Fueling Up: Funding Your Commercial Space Company’s Startup or Growth 5 th International Workshop on Lunar Surface Applications April 17, 2015

Know Where it Fits Venture Capital Family Offices Corporate VC Angels (Individuals and Groups) Crowdfunding Traditional Banks Mezzanine Lenders RISK & COST OF CAPITAL

Money is Fungible, but it is Not Equal Some investors are strategic Some provide mentoring Some investors expect few strings... But may show up for Thanksgiving dinner Some investors cannot be patient due to fixed fund lives Banks expect personal guarantees Grants often have government flow-down provisions Regulatory costs can be deal killers

What is “Venture Capital” Larger $ (>$2.5MM) Early to Growth Stage Scalable Opportunities ($100MM revenues in 5 yrs) VCs Invest “OPM” Typically Not Seed Minority Position Preferred Stock Veto not Control Fixed fund life Check out the Annotated NVCA Model Series A Term sheet

VC Terms Tech startup – Seed Stage Equity Priced (not a convertible debt round) Modified from AVC Blog: Milestone Build Product Product Market Fit Series A Expand Team Establish Market Series B Penetrate Market $ k$2-$5MM$15-$20MM

Executive Summary The “One Pager” I’ll send template

The Deck 20 Slides or Less Intro: Define the company, business, service or product in a single sentence. “We’re AirBNB for Office Space” Team: Identify a core group of talent that can execute on the next set of milestones. The further from revenues, the more team matters Opportunity: Establish the need for your company’s solution and the size of the market. Solution: Demonstrate how you will solve the problem and validate your differentiation. Competition: Identify your competitors, validate your differentiator. Revenue Model: Explain how you will generate revenue, and make future forecasts. The Ask: Really just a reasonable idea of pre-money valuation Canaan Partners Pitch Deck Workbook (I can send) Reid Hoffman’s Series B Annotated Pitch deck: pitch-to-greylock/

Common Early Mistakes Cap Table Errors (too many investors; bad terms) Undocumented deals Paying for unnecessary legal documents (PPM, Closing Documents) Unrealistic expectations of valuation Appearing inflexible/uncoachable Failure to understand competitive landscape Failure to subject to vesting; unreasonable acceleration Putting a $ value on time Field of Dreams Business Model

Thanks Mark Mohler