The document outlines a 12 step process for technology companies to obtain venture capital funding. The steps include assembling the right leadership team; demonstrating a compelling competitive advantage; securing necessary legal and professional services; protecting intellectual property; validating the product and market; developing business and funding plans; and researching and targeting specific venture capital firms for funding pitches. Following these steps is intended to increase the chances of a technology company successfully raising money from venture capitalists.
When looking for a loan or venture capital to invest in a new or existing business, it is essential to develop a high quality proposal. Developing a good proposal requires (1) Plenty of advance planning (2) A detailed understanding of your business (3) Some accounting knowledge (4) Focus (5) Writing ability.
Every investment proposal is different, because every investment is unique. However, a successful investment proposal must focus on and answer three basic questions for the investor: (1) Is my investment safe? (2) When will I get back my initial investment and profits? (3) How much money will I make?
This guide will provide you with an outline of a high quality Business Investment Proposal.
When looking for a loan or venture capital to invest in a new or existing business, it is essential to develop a high quality proposal. Developing a good proposal requires (1) Plenty of advance planning (2) A detailed understanding of your business (3) Some accounting knowledge (4) Focus (5) Writing ability.
Every investment proposal is different, because every investment is unique. However, a successful investment proposal must focus on and answer three basic questions for the investor: (1) Is my investment safe? (2) When will I get back my initial investment and profits? (3) How much money will I make?
This guide will provide you with an outline of a high quality Business Investment Proposal.
Example of Fund Raising Presentation to InvestorsJeremiah Josey
This is a real example of a presentation for fund raising for Pozilok - a company I founded in 2003. Over AUD1,000,000 was raised in Australia using such presenations - a difficult feat in an environment where investment for start-up companies is very thin indeed.
Presentation by Steve Scott, Lorna Neilson, Mary Canady, and David Welch at the San Diego Biotechnology Network's Bootstrapping Biotech event October 29th 2009.
Aren’t you able to mobilize funds for the growth of your company? Is your business stagnated only for money? Do you need funds for a financial turnaround? Do you need to plan your succession? Do you have an aspiration or problem or confusion about your business strategy?
Apohan is an equity funding / strategic corporate transactions / M&A advisory company. We aim to achieve the highest possible valuation as well as best possible contractual terms for our clients within a minimum timespan. We aren’t a broker, an investment bank, or a statutory compliance firm but an all-domain, end-to-end, and custom strategic services implementation company. We do only sell-side (business-side) advisory. We assist the medium & mid-size businesses in India in equity funding, corporate restructuring, financial restructuring & strategic management. Equity funding is our flagship service with transaction size between INR 10Cr to INR 500 Cr for the client companies in the annual turnover range of INR 25 Cr to 250 Cr. We provide success based, time-based as well as objective based services.
Our value proposition:
Our scope of work includes making a prospective client aware of the aspects of equity/strategic transactions, removing their misconceptions, and educating them on the complex process. SMEs don’t have a professional BOD, dedicated departments for business strategy, corporate management, financial strategy, contract strategy, transaction management, etc and they also don’t know how to identify right consultants, their scope of work, and deliverables. We carry out end-to-end scope including deal/transaction structure, investment requirement schedule, on-boarding investors, study of operational documents, preparation of transaction documentation, valuation, negotiations, due diligence assistance, investment contract, deal closure & handholding. We provide all expertise from a single company: finance, secretarial matters, business strategy, contracts, investment, etc. We also understand projects, engineering, operations, marketing & other aspects of business to the extent needed for a transaction. All this leads to a very high success rate.
Follow us on linked to understand more: Apohan LinkedIn Page and Presentation on Business Funding Strategy & Options for SMEs
Our client selection:
We just don’t select any business to provide our services. We carry out the following 4-step process:
Technical 1: The soundness of a business in terms of market, operations, profitability, management quality, corporate matters, etc.
Marketing 1: The ability & preparedness of a business to carry out a transaction in terms of timeline, budget, availability of documents, clarity of objectives, etc.
Technical 2: The reasonability & rationality of the offer to be made to an investor in terms of expected valuation & terms of contract.
