Preparing for Funding

The Fundraising Process Face Biological Imperative? Monk/ Nun Prostitution No Yes Date Or Auction? Courtship Engage Wedding Matchmaker ? Bus Plan Road Show Term Sheet Negotiation Closing Flip the Deal Banker Key objectives: Minimize the courtship time Maximizing value Get to the alter

Key objectives:

Minimize the courtship time

Maximizing value

Get to the alter

Review – the Business Plan Proprietary Advantage Massive Market Large enough market to absorb multiple rounds of investment Likely exit strategy Management team to make it happen

Proprietary Advantage

Massive Market

Large enough market to absorb multiple rounds of investment

Likely exit strategy

Management team to make it happen

Courtship - Beyond a Business Plan Shore up your intellectual property Get your elevator pitch down Identify Sales & Marketing Experience in the Relevant Market Clean up the equity portion of your balance sheet Decide on whether to use an intermediary to raise funding

Shore up your intellectual property

Get your elevator pitch down

Identify Sales & Marketing Experience in the Relevant Market

Clean up the equity portion of your balance sheet

Decide on whether to use an intermediary to raise funding

Inventory the IP Ability to Exclude Others Patents Trademarks License Distributorship Franchise Know-How Customer Lock-up Freedom to Practice Technology No Infringement No conflicting employment / agreements No sanctions Have a qualified lawyer on board.

Ability to Exclude Others

Patents

Trademarks

License

Distributorship

Franchise

Know-How

Customer Lock-up

Freedom to Practice Technology

No Infringement

No conflicting employment / agreements

No sanctions

The “Line” You have the passion or you wouldn’t have gotten to this point Learn how to articulate it Brevity Verbally and written Balance hype with professionalism VC’s are salespeople Hire a coach Remember – the delivery of the pitch frames the investor’s impression of your marketing skills

You have the passion or you wouldn’t have gotten to this point

Learn how to articulate it

Brevity

Verbally and written

Balance hype with professionalism

VC’s are salespeople

Hire a coach

Remember – the delivery of the pitch frames the investor’s impression of your marketing skills

Sales, sales, sales! (it really isn’t about the technology) Revenue drives business today Does team have proven performers? Have they performed in targeted market? Are sales to any significant customers in process? How far along?

Revenue drives business today

Does team have proven performers?

Have they performed in targeted market?

Are sales to any significant customers in process? How far along?

Equity – What’s in the closet? Minimize the enterprise baggage NDA’s with former employees? Unfulfilled promises? Unexercised options or warrants? Buy backs not funded? Royalties granted? Employment suits? Compensation and benefits unpaid? Loan covenants block the marriage

Minimize the enterprise baggage

NDA’s with former employees?

Unfulfilled promises?

Unexercised options or warrants?

Buy backs not funded?

Royalties granted?

Employment suits?

Compensation and benefits unpaid?

Loan covenants block the marriage

Matchmaker, matchmaker? Love at first sight vs. playing the field Advantages of using an intermediary Closer to market Sense of competition can be created Opens more doors Does premium created exceed the transaction fee?

Love at first sight vs. playing the field

Advantages of using an intermediary

Closer to market

Sense of competition can be created

Opens more doors

Does premium created exceed the transaction fee?

Courtship hasn’t changed The beauties get to engagement fast Wardrobe and make-up counts Nobody chases a wallflower very hard Due diligence follows the first date First impressions count but the lipstick comes off the pig at this stage Communication is a glimpse of the marriage – lasting relationships are built on mutual trust The real challenges come after the nuptials

The beauties get to engagement fast

Wardrobe and make-up counts

Nobody chases a wallflower very hard

Due diligence follows the first date

First impressions count but the lipstick comes off the pig at this stage

Communication is a glimpse of the marriage – lasting relationships are built on mutual trust

The real challenges come after the nuptials

Next Steps For more information or to contact the author: Andy Forbes [email_address]

For more information or to contact the author: