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How to Raise Capital <br />Best Practices<br />
Exploit a window of opportunity<br />Make critical operating investments for which you lack existing resources to fund <br...
Debt<br />Short-term: working capital<br />Long-term: property, plant& equipment <br />Equity<br />Accelerate value creati...
Balance of “Smart” Money with Cost of Money<br />Self, family & friends (inexpensive)<br />Gov’t/Higher Ed Grants/services...
Industry & Stage Focused: pursue good matches only<br />Customers & Vendors<br />Private investors <br />Venture Capital F...
You CAN succeed if you<br />Have the right team with the right plan<br />Pursue the right capital (source & type)<br />Und...
A strong leadership team is a must<br />Sales makes you credible<br />Profit makes you powerful<br />Operate with Excellen...
Clearly articulate:<br />The important problem you are solving<br />The market opportunity (and obstacles)<br />How you wi...
Subject matter experts AND deal experts<br />Consultants<br />CEOs<br />Attorneys<br />Accountants<br />Bankers<br />Build...
Have experts opine & explain the value<br />Be reasonable<br />Dilution that gets you where you want to go is NOT “giving ...
Appoint an expert Lead/Negotiator<br />Be prepared to answer important questions<br />Have diligence materials ready to go...
Follow their lead, get on their wavelength<br />Be confident, never cocky<br />Answer questions honestly & directly<br />D...
We don’t need advice<br />We have no competition<br />Our Plan doesn’t need improving<br />We don’t know who will buy our ...
3-12 months<br />Many “no’s”<br />Investor confidence in Management means a better offer<br />Process Expectations<br />
Critical path to building substantial wealth<br />Investors & lenders have plenty of capital & reasonable terms for the be...
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How to Raise Capital

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Transcript of "How to Raise Capital"

  1. 1. How to Raise Capital <br />Best Practices<br />
  2. 2. Exploit a window of opportunity<br />Make critical operating investments for which you lack existing resources to fund <br />Decrease your financial exposure<br />Why Raise Capital?<br />
  3. 3. Debt<br />Short-term: working capital<br />Long-term: property, plant& equipment <br />Equity<br />Accelerate value creation to capture an opportunity<br />Long-term growth & sustainability<br />Rescue un-bankable company<br />Pursue the right TYPE of Capital<br />
  4. 4. Balance of “Smart” Money with Cost of Money<br />Self, family & friends (inexpensive)<br />Gov’t/Higher Ed Grants/services<br />Banks/Receivable/Equipment financing<br />Investors (smart & expensive)<br />Pursue the right SOURCE of capital<br />
  5. 5. Industry & Stage Focused: pursue good matches only<br />Customers & Vendors<br />Private investors <br />Venture Capital Funds<br />Equity Sources<br />
  6. 6. You CAN succeed if you<br />Have the right team with the right plan<br />Pursue the right capital (source & type)<br />Understand & engage your audience effectively<br />Work hard & refuse to quit <br />Get ready to be expertly tested: <br />Compared <br />Held accountable <br />Rejected<br />Raising Capital: MAJOR Effort<br />
  7. 7. A strong leadership team is a must<br />Sales makes you credible<br />Profit makes you powerful<br />Operate with Excellence<br />
  8. 8. Clearly articulate:<br />The important problem you are solving<br />The market opportunity (and obstacles)<br />How you will compete successfully<br />Results you will realistically achieve<br />Create a Masterful Business Plan<br />
  9. 9. Subject matter experts AND deal experts<br />Consultants<br />CEOs<br />Attorneys<br />Accountants<br />Bankers<br />Build the right Advisory Team<br />
  10. 10. Have experts opine & explain the value<br />Be reasonable<br />Dilution that gets you where you want to go is NOT “giving up” a piece of your company<br />Determine the Valuation<br />
  11. 11. Appoint an expert Lead/Negotiator<br />Be prepared to answer important questions<br />Have diligence materials ready to go<br />Create list of “best fit” investors/lenders & determine best route to contacting each<br />The Sales & Marketing Process<br />
  12. 12. Follow their lead, get on their wavelength<br />Be confident, never cocky<br />Answer questions honestly & directly<br />Don’t “try” to sell<br />Evaluate their “fit” and ability to add value<br />Investor Meetings<br />
  13. 13. We don’t need advice<br />We have no competition<br />Our Plan doesn’t need improving<br />We don’t know who will buy our software because every industry should want it<br />If we build it, they will come<br />Deal killers<br />
  14. 14. 3-12 months<br />Many “no’s”<br />Investor confidence in Management means a better offer<br />Process Expectations<br />
  15. 15. Critical path to building substantial wealth<br />Investors & lenders have plenty of capital & reasonable terms for the best<br />Be one of the best!<br />Final Pointers<br />
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