Crowdfunding Workshop for Startups: Paul Niederer, ASSOB

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Crowdfunding Workshop for Startups: Paul Niederer, ASSOB

  1. 1. Presented by Paul Niederer, C.E.O. ASSOB#paulniederer /paulniedererpaul@assob.com.au +61 411 968 362Discovery Session
  2. 2. Why PrivatelyCapital RaisingsDon’t Succeed
  3. 3. •No success with Angels andVC’s especially rural•No success with bank lending•No success with others•People dont understand howgreat the opportunity isFrom the Entrepreneurs view:
  4. 4. •Its not what they want• wrong niche, not their sweet spot• not viable, money not right•They dont understand what theopportunity is•They can’t find your opportunity•Credibility is lackingFrom the Investors view:
  5. 5. •Personal interest in your idea•Supporting a cause or interest•Sense of commmunity•Ability to engage in anentrepreneurial ventureInvestors may find youattractive because:
  6. 6. What type of investorare you after?
  7. 7. StoryTeamFollowers
  8. 8. Equity
  9. 9. Crowdfunding
  10. 10. ?
  11. 11. AGGREGATING PLATFORMASSOB ContactsSponsor ContactsProfessional InvestorsSophisticated InvestorsOverseas InvestorsFounder contactsDirector contactsSuppliersCustomersIndustry leadersPersonal ContactsCelebritiesAffinity GroupsIndustry niche fansCompany followersSelf Managed Super FundsAngel InvestorsVC’s
  12. 12. Discovery Meeting• Formal Meeting• Founders• Management• Advisors• ASSOB• ASSOB Sponsor
  13. 13. Based on ASSOB’s learnings fromover 300 Capital Raisings
  14. 14. • Selling a portion ofyour business• Needs a professionalsales and marketingcampaign• Not just about theoffer document• Right messages• Right time• Right people
  15. 15. All Stakeholders arefully aware of thepeople, events andactions needed tohave a successfulcapital raisingOutcome fortoday:
  16. 16. STORY FOLLOWERSTEAMInvestmentSocial ProofHopePromisesCAPABILITYCREDIBILITYSHARINGMENTORINGVALIDATION1. Attention2. Engagement3. Decision
  17. 17. Essentials basedon ASSOB’slearnings fromover 300 CapitalRaisings5What Works?
  18. 18. 1.A Convincing, Compelling,Credible Story2.A Balanced, Passionate,Capable and LikeableTeam3.Lots of Suitable People toshare the story with andengage4. Impressive Credibility forthe team and story5.Lots of Compliant Waysand Means to tell the story5 Essentials for a good Capital RaisingSTORYFOLLOWERSTEAMAGGREGATINGPLATFORM
  19. 19. A Convincing andCompelling Story1
  20. 20. STORY‣Story‣ Team‣ FollowersSTORY
  21. 21. 1. Narrative 2. Elevator PitchTwo types of stories that willsupport the capital raising
  22. 22. Elevator Pitch– Silicon Graphics• FOR post-production engineers (customers)• WHO ARE DISSATISFIED WITH the limitations oftraditional film editors (market alternative)• OUR workstation is a digital film editor (newproduct category)• THAT lets you modify film images any way youchoose (problem -solving capability)• UNLIKE workstations from SUN, HP or IBM(product alternative)• WE HAVE ASSEMBLED all the interfaces neededfor post – production film editing (product features)An example
  23. 23. 1. FOR (your target customers – tighter the nichethe better)____________________________________2. WHO ARE DISSATISFIED WITH (the currentmarket alternative)______________________________________3. OUR PRODUCT IS (new product category)______________________________________4. THAT PROVIDES (key problem - solvingcapability)______________________________________5. UNLIKE (the product alternative),______________________________________6. WE HAVE ASSEMBLED (key whole productfeatures for your specific application)______________________________________
