Key Elements To Market Your Idea To Raise Money

Key Elements To Market Your Idea To Raise Money

B.V. Jagadeesh

C0-Founder and CTO

Exodus Communications

Competitive Landscape

Thorough Market Analysis of What Exists in the market

Don’t Sit Within 4 Walls and Assume Your Idea is the best

Validate Your Concept/Presentation
Market Size

Project Right Market Size In the Space You are playing

Don’t Try To Pick Market Size That’s Not Relevant To You

Project A Conservative Ownership of the Market in 3-4 years

Anything Less Than A Multi Billion Mkt in 3-4 Yrs is Hard to Get Funded

Valuation

Most Often It Is Rule Of Thumb

2 - 4 MM Angel Round

10-15 MM 1st Round ( Beta Starting )

35-50MM - 2nd Round

80-100 MM - Pre IPO Mezzanine Round

Exceptions

Based on How Many Patents, Customer Base, Phase of The Project

Partnerships

Try To Leverage On Partnerships

Time To Market is Key

Focus on Your Strengths and the Problem You are trying to Solve

Model Adapted by an ASP is not the right approach

Team

Key Aspect Of Building A Company

You Should Build Initial Team - To Match Chemistry

Build A Prototype - Easier to Convey The Message

NDA Issues
Conclusion

No Cookie Cutter Formula To Win

Keep Focus - Don't Do Everything to Everybody ( 80 - 20 Rule )

Adapt To Market Changes

Dart Approach

Be Prepared to Bring Right people to Right Positions Including Your Own