:01.680 Of course, they will potentially take equity in your company, but certainly an option as 84 00:06:01.680 --> 00:06:08.320 well if you need the support of an accelerator or incubator that comes with some cash. 85 00:06:08.320 --> 00:06:13.280 You could start a crowdfunding campaign where you go out to the general public and look 86 00:06:13.280 --> 00:06:18.040 to get some folks interested in investing in your company and helping you scale and 87 00:06:18.040 --> 00:06:20.120 grow. 88 00:06:20.120 --> 00:06:25.640 You could look at investment from friends, family, founders who might pool their money 89 00:06:25.640 --> 00:06:31.680 together to invest in the company, or you could go solicit angels or venture capital 90 00:06:31.680 --> 00:06:34.960 investors such as myself to put money into the company. 91 00:06:34.960 --> 00:06:39.000 So, tonight, we're going to talk about most of these options. 92 00:06:39.000 --> 00:06:43.640 We're going to dive into more detail about what they mean, and what you'll see is that 93 00:06:43.640 --> 00:06:48.900 I'm not a traditional venture capital person who's going to encourage you everybody should 94 00:06:48.900 --> 00:06:50.580 take VC money. 95 00:06:50.580 --> 00:06:55.260 That may not be the case, and I hope what you'll walk away with tonight is the understanding 96 00:06:55.260 --> 00:07:00.460 that you have choices, and that based on how you're thinking about your business, you could 97 00:07:00.460 --> 00:07:07.020 then decide what's the right funding vehicle for me. 98 00:07:07.020 --> 00:07:12.820 Let's first talk about crowdfunding, because I think this is one of the areas where perhaps 99 00:07:12.820 --> 00:07:17.020 there's a lot of chatter out there, but maybe not as quite well known as to what it really 100 00:07:17.020 --> 00:07:18.020 means. 101 00:07:18.700 --> 00:07:24.300 But when you're crowdfunding money for your start-up, you are typically going out into 102 00:07:24.300 --> 00:07:30.780 the broad community and targeting people who might be potential customers, or individual 103 00:07:30.780 --> 00:07:36.900 investors who want to pool their money together in these crowdfunding sites, and help you 104 00:07:36.900 --> 00:07:43.700 raise the money you need generally to produce first rounds of product, or build out technology, 105 00:07:43.700 --> 00:07:46.380 things like that. 106 00:07:46.460 --> 00:07:52.100 There's three most common types of crowdfunding platforms out there. 107 00:07:52.100 --> 00:07:58.860 The first is a donation-based crowdfunding platform, where the person that puts money 108 00:07:58.860 --> 00:08:03.980 into your crowdfunding effort is not expecting a financial return. 109 00:08:03.980 --> 00:08:09.460 They're typically non-profits who are trying to raise money, or charities, or disaster 110 00:08:09.460 --> 00:08:15.340 relief, that is really very donation-based, and the person or people that are giving the 111 00:08:15.340 --> 00:08:21.580 money know, I'm giving money to this cause to help solve this problem, and I'm not expecting 112 00:08:21.580 --> 00:08:23.300 a return on my investment. 113 00:08:23.300 --> 00:08:26.580 This is more of a donation in my mind. 114 00:08:26.580 --> 00:08:33.620 So those are those typical types of crowdfunding that are donation-based. 115 00:08:33.620 --> 00:08:37.919 Rewards-based crowdfunding is what you're typically going to see when someone's trying 116 00:08:37.919 --> 00:08:44.860 to build up a product or a service, and they want to go out to potential customers first, 117 00:08:44.860 --> 00:08:49.820 and see if they would pre-buy whatever the product or service might be. 118 00:08:49.820 --> 00:08:56.900 So let's say you're creating a new line of purses that you are making, and you want to 119 00:08:56.900 --> 00:09:01.260 go out to potential customers who would be the people that you would ultimately sell 120 00:09:01.260 --> 00:09:05.740 this purse to, and you want to see if some folks want to buy a purse in advance before 121 00:09:05.740 --> 00:09:07.340 you ever make it. 122 00:09:07.340 --> 00:09:11.860 You typically give them some incentive to do that, and then you take all the money that 123 00:09:11.860 --> 00:09:17.580 you've raised, and you actually then start to begin to produce the purses that you first 124 00:09:17.580 --> 00:09:22.140 give to the people who help fund your crowdfunding, but then you use the rest of the inventory 125 00:09:22.140 --> 00:09:24.700 in order to get out in the market. 126 00:09:24.700 --> 00:09:30.220 So rewards-based crowdfunding, I'm going to come onto the site, typically a Kickstarter 127 00:09:30.220 --> 00:09:34.780 or Indiegogo or something like that, I'm going to see that you've got this crowdfunding out 128 00:09:34.780 --> 00:09:38.020 there to get your product up and running, and I'm going to say, oh, that looks interesting, 129 00:09:38.020 --> 00:09:40.100 I would be a potential customer. 130 00:09:40.100 --> 00:09:45.900 Let me pay now for something that would be created and sent to me later. 131 00:09:45.900 --> 00:09:49.980 So that's the rewards-based approach. 132 00:09:49.980 --> 00:09:56.100 And then the third option is what we consider to be equity-based crowdfunding, and that's 133 00:09:56.100 --> 00:09:59.860 where you're out there soliciting investors who do 134 00:10:00.000 --> 00:10:08.320 Expect to take equity in your company, which means you're giving up ownership shares for the money that these folks are giving to you 135 00:10:09.120 --> 00:10:11.120 They're not looking for an advanced 136 00:10:12.240 --> 00:10:14.000 Commitment on product or anything like that 137 00:10:14.000 --> 00:10:19.440 They're saying i'll give you ten thousand dollars and you give me a percentage of ownership in the company 138 00:10:19.920 --> 00:10:23.440 Or it might be five hundred dollars in these crowdfunding platforms 139 00:10:23.520 --> 00:10:29.840 You set the minimum terms of how much people can invest and if you're looking to get a good group of folks 140 00:10:30.880 --> 00:10:36.320 Investing you might set a lower threshold and say i'll take minimum investments of say five hundred dollars because i'll 141 00:10:37.040 --> 00:10:39.920 I'd love to get a thousand people to put five hundred dollars in 142 00:10:41.120 --> 00:10:43.460 So, you know, they're definitely options on the crowdfunding 143 00:10:43.760 --> 00:10:48.640 I would encourage you to do your homework about what's the right crowdfunding option for you 144 00:10:49.120 --> 00:10:52.900 Uh based on what you're trying to achieve and understand the implications 145 00:10:53.200 --> 00:10:55.840 I know i've said this before and i'm sure i'll say it again tonight 146 00:10:56.080 --> 00:11:00.960 Before you ever take a dollar of money from someone outside your family and friend circle 147 00:11:01.360 --> 00:11:06.740 Please understand what that person who's giving you the money. What do they expect to get in return? 148 00:11:11.120 --> 00:11:15.440 So if you're thinking about venture and you're thinking about well, let me go 149 00:11:16.080 --> 00:11:19.600 Take money from outside investors. It's important to know 150 00:11:20.400 --> 00:11:22.720 When might be the right time for you to do that? 151 00:11:23.680 --> 00:11:29.680 So as you see along this picture here at the bottom we talk about i'm in idea stage 152 00:11:30.400 --> 00:11:35.760 Or i'm an mvp stage and mvp means minimum viable product 153 00:11:37.040 --> 00:11:42.560 I have traction in my business. I actually have paying customers. I can see the real market opportunity here 154 00:11:43.440 --> 00:11:46.160 Or i'm in high growth mode and I just can't keep up 155 00:11:46.720 --> 00:11:52.640 And then finally i'm a mature organization that's really looking to um to continue to grow and scale 156 00:11:52.720 --> 00:11:58.240 But I have a lot of customers. I have revenue and I just need some outside capital to help me get to that final place 157 00:11:59.280 --> 00:12:00.240 so 158 00:12:00.240 --> 00:12:03.840 based on where you plot yourself as to where the the 159 00:12:04.800 --> 00:12:11.040 Maturity of your company is right? I'm in idea stage and I need a little bit of money. What are my options? 