  24. 24. 1. FOR (your target customers – tighter the nichethe better)____________________________________2. WHO ARE DISSATISFIED WITH (the currentmarket alternative)______________________________________3. OUR PRODUCT IS (new product category)______________________________________4. THAT PROVIDES (key problem - solvingcapability)______________________________________5. UNLIKE (the product alternative),______________________________________6. WE HAVE ASSEMBLED (key whole productfeatures for your specific application)______________________________________2
  25. 25. A Balanced,Passionate, LikeableTeam2
  26. 26. TEAM‣ Story‣Team‣ Credibility‣ FollowersTEAMA Balanced,Passionate, Capableand Likeable Team
  27. 27. 2.Team
  28. 28. Balanced Passionate LikeableTeamCharismatic Front PersonCredible Board of DirectorsPress and Social Media PersonGraphic Design PersonDocument &Video PersonBuilding a Balanced, Passionate,Capable and Likeable TeamTEAM
  29. 29. Impressive Credibilityfor the Team and theStory3
  30. 30. 22% 38% 64% 86%31626136
  31. 31. Capital Raising’sSocial Proof
  32. 32. AttractiveValuationanddesirableexitIPSecureBoardMembers &Managementwith provenhigh growthexperienceHaveAchievedMilestonesGoodStrategicPartnershipsBuild credibility to a level thatleaves your capability to deliverin no doubtInnovationPotentialCapabilityPotentialAvailableChannelsto Market
  33. 33. CREDIBILITYTo supportthe StoryTo back upthe Personand Team
  34. 34. CredibilityTo support the Story• Milestones achieved• Passionate customers• Industry experts endorsement• IP Secure• Desirable exitTo back up the Team• Directors with relevant credentials• Technical ability• Marketing and Business ability
  35. 35. •Due diligence on company•Due diligence on directors•Director statements to obtain detailsabout bankruptcy, insolvency,creditor situations•Review of material contracts to ensurethey exist and are signed agreements•Review of IP / most relevant domainname to ensure that the IP is inthe correct entityASSOB D/D
  36. 36. © 2011 Australian Small Scale Offerings Board Limited ®• ASSOB Code: CDL• Allows electronic filesto be encrypted &transmitted• Listed on ASSOBPrimary Board (29September)• Offer closed fully-subscribed (28January)• $1.5M raised frominvestors via theirASSOB listingCocoon Data
  37. 37. Gathering CredibilitySecure IP, Patents, Know howIndustry Experts that Endorse usSupport for ValuationBoard MembersHigh Profile InvestorsAwards, Milestones Achieved to dateStrategic Partners/ CustomersExit AlternativesTo support the StoryTo back up the Person and TeamSTORYTEAMCAPABILITYCREDIBILITYCREDIBILITY
  38. 38. Lots of SuitablePeople who you cantell the story to4
  39. 39. We do itfor theRedSquares123456789101112131415161718192021222324252627282930313233343536373839
  40. 40. The More FollowersThe More Red Squares4.Followers(Investors)
  41. 41. First FollowerSecond FollowerThe Lone EntrepreneurFirst RoundSecond RoundThird Round
  42. 42. Mercurien Limited 306Eday Life Limited 262Billie Goat Brands Ltd 254Shooii Limited 221At Once Limited 204Golden Eagle Mining Ltd 204Staminalift International Ltd 169Incriptus Ltd 168Flextank International Ltd 152Biodental Remin Ltd 151Keyhole TIG Limited 132Endless Rewards Limited 109PolyGenomX Limited 108Australian Nutrition & Sports Ltd 103Healthyfeast Limited 103$1,470,000.00$445,000.00Social Proof
  43. 43. $500,000 minimum 100 followers$750,000 minimum 150 followers$1,000,000 minimum 200 followers$1,500,000 minimum 300 followers$2,000,000 minimum 400 followersSocial Proof
  44. 44. Followers
  45. 45. StoryFollowers10 1010 Team
  46. 46. Story•!Manage!your!own!pension!fund!online•!No!advisors!fees•!Low!cost•!A!community!for!self9investors;!•!One!annual!tax9deduc=ble!fee
  47. 47. TeamRon!Lesh!and!Peter!Jones!recently!joined!the!SelfWealth!Board!and!have!contributed!$200,000!of!seed!capital!to!the!venture.
  48. 48. FollowersRon!Lesh!is!currently!Managing!Director!BGL!Corporate!Solu=ons.!BGL!has!grown!to!be!one!of!the!largest!suppliers!in!the!world!of!compliance!soOware!for!corporate!secretarial!and!superannua=on!fund!management.!