Marketing 2: The terms of consulting contract & pricing with Apohan
This powerpoint represents a semester long consulting project carried out by myself and 4 other students for a local construction management firm named PJ Dick. Our project and presentation involved analyzing PJ Dick\’s proposed new business venture and recommending proper course of action through strategic analysis. This was then presented to the company\’s executive board.
FREE MANAGEMENT CONSULTING COURSE on www.oeconsulting.be
Operational Excellence Consulting
What is Strategy Management ?
Strategy is to prepare systematically plans for the future in order to interact to new emerging trends and changes in the wider scope of the company with special attention to avoid rigidity, because the past is not equal to the future.
“Wide scope of the company” : Companies are open systems : input side for resource seeking and output side for market seeking (system dynamics!)
“Avoid rigidity” : New events, new knowledge makes that the original strategy is no longer up to date
In general, strategy arises incrementally: “What are realistic objectives with current characteristics of the context and future trends?”
Predictability is key for making strategic plans and investment decisions in the long run. Planning, with hard data and soft data (tacit knowledge), is easier in stable environment. However in the long run a small change in wide scope of the company could escalate dramatically due to system dynamics.
Besides predictability, there is also legacy: most big companies have legacy to carry on while small companies (e.g. Fintech) start from a clean sheet and are flexible, focused, motivated and can “do more with less”.
For building and accumulating a “strategic competitive advantage (SCA)” a consistent flow of investment is needed in order to obtain desired level of accumulation.
A “strategic competitive advantage (SCA)” can be a patent (intellectual property), a customer install base, a certain image or branding in the mind of the customers, a new disruptive or innovative technology, … and is the result of a strategic decision in investing a consistent flow and stock.
Stock – flow diagram : “Success breeds success”
For example: (1) a consistent investment in R&D will give a bigger stock of knowledge/competence than the double investment in half of the time. So speeding up the investments will not give the same stock at a certain moment. (2) a consistent investment in advertising will give a bigger stock of reputation/image/branding than the double investment in half of the time.
Example of Fund Raising Presentation to InvestorsJeremiah Josey
This is a real example of a presentation for fund raising for Pozilok - a company I founded in 2003. Over AUD1,000,000 was raised in Australia using such presenations - a difficult feat in an environment where investment for start-up companies is very thin indeed.
Presentation by Steve Scott, Lorna Neilson, Mary Canady, and David Welch at the San Diego Biotechnology Network's Bootstrapping Biotech event October 29th 2009.
Aren’t you able to mobilize funds for the growth of your company? Is your business stagnated only for money? Do you need funds for a financial turnaround? Do you need to plan your succession? Do you have an aspiration or problem or confusion about your business strategy?
Apohan is an equity funding / strategic corporate transactions / M&A advisory company. We aim to achieve the highest possible valuation as well as best possible contractual terms for our clients within a minimum timespan. We aren’t a broker, an investment bank, or a statutory compliance firm but an all-domain, end-to-end, and custom strategic services implementation company. We do only sell-side (business-side) advisory. We assist the medium & mid-size businesses in India in equity funding, corporate restructuring, financial restructuring & strategic management. Equity funding is our flagship service with transaction size between INR 10Cr to INR 500 Cr for the client companies in the annual turnover range of INR 25 Cr to 250 Cr. We provide success based, time-based as well as objective based services.
Our value proposition:
Our scope of work includes making a prospective client aware of the aspects of equity/strategic transactions, removing their misconceptions, and educating them on the complex process. SMEs don’t have a professional BOD, dedicated departments for business strategy, corporate management, financial strategy, contract strategy, transaction management, etc and they also don’t know how to identify right consultants, their scope of work, and deliverables. We carry out end-to-end scope including deal/transaction structure, investment requirement schedule, on-boarding investors, study of operational documents, preparation of transaction documentation, valuation, negotiations, due diligence assistance, investment contract, deal closure & handholding. We provide all expertise from a single company: finance, secretarial matters, business strategy, contracts, investment, etc. We also understand projects, engineering, operations, marketing & other aspects of business to the extent needed for a transaction. All this leads to a very high success rate.