160 00:12:11.760 --> 00:12:13.520 Well bootstrapping 161 00:12:13.520 --> 00:12:18.560 Which we'll talk about more a minute. What does that mean you get money from friends? I can get money from family 162 00:12:19.120 --> 00:12:27.040 Angels grants seed round money. So it's that initial set of capital that you need to get your idea off the ground 163 00:12:28.560 --> 00:12:32.800 But once you start to get traction and once you start to see growth and paying customers 164 00:12:33.120 --> 00:12:36.560 There's a lot more funding opportunities out there for bigger checks 165 00:12:37.520 --> 00:12:44.720 Early stage venture capital growth stage venture capital or what we call venture debt where there are organizations out there 166 00:12:44.880 --> 00:12:48.560 That will basically buy your debt from you as part of a venture 167 00:12:49.180 --> 00:12:51.200 arrangement 168 00:12:51.200 --> 00:12:54.400 And then finally you get to the point where you're considered to be a mature business 169 00:12:54.720 --> 00:13:00.100 And that's when you can potentially qualify for bigger banking loans. You're thinking about ipos 170 00:13:00.720 --> 00:13:03.760 You know a lot more traditional ways to raise money 171 00:13:04.480 --> 00:13:07.840 So as you're saying to yourself, well, what what's the right place for me? 172 00:13:07.920 --> 00:13:10.480 What should I be thinking about if i'm looking at venture? 173 00:13:10.960 --> 00:13:16.480 You really want to understand how would I categorize the stage of my business and start there? 174 00:13:19.680 --> 00:13:24.800 So let's talk about some of these terms I just threw out and let's make sure we're all talking the same lingo here 175 00:13:25.600 --> 00:13:27.620 So I mentioned earlier bootstrapping 176 00:13:28.500 --> 00:13:29.620 That's when 177 00:13:29.620 --> 00:13:36.900 The company is fully funded by your own personal resources or your company's own revenue 178 00:13:37.460 --> 00:13:43.000 So I have a company i've built it with my own personal savings and with paying customers 179 00:13:43.540 --> 00:13:45.860 We would say you bootstrapped your company 180 00:13:46.580 --> 00:13:50.600 Because that comes from the phrase of pulling oneself up from one's bootstraps 181 00:13:53.780 --> 00:13:56.900 If you are going out for money and you're trying to raise 182 00:13:57.620 --> 00:14:01.480 A round of financing. There's typically a lead investor 183 00:14:02.500 --> 00:14:04.500 That's the person the organization 184 00:14:05.140 --> 00:14:10.260 Who's typically putting the most money in that round that you're raising? 185 00:14:11.060 --> 00:14:15.060 And they're the ones that are going to call the shots on what the terms are 186 00:14:15.540 --> 00:14:21.300 For what it means to take that money. So is it preferred equity? Is it a loan? 187 00:14:21.620 --> 00:14:28.500 What is it that lead investor will work with you to set those terms so that everybody who comes into that round you're raising 188 00:14:29.300 --> 00:14:32.660 Knows exactly what they're getting for every dollar they put into your company 189 00:14:35.380 --> 00:14:36.980 Due diligence 190 00:14:36.980 --> 00:14:42.260 Once someone agrees to put money in your company and you have that verbal agreement that yes 191 00:14:42.260 --> 00:14:46.020 I'm going to give you fifty thousand dollars to help build out your minimum viable 192 00:14:46.560 --> 00:14:48.560 prototype your mbp 193 00:14:48.980 --> 00:14:49.860 but 194 00:14:49.860 --> 00:14:55.780 I'm telling you that verbally and then I want to do some homework. I want you to show me your financial records 195 00:14:55.860 --> 00:14:59.860 I want you to prove to me that your concept is real. I want to measure the potential 196 00:15:00.000 --> 00:15:04.140 ROI of my investment. So it's that final sort of, you know, 197 00:15:04.140 --> 00:15:07.260 due diligence, if you will, before I actually give you the 198 00:15:07.260 --> 00:15:07.740 check. 199 00:15:11.580 --> 00:15:14.980 When we talk about an exit, we're talking about how you 200 00:15:14.980 --> 00:15:17.760 actually get your money back. You know, how are you actually 201 00:15:17.760 --> 00:15:21.220 going to get rich from this investment? And how is that 202 00:15:21.340 --> 00:15:26.520 investor or entrepreneur going to actually take the company to 203 00:15:26.520 --> 00:15:29.500 that exit, whether it's an IPO, whether it's selling it to 204 00:15:29.500 --> 00:15:32.980 another organization. So a lot of times when you go to 205 00:15:32.980 --> 00:15:35.020 somebody, like if you came to me and said, I'd like you to 206 00:15:35.020 --> 00:15:37.900 invest in my company, one of the questions I'm going to ask 207 00:15:37.900 --> 00:15:41.140 you is that's great. If I give you this money, if you grow and 208 00:15:41.140 --> 00:15:44.580 scale this company, how do you ultimately intend to exit this 209 00:15:44.580 --> 00:15:49.780 company in order to pay me back? And this is why I go back to 210 00:15:49.780 --> 00:15:53.980 the first point I made early on of understanding what your goals 211 00:15:53.980 --> 00:15:56.580 are for your company. Because if you're the person that's 212 00:15:56.580 --> 00:15:59.300 building the lifestyle business, and you never intend to 213 00:15:59.300 --> 00:16:02.220 exit, you're not going to sell it, this is a company for your 214 00:16:02.220 --> 00:16:06.420 generations to come of your family, then you may not want to 215 00:16:06.420 --> 00:16:09.740 take money from outside investors who will force you to 216 00:16:09.740 --> 00:16:13.900 sell this company in order for them to get a return. You're 217 00:16:13.900 --> 00:16:17.820 likely looking to say I need grants, or I need loans, or I 218 00:16:17.820 --> 00:16:21.500 need paying customers, because I don't intend to exit my company. 219 00:16:21.700 --> 00:16:24.220 So there's no way for me to pay these investors back. 220 00:16:24.500 --> 00:16:26.620 I've said a couple of times, well, what stage is your 221 00:16:26.620 --> 00:16:29.860 company? How do you know if when you're ready for for venture 222 00:16:29.860 --> 00:16:32.860 money? How do you know when you're ready to raise? Well, 223 00:16:32.860 --> 00:16:37.420 when we talk about the stage of a company, we mean, how early is 224 00:16:37.420 --> 00:16:42.100 this company? Is it a really early seed infancy type company? 225 00:16:42.420 --> 00:16:45.540 Is it just starting to get traction? It's a mid stage 226 00:16:45.540 --> 00:16:48.500 company? Or is it a late stage company that's been around for 227 00:16:48.500 --> 00:16:52.820 years and has lots of potential? Is it a mid stage company? Is 228 00:16:52.820 --> 00:16:55.980 it a late stage company that's been around for years and has 229 00:16:55.980 --> 00:17:00.860 lots of paying customers? So you will, you will help set the 230 00:17:00.860 --> 00:17:04.300 definition of how you consider your company, what stage you 231 00:17:04.300 --> 00:17:08.740 consider it to be in. There's no explicit rule, but there's some 232 00:17:08.740 --> 00:17:13.140 general guidelines. If you have no paying customers, and you're 233 00:17:13.140 --> 00:17:17.260 just trying to create your initial prototype, you're a very 234 00:17:17.300 --> 00:17:22.220 early early stage company. But if you've got paying customers, 235 00:17:22.260 --> 00:17:26.220 dependable revenue, you might say, well, I'm in that mid 236 00:17:26.220 --> 00:17:30.620 stage, right? So you'll, you'll be communicating with potential 237 00:17:30.620 --> 00:17:34.300 investors based on how you're setting the definitions of the 238 00:17:34.300 --> 00:17:39.180 stage of your company. We'll ask you as an investor, we'll say, 239 00:17:39.180 --> 00:17:42.420 well, what round is this for you? How many times have you 240 00:17:42.420 --> 00:17:48.340 gone out to raise money? So the you initially would have like a 241 00:17:48.340 --> 00:17:53.060 pre seed round, then you have a seed round, then they start to 242 00:17:53.060 --> 00:17:56.540 go alphabetically, a series A round is followed by a series B 243 00:17:56.540 --> 00:18:01.340 round. Typically, each round of funding gets bigger than the one 244 00:18:01.340 --> 00:18:06.380 before. So it's very typical for me to see somebody who starts 245 00:18:06.380 --> 00:18:11.820 with an initial raise of say, $150,000. I'm going to go raise 246 00:18:11.820 --> 00:18:14.580 that from my personal network and get some folks to give 247 00:18:14.580 --> 00:18:19.100 money. And then my next round, I'm going to raise 500,000. And 248 00:18:19.100 --> 00:18:23.500 then my next round, I might raise $2 million. So as you go 249 00:18:23.500 --> 00:18:28.220 up with these rounds, the intent is that each time you're raising 250 00:18:28.220 --> 00:18:31.580 more money to get even further along with how you need to build 251 00:18:31.580 --> 00:18:34.900 your company. So it's really important that the stage and the 252 00:18:34.900 --> 00:18:38.300 round go together, that you're thinking about what stage is my 253 00:18:38.300 --> 00:18:41.700 company? What round am I raising? And how much money does 254 00:18:41.700 --> 00:18:46.780 that mean I want to raise? The general rule of thumb is you 255 00:18:46.780 --> 00:18:50.580 want to be raising enough money to get you to your next set of 256 00:18:50.580 --> 00:18:54.540 measurable milestones that can help you raise the next round. 