Learn from Experienced Silicon Valley Entrepreneurs and Investors:
If you want to raise funding for your startup, you probably already know there is more to it than creating an impressive investment pitch deck. In this course, instructors from the leading venture capital training program, the Kauffman Fellows Program, teach you how to manage the fundraising process--from identifying potential investors, to making your investment pitch, to driving a funding to closure. You learn by doing and will be asked to contact potential investors, and if possible, set up real meetings as part of the assignments. By the end of this course, you should have had one to three meetings with potential investors. While you might not be ready to raise money, these exploratory meetings will greatly enhance your knowledge of how to fundraise successfully. If you are raising capital, you will meet with investors and apply the principles of this course.
In addition to entrepreneurs who are raising funds or who anticipate raising funds in the near future, this course is also for anyone who works with the venture community, including lawyers, accountants, angel investors, bankers, policy makers, regulators and educators.
In this online course, you will learn what type of investment is best for your startup: venture capital, angel capital, grant funding, friends-and-family funding or self-funding. You will learn from experienced Silicon Valley entrepreneurs and investors specific strategies for approaching investors and techniques for managing the fundraising process for success. Our goal in this course is for you to become more efficient and effective in raising capital for your startup and to take those all important first steps.
This class focuses on venture capital fundraising in particular as it requires the most sophistication and planning. If you understand how to raise venture capital, you are in good shape for raising capital from other sources.
Through this course you will understand:
- The goals and investment criteria for venture capitalists, angels, friends and family, and philanthropic organizations.
- When you should raise funding from each source and the pros / cons of each.
- How to use your network to get a first real meeting with potential investors
- How to create forcing functions to drive a funding to closure.
- Common mistakes and how to avoid them.
- How to be more efficient in fundraising by minimizing time spent on low probability funding sources.
- How to be more effective in fundraising by making the best use of your limited time with investors.
This class will be team-oriented and practice-based. Through videos and readings you’ll learn fundraising best practices. However, much of the learning in this class will take place as you work with other students, in virtual teams, to apply these practices to case studies and real startups.
Week 1: Pre Funding preparation/Optional: Grants
- How to identify funding sources that fit your startup
- How much to raise
- When to raise
- Building relationships with investors
- Fund raising materials
- Creating an A & B target list
Optional Grant Funding Options
- Sources of grant funding
- Could/shouldyour startup get grand funding
- Pursuing grant funding
- Gates Foundation case study
Week 2: Your Funding Options
- Goals, investment criteria and typical form of investment for self-funding, friends and family, angels and venture capitalists
- The VC context
- Pros / cons of each investment type
- Getting that first meeting
Week 3: The 1st Meeting
- 1st meeting goals
- The pitch
- 1st meeting tips
- Warning signs for investors
- How to answer “What are your valuation expectations?
Week 4: 1st Meeting to Investment
- Typical process post 1st meeting
- Managing radio silence
- Managing rejection
- Creating a forcing function
- Negotiation thoughts
- Choosing among investors
Workload: 3 - 5 hours / week
Prerequisites: This is an introductory course and there are no prerequisites.
Technical Requirements: You need a computer that allows you to watch the video lectures and provides the ability to upload your assignments, which will include text reports and images or video.
Statement of Accomplishment: Subject to satisfactory performance and course completion, you will receive a statement of accomplishment signed by the instructor. This statement will not stand in the place of a course taken at Stanford or an accredited institution.