Follow us on linked to understand more: Apohan LinkedIn Page and Presentation on Business Funding Strategy & Options for SMEs
Our client selection:
We just don’t select any business to provide our services. We carry out the following 4-step process:
Technical 1: The soundness of a business in terms of market, operations, profitability, management quality, corporate matters, etc.
Marketing 1: The ability & preparedness of a business to carry out a transaction in terms of timeline, budget, availability of documents, clarity of objectives, etc.
Technical 2: The reasonability & rationality of the offer to be made to an investor in terms of expected valuation & terms of contract.
Marketing 2: The terms of consulting contract & pricing with Apohan
This powerpoint represents a semester long consulting project carried out by myself and 4 other students for a local construction management firm named PJ Dick. Our project and presentation involved analyzing PJ Dick\’s proposed new business venture and recommending proper course of action through strategic analysis. This was then presented to the company\’s executive board.
FREE MANAGEMENT CONSULTING COURSE on www.oeconsulting.be
Operational Excellence Consulting
What is Strategy Management ?
Strategy is to prepare systematically plans for the future in order to interact to new emerging trends and changes in the wider scope of the company with special attention to avoid rigidity, because the past is not equal to the future.
“Wide scope of the company” : Companies are open systems : input side for resource seeking and output side for market seeking (system dynamics!)
“Avoid rigidity” : New events, new knowledge makes that the original strategy is no longer up to date
In general, strategy arises incrementally: “What are realistic objectives with current characteristics of the context and future trends?”
Predictability is key for making strategic plans and investment decisions in the long run. Planning, with hard data and soft data (tacit knowledge), is easier in stable environment. However in the long run a small change in wide scope of the company could escalate dramatically due to system dynamics.
Besides predictability, there is also legacy: most big companies have legacy to carry on while small companies (e.g. Fintech) start from a clean sheet and are flexible, focused, motivated and can “do more with less”.
For building and accumulating a “strategic competitive advantage (SCA)” a consistent flow of investment is needed in order to obtain desired level of accumulation.
A “strategic competitive advantage (SCA)” can be a patent (intellectual property), a customer install base, a certain image or branding in the mind of the customers, a new disruptive or innovative technology, … and is the result of a strategic decision in investing a consistent flow and stock.
Stock – flow diagram : “Success breeds success”
For example: (1) a consistent investment in R&D will give a bigger stock of knowledge/competence than the double investment in half of the time. So speeding up the investments will not give the same stock at a certain moment. (2) a consistent investment in advertising will give a bigger stock of reputation/image/branding than the double investment in half of the time.
12 Managing Innovation and Fostering Corporate Entrep.docxjoyjonna282
12
Managing Innovation and
Fostering Corporate Entrepreneurship
Professor John Coy
12 - *
Learning ObjectivesAfter reading this chapter, you should have a good understanding of:The importance of implementing strategies and practices that foster innovation.The challenges and pitfalls of managing corporate innovation processes.The role of product champions and exit champions in internal corporate venturing.How independent venture teams and business incubators are used to develop corporate ventures.
12 - *
Learning ObjectivesAfter reading this chapter, you should have a good understanding of:How corporations create an internal environment and culture that promotes entrepreneurial development.The benefits and potential drawbacks of real options analysis in making resource deployment decisions in corporate entrepreneurship contexts.How an entrepreneurial orientation can enhance a firm’s efforts to develop promising corporate venture initiatives.
12 - *
Question
What is one of the most important sources of growth opportunities?
A) The economy
B) Labor capital
C) Financial capital
D) Innovation
*
Answer: D
12 - *
Managing InnovationInnovation: using new knowledge to transform organizational processes or create commercially viable products and servicesLatest technologyResults of experimentsCreative insightsCompetitive information
12 - *
ExampleSome Companies, such as Apple, are always innovating popular products, while others are constantly struggling for their one great idea.There are “five disciplines” for creating what customers want Identify important customer needsCreate solutions that fill those needsBuild innovation teamsEmpower "innovation champions" who keep the effort on track Align the entire enterprise around creating value for customers
Source: “Getting to ‘Aha!’,” Business Week. September 4, 2006.