257 00:18:54.900 --> 00:18:59.460 So if you're thinking, Oh, well, I need to raise $150,000 because 258 00:18:59.460 --> 00:19:03.580 that will get me these three milestones, I can achieve those 259 00:19:03.580 --> 00:19:07.500 three milestones, then that's what you would tell investors, 260 00:19:07.740 --> 00:19:11.140 and they would know, okay, so we're investing in this round 261 00:19:11.260 --> 00:19:14.500 with this amount of money, because this company can achieve 262 00:19:14.500 --> 00:19:17.060 these certain milestones, and then they'll go raise more money 263 00:19:17.060 --> 00:19:20.820 to hit the next set of milestones. So it really all 264 00:19:20.820 --> 00:19:24.860 kind of weaves together. The other thing we're going to ask 265 00:19:24.860 --> 00:19:29.060 you is, what's the valuation of your company? What what's it 266 00:19:29.060 --> 00:19:32.020 worth? And a little bit later on, we're actually going to work 267 00:19:32.020 --> 00:19:35.580 through an exercise for how you might value your company. And 268 00:19:35.580 --> 00:19:39.660 the reason why you want to know that is, if you take on an 269 00:19:39.660 --> 00:19:42.900 investor who gives you $100,000, and your company is 270 00:19:42.900 --> 00:19:46.420 worth $1 million, how much equity in your company did you 271 00:19:46.420 --> 00:19:54.820 just give away? One other investor term is actually called 272 00:19:54.820 --> 00:19:59.220 the term sheet. This is a non binding agreement. So this is 273 00:19:59.220 --> 00:20:00.180 not the contract. 274 00:20:00.000 --> 00:20:05.360 contract. This is where you and the potential investor put everything in writing that you're 275 00:20:05.360 --> 00:20:10.120 about to agree to for I'm going to give you money and here's what you're going to give 276 00:20:10.120 --> 00:20:15.680 me in return. We're going to lay out all of the details and this term sheet is used as 277 00:20:15.680 --> 00:20:20.720 the basis for getting the legal documents. It's really important for you to know that 278 00:20:20.720 --> 00:20:25.640 just because we get to a term sheet where we verbally agreed on I'm going to give you 279 00:20:25.640 --> 00:20:30.280 money and you're going to give me equity in your company. We don't have a legally binding 280 00:20:30.280 --> 00:20:35.960 agreement yet until it gets to a contract. So sometimes you get excited like I have a 281 00:20:35.960 --> 00:20:41.120 term sheet. I'm ready to go. Well, the term sheet is one step in the process, but there 282 00:20:41.120 --> 00:20:49.960 certainly will be more legal documents to follow. So what you're thinking about investors 283 00:20:49.960 --> 00:20:55.440 and you're saying I need to go raise outside money. There's three most typical types of 284 00:20:55.440 --> 00:21:04.160 investors for early stage companies to go after. The first is what's called a solo angel. 285 00:21:04.160 --> 00:21:09.760 This is an individual who's usually investing their own money in companies that they're 286 00:21:09.760 --> 00:21:15.760 personally passionate about. It might be an industry that they're really interested in 287 00:21:15.760 --> 00:21:21.480 helping to grow and scale. It might be investor or entrepreneurs they want to invest in and 288 00:21:21.480 --> 00:21:28.680 support. So, you know, a solo angel who's really interested in in solving some kind 289 00:21:28.680 --> 00:21:34.200 of health care or beauty product problem that is passionate about that may be writing an 290 00:21:34.200 --> 00:21:42.280 individual check on their own assets. Solo angels tend to write smaller checks in a lot 291 00:21:42.280 --> 00:21:45.720 of different companies because they want to spread their risk. So they might write 292 00:21:45.720 --> 00:21:52.320 a check for $25,000 or $50,000. That's typically what you're looking at when you talk to a 293 00:21:52.320 --> 00:21:59.200 solo angel. And sometimes you'll ask more than one solo angel to pool their money together. 294 00:21:59.200 --> 00:22:05.200 And that's how you might get to a say $150,000 round. You get, you know, three or four angels 295 00:22:05.200 --> 00:22:13.400 to put in $25,000 to $50,000. There are also angel networks. And these are groups of individuals 296 00:22:13.400 --> 00:22:19.840 who band together and look at deals together to pool their money into one investment in 297 00:22:19.840 --> 00:22:25.440 the company. So, for example, here in Atlanta where I live, there's an angel network called 298 00:22:25.440 --> 00:22:32.280 Atlanta Tech Angels. And it's a group of business people in the community who like to invest 299 00:22:32.280 --> 00:22:39.760 in startups. They meet monthly and they take pitches from startup companies and determine 300 00:22:39.760 --> 00:22:44.640 if they want to invest. And if enough of the members of the network want to invest, they 301 00:22:44.640 --> 00:22:50.080 all chip in their money and then make one investment in the company. So rather than 302 00:22:50.080 --> 00:22:55.280 you go meet with have to take five or ten different meetings with different solo angels, 303 00:22:55.280 --> 00:23:00.400 you show up and go to this one network meeting where a lot of different angels are there 304 00:23:00.400 --> 00:23:06.000 and then they decide if they want to invest. Or you could come to something like the Jump 305 00:23:06.000 --> 00:23:12.480 Fund where we are a venture capital fund. We write bigger checks because we have a fund 306 00:23:12.480 --> 00:23:18.720 to invest out of. It's also what the fearless fund is. It's a fund of limited partners who've 307 00:23:18.720 --> 00:23:25.640 all put their money into this fund. And then a few key individuals run the fund and make 308 00:23:25.720 --> 00:23:32.600 the business decisions for where the money will get invested. It's an easier way, so 309 00:23:32.600 --> 00:23:36.960 to speak, of getting to a bigger check, but there's usually a lot more due diligence, 310 00:23:36.960 --> 00:23:42.880 a lot more structure around it, and it takes longer than some of these other paths. So 311 00:23:42.880 --> 00:23:46.840 as you're thinking about how quickly could I raise money, know that if you go to one 312 00:23:46.840 --> 00:23:51.000 of these venture capital funds like the Jump Fund or Fearless Fund, there's a process they're 313 00:23:51.000 --> 00:23:55.600 going to run you through. Our process at the Jump Fund has generally taken a couple 314 00:23:55.600 --> 00:24:00.040 of months for us to make decisions on funding and then maybe another month to get the money 315 00:24:00.040 --> 00:24:04.920 into the hands of the entrepreneur. So, you know, you've got to weigh the tradeoffs here 316 00:24:04.920 --> 00:24:10.320 of how easy is it for me to find individual angels, how could I go to a network, and then, 317 00:24:10.320 --> 00:24:17.520 you know, a venture capital group. So I think I've covered most of what's on 318 00:24:17.520 --> 00:24:23.320 this slide, and I think we'll probably send these slides out so you'll be able to have 319 00:24:23.320 --> 00:24:29.400 this for the future, but as I mentioned earlier, angels are investing smaller amounts in more 320 00:24:29.400 --> 00:24:35.280 deals. They typically move faster to give you the cash. Venture capital, bigger checks 321 00:24:35.280 --> 00:24:41.160 takes longer, and certainly perhaps a few more details that you have to cover off with 322 00:24:41.160 --> 00:24:49.480 these venture capital funds. So the next question is, okay, I want to raise this money. 