So, you are looking for Funding... But are They Looking for You?
October 15,2012So, you arelooking forFunding…But are They Lookingfor You?
2 October 15, 2012About Me Mercato Partners Skullcandy, Fusion-io, Mediconnect Prospector Equity Capital AdvancedMD, SolutionReach Represent Mercato on the boards of Cymphonix, Central Logic, Control4
3 October 15, 2012Venture Capital Model Raise Money Invest in Companies Help Grow Companies Sell Companies Return Money to Investors (and hopefully keep some)
4 October 15, 2012Venture Capital Investments What percentage of startups raise VC? How many companies receive VC? Why so low?
5 October 15, 2012What must your company doto get VC money? Return 10X in 5-7 years Require $5-10 million in investment Address a substantial market (often defined at $1 billion) Possess substantial barriers to entry
6 October 15, 2012What about Angels? Similarcriteria as the VC’s $250,000 - $1,000,000 investment range Return 10X in 5-7 years May be OK with a smaller market Might be more flexible
7 October 15, 2012Growth Equity? Reduced risk compared to VC Track record of growth (50%+) Typically invest at least $10 million Exit in 4-5 years 3-6X returns
8 October 15, 2012Private Equity? Reduced risk compared to VC & Growth Solid track Record of profits Typically take a majority stake Usually put $25 million+ to work
9 October 15, 2012What Else is Out There?Revenue Based Finance (RBF) Some track record of revenues Strong gross margin (40+%) Good growth rate
10 October 15, 2012What Else is Out There?Banks Generally 3 years operating history Profitable Assets Good credit Financial covenants Term debt vs. line of credit
11 October 15, 2012What Else is Out There?FFF (friends, family, fools) They are the angels you know Have passion for the company or industry Interested in supporting you Most companies get their funding here
12 October 15, 2012What Else is Out There?Crowd Sourcing Easy to understand product Not very good for services Helps to have a strong social network
13 October 15, 2012Pick Your Best Fit Every source of funds has their own criteria Know your audience Be sure you have what they need Not every source is right for your company
14 October 15, 2012How to Contact Me Alison Wistner (801) 252 - 4884 www.mercatopartners.com firstname.lastname@example.org