12 - *
Types of InnovationDegree of innovativenessRadical innovationFundamental changes and breakthroughsEvoke major departures from existing practicesCan be highly disruptiveCan transform or revolutionize a whole industryIncremental innovationEnhance existing practicesSmall improvements in products and processesEvolutionary applications within existing paradigms
12 - *
Continuum of Radical and
Incremental Innovations
Exhibit 12.1 Continuum of Radical and Incremental Innovations
12 - *
Types of InnovationProduct and process innovationsProduct innovationEfforts to create product designsApplications of technology to develop new products for end usersMore radical and common during early stages of an industry’s life cycleAssociated with differentiation strategies
12 - *
Types of InnovationProduct and process innovationsProcess innovationsImproving efficiency of an organizational processManufacturing systems and operationsCan improve materials utilizationShorten cycle timeIncrease qualityMore likely to occur in later stages of an industry’s life cycleAssociated with cost leader strategies
12 - *
Challeng ...
HireLabs Perspective: Increasing Vc Returns In Talent Assessment FirmsHireLabs Inc.
The VCs must ask themselves if they have CEOs who are capable of driving companies
as the recession bottoms.
Looking at the current slowdown in non-farm employment and the subsequent rebound strategies, HireLabs can forecast a recovery in the international labor market - lead by the US - sometime around Feb 2010 (Q1 2010).
Very few CEOs of venture-backed companies have experience of riding a company
through a recession successfully.
The questions that investors should ask there CEOs is
whether they are able to monetize on market-indicators as the recovery approaches.
Investors who are looking to capitalize on the recovery should predominantly understand the teams that are running the companies, and assess the teams’ ability to analyze and perform the market indicators....
Buy-side M&A - Qualifying Your Seller & Finding ValueFirmex
Watch Full Webinar here: http://www.firmex.com/Qualifying-Your-Seller-Finding-Value-Sign-Up
How to avoid surprises and common mistakes, analyzing business issues in due diligence and how data rooms are playing a role in the due diligence process
As an owner of a consulting firm, strategic and private equity buyers will offer you different opportunities. Ensuring you pick the right partner is key but how do you know which one better fits your exit goals?
TCF...CIF..WTF(unding)? How to prepare a winning applicationTEDCO
TEDCO's TCF..CIF..WTF(unding) workshop covers the key points that Maryland entrepreneurs need to know when they are applying to TEDCO's funding programs.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
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➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
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12 Fold Way To Venture Capital Funding
1. The 12 Fold Way to VC Funding:
A Roadmap For Technology-based Product Companies
Robert Weber
Managing Director
Strategy Kinetics, LLC
Weber@StrategyKinetics.com
Version 3.4
www.strategykinetics.com
Copyright (c) 2005-2007 Strategy Kinetics, LLC 1
2. Assumptions
Getting funded is among the most difficult tasks in the
universe
- Statistics show that few companies actually raise money from
Venture Capitalists – 1 in 75 or worse depending on VC & market
- They see a gazillion business plans and hear a bazillion ideas
every year
VCs are risk adverse
- VCs look for reasons not to invest
- Risk control and mitigation are key
All the “go” items must be in place; problems readily fixable
There must be no show stoppers; some examples:
- Unfundable CEO – must have made someone money previously
- Incomplete management team
- Excessive rigidity – founders unwilling to part with an
appropriate portion of equity
- Excessive ego, disharmony – team players are essential
Copyright (c) 2005-2007 Strategy Kinetics, LLC 2
3. The 12 Fold Way To VC Funding
1. People and Board with the “Right Stuff”
2. The Elusive 10X Advantage
3. Service Providers On Board
4. Intellectual Property
5. Productization Roadmap
6. Market Validation
7. Market Entry Strategy
8. Business Plan
9. Funding Strategy
10. Research VCs [and Angels]
11. Investor Pitches - Plural
12. Prepared for Due Diligence
Copyright (c) 2005-2007 Strategy Kinetics, LLC 3
4. People – Team Identified
Fundable CEO – someone VCs recognize as having done it
before, deep domain knowledge, outstanding leader and
people manager
- VCs fund CEOs and teams
- If you don’t have a CEO or the right CEO, some VCs may help
Management team identified – they have to be ready to join
on funding if not already on board
Specific roles may vary by business
- Chief Technology Officer / Chief Scientist
- VP Engineering / Development
- VP Business Development / Sales / Marketing
- VP / Director Finance & Administration
Copyright (c) 2005-2007 Strategy Kinetics, LLC 4
5. People - Boards
Board of Directors
- Legal, fiduciary obligations
Typically 1 or 2 inside people plus 1 from each VC in the
investor syndicate
Investors effectively running the company – get used to it
Not friends and family; usually not Angels
Advisory Board
- Depends on the nature of the business
May be all scientists and engineers with public visibility,
positive reputation
May include industry-relevant executives, leaders
Some should be identified and on board before approaching
investors – enhances credibility
Copyright (c) 2005-2007 Strategy Kinetics, LLC 5
6. The Elusive 10X Advantage
Best funding case demonstrates at least one
important 10X advantage
- 6X to 8X may do fine, depending….