323 00:24:49.480 --> 00:24:56.960 How do I actually structure that round? So first and foremost, what you might be used 324 00:24:56.960 --> 00:24:59.800 to hearing about is what's called preferred equity, which is 325 00:25:00.000 --> 00:25:04.200 You give me money. I give you equity in my company 326 00:25:05.080 --> 00:25:11.400 Okay, so this is a preferred ownership position based on the price per share that you all have agreed on 327 00:25:11.920 --> 00:25:16.120 That will be exchanged for me giving you money. You're going to give me equity 328 00:25:16.920 --> 00:25:22.840 But if you're not ready to give up equity in your company yet, and you're ready to say I'll give you money now 329 00:25:22.880 --> 00:25:25.280 And then later I'll give you equity 330 00:25:25.920 --> 00:25:28.060 There are certainly a couple of options you have 331 00:25:28.740 --> 00:25:33.900 The first is what's called a safe note a simple agreement for future equity 332 00:25:34.660 --> 00:25:36.260 this is 333 00:25:36.260 --> 00:25:39.960 Tended to intended to be a very simple agreement 334 00:25:39.960 --> 00:25:44.420 It's typically for smaller amounts of money where we say you give me 335 00:25:45.020 --> 00:25:48.820 $10,000 now and we'll figure out later how much of my company I'm going to give you a 336 00:25:51.860 --> 00:25:54.540 Convertible note is much more like a loan document 337 00:25:55.260 --> 00:25:58.100 Where we're saying all right, I'm gonna give you money today 338 00:25:58.780 --> 00:26:01.060 You're gonna pay me interest on that money 339 00:26:01.060 --> 00:26:05.940 And then eventually what I would expect is not that you're gonna give me a repayment on my loan 340 00:26:06.140 --> 00:26:10.140 But that you're gonna convert my loan into equity in the company at a later time 341 00:26:11.140 --> 00:26:16.460 This is typically done when you're early stage. You don't know how to value your company 342 00:26:16.460 --> 00:26:20.980 So you're not ready to give up equity yet. So you're saying let's do a convertible note 343 00:26:21.260 --> 00:26:28.020 It's more structured than a safe, but it still gives me some flexibility later to determine what the value of my company is 344 00:26:28.820 --> 00:26:33.540 so it's really important that you think about the different ways you can structure this money and 345 00:26:33.900 --> 00:26:36.660 Make sure you choose the right one for you and your company 346 00:26:36.660 --> 00:26:44.340 And when I mentioned earlier that your lead investor helps set the terms, this is what you and your lead investor 347 00:26:44.580 --> 00:26:46.060 negotiate 348 00:26:46.060 --> 00:26:48.060 What are the terms of this round? 349 00:26:48.380 --> 00:26:54.860 How are we actually raising the money and then everybody else who comes into the round has the exact same set of terms 350 00:26:58.780 --> 00:27:01.820 So now let's talk about how do you buy you your company 351 00:27:02.900 --> 00:27:09.460 Typically if you're early stage, you may not have a lot of data that helps you figure out what your company is worth 352 00:27:10.140 --> 00:27:14.020 So here are some things you can look at to say 353 00:27:14.020 --> 00:27:20.620 I think my company's worth two million dollars because I have a lot of user growth. I have customer success 354 00:27:20.620 --> 00:27:25.580 I have daily usage statistics that show that my product has market fit. I 355 00:27:26.380 --> 00:27:32.740 Might have some proprietary software. I have a patent. I have partnerships. I actually have product to sell 356 00:27:33.260 --> 00:27:41.500 So think about ways that you can demonstrate what the value of your company is to potential investors 357 00:27:44.020 --> 00:27:50.540 Once you've done that there are two pretty common ways to actually value your company 358 00:27:51.540 --> 00:27:57.380 The first is what's called the Berkus method and it's where you assign a company value 359 00:27:57.660 --> 00:28:01.340 Based on certain elements in your company today 360 00:28:01.820 --> 00:28:09.060 So I have a very sound business idea that has been de-risked and we know what the value of that will ultimately 361 00:28:09.140 --> 00:28:11.140 turn out to be I 362 00:28:11.300 --> 00:28:15.860 Have a prototype where I can actually show people that this idea works. I 363 00:28:16.820 --> 00:28:22.500 Have a management team that has experience and the capabilities to take this company where it needs to go. I 364 00:28:23.620 --> 00:28:28.980 have strategic partnerships people who are willing to help me get my product in the market and 365 00:28:30.180 --> 00:28:34.420 I've already started to produce that product and roll it out into the market 366 00:28:34.900 --> 00:28:42.500 These are five key elements that you could assign a value to and it's a pretty simple math equation 367 00:28:42.660 --> 00:28:49.060 So if you say look, I have a really good sound idea and I'm gonna put a value of that of a million dollars 368 00:28:49.060 --> 00:28:55.460 I don't yet have my prototype. I'm still trying to work on that. So I'm not going to give any value there. I 369 00:28:56.700 --> 00:29:02.740 Have a start of a management team. So maybe I'm going to value that at you know a million dollars 370 00:29:03.700 --> 00:29:07.380 So you you start to make the case and you document this 371 00:29:07.940 --> 00:29:13.300 Of why do you say my company's worth two million dollars or my company's worth 1.5 million dollars? 372 00:29:14.100 --> 00:29:16.100 And you do it based on these elements 373 00:29:16.420 --> 00:29:20.580 And when the investor says well, why do you say your company's worth two million dollars? 374 00:29:20.580 --> 00:29:25.060 You say well, these are the elements I have in my company that I think makes it worth money today 375 00:29:25.380 --> 00:29:27.380 Even though I don't have a paying customer 376 00:29:27.620 --> 00:29:33.220 The other way you can do it is by breaking down the risks of your company, right 377 00:29:33.780 --> 00:29:37.780 You can say I can assign a value based on the 378 00:29:38.500 --> 00:29:41.700 What kind of competitive risk I have what kind of technology risk? 379 00:29:42.260 --> 00:29:44.900 What's the risk that sales and marketing will go wrong? 380 00:29:45.220 --> 00:29:51.300 So that's a risk factor summation method that really works the same way where you give yourself scores 381 00:29:51.300 --> 00:29:55.080 Based on your review of the risks that are inherent in your business 382 00:30:00.000 --> 00:30:05.400 So how does the math work? 383 00:30:05.400 --> 00:30:12.280 Let's say you're going out to raise a $2 million round on a pre-money valuation of your company 384 00:30:12.280 --> 00:30:14.160 of $4 million. 385 00:30:14.160 --> 00:30:21.160 So you did the analysis we just talked about on the last screen, where you said, my company 386 00:30:21.160 --> 00:30:24.280 is today valued at $4 million. 387 00:30:24.280 --> 00:30:28.600 I'm going to go raise $2 million from outside investors. 388 00:30:28.600 --> 00:30:32.320 And that means my company is going to be worth $6 million at the end. 389 00:30:32.320 --> 00:30:38.820 I started at $4 million, I took in new money of $2 million, I ended up with $6 million. 390 00:30:38.820 --> 00:30:44.480 So if you then do the math on that and say, I took in $2 million of outside money, and 391 00:30:44.480 --> 00:30:50.640 now my company is worth $6 million, I've given away 33% equity of my company. 392 00:30:50.640 --> 00:31:00.360 So these outside investors who gave me the $2 million now own 33% of my company. 393 00:31:00.360 --> 00:31:03.360 So you want to keep it pretty simple. 394 00:31:03.360 --> 00:31:07.360 As you're talking to investors, you have to be able to explain this math. 395 00:31:07.360 --> 00:31:13.760 It's really critical that you can speak intelligently and in detail about how you valued your company 396 00:31:13.760 --> 00:31:20.440 and how much equity you're willing to give away. 397 00:31:21.240 --> 00:31:27.480 Before you ever take a dime of outside money, you as the founder own 100% of your company. 398 00:31:27.480 --> 00:31:34.000 The minute you start to take on outside investors, you're diluting the equity of your ownership 399 00:31:34.000 --> 00:31:35.440 in the company. 400 00:31:35.440 --> 00:31:42.320 So in a typical round, the seed round, you typically are giving away somewhere around 401 00:31:42.320 --> 00:31:45.520 25% of your company. 402 00:31:45.520 --> 00:31:51.440 By the time you get to the Series A, you as the owner may only still have 56% of your 403 00:31:51.440 --> 00:31:52.440 company left. 404 00:31:52.440 --> 00:31:55.520 That's just averages of how it works. 405 00:31:55.520 --> 00:32:00.860 You might do a better job of negotiating deal terms to where you don't give up so much equity. 406 00:32:00.860 --> 00:32:06.040 But I wanted to point out to you that companies that make it the whole way to IPO, by the 407 00:32:06.040 --> 00:32:11.080 time they've raised all this outside money and given away equity, the median amount of 408 00:32:11.080 --> 00:32:17.080 equity ownership that that founder still has is 11%. 409 00:32:17.080 --> 00:32:21.560 Now I will say that you might say, oh, only 11%. 410 00:32:21.560 --> 00:32:22.560 That doesn't sound great. 411 00:32:22.560 --> 00:32:28.360 But by the time you IPO, your company is usually worth hundreds of millions of dollars. 412 00:32:28.360 --> 00:32:33.240 And having 11% ownership in that company is still really good. 413 00:32:33.240 --> 00:32:34.720 So think about it that way. 414 00:32:34.720 --> 00:32:38.320 You need outside money to help your company get bigger and bigger. 415 00:32:38.320 --> 00:32:43.280 So you might have a smaller piece of a much bigger pie, right? 416 00:32:43.280 --> 00:32:47.440 So don't be afraid to raise outside money when it makes sense for you. 417 00:32:47.440 --> 00:32:53.440 And when you're willing to give away that equity, dilute your ownership, but know, hey, 418 00:32:53.440 --> 00:33:00.360 an average of 11% of a, you know, $100 million company is a lot more than owning 100% of 419 00:33:00.360 --> 00:33:07.000 a $2 million company. 