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Can you find me the right investor 5 oct 2012


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"Can you find me the right investor?"

"What are the chances of success?"

"What are the odds of finding an Investor for my Company?"

I am asked these questions all of the time as if finding investors for companies was like throwing darts at a dart board; if you hit the bull you get funding, Right?

Well not quite. In this blog piece and the accompanying video, I will try to share with you some of the complexities in the funding process. I want to try to demonstrate that building a systematic funnel is much better than throwing darts!

Lets start by looking at some statistics from Crunchbase. This free online database lists over 100,000 companies and over 30,000 funding rounds. Crunchbase also shows us that there have been literally thousands of Seed Rounds, Angel Rounds and Series A, B and C rounds. Furthermore over 9,000 funding rounds are unattributed.

In our research over the past decade, we have identified over 1,200 investors in the UK and this dataset only has a small number of Angel and High Net Worth investors. We are predominantly talking about funds, networks and family offices.

So where do you start?

In the video I walk through a series of factors that need to be taken into account when trying to select investors.

These include:

Investor Type
Funding Round
Deal Size
VC Portfolio
VC Specific Odds
Investment Criteria
Deal Criteria
Term Sheet
VC Deal Flow
Conflicting Interests
Unfortunately, finding the Right Investor involves kissing a lot of frogs!

I do not believe that there are any short cuts, they take too long!

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If you would like to discuss with me how we can assist your business, please email me at or call me on my UK cell phone +44 7813 672 612

Thank you for joining the Conversation!

Published in: Business
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Can you find me the right investor 5 oct 2012

  1. 1. The Six Minute Strategist Business Strategy, Make Smarter Decisions Can you find me the Right Investor?© John colley 2012
  2. 2. The Six Minute Strategist© John colley 2012
  3. 3. The Six Minute Strategist© John colley 2012
  4. 4. The Six Minute Strategist Crunchbase Statistics© John colley 2012
  5. 5. The Six Minute Strategist How big is the Tech Funding Market? 100,000 + Companies 8,277 Financial Organisations 133,000 People 4,721 Service Providers 30,867 Funding Rounds 7,128 Acquisitions© John colley 2012
  6. 6. The Six Minute Strategist What do the funding rounds look like? 6,044 Seed 2,611 Angel 6,390 Series A 4,094 Series B 2,098 Series C 9,022 Unattributed© John colley 2012
  7. 7. The Six Minute Strategist Can’t See the wood for the trees?© John colley 2012
  8. 8. The Six Minute Strategist Founders and Management Friends & Family High Net Worth Investor Type Existing Shareholders Family Offices Venture Capital Private Equity© John colley 2012
  9. 9. The Six Minute Strategist Utilities IT Services Hotels, Restaurants & Pubs Clean Tech Agriculture Construction Pharmaceuticals Paper Paper Oil & Gas Environmental Real estate Biotech Electronics Luxury Internet Packaging Commodities Government Financial Services Building Products Mobile Leisure Energy Media eCommerce Sector Services Depository Institutions Renewables Medical Gaming and Lodging Life Science Capital Goods Steel Conglomerates Infrastructure Education Chemicals Natural Resources Consumer Engineering Industrial Biogas Transport Intellectual Property Mining Entertaining Computers Healthcare Food and Beverage Retail Metals Security© John colley 2012
  10. 10. The Six Minute Strategist VC PE Acq Finance Public to Private Seed Buy and Build Angel Equity Release ReCap Series A Spin Out Series B Stage Bridge Active Series C Rescue Series D Turnaround LBO Pre IPO MBO MBI Expansion Mezzanine Venture Debt Junior Equity© John colley 2012
  11. 11. The Six Minute Strategist Funding Round What round are you Doing?© John colley 2012
  12. 12. The Six Minute Strategist Fund Size Sweet Spot £ or $ Deal Size <100k <500k <2m <10M <100M >100M© John colley 2012
  13. 13. The Six Minute Strategist Prototype Product Customer Risk Market Scale Expansion© John colley 2012
  14. 14. The Six Minute Strategist Limitations Location Geography Proximity Market© John colley 2012
  15. 15. The Six Minute Strategist Portfolio Does it Fit? Does it Compete?© John colley 2012
  16. 16. The Six Minute Strategist VC Specific Odds? 500 5 1%© John colley 2012
  17. 17. Customer Pain The Six Minute Strategist Pre- or Post Revenue Cash Flow BreakEven Profitable Sole Investor Syndicate Investment Criteria Min Deal Size Max Deal Size Minority Majority Investment Style Board Seat© John colley 2012
  18. 18. Customer Pain The Six Minute Strategist Management Product Solution Competition Market Opportunity Deal Criteria ScalabilityStage of Business Exit Route Channels to market USPs Customer Pain Market Size Valuation Funding need© John colley 2012
  19. 19. The Six Minute Strategist Process Identify Approach Meeting Investment Review Informal DD Information Term Sheet Formal DD Conditional Approval Close Formal Approval Documentation© John colley 2012
  20. 20. The Six Minute Strategist Elevator Pitch Executive Summary Management Presentation Documentation Business Plan Financial Plan Management Information Market Research DD Material© John colley 2012
  21. 21. The Six Minute Strategist Economic Control Term Sheet Other© John colley 2012
  22. 22. The Six Minute Strategist In the Deal Flow© John colley 2012
  23. 23. The Six Minute Strategist Founders Existing Conflicting New Investors Shareholders interests Board of Directors Management Employees© John colley 2012
  24. 24. The Six Minute Strategist Kiss a lot of Frogs© John colley 2012
  25. 25. The Six Minute Strategist Can you find me the Right Investor? I’m sorry, we don’t have time for short cuts they take too Long!© John colley 2012
  26. 26. The Six Minute Strategist Want to know More? Contact me Now John Colley 07813 672612© John colley 2012