From the investor's perspective: We'll always look for entrepreneurs who demonstrate to us their willingness to &quot;put their money where their mouth is&quot; and who clearly &quot;have skin in the game.&quot; If we don't see indications that they believe in their vision enough to invest their own hard-earned cash, then we won't invest either.
they're not necessary, but they're usefully in making you think through things you might otherwise ignore. Writing the business plan is good discipline for the entrepreneur (and good entrepreneurs frequently have a problem with discipline). The business plan is perhaps the most important written document an entrepreneur can ever create. It describes all critical internal and external elements and strategies for guiding the direction of the venture’s first several years as well as giving potential investors an idea of the venture’s structure, objectives, and future plans. It communicates important entrepreneurial management practices, such as how the venture will mitigate risk, and how the venture will manage uncertainty.
At this point the company is a proven winner and it is agreed to take it public within a defined period of time (eg 6 months) .
Mezzanine or bridge financing is a short term form of financing used to prepare a company for its IPO. This includes cleaning up the balance sheet to remove debt that may have accumulated, buy out early investors and founders deemed not strong enough to run a public company, and pay for various other costs stemming from going public.
The funding may come from a venture capital firm or bridge financing specialist. They are usually paid back from the proceeds of the IPO.
1. Who We Are Profile your self and your team’s capabilities.
2. What We Got Describe your opportunity, market need/pain and solution. Specifically describe your traction in your market space. For example, letters of intent from marquee customers or recurring revenues.
3. Where We’re Going Overview of your growth benchmarks/milestones and the market potential of your technology.
4. What We Need Do not offer specific financial needs. Just be prepared to answer privately . Consantrate on non-financials.
5. Why Now State what has changed in the world that opens up the window to your particular opportunity.
6. What We Offer Describe a basic understanding of how you will provide a return on investors’ money.
1. Cover Slide This first slide and discussion should help position your venture so the investors have a framework for listening. - Include the name of your venture - The presenter’s name, the title - A concise one-sentence Value Line statement (”What we do”)
2. New Business Venture Opportunity and Analysis - Problem: describe the pain of the customer, why they need your product - Describe how the customer addresses the issue today - Solution: describe how your solutions, value proposition, makes the customer’s life better. - Market size: describe how much headroom is available, how big is the market? - Competitor analysis: what we do better, what they do better
3. Business Strategy and Competitive Advantage - Business Strategy ; Competitive A dvantage and Business Model
9 . Financing Strategy - How much? (Answers: “what do you need to get this done?”) - When do you need the money? Other rounds down the road?
1 0 . Exit Strategy and Exit Goals - What are some potential exits? - What are some of the examples in the space? - What are you doing today for these to happen?
1 1 . Conclusion Slide - Focus on Why Now - Describe the inflection points in your industry - Describe recent trends that makes your solution viable today - How your company is set on capitalizing on the recent trends
Strategic - Serve as a sounding board in crafting and flight testing ideas and strategies. - Business consultant with unique industry experience. - Developing, negotiati ng agreements, and executing strategic partnerships. - Developing and executing acquisition strateg ies . - Developing financial plans and assisting in follow-on rounds of funding. - Developing a global business strategy. - Negotiating licensing or royalty agreements.
Social and Supportive - Company building experience. - Can help manage the transition from entrepreneurial to professional management structures. - Been around in hard times, providing sound advice and encouragement. - Have a complete repertoire of mistakes and stories to share. - Knowledgeable of industry trends and exposed to insider knowledge seeing deals and plans. - Vital business coach, mentor and personal friend, confidant. - Support for, during and after initial public offerings or other liquidity events.
Network Effect - Credibility to venture team. - Helping recruit key management and board members. - Providing access to industry experts and knowledgeable advisors. - Providing access to the right professional service providers, e.g. legal and accounting firms. - Instrumental in opening doors to key marquee customers that otherwise might not take a new venture seriously. - Instrumental in opening doors to key suppliers. - Introducing the venture team to other private equity investors. - Providing access to the investment bankers for preparing a viable exit. - Providing access to executives overseas for strategic alliances, investments and resources. - Making key contacts with banks and leasing companies. - Providing a close-knit relationship with other ventures in the portfolio.