Price / performance advantage
- Often important because it reduces the likelihood that
price competition will succeed against new product
Demonstrating advantages requires:
- Convincing cost projections
- At least some engineering data / performance data
- May require competitive benchmarking (if feasible)
- Simulations and modeling may be helpful, depending…
Copyright (c) 2005-2007 Strategy Kinetics, LLC 6
7. Service Providers
Have Corporate Legal firm on board:
- Company formed in Delaware
- Founders’ documents signed, sealed, delivered
- Employee stock option plan filed (if necessary)
- Basic legal document “starter set” received
Have IP law firm on board
Line up:
- Accountant
Examples: Deloitte, Coopers
- Bank
Example: Silicon Valley Bank
- Outsourced HR (if going that route)
Example: Administaff
- Insurance
Copyright (c) 2005-2007 Strategy Kinetics, LLC 7
8. Intellectual Property
IP matters to VCs
- Asset in worst case scenario
- Have at least one provisional or utility application on file
before seeking funding
- Find patent attorney with background in the specific
technology or related field
VCs may request “freedom to operate” opinion
- Would product possibly infringe the IP of others?
- Possible tricky question because of potential willful
infringement issues
- May want to seek advice of patent litigator with relevant
experience
Copyright (c) 2005-2007 Strategy Kinetics, LLC 8
9. Productization Roadmap
(For pre-commercial technologies)
Working product prototype best
- Means that this is what you intend to go to market with
investor’s money and additional engineering
- Sufficiently advanced to get a handle on component and
manufacturing costs
- Convinces investors that the idea is not a “science
project”
Working key components good
- Better than “the drawing board”
- Initial proof of concept
- Need to have roadmap with engineering milestones
showing how to get to a product prototype
- Open engineering questions, problems, issues identified
Copyright (c) 2005-2007 Strategy Kinetics, LLC 9
10. Market Validation
Paying customers are best. Period.
Otherwise:
- Beta customers who will sing praises and say they are
committed to paying the amounts in the business plan
- Potential customers:
Letters of Intent saying that the product solves real
problems for them and that on launch they will pay the
amounts in the business plan
Reference letters indicating customers would buy if
product were available commercially and that the price /
performance is very attractive if delivered.
- Customer as (potential) investor / partner
Provides validation BUT may entail strategically negative
terms such as Right of First Refusal.
Copyright (c) 2005-2007 Strategy Kinetics, LLC 10
11. Market Entry Strategy
Does not matter one iota that the Total Available Market is
a bazillion bucks globally
- Your not solving world hunger or boiling the ocean
Realistic estimate of first Target Market
- Who is the customer? Who makes buying decisions?
- Key value proposition
- Sources of customer resistance? Substitution threats?
