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PDF Editor FAQ

What is the best way to fundraise?

Thanks for a2a.You can get more information on my past quora answer.Learn Fundraising for social cause by Antra Anapindi on learn programming by selfbest of luck.

Why is it so hard for Dave McClure to raise money for 500 Startups?

Mostly because we look a helluva a lot different than anything else on the market.Let us count the ways:1) We invest in hundreds of companies -- our portfolio size is easily 5-10X anyone else (even larger than YC). Our first fund was ~265 companies, our second fund was ~325 companies, and when we finish investing our 3rd fund will be over 500 companies. Most LPs can't understand how we can possibly manage such a large portfolio, except that we have already been doing it for the past 5 years. We believe a large & diversified portfolio is critical to finding outsize returns (aka unicorns), and also delivers lower risk & more predictable outcomes.also see:"99 VC Problems But A Batch Ain't One"https://medium.com/500-hats/99-vc-problems-but-a-batch-ain-t-one-why-portfolio-size-matters-for-returns-16cf556d4af02) We invest all over the world -- so far in over 50 countries, many with no substantial track record of notable exits. Most LPs can't understand how we can possibly cover such a huge geography, even though 1/3 of our team lives in ~18 countries, and collectively we speak over 20 languages. We believe most of the growth in the world is happening outside the U.S. In emerging markets like Asia, Latin America, The Middle East, and Africa. By definition, these emerging markets have an unclear track record and lots of volatility and unpredictability.3) We take small positions in our companies (typically only 1-5% equity for 500, compared to 10-30% for others), and we generally don't take board seats. Most LPs want to know that fund managers have controlling positions in most of their investments, because this is the only strategy they have seen work (except that the 60-80% of most firms that fail or underperform also employ this strategy as well). We are very comfortable with our approach, and our returns speak for themselves.4) We are still very young for a VC firm, having only been in business for just over 5 years. Although our IRR performance is good -- all 3 global funds are running at >20% Net IRR -- we have yet to reach carry in our first fund, and probably will need another 2-4 years before we reach 1X distribution of investor capital. Most funds that are 5 years old are still operating their 2nd fund, while we are almost done with our 3rd and already raising our 4th. Most LPs think we are moving too quickly. we think we are a startup, and we don't give a damn what they think.5) We are more than just a VC firm -- we also run accelerator programs, customer acquisition consulting, conferences and events, travel programs, community networking, investor education, and have many other services businesses planned for the future. Most investors think we are doing "too many things" and aren't focused. However, similar platform approaches by A16Z, First Round Capital, and Google Ventures have been applauded as forward-thinking. we like what those folks are doing, although we actually started doing it before most of them did, and we plan to do a lot more in the years ahead.6) We operate multiple regional and vertical micro-funds at the same time, and we co-invest out of our main fund and these other funds together. We believe having multiple geographically-focused and category-specific funds enables us to scale our business faster and better, find promising deals earlier than other VCs, and provides great incentives to our team to start their own funds under our brand using our back office. Most LPs are confused by our multi-fund strategy, and don't know why we bother. However, we have some of the brightest young fund managers in the world working for us, and we attract more of them every day.7) We aren't apologetic about any of the above, and we intend to press the pedal to the fucking floor as hard and fast as possible. We are confident our strategy and our returns are working, and we believe our approach is VERY scaleable, and we intend to be the largest VC firm in the world (we are already one of the largest, at almost 90 people).Anyway, in a few more years it will be impossible to ignore our results and our returns, and I imagine at that point fundraising will get a lot easier. Even now, it's much easier than when we started.It's just a matter of time.We Are Relentless. We Are #500STRONG.

Is it possible to get fund from Facebook, Bill gates foundations for our fundraising event for Relay for Life owned by American Cancer Society?

Foundations are not likely to fund via events. In fact, events are usually held as a way to connect with individual and corporate donors.I would assume that Gates already directly funds specific programs within your organization (or at least that if they were to be approached, it would be with a proposal for such.)You should reach out to local people and businesses in the community that your ACS chapter serves. Specifically, look for business sponsors that can offer larger chunks of money as well as direct more individuals to your event.

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