What are Investors Looking for when Evaluating your Business for a Potential Investment
The HVCFI / iCANny Entrepreneur’s Breakfast ForumJuly 11, 2012What Investors Look for When Evaluating YourBusiness for a Potential Investment
Stonehenge aims to catalyze rapid growth of companies inup-and-coming markets by backing passionateentrepreneurs solving business problems.Stonehenge is focused on finding investment opportunitiesin underserved markets, areas where there is an abundanceof entrepreneurship and innovation, but a relative shortageof locally available professionally managed capital.
Where to Get Help EarlyHudson ValleyPleasantvilleSyracuse
But…How will I finance it?Making investments at the earlieststages of a company’s developmentinvolves extraordinary risk. Youngcompanies have little or no collateral tosecure bank loans, no assets or track recordsto attract financing from private equity firmsand no opportunities for short term gain tointerest hedge funds. Venture capitalists stepin and assume this risk by providing capital.
There exists a HUGE Capital Gap when you need it mostTypical starting pointat which venture capitalinvestment takes placeConceptSEED/Start-UpIndividual AngelsAngel GroupsEarly Stage VCMid/Later Stage VCCAPITAL GAPFriends/FamilyAchievingLiquidity Event"Capital Gap"15EARLY GROWTH LATERNegativeReturnsSTAGEFUNDER($ millions)Revenue2025Start-Up7Years5101 2 3 4 5 6
Regionally Active Early Stage Funding Assistance
Where does Stonehenge Growth Equity fit in?Growth Stage: Post product,revenue, market introduction• Mitigates technology risk• Mitigates market adoption risk• Mitigates financial riskMitigate risk, support rapid growth• Business model is proven and scalable• Capital invested is used to supportaccelerating growth• Significant upside with improved win/loss ratioTechnology-Enabled Businesses• Applying technology to solvebusiness problems• Typically recurring revenue models• No capital intensive R&D cycles• Usually software and/or services
Where does Stonehenge Growth Equity fit in?Stonehenge Focus• Intersection of Healthcare and IT• Post product development, early revenue,reference customers• $1 million investment (including match)What we won’t do• Drug Discovery• Medical Devices• Science Projects• Heavy hardware investmentInnovate NY• $5 million allocation + matching funds• Seed-stage fund• New York based companies
Active Partnership Promotes SuccessActive Board Participation• Strategic Planning• Sales & Marketing• Corporate GovernanceDeep Network of Relationships• Recruiting• Service Providers• Other InvestorsTrusted Advisors to Entrepreneurs• Support early stage companies• Honest feedback, timely response• Willing to talk before you’re ready for investment