  49. 49. 26th of March 2012 to 13th of December 2012 - 8 months
  50. 50. StoryFollowers10 1010 Team$1.65
  51. 51. 1.A Convincing, Compelling,Credible Story2.A Balanced, Passionate,Capable and LikeableTeam3.Lots of Suitable People toshare the story with andengage4.Lots of Compliant Waysand Means to tell thestory4 Essentials for a good Capital RaisingSTORYFOLLOWERSTEAMAGGREGATINGPLATFORM
  52. 52. AGGREGATING PLATFORMASSOB ContactsSponsor ContactsProfessional InvestorsSophisticated InvestorsOverseas InvestorsFounder contactsDirector contactsSuppliersCustomersIndustry leadersPersonal ContactsCelebritiesAffinity GroupsIndustry niche fansCompany followersSelf Managed Super FundsAngel InvestorsVC’s
  53. 53. • Lets look at a Successful Capital Raising• Started by a passionate individual• In this case the “Shirtless Dancing Guy”• Gathers a “first follower”• Followers assist• Social proof builds momentum
  54. 54. Friends &FamilyFollowers of the BusinessASSOB, Sponsor, Lists, Contacts,Locals, Investors, Media GeneratedFans of the BusinessAffinity & Niche groups, Tribes etc
  55. 55. Gather Followers
  56. 56. Engage Followers
  57. 57. Count Followers& Investors
  58. 58. Followers InvestorsPossibles$500,000 minimum 100 followers$750,000 minimum 150 followers$1,000,000 minimum 200 followers$1,500,000 minimum 300 followers$2,000,000 minimum 400 followersFansCustomersSuppliersIndustryLeadersASSOBContactsPersonalContactsProfessionalInvestorsCelebritiesPeopleOverseasAffinity GroupsTribesSTORYTEAMASSOB
  59. 59. Attention Engagement DecisionMotivation OutcomeInterest,Belief &TrustFamiliarityMotivators• Socially motivated• Product / Business interest• Affinity through niche interest• Financially motivatedCapital Raising Campaign
  60. 60. No connectionFoundersShareholdersDirectorsManagementAccountantLawyerAdvisory BoardCapitalRaisingTeam3rdLevelAngels, VC’s, FamilyOffices, PrivateInvestors, Govt.Grants, SophisticatedAccreditedProfessionalSMART MONEYStoryCapitalRaiser1stLevel2ndLevel
  61. 61. Emotional RationalConnection No connectionFoundersShareholdersDirectorsManagementAccountantLawyerAdvisory BoardCapitalRaisingTeamFriendsFamilyFansFollowersFriends - of - Friends,Family, Fans andFollowersThose withstrong personal ties tothe fundraisers or nichePersonalconnectiondepends on anintroduction orspecific linkFriends - of - Friends - of -FriendsNo personalconnection to the fundraisers1stLevel2ndLevel3rdLevelAngels, VC’s, Family Offices,Private Investors, Govt. Grants,Sophisticated AccreditedProfessionalAffinity & Interest Groups,Niche Players and TribesSMART MONEYStoryCapitalRaiserProspectiveinvestorsProspectiveinvestorsProspectiveinvestorsAffinity & Interest Groups,Niche Players and TribesAFFINITIES AFFINITIES
  62. 62. AGGREGATING PLATFORMASSOB ContactsSponsor ContactsProfessional InvestorsSophisticated InvestorsOverseas InvestorsFounder contactsDirector contactsSuppliersCustomersIndustry leadersPersonal ContactsCelebritiesAffinity GroupsIndustry niche fansCompany followersSelf Managed Super FundsAngel InvestorsVC’s
  63. 63. No connectionFoundersShareholdersDirectorsManagementAccountant&LawyerAdvisorsASSOB / SponsorFunding TeamAngels, VC’s, Family Offices,Private Investors, Govt. Grants,Sophisticated AccreditedProfessionalSMART MONEYProspective investors Prospective investorsInfluencersMotivationSocially motivated Product / Business interest Affinity through niche interest Financially motivatedS p A FEnter key teammembers above whohave connections
  64. 64. Lots of CompliantWays and Meansto tell the story5
  65. 65. Preshafood91
  66. 66. • Company established in 2006• ASSOB:PRE• Extremely High PressureProcessing (more pressure than thebottom of the ocean!)• No cooking, heating or chemicals• Contracts now with Woolworths,Coles and other ‘majors’• Interesting Investor Meetingsfactory visits and taste-testing onthe boardroom table92
  67. 67. Thank youPresented by Paul Niederer, C.E.O. ASSOBpaul@assob.com.au +61 411 968 362Request acopy of thepresentation#paulniederer /paulniederer

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