This document discusses sources of funding for startups. It outlines the different stages of funding from friends and family (pre-seed), to seed funding from grants and angels, to Series A/B/C funding from venture capitalists (VC). It also discusses mezzanine or pre-IPO funding from private investors/institutions, and IPO funding from financial institutions and the public. The document advises selecting investors based on what they can offer beyond money, like expertise, synergies, reputation and more. It stresses the responsibility of using funding wisely to invest for growth and deliver on promises to investors.

1. Powering your start-up
Raising funds
In today’s
Economy
Presented by
Bob Chua – CEO
Pulse Group PLC (Ticker: PGRP)

2. “Money Makes Money”

3. Sources of funding
• Powering growth
Fund’s
Solid
to
Business Idea
Grow
Starting-up
Strong
IP Protection
Management

4. Sources of funding
• Stages of funding
$ Second round
$Xm
IPO
$40m-$500m
Mezzanine/Pre-IPO
$10m-$20m
Series-B
$5m-$15m
Series-A
$1m-$10m
Seed
$150K-$500K
Pre-Seed Year’s
$25K-$50K

5. Sources of funding
• Sources of funds
– Pre-seed (3F’s Family, friends and fool’s)
– Seed (Grant’s, Seed-fund’s, Angel’s)
– Series-A, B, C, D (VC’s)
– Mezzanine/Pre-IPO – PE’s, Private Investors, or
Institutions
– IPO – Financial Institutions and Public
– Secondary round’s – PE’s, Hedge Funds, Public etc.

6. “Nothing is FREE in this World”

7. Sources of funding
• Selecting Investors
– What they’re looking for from you Brand
Energizers
Clients Track Record Brand
Clean Accounts
Clean Structure
Profitability
Revenue Scalability
Financial Modeling Clear Vision
Solid Product’s/
IP Protection Services Board
Strong Management Seat
Clear Exit Strategy

8. Sources of funding
• Selecting Investors
– What you should be looking for from them
Value-Add Good and Fair
Track-record Valuation
Domain Expertise Synergistic
Synergistic Team Investee’s
Strong Board Member/s
Deep-pockets
Good reputation

9. “What now?”

10. Post funding
• Responsibility
– Spend Proceeds Wisely
– Invest for the future
– Be conscious of the investment tenure, terms, and exit
strategy
– Deliver on your promises

11. The Economy Today

12. The realities of 2009 and beyond
• 2009 is going to be a tough year
• Investors are sitting on piles of cash, there IS money out there
• Exit Strategies are unclear
• Valuation’s will be brutal
• Shareholder value will be critical
• Cost of capital will be high
• There will be as many opportunities as there are challenges
• Survival of the fittest

13. Closing Thoughts
1. Put your money where your mouth is
3. It’s about the fast eating the slow, not the large eating the small
5. Tread carefully with external funding, but raise funds nonetheless
7. Timing is everything
9. Scale your business quickly
11.Create and illustrate profits
13.Continue to aim for the next big thing
15.Deliver shareholder value

14. Words of Wisdom
“ A Pessimist finds problems in an
opportunity. An Optimist finds
Opportunity in a problem”
– Winston Churchill

15. Thank You bob.chua@pulse-group.com