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TRANSCRIPT
Presents
Prof. Dr. Alexander M. Orlando
November 26 2012
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
The life of 80% start-up
IMPOSSIBLE?
Overview of financing options
Angel Financing
Venture Capital
Private Equity
PublicStock Markets
Self Finance / Bootstrapping
Debt / Bank Finance
Equity FinancingNon-Equity Financing
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
Large PotentialMarket
Opportunity
Unique Product Or Concept
PassionateFounding Team
Pre-requisites
Intensecompetition
likely
Need to moverapidly
Implications…
Hiring
Infrastructure
VC funding supports
Rapid Product Development
Internationalization
Partnerships
Commercialization
Good reasons to raise equity finance
1. Elevator Pitch
2. The Problem
3. Your Solution4. Market Size
5. Business Model
6. Proprietary