Presentation provided during the 10 stop 2014 Funding Roadshow across Canada

1. Understanding
Funding
Mike Lee, P. Eng., MBA, CFA
mlee@fundica.com

2. Are You Fundable?

3. Types of Funding
Financial
Motivation
Expected
Return
Expected
Revenue
Business
Model
Key
Consideration
Tax Credits Pre-defined na na na Tax Law
Grants Societal na > $0 Reasonable Best In Line
Public Loans Societal 5 - 10% > $0 Reasonable All Factors
Private Loans ROI 5 - 20% > $30K Security Assets & CF
Angel Investors ROI >15% <<$100M Believe it Cash to CF+
Venture Capital ROI >25% > $100M Traction Time to Exit

4. Systematic Funding Steps
Commercially
Viable Product &
Market?
Cash-in-hand?
Gov’t funding?
(tech, young, hiring)
CF history of
assets?
Apply for gov’t
funding
Seek cash injection
1. Love money, angel
2. Bootstrap
STOP
Apply for
bank loans
Additional
capitalization
Seek Angel
or VC
Yes Yes Yes
No
NoNo
No
Build team
Core Team?
No
YesYes
No
Yes
END

5. At Each Funding Step
Identification / Validation
• Up-to-date, comprehensive system
• Validate before pitching/application
Pitching (Application)
• Prepare (executive summary, deck, financials)
• Execute
Closing the Funding
• Make sure to close

6. Traditional
Funders
Entrepreneurs
Internet
Bots
Dedicated
Researchers
Advisors
Funding Identification
Fundica - Leveraging Technology and the Crowd

7. Pitch Deck Content
Structure Your Content
• Problem you are looking to solve (simple, concise)
• Market potential (size and growth rate, metrics)
• Your solution (advantages, value to add)
• Business model
• Go to market strategy
• Competition
• Financial projections
• Existing structure and progress to date
• Funding sought

8. Pitch Format and Q&A
Presentation
• Be yourself, engaging, prepared
• Concise, complete, clear message
• Slides - max 15 slides, min font size 18
Question and Answers
• Focus on questions, do not repeat presentation
• Okay to say “I am not sure”
• Concise, short answers
• Allow time for multiple questions
• Build rapport

9. Closing the Funding
Understand the Investor
• Understanding the investor’s motivation and limits
• Learn about the investor’s past
Build Respect
• Always create deal competition
• Share information and build trust
• Allow for reasonable give and take
Move the Deal to Close
• Patiently move deal towards closure
• Trigger reasonable close dates
• Find funding then structure deal

10. Thank You!
Mike Lee, P. Eng., MBA, CFA
mlee@fundica.com

11. Executive Summary

12. Executive Summary
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13. Executive Summary

14. Executive Summary