420 00:33:07.000 --> 00:33:09.080 So how do you find the right investor? 421 00:33:09.080 --> 00:33:15.400 Well, it starts with doing your homework and looking at who else these investors have invested 422 00:33:15.400 --> 00:33:16.400 in. 423 00:33:16.400 --> 00:33:21.200 If you go to the Jump Fund website, you're going to see all of the companies we've invested 424 00:33:21.200 --> 00:33:22.200 in. 425 00:33:22.200 --> 00:33:26.120 The same if you go to the Fearless Fund website, we put our investments out there. 426 00:33:26.120 --> 00:33:30.440 We're very proud of the portfolio companies that we put money in, and that'll help you 427 00:33:30.440 --> 00:33:40.200 see what industries we target, what geographic boundaries we look at, what stage of companies, 428 00:33:40.200 --> 00:33:43.560 how much money have we invested. 429 00:33:43.560 --> 00:33:48.600 So look at those other companies in which we've invested and do your homework to say, 430 00:33:48.600 --> 00:33:51.160 is this company a good fit for me? 431 00:33:51.160 --> 00:33:58.200 So for example, if you're creating a consumer products brand, a clothing brand, for example, 432 00:33:58.640 --> 00:34:02.400 you don't want to target investors who only invest in high-tech. 433 00:34:02.400 --> 00:34:06.360 They're not going to take the meeting, and they're not going to be interested in investing, 434 00:34:06.360 --> 00:34:14.620 but you could go look at other clothing industry companies and say, who invested in them? 435 00:34:14.620 --> 00:34:17.960 And how might I approach them for investment? 436 00:34:17.960 --> 00:34:23.080 So make sure that you're aligned on what that company is looking for, that investor group 437 00:34:23.080 --> 00:34:27.120 is looking for, and how you might fit that. 438 00:34:27.120 --> 00:34:30.920 Really important to do your homework. 439 00:34:30.920 --> 00:34:36.280 So when you're talking to investors, what do we most typically care about? 440 00:34:36.280 --> 00:34:40.080 The quality, passion, commitment, and integrity of the founders. 441 00:34:40.080 --> 00:34:41.739 That's really important to us. 442 00:34:41.739 --> 00:34:45.360 And a lot of times when we're on the fence and we say, am I going to invest in this company? 443 00:34:45.360 --> 00:34:47.679 Am I not going to invest in the company? 444 00:34:47.679 --> 00:34:50.679 You as the founder are the tipping point for us. 445 00:34:50.679 --> 00:34:52.000 We believe in you. 446 00:34:52.000 --> 00:34:53.880 We know that you know what you're talking about. 447 00:34:53.880 --> 00:34:58.440 We believe that you're the person that can build this company. 448 00:34:58.440 --> 00:35:00.040 So don't ever underestimate you. 449 00:35:00.000 --> 00:35:04.960 and the impact you have on that funding decision. 450 00:35:04.960 --> 00:35:06.280 The market opportunity. 451 00:35:06.280 --> 00:35:11.840 We want it to be a big market opportunity because we know that you may only get a very 452 00:35:11.840 --> 00:35:14.960 small part of that market. 453 00:35:14.960 --> 00:35:19.320 So if you come to us and the total addressable market for your company is maybe about five 454 00:35:19.320 --> 00:35:24.120 million dollars, we may say that's too small because if you only got two or three percent 455 00:35:24.120 --> 00:35:30.680 of the market share, that's not a very big company. 456 00:35:30.680 --> 00:35:35.440 But if you come to us and say the total addressable market here is five hundred million dollars 457 00:35:35.440 --> 00:35:39.600 and if I could just get three or four percent, that's a very big company that I'm going to 458 00:35:39.600 --> 00:35:40.960 build. 459 00:35:40.960 --> 00:35:45.720 So think about that market opportunity. 460 00:35:45.720 --> 00:35:49.760 We want to know that you have a clearly thought out business plan and that you can show us 461 00:35:49.760 --> 00:35:53.840 evidence of early traction towards that plan. 462 00:35:53.840 --> 00:35:59.480 Show us how you know people will buy whatever you're trying to sell. 463 00:35:59.480 --> 00:36:04.200 We want to know that you have interesting technology or intellectual property that makes 464 00:36:04.200 --> 00:36:08.600 your company different or unique. 465 00:36:08.600 --> 00:36:12.520 We want to be sure that we're being realistic about what's the value of the company and 466 00:36:12.520 --> 00:36:16.900 what are the terms on which we're going to make this investment. 467 00:36:16.900 --> 00:36:21.040 And then we want to be sure we believe and you believe that we could raise additional 468 00:36:21.040 --> 00:36:25.640 round of financing as you continue to grow and scale your company. 469 00:36:25.640 --> 00:36:30.080 So these are the top six things I would say most investors really care about when they're 470 00:36:30.080 --> 00:36:35.920 trying to decide whether or not to invest. 471 00:36:35.920 --> 00:36:38.800 So what does this process look like? 472 00:36:38.800 --> 00:36:42.760 You know, first it's about getting investors and gaining commitment. 473 00:36:42.760 --> 00:36:49.080 Then it's about creating that term sheet that we talked about and getting through due diligence. 474 00:36:49.120 --> 00:36:54.120 Then we need to produce all of the deal documents and finally sign them all and receive the 475 00:36:54.120 --> 00:36:55.840 money. 476 00:36:55.840 --> 00:36:57.320 So this can take some time. 477 00:36:57.320 --> 00:36:59.220 It can take months. 478 00:36:59.220 --> 00:37:04.820 So make sure that you don't wait until you're out of money to start this process. 479 00:37:04.820 --> 00:37:09.800 You should always be networking, meeting potential investors, making sure people know about your 480 00:37:09.800 --> 00:37:15.920 company, building those relationships, talking about terms, what it could be, because this 481 00:37:16.000 --> 00:37:23.240 will take some time and there's a lot of work that could potentially go into it. 482 00:37:23.240 --> 00:37:29.800 So if you are looking to get ready to raise money, what would you need to do that? 483 00:37:29.800 --> 00:37:35.600 The first is an executive summary, and this should be no more than one or two pages that 484 00:37:35.600 --> 00:37:39.680 explains your business idea and what it is. 485 00:37:39.680 --> 00:37:44.880 We can always ask you for more information later, but we just want that quick executive 486 00:37:44.880 --> 00:37:49.720 summary that has some basic financial information. 487 00:37:49.720 --> 00:37:56.320 You're ready to back that up with what we would consider to be a 10-page slide deck. 488 00:37:56.320 --> 00:38:00.160 That if I say, if I look at your executive summary and I'm intrigued and I want to potentially 489 00:38:00.160 --> 00:38:02.360 invest, I'm going to say, tell me more. 490 00:38:02.360 --> 00:38:06.680 And then that's when you'll send me the 10-page pitch deck. 491 00:38:06.680 --> 00:38:11.200 You should have that summary of your market, your total opportunity market, your total 492 00:38:11.200 --> 00:38:14.240 addressable market. 493 00:38:14.240 --> 00:38:18.440 You want to have a detailed financial model that shows how you're going to make money. 494 00:38:18.440 --> 00:38:21.840 How does this company work? 495 00:38:21.840 --> 00:38:25.720 You want that 30-second elevator pitch, so that when people say, what do you do? 496 00:38:25.720 --> 00:38:30.320 Tell me about your company, you've got that 30 seconds ready to go that's very succinct 497 00:38:30.320 --> 00:38:36.160 and crisp, and everybody could walk away understanding exactly what your company is. 498 00:38:36.160 --> 00:38:39.760 And then you want that introductory email ready to go. 499 00:38:39.760 --> 00:38:44.920 A number of times entrepreneurs will come to me and say, I see you're connected to Susie 500 00:38:44.920 --> 00:38:48.800 Smith and I want to ask Susie Smith to make an investment, would you make an introduction 501 00:38:48.800 --> 00:38:49.800 for me? 502 00:38:49.800 --> 00:38:55.120 And I'm going to say, absolutely, send me the email you want me to send to Susie. 503 00:38:55.120 --> 00:38:59.760 I'm not going to write it, you're going to write it, and then I'm going to take it and 504 00:38:59.760 --> 00:39:03.720 probably put a little greeting on it and add my own little color and send it. 505 00:39:03.720 --> 00:39:08.400 Have that introductory email ready to go in your draft, so that as soon as I say, happy 506 00:39:08.400 --> 00:39:15.960 to introduce you to Susie, send me the write-up. 507 00:39:15.960 --> 00:39:18.880 So I mentioned the pitch deck. 508 00:39:18.880 --> 00:39:22.440 Here are the 10 questions, this is why I say it's 10 slides. 509 00:39:22.440 --> 00:39:27.100 Each of these questions should be answered on a slide. 