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Digitalfilipino getting investors

Attracting overseas investors as a Filipino startup

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Digitalfilipino getting investors

  1. 1. Attracting Investors for your Business Tactics & Experiences From the field. Michael Michelini 迈理倪
  2. 2. Today’s Agenda <ul><li>Understanding the mentality of an investor </li></ul><ul><li>Building trust </li></ul><ul><li>Why do you need investment? </li></ul><ul><li>What are you willing to give up? </li></ul><ul><li>After the investment </li></ul><ul><li>Real experience - saleslion </li></ul><ul><li>Real experience – NewYorkbarstore </li></ul><ul><li>New project - ClearCafe </li></ul>
  3. 3. Understanding Mentality of an Investor <ul><li>Investors come in all shapes & sizes </li></ul><ul><ul><li>Believe you should first look for angels / strategic partners in the west. </li></ul></ul><ul><ul><li>It isn’t always directly cash investment </li></ul></ul><ul><ul><li>Can be also strategic partnership in sales / operations </li></ul></ul><ul><ul><li>They normally want to be sure </li></ul></ul><ul><ul><ul><li>You are reliable </li></ul></ul></ul><ul><ul><ul><li>You will be there when times get tough </li></ul></ul></ul><ul><ul><ul><li>You are on their side </li></ul></ul></ul>
  4. 4. A Business is like a Ship <ul><li>Boat – infrastructure. your product /service </li></ul><ul><li>Map – strategy </li></ul><ul><li>Wind – finance / financial investment </li></ul><ul><li>Sailors – your team </li></ul>
  5. 5. Crist (Jesus Christ) Formula <ul><li>(C x R x I) / S = T   ---- CRIST </li></ul><ul><li>C = Credibility </li></ul><ul><li>R = Reliability </li></ul><ul><li>I = Intimacy </li></ul><ul><li>S = Self Orientation </li></ul><ul><li>T = Trust </li></ul>
  6. 6. What do you need the investment for? <ul><li>How much? </li></ul><ul><li>Why, for what? </li></ul><ul><ul><li>Development? </li></ul></ul><ul><ul><li>Inventory? </li></ul></ul><ul><ul><li>Marketing? </li></ul></ul><ul><li>How long for payback? </li></ul><ul><li>How long will this last? </li></ul><ul><li>What do you currently have? </li></ul><ul><li>Upfront? Monthly? </li></ul>
  7. 7. Investors from various sources <ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>Mentors </li></ul><ul><li>Agents </li></ul><ul><li>Trade associations </li></ul><ul><li>Governments </li></ul><ul><li>Be creative! </li></ul>
  8. 8. What are you offering? <ul><li>51%? </li></ul><ul><li>Control </li></ul><ul><li>Financial obligations </li></ul><ul><li>Deliverables </li></ul><ul><ul><li>Pressure </li></ul></ul><ul><li>TIME! </li></ul><ul><ul><li>Will spend decent amount of time with investor </li></ul></ul><ul><li>Technical? Marketing? Local agent? </li></ul>
  9. 9. Rev Share Partnership <ul><li>MUST have trust on both sides </li></ul><ul><li>Example 25% of adjusted gross margin (after inventory + shipping) </li></ul><ul><li>Try to take position of power </li></ul><ul><ul><li>Receiving the money </li></ul></ul><ul><li>5 year length </li></ul><ul><li>You believe in the project more than the other </li></ul>
  10. 10. Got the deal! Now its just begun…. <ul><li>Don’t pop the champagne so quickly… </li></ul><ul><li>Now you need to deliver!!! </li></ul><ul><li>You’ve been given a chance </li></ul>
  11. 11. Being Reliable <ul><li>Taking an investment is also taking a job </li></ul><ul><li>Be prepared to report regularly </li></ul><ul><ul><li>Daily, weekly, monthly checkups? </li></ul></ul><ul><li>Showing the investor you are putting your full effort </li></ul>
  12. 12. Case Study - SalesLion <ul><li>Finland based investor </li></ul><ul><li>Found us online as another name </li></ul><ul><li>Saw we were in China </li></ul><ul><li>Wanted IT partner in Asia </li></ul><ul><li>Trusted Us </li></ul><ul><li>Read blogs </li></ul><ul><li>Month to month operating budget </li></ul>
  13. 13. Example - NewYorkBarStore <ul><li>Started in 2004 in NYC apt. </li></ul><ul><li>Had lots of open passion </li></ul><ul><li>Complementary skillset </li></ul><ul><li>Investment was for inventory to grow sales </li></ul><ul><li>Investor was also aligned interests </li></ul><ul><li>Investor was also too busy to help, though he planned to be more involved. </li></ul>
  14. 14. Current Case- ClearCafe <ul><li>I want to be angel investor in Philippines </li></ul><ul><li>Find good talent here </li></ul><ul><li>Good P.R. and marketing </li></ul><ul><li>Long term investment </li></ul>
  15. 15. Conclusion <ul><li>Think from perspective of an investor </li></ul><ul><li>What type of investor / money do you want? </li></ul><ul><li>Realize this will be more pressure </li></ul>
  16. 16. Question & Answer <ul><li>Michael Michelini </li></ul><ul><li>迈理倪 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul><ul><li> </li></ul>@michelini Weibo @michelini