- Referenceable potential customers / partners required
5-year market-share forecast has to be attainable
Channel / Direct / Mixed distribution strategy identified
Marketing / communications strategy
- Key messages for target market and how delivered and at
what cost
Copyright (c) 2005-2007 Strategy Kinetics, LLC 11
12. Business Plan
Varies by business, but highlights may include
- $60M-$100M+ in revenue in 5 years
- Cash flow breakeven in segment-appropriate timeframe
- Margins appropriate to business, industry
- 5 year financial P/L Pro Formas
Built month by month and bottoms up
Short 5-8 page narrative Executive Summary
- People, product value proposition, market, technologies,
financial highlights, financing desired, contact info
30 slide BP presentation, which is not the same as the
pitch presentation
- Hold in reserve for follow-on meeting if invited back
Copyright (c) 2005-2007 Strategy Kinetics, LLC 12
13. Funding Strategy - Financials
Capital requirements driven by BP
- Series A, B, [C] round forecasts
Take as little money as truly needed to achieve Series A
milestones
Know projected capital to cash breakeven
Have detailed Use of Proceeds (“UofP”) for Series A
funding
- Tells investors how their money will be spent
- Month by month, bottoms up expense projections
- Include all costs
- Explore equipment leasing options where appropriate
- Bring people, equipment on board as needed
Expect VCs to own 40% to 55% of company at the close of
the Series A
Copyright (c) 2005-2007 Strategy Kinetics, LLC 13
14. Funding Strategy – Term Sheets
Investors get Preferred Equity, not common stock
Preferences typically include:
- Liquidation preferences – what happens if the company is sold or
fails – for entrepreneurs, the most important term. Period.
- Dividend rights – may only apply if declared by the Board
[remember who controls the Board]
- Anti-dilution – if the follow-on round is at a lower price, additional
stock issued to participants in the prior round to maintain their
proportional ownership
- Voting rights – what items require approval by the Preferred
investors
Angel round frequently a Convertible Note financing
- Loan to company that converts at the terms of the Series A
- Typically with a 20%+ discount to the Series A price depending on
the contribution of the Angel investment to risk reduction
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15. Research VCs and Angels
Find out who in your region is interested in your market,
product, customers, etc.
- What have they invested in previously?
- What’s their investment strategy
Seed? Early Stage? Middle? Mezzanine?
- Which Partner made which investment?
- Do they have any money left for new investments?
- How did their previous fund(s) do?
- Talk with a company or two they invested in
Don’t blast your Executive Summary to 40 VC firms
Do identify 4 to 6 target firms in your region
Find someone to introduce you to the firm, e.g.,
- One of their investors – Limited Partners
- CEO, Board Member of a portfolio company
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16. Investor Pitches
Elevator pitch – one your mother could understand
VC Pitch
- 15 slides plus supporting material at the end
- Sell the business opportunity – not the technology
Why is this a great opportunity for VC and their investors?
If they care about the business, they will look at the technology in
detail
- Practice the pitch with friendlies; someone role-plays VCs
- Define everyone’s role in the meeting, if you get one
Meeting discipline is absolutely essential
Angel Pitch –
- Company usually seeking a portion of the Series A from Angels
- Pitch, Financing Strategy, Use of Proceeds adjusted accordingly
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17. Prepared For Due Diligence
People
- Complete bios, references lined up for CEO, direct reports
Engineering
- Product definitions, specifications, requirements, documentation
- Test data, performance data, competitive benchmarks
Market
- Third party market data if possible
- Original market research plan / data
- LOIs, testimonials from prospective customers, channel partners
Business Plan
- Details of the financial projections, UofPs
- Confirmations of assumptions, sources, channels
IP due diligence
- Patent Office communications, Information Disclosure Statements,
etc.
Corporate and IP Legal
- All the corporate paperwork neatly tied up
- Employment agreements, NDAs, non-competes, etc.
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18. Be Persistent – Good Luck
May take 6 to 9 to 12 months from start to
close
Be Churchillian:
“Never give in. Never give in. Never, never,
never, never--in nothing, great or small, large
or petty--never give in, except to convictions
of honor and good sense.”
Winston Churchill
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19. How We Assist Entrepreneurs
Strategy assessment and strategic planning;
Startup formation, launch, and preparation for Angel or
VC fundraising;
Business scope definition and planning;
Strategic negotiations with potential investors, partners,
and customers; and
Pre-investment strategy and business evaluation,
Technical (in selected areas) and business due diligence
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20. Contact Information
Robert Weber
Managing Director
Strategy Kinetics, LLC
Skype/AIM: BobWeberBOS
Weber@StrategyKinetics.com
www.strategykinetics.com
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