510 00:39:27.100 --> 00:39:29.280 What problem are you solving? 511 00:39:29.280 --> 00:39:31.880 What is your solution to the problem? 512 00:39:31.880 --> 00:39:34.480 Who has this problem? 513 00:39:34.480 --> 00:39:37.920 Who are your competitors and why is your solution better? 514 00:39:37.920 --> 00:39:39.800 And I will give you one little caveat here. 515 00:39:39.800 --> 00:39:44.000 A lot of times I'll ask people and say, who's your competitor? 516 00:39:44.000 --> 00:39:46.760 And they might say, we don't have any competitors. 517 00:39:46.760 --> 00:39:51.840 And that's actually a red flag for me as an investor, because I'll probably think one 518 00:39:51.840 --> 00:39:55.280 of two things if you say to me, I don't have any competitors. 519 00:39:55.280 --> 00:39:59.280 First I might say to myself, well, if there's no competitors and there aren't others trying 520 00:39:59.280 --> 00:40:00.040 to go after this money. 521 00:40:00.000 --> 00:40:05.880 market isn't really a big enough market, isn't an important enough market, or I might say 522 00:40:05.880 --> 00:40:09.780 you don't really understand your market and you don't know who your competitors are. 523 00:40:09.780 --> 00:40:17.760 So this is a common thing I see first-time founders do is when I say who are your competitors, 524 00:40:17.760 --> 00:40:18.760 they say I don't have any. 525 00:40:18.760 --> 00:40:22.440 So I just want to encourage you to really think hard about this one. 526 00:40:22.440 --> 00:40:26.760 You can build a slide that talks about your competitors, but also talks about why you're 527 00:40:26.760 --> 00:40:35.420 better and that's the more advantageous way for you to talk about your competitive landscape. 528 00:40:35.420 --> 00:40:40.160 How are you going to attract customers and how much is it going to cost for you to attract 529 00:40:40.160 --> 00:40:43.080 those customers? 530 00:40:43.080 --> 00:40:47.400 What are your sources of revenue and your expense assumptions? 531 00:40:47.400 --> 00:40:50.040 Who's on your team and why? 532 00:40:50.040 --> 00:40:53.000 How much money do you need and why? 533 00:40:53.000 --> 00:41:03.560 And how do you intend to give your investors a return on their investment? 534 00:41:03.560 --> 00:41:05.360 So that's the basics of the presentation. 535 00:41:05.360 --> 00:41:09.080 I'm right on track at 745 here Eastern here in the U.S. 536 00:41:09.080 --> 00:41:14.080 So what I'd love to do, Siobhan, is open it up for questions and see what else I might 537 00:41:14.080 --> 00:41:28.720 go into more detail on. 538 00:41:28.720 --> 00:41:29.720 All right. 539 00:41:29.720 --> 00:41:30.720 So we're going to queue up the questions. 540 00:41:30.720 --> 00:41:39.400 So hopefully you've been able to share some of your thoughts with Siobhan. 541 00:41:39.400 --> 00:41:45.160 And we'll get those questions queued up in just a minute and get them answered for you. 542 00:41:45.160 --> 00:41:46.160 All right. 543 00:41:46.160 --> 00:41:47.600 Here's the first one. 544 00:41:47.600 --> 00:41:52.880 Every time you raise another round, do you have to ask your previous investors? 545 00:41:52.880 --> 00:41:54.000 It depends. 546 00:41:54.000 --> 00:41:57.760 It depends on what the terms were in that first round. 547 00:41:57.760 --> 00:42:02.800 A lot of times we will ask for what's called pro rata rights. 548 00:42:02.800 --> 00:42:08.640 And that means if I invest in your first round and then you raise another round, I want the 549 00:42:08.640 --> 00:42:13.440 ability to put more money in as well so that my ownership doesn't get diluted as one of 550 00:42:13.440 --> 00:42:17.200 your initial investors. 551 00:42:17.200 --> 00:42:23.560 So in the term sheet, you will identify whether or not your first set of investors get pro 552 00:42:23.560 --> 00:42:28.400 rata rights and how it works going on and on. 553 00:42:28.400 --> 00:42:33.160 As an investor, I have a right, but I do not have an obligation. 554 00:42:33.160 --> 00:42:37.440 So I want to preserve my right to put in more money if I want, but I also want to be able 555 00:42:37.440 --> 00:42:42.280 to say, no, that's it, that was my investment. 556 00:42:42.280 --> 00:42:46.640 The second part of this question was I always thought investors would want monthly payments. 557 00:42:46.640 --> 00:42:49.280 Is that not true? 558 00:42:49.280 --> 00:42:52.360 It depends on the type of investor that you seek. 559 00:42:52.360 --> 00:42:58.640 Most investors wait until you have an exit because they want their money back big bang. 560 00:42:58.640 --> 00:42:59.640 They want multiples. 561 00:42:59.640 --> 00:43:05.040 If they gave you $50,000, they're looking for you to give a 5X return. 562 00:43:05.040 --> 00:43:09.920 You might have some investors who made a loan to you and they would be looking for 563 00:43:09.920 --> 00:43:16.880 monthly payments, but that's less common because they know that as a startup, cash is so important 564 00:43:16.880 --> 00:43:21.520 to you and if you're having to pay me back monthly, that's money you're not reinvesting 565 00:43:21.520 --> 00:43:22.920 in the business. 566 00:43:22.920 --> 00:43:27.120 So I would be very concerned about anybody who's expecting you to make monthly payments 567 00:43:27.120 --> 00:43:31.040 back to them as opposed to waiting for you to be successful when you can pay them back 568 00:43:31.040 --> 00:43:35.400 at once. 569 00:43:35.400 --> 00:43:41.440 So another question, how often do VC funds raise money for the fund? 570 00:43:41.440 --> 00:43:48.280 The way it typically works, and we would raise, usually it takes us about maybe one to two 571 00:43:48.280 --> 00:43:51.640 years to raise our fund, okay? 572 00:43:51.640 --> 00:43:57.040 And then we spend the next couple of years investing that fund, and then after that, 573 00:43:57.040 --> 00:43:59.240 we make follow-on investments. 574 00:43:59.240 --> 00:44:04.400 So for example, with the Jump Fund, we raised two different funds. 575 00:44:04.400 --> 00:44:10.840 We raised our first fund in 2013 and we finished, so we started in 2013 and we finished raising 576 00:44:10.840 --> 00:44:13.120 the fund in 2014. 577 00:44:13.120 --> 00:44:18.520 We were investing as we were raising money, and then we started the second fund because 578 00:44:18.520 --> 00:44:24.920 we had fully invested all of the first fund in 2016, and we wrapped up the raise on that 579 00:44:24.920 --> 00:44:25.920 one in 2018. 580 00:44:26.240 --> 00:44:29.880 It took us about two years because we raised a bigger fund. 581 00:44:29.880 --> 00:44:35.920 So each fund decides what their own timeline is, and the way it works is we do rolling 582 00:44:35.920 --> 00:44:40.920 closes of the money our investors give us so that we have money to start investing right 583 00:44:40.920 --> 00:44:41.920 away. 584 00:44:41.920 --> 00:44:46.880 We don't want to wait until we fully raise the fund to put money out there into these 585 00:44:46.880 --> 00:44:48.240 new startups. 586 00:44:48.240 --> 00:44:51.120 We will start investing in parallel. 587 00:44:51.120 --> 00:44:54.720 So money comes in the door from the committed investors. 588 00:44:54.720 --> 00:44:59.280 We then turn around and invest it in startups, more money is coming in, so you have this 589 00:44:59.280 --> 00:45:00.040 initial funding. 590 00:45:00.000 --> 00:45:07.320 raising period and then you have an investment period. Do you 591 00:45:07.320 --> 00:45:11.720 still have to consider valuation with a safe? No, that's the 592 00:45:11.720 --> 00:45:15.960 beauty of the safe. It allows you to punt till further down 593 00:45:15.960 --> 00:45:19.960 the road as to what the valuation is. You may be asked 594 00:45:19.980 --> 00:45:24.400 to put a cap on what the future valuation could be. But you 595 00:45:24.400 --> 00:45:28.080 should not be pressured to value your company. When you're doing 596 00:45:28.080 --> 00:45:32.640 a safe, the understanding there should be that your company is 597 00:45:32.640 --> 00:45:35.320 too early to really know what the value is and you might be 598 00:45:35.320 --> 00:45:39.600 selling your value short if you put a value on your company too 599 00:45:39.600 --> 00:45:44.120 soon. You do want to give yourself time to figure out what 600 00:45:44.120 --> 00:45:47.480 the real value is. Because if you think about the math we did 601 00:45:47.480 --> 00:45:51.960 earlier, your starting valuation plus the amount of money you 602 00:45:51.960 --> 00:45:55.600 raised determines your post money valuation and how much of 603 00:45:55.600 --> 00:45:58.840 your equity you just gave up. So you want that valuation to be 604 00:45:58.840 --> 00:46:01.400 as high as possible and you want to give yourself plenty of time 605 00:46:01.400 --> 