A presentation done for the Knoxville Entrepreneur Center on sources of capital for start-ups and existing businesses, as well as the typical size and sophistication of each deal type.

1. @ 2 0 1 5 J P C E N T E R P R I S E S

2. @ 2 0 1 5 J P C E N T E R P R I S E S

3. A “TYPICAL” TIMELINE
F.F.F.
Angel
investors
Venture
capitalists
Lenders
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements

4. A “TYPICAL” TIMELINE
F.F.F.
Angel
investors
Venture
capitalists
Lenders
Futuristic Historical
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements

5. A “TYPICAL” TIMELINE
F.F.F.
Angel
investors
Venture
capitalists
Lenders
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements
Line12fund.com

6. THE KEY TO LANDING CAPITAL?
Know your target
audience
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7. SOURCES OF CAPITAL
Skin in the game
 Sophistication of deal - easy
 Typical funding amount - $0-$25,000
 Difficulty in obtaining - easy (if you have the money it isn’t
hard to convince yourself to invest)
 Time to obtain - instantaneous
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8. SOURCES OF CAPITAL
F.F.F
 Sophistication of deal - moderately easy
 Typical funding amount - $0-$50,000
 Difficulty in obtaining - moderately easy (this group invests
not on idea but trust)
 Time to obtain - nearly instantaneous
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9. SOURCES OF CAPITAL
Crowdfunding
 Sophistication of deal - moderate
 Typical funding amount - purchase price x # of customers;
average is up to 10k
 Difficulty in obtaining - moderate (it takes creativity to stand
out)
 Time to obtain - between 30-60 days
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10. SOURCES OF CAPITAL
Microfunds
 Sophistication of deal - moderately easy
 Typical funding amount - a few hundred to $25,000
 Difficulty in obtaining - moderate
 Time to obtain - less than 30 days
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11. SOURCES OF CAPITAL
Grants
 Sophistication of deal - moderate
 Typical funding amount - up to millions of dollars
 Difficulty in obtaining - extremely difficult
 Time to obtain - many months
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12. SOURCES OF CAPITAL
Pitch competitions
 Sophistication of deal - easy
 Typical funding amount - winnings; usually $1,000-$25,000
 Difficulty in obtaining - moderate (depending on the
competition)
 Time to obtain - from a few weeks to a few months depending
on the schedule
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13. SOURCES OF CAPITAL
Strategic partnerships
 Sophistication of deal - moderately difficult
 Typical funding amount - $5,000-$100,000
 Difficulty in obtaining - difficult
 Time to obtain - many months
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14. SOURCES OF CAPITAL
Angel investors
 Sophistication of deal - sophisticated
 Typical funding amount - $50,000-$2,000,000
 Difficulty in obtaining - difficult (the rule is pitch 100 get 1)
 Time to obtain - 6-12 months
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15. SOURCES OF CAPITAL
VCs
 Sophistication of deal - extremely sophisticated
 Typical funding amount - millions or hundreds of millions
 Difficulty in obtaining - extremely difficult
 Time to obtain - years
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16. SOURCES OF CAPITAL
Alternate finance
 Sophistication of deal - moderate
 Typical funding amount - % of revenue
 Difficulty in obtaining - moderate
 Time to obtain - less than a month
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17. SOURCES OF CAPITAL
Lenders
 Sophistication of deal - moderate
 Typical funding amount - $50,000-$350,000
 Difficulty in obtaining - difficult
 Time to obtain - months
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