How to pitch doha tweet up v2 oct 2011


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Elaine Gold: How to pitch for funds...and does it hurt?

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How to pitch doha tweet up v2 oct 2011

  1. 1. How to pitch for funds … .and does it hurt? Doha Tweet Up – Oct 2011
  2. 2. What choices do I have? <ul><li>Family & Friends </li></ul><ul><li>Overdraft </li></ul><ul><li>Secured Bank Loan </li></ul><ul><li>Credit Cards </li></ul><ul><li>Savings </li></ul><ul><li>Unsecured Bank Loan </li></ul><ul><li>Venture Capital </li></ul><ul><li>Angel Equity </li></ul>
  3. 3. Equity Finance <ul><li>Private individual investment </li></ul><ul><li>People who have usually made their money through successful businesses </li></ul><ul><li>May offer help </li></ul><ul><li>Not professional, looking for fun as well as a return </li></ul>Angels give you money for a share of your business .
  4. 4. Venture Capital Professional Investors give you money + a CEO in return for a share of the business <ul><li>Fund larger businesses with very fast growth prospects </li></ul><ul><li>Expect a major say in how the business is run </li></ul><ul><li>Specific milestones must be met to get each stage of funding </li></ul><ul><li>Often install their own team to co-run the business </li></ul>
  5. 5. Which way is best for me? Can you afford to put up security and possibly lose it? Do you have sufficient security? Do you have high-growth potential? Do you need outside expertise? Are you prepared to share the profits? Only do what works for you and meets your comfort level of risk
  6. 6. Not for everyone! <ul><li>Just an idea </li></ul><ul><li>Need short term cash – loan best </li></ul><ul><li>They want to know what’s going on </li></ul><ul><li>Your share diluted </li></ul><ul><li>Can be time-consuming attending pitches </li></ul><ul><li>Stressful (although we do our best) </li></ul>
  7. 7. What ELSE do Angels bring? <ul><li>Vote of confidence, not a loan </li></ul><ul><li>Valuable skills </li></ul><ul><li>Experience </li></ul><ul><li>Contacts/credibility </li></ul><ul><li>Another mind for key decisions </li></ul><ul><li>More peace of mind </li></ul><ul><li>Follow-up funding </li></ul><ul><li>Nothing concentrates the mind better… </li></ul>
  8. 8. Prepare to Pitch <ul><li>Plan your business, write up your plan </li></ul><ul><li>Work out how much money you need and what share you’re offering </li></ul><ul><li>Tell everyone you know you’re raising funding, even friends of friends may help </li></ul><ul><li>Look for opportunities to talk to angel groups or your bank </li></ul>Even if nobody ever reads your plan, it shows you have thought it through
  9. 9. Whattevvver … get to those 3 things. <ul><li>The Idea </li></ul><ul><ul><li>Easily explained / Protected / ”Wow, must Google it”/ Pain/ Sector they know / Barriers </li></ul></ul><ul><li>The Numbers </li></ul><ul><ul><li>Valuation reasonable, Share meaningful / BE horizon / 2x their money / Exit congruent </li></ul></ul><ul><li>The Team </li></ul><ul><ul><li>Likeability / Fun / Experience </li></ul></ul>
  10. 10. What not to say to an angel. <ul><li>Oh that's wonderful, now I can afford that holiday to the Seychelles!  </li></ul><ul><li>No, I don't believe in making profit, I'm in it for the fun (or &quot;for the children&quot;, &quot;for charity&quot; or &quot;for religious reasons&quot;) </li></ul><ul><li>95% of your investment goes towards salaries … MINE! </li></ul><ul><li>Oh, YOU wouldn’t understand… </li></ul><ul><li>Apart from Google, we have no competition! </li></ul><ul><li>If you don’t do it, I can ALWAYS take it to my bank </li></ul><ul><li>My Mum thinks this a good idea </li></ul><ul><li>‘ Wibble!&quot; </li></ul>
  11. 11. <ul><li>Scalable </li></ul><ul><li>Clever Business Model </li></ul><ul><li>Protectable IP </li></ul><ul><li>Good ROI </li></ul><ul><li>Clear Exit Strategy </li></ul><ul><li>Credible / Likeable MD </li></ul><ul><li>Balanced and Experienced Team </li></ul><ul><li>Interesting and Exciting </li></ul><ul><li>Opportunity to Add Value </li></ul><ul><li>“ World Saving” </li></ul>What Inspires Angels
  12. 12. Summary <ul><li>Not for everyone </li></ul><ul><li>It doesn’t have to be expensive – although you can spend thousands if you want to </li></ul><ul><li>It doesn’t have to be painful </li></ul><ul><li>Angels are looking FOR reasons to invest – indeed if they are not investing they are not making money </li></ul><ul><li>Come to Angels Den, it’s nice. </li></ul><ul><li> </li></ul>
  13. 13. Commercial Break! <ul><li>Aged between 18-30 and have ‘entrepreneurial tendencies’? Come to The Bedaya Center in Katara – 2 events coming up of interest: </li></ul><ul><li>‘ Understanding Enterprise ’ – 6 week Btec Course from 1 st Nov (2 hours per week) </li></ul><ul><li>‘ Celebrating ‘Young Entrepreneurs in Q ’ Nov 16 th – joint Bedaya & QSTP event for Global Entrepreneurship Week </li></ul>