00:46:07.920 to get that right. If you never distribute equity, what happens 606 00:46:07.920 --> 00:46:12.320 with the safe? There's typically some language in these 607 00:46:12.320 --> 00:46:17.280 agreements that talk about what happens if you sell your company 608 00:46:17.320 --> 00:46:22.240 or you go out of business before you distribute equity. So this 609 00:46:22.240 --> 00:46:26.360 happened to us with one of our investments where we put $100,000 610 00:46:26.360 --> 00:46:32.240 in a company in a convertible note or safe. The company then 611 00:46:32.240 --> 00:46:35.880 turned around and sold themselves before we ever got 612 00:46:35.880 --> 00:46:40.880 equity. So all we had was the note where they had to pay us 613 00:46:40.880 --> 00:46:44.960 back the money that we had originally put in their company 614 00:46:45.040 --> 00:46:49.000 plus the interest rate and a preferred rate of return. But we 615 00:46:49.000 --> 00:46:54.200 never had equity in the company. In the terms, it said, if you 616 00:46:54.240 --> 00:46:57.920 exit this company before we get our equity, here's what happens 617 00:46:57.920 --> 00:47:02.880 to our money. So those kinds of conversations happen when you're 618 00:47:02.880 --> 00:47:07.200 negotiating the terms of that safe. Because we all know it's 619 00:47:07.200 --> 00:47:10.440 entirely possible you might raise money early on and then 620 00:47:10.440 --> 00:47:13.800 end up selling your company or going out of business. Obviously, 621 00:47:13.800 --> 00:47:16.280 if your company goes out of business, which we know is a 622 00:47:16.280 --> 00:47:19.720 risk as an early stage company, then we wouldn't get our money 623 00:47:19.720 --> 00:47:24.960 back, we would just lose it. So what kind of lawyer does this 624 00:47:24.960 --> 00:47:29.000 stuff? That's a good question. There are law firms that 625 00:47:29.000 --> 00:47:33.680 specialize in startup paperwork. But I would also encourage you to 626 00:47:33.680 --> 00:47:38.280 look at resources like Y Combinator. Y Combinator has a 627 00:47:38.280 --> 00:47:41.760 whole website out there for founders like you with templates 628 00:47:41.760 --> 00:47:45.720 for all of these legal documents. I mean, this, this 629 00:47:45.720 --> 00:47:49.040 stuff, it can be very boilerplate. So many companies 630 00:47:49.040 --> 00:47:52.040 have raised money, they put these term sheets together, they 631 00:47:52.040 --> 00:47:55.880 put these deal documents together, please go look at the 632 00:47:55.880 --> 00:47:59.360 resources that are available to you before you spend a lot of 633 00:47:59.360 --> 00:48:02.840 money to help to have lawyers draft the documents, when you 634 00:48:02.840 --> 00:48:07.400 can save your money to have the lawyers review the documents, 635 00:48:07.440 --> 00:48:10.640 right. So you can take a template that's already out there 636 00:48:10.640 --> 00:48:14.960 for a safe, you could fill it out with your negotiations, and 637 00:48:14.960 --> 00:48:18.440 then you can have the lawyers do the final review. That certainly 638 00:48:18.440 --> 00:48:22.240 saves you some money, not to disparage any lawyers out there. 639 00:48:22.240 --> 00:48:27.680 But excuse me, there's a number of, of good templates out there. 640 00:48:27.680 --> 00:48:33.400 That's a great starting point for you. Um, the next question 641 00:48:33.400 --> 00:48:36.760 is, what's the preferred legal structure to take on a VC? 642 00:48:37.600 --> 00:48:41.000 Typically, venture capital money wants you to be some kind of 643 00:48:41.000 --> 00:48:46.800 corporation, like an S corp, or a C corp, or a B corp. We do not 644 00:48:46.800 --> 00:48:51.520 like investing in LLCs. Typically, if you're an LLC, 645 00:48:51.560 --> 00:48:55.600 you're taking much earlier money from individual angels. But by 646 00:48:55.600 --> 00:48:58.440 the time you get to us with venture capital, you've 647 00:48:58.440 --> 00:49:03.200 converted into a full S corp, or B corp, or things like that. So 648 00:49:03.200 --> 00:49:07.160 just be prepared for that. Because the different ways that 649 00:49:07.160 --> 00:49:10.040 you structure your company will make a difference. 650 00:49:17.960 --> 00:49:21.320 The next question is, can you put a term for how long you can 651 00:49:21.320 --> 00:49:26.000 have they the investor can have equity, or is that a loan? Once 652 00:49:26.000 --> 00:49:29.800 you give away equity in your company, unless you buy it back 653 00:49:29.800 --> 00:49:32.840 unless you buy it back from them, it's their equity until 654 00:49:32.840 --> 00:49:36.720 the company exits. So you can't put a term for how long somebody 655 00:49:36.760 --> 00:49:40.760 owns equity, unless they agree to sell that equity back to you, 656 00:49:40.880 --> 00:49:47.200 or sell that equity to another investor. The term limits on 657 00:49:47.240 --> 00:49:51.800 loaning money, right. So So for example, if we did a convertible 658 00:49:51.800 --> 00:49:55.600 note, we typically structure it for about 18 months, which says 659 00:49:55.600 --> 00:49:59.280 I'm going to give you this money now on a convertible note, and 660 00:49:59.280 --> 00:50:00.160 I'm expecting 661 00:50:00.000 --> 00:50:06.160 You're going to convert it to equity in 18 months and that's the the term on the note the loan note 662 00:50:06.480 --> 00:50:10.480 But that doesn't apply to equity. Um, and that's why I say be very very sure 663 00:50:10.560 --> 00:50:13.680 You're ready to give away equity before you ever give away a dollar 664 00:50:17.020 --> 00:50:21.440 Evaluations, yes evaluations can be based on theory and not fact 665 00:50:21.980 --> 00:50:26.400 Um valuations can sometimes be an art and not a science 666 00:50:26.960 --> 00:50:29.780 Especially if you don't have revenue if you're pre-revenue 667 00:50:30.640 --> 00:50:35.280 We're going to have to look at these other factors to figure out what your company is worth 668 00:50:36.160 --> 00:50:39.060 But once you have revenue, it becomes very formulaic 669 00:50:39.840 --> 00:50:41.760 very data driven 670 00:50:41.760 --> 00:50:48.240 If you have a technology company and that technology company has monthly recurring revenue or annual recurring revenue 671 00:50:48.720 --> 00:50:52.640 The the valuation is typically some multiple of that revenue 672 00:50:53.440 --> 00:50:55.440 But if you're pre-revenue 673 00:50:55.520 --> 00:51:02.880 Then yes, it's a theory. We have a theory of what your company is worth and we will negotiate together to get to that answer 674 00:51:07.440 --> 00:51:11.520 The next question is how do you figure out tam or total addressable market 675 00:51:12.800 --> 00:51:14.800 the total addressable market 676 00:51:15.200 --> 00:51:19.840 Is the market that you're targeting with the problem that your solution solves? 677 00:51:20.800 --> 00:51:26.020 So, uh, for example if let's go back to the purse analogy if you're selling purses 678 00:51:26.800 --> 00:51:31.040 And you're and the price point of your purse is going to be two hundred dollars 679 00:51:32.720 --> 00:51:34.720 You would then figure out 680 00:51:35.280 --> 00:51:38.880 Who are the potential buyers of my two hundred dollar purse? 681 00:51:39.360 --> 00:51:46.400 We know it's not everybody because that's pricey for a purse. So it's probably people with some kind of level of disposable income 682 00:51:47.280 --> 00:51:49.460 It's people who like to use purses 683 00:51:50.560 --> 00:51:51.840 and 684 00:51:51.840 --> 00:51:56.740 Where are you going to sell your purses? I'm only going to sell them in the us or i'm going to sell them worldwide 685 00:51:58.080 --> 00:52:02.480 You answer those kinds of questions and then you do the math and you say 686 00:52:03.600 --> 00:52:09.120 If there are a thousand potential buyers of my purse and my purse is two hundred dollars. Uh, um 687 00:52:09.840 --> 00:52:16.320 A purse then that's my total addressable market or if I have ten thousand potential people who would buy my purse 688 00:52:17.120 --> 00:52:23.840 Then that's my total addressable market. So that's how you do the math on that and you figure out what your total addressable market is 689 00:52:28.880 --> 00:52:35.200 Um, what website is a good place to see where I can find investors for companies between the startup and the traction phase 690 00:52:36.480 --> 00:52:40.080 A lot of times you're dealing with angel investors at that stage 691 00:52:40.800 --> 00:52:47.620 And one of the best resources that I found for that is a is a website called the angel capital association 692 00:52:48.960 --> 00:52:52.500 And they have a whole section there for entrepreneurs 693 00:52:53.340 --> 00:52:58.240 Including a list of every angel investor group across the united states 694 00:52:58.960 --> 00:53:00.960 They're sorted by state 695 00:53:01.280 --> 00:53:06.160 And then there's hyperlinks out to the websites of those angel investing groups 696 00:53:06.800 --> 00:53:13.300 So that you can do your homework and figure out what they invest in so i'm a big fan of angel capital association 697 00:53:14.880 --> 00:53:17.940 And their website how it helps link you to angel investors 698 00:53:21.440 --> 00:53:26.080 The next question is how do I figure out how much market share my competitors have 699 00:53:28.800 --> 00:53:30.800 That's a little tricky because 700 00:53:30.960 --> 00:53:32.960 It could be hard to figure that out 701 00:53:33.520 --> 00:53:40.260 Especially if this information is not public because it's not a publicly traded competitor, right? So like with coca-cola 702 00:53:41.040 --> 00:53:45.920 Everybody knows what their market share is. Everybody knows what their revenue is because they're public 703 00:53:46.800 --> 00:53:52.660 But with private companies, it's it's a lot harder and you really just have to ask around you have to do some guesstimation 704 00:53:53.440 --> 00:53:57.680 You have to you know, look at their websites see if they have case studies for the number of clients 705 00:53:57.680 --> 00:53:59.680 They have or who those clients might be 706 00:54:00.400 --> 00:54:01.440 um 707 00:54:01.440 --> 00:54:05.280 You know, it's going to be it's probably going to be a guess right? 708 00:54:05.840 --> 00:54:11.920 And uh, and it's typically going to be uh available to you through a little bit of internet sleuthing if you will, right? 709 00:54:12.080 --> 00:54:14.720 What's out there? Um, what could you find in the market? 710 00:54:22.880 --> 00:54:25.280 All right, well, I know we've just got a couple of minutes left shaman 711 00:54:25.280 --> 00:54:27.680 Do we have time for one more question or do you think we should? 712 00:54:28.400 --> 00:54:30.400 Wrap it up 713 00:54:30.720 --> 00:54:32.720 Maybe talk about homework 714 00:54:34.800 --> 00:54:36.800 Oh last one, okay one more question 715 00:54:39.600 --> 00:54:46.720 As a latinx woman-owned production company based in los angeles my business is per project narratives unscripted live events 716 00:54:47.120 --> 00:54:52.400 I have recurring clients and a global network of creatives who can support each project's needs 717 00:54:52.960 --> 00:54:58.240 Our films have been recognized in several academy award qualifying festivals such as tribeca urban world 718 00:54:58.240 --> 00:55:00.780 pan african american 719 00:55:00.000 --> 00:55:06.400 film, festival, and others. We have Academy Award winners to emerging BIPOC 720 00:55:07.200 --> 00:55:12.800 artists collaborating together on JEDI justice, equity, diversity, and inclusion storytelling 721 00:55:12.800 --> 00:55:17.920 in front of and behind the cameras. The last project includes a PBS American Masters documentary 722 00:55:17.920 --> 00:55:22.560 about Elsa, and I'm not going to try to pronounce Elsa's last name, I won't do it any justice, 723 00:55:23.920 --> 00:55:29.440 DeafBlind Hugo and Aurora Award winner. We have the talent, we just need the resources. 724 00:55:29.440 --> 00:55:33.520 What's the best strategy you would recommend for making a valuation of the company? 725 00:55:34.720 --> 00:55:41.120 Well, I certainly would say take a look, you mentioned that you've had recognized films 726 00:55:41.120 --> 00:55:45.680 that are winning awards, that's a great sign of traction, it means you're on to something 727 00:55:45.680 --> 00:55:52.160 with what you're building, so you could look to put a value on that. Your management team, 728 00:55:52.160 --> 00:55:56.080 the people that you have running this company, and your background in the film industry, 729 00:55:56.080 --> 00:56:02.000 and your ability to take this company bigger. So, take a look, when we send out the deck, 730 00:56:02.000 --> 00:56:09.440 take a look at the different categories I've given you, because I think they will be super 731 00:56:09.440 --> 00:56:17.840 helpful for you in figuring out what are some of those intangibles that you can put together 732 00:56:17.840 --> 00:56:25.360 to come up with the value of the company. With that, I want to just talk one second 733 00:56:25.360 --> 00:56:31.360 about homework. We have a coaching session, I think, coming up on Friday, and, you know, 734 00:56:31.360 --> 00:56:36.400 one of the things that I would encourage you to do is take a look at that slide, I'm going to send 735 00:56:36.400 --> 00:56:40.320 this deck out to Siobhan so that you all can get it, and there was that slide that said what are 736 00:56:40.320 --> 00:56:45.440 the things you need to get ready to raise money, and what I'd like to ask you to do is take a look 737 00:56:45.440 --> 00:56:51.040 at that slide and think about where you might not have something ready yet that's on my list, 738 00:56:51.680 --> 00:56:56.960 and work at putting at least a draft of something together that we can look at in our coaching 739 00:56:56.960 --> 00:57:00.720 session. I'd be happy to take a look at what you're putting together, let you know if you're 740 00:57:00.720 --> 00:57:06.800 on the right track, give you some advice for how to finish it up. So, please take a look at that 741 00:57:06.800 --> 00:57:14.960 slide once you get the deck, and then we'll go from there. And thanks again for the opportunity 742 00:57:14.960 --> 00:57:20.400 tonight to present. I really appreciate it, and over to you, Siobhan. Yes, thank you so much, Kim. 743 00:57:20.400 --> 00:57:26.320 As always, you bring such a wealth of information, and I knew that it was going to be a hit. So many 744 00:57:26.320 --> 00:57:32.880 questions came up. So, just a few things that I want to reiterate for you all. One, make sure 745 00:57:32.880 --> 00:57:40.000 that you go ahead and that you log your attendance. It will be open until 8 10. Also, the resources 746 00:57:40.880 --> 00:57:46.320 for Y Combinator and Angel Investor, I put it in the Mighty Network platform group. So, 747 00:57:46.320 --> 00:57:51.680 you can go ahead and go there, and it'll be in the group for you to further expound on. 748 00:57:52.480 --> 00:58:00.160 The slideshow, as always, will be available within 24 hours. So, it'll be under the Masterclass tab, 749 00:58:00.960 --> 00:58:07.760 and the coaching sessions, as you know, they'll be split into two groups. They will open up 750 00:58:08.320 --> 00:58:13.840 tomorrow. You will get an email letting you know when it opens up. Again, 751 00:58:15.760 --> 00:58:21.840 everything will be explained in there. The coaching sessions will be on Zoom. So, you will 752 00:58:21.840 --> 00:58:26.800 get the link, and you will come in Zoom, and then you'll be put in breakout sessions with either 753 00:58:26.800 --> 00:58:32.960 Shelly or Kim, depending on which one you sign up for. Make sure that you bring your homework, 754 00:58:32.960 --> 00:58:37.520 whether you have, if you're in Shelly's, bring the homework that she assigned. If you're in with 755 00:58:37.520 --> 00:58:43.360 Kim, bring the homework that she assigned. And so, I hope that you all have enjoyed this. If you have 756 00:58:43.360 --> 00:58:54.720 any questions, please feel free to email me at GBR at GBR. What is the email? GBR at fearless.fund. 757 00:58:55.440 --> 00:58:59.840 With any of your questions, I typically try to respond as quickly as possible. You can also 758 00:58:59.840 --> 00:59:04.560 message me in the Mighty Network. I know some of you have had issues getting into the system, 759 00:59:04.560 --> 00:59:09.520 and myself and the production team, and they've been amazing with getting you all back in. 760 00:59:10.160 --> 00:59:16.400 I just want to reiterate that the link is the same link each week with your login credentials, 761 00:59:17.200 --> 00:59:24.640 but if you are having issues, please try the link before class on Tuesday, so we can make sure we 762 00:59:24.640 --> 00:59:32.720 troubleshoot any of those things. I'm going to put the link in the Mighty Network platform. I want 763 00:59:32.720 --> 00:59:39.440 you all to save it and bookmark it. Write down your login credentials, so I can make sure that you all 764 00:59:39.440 --> 00:59:46.880 get into the class. Yes, thank you for putting that in, Isis. GBR at fearless.fund. Any questions that 765 00:59:46.880 --> 00:59:51.440 you may have, I also want to let you know that I will be starting this week with my individual 766 00:59:52.160 --> 00:59:56.320 emails and calls just to chat with you, check in with you, 767 00:59:56.320 --> 00:59:59.920 making sure that you get any questions, connecting you with any resources that you may have. 768 01:00:00.000 --> 01:00:05.120 need. So until the coaching call, I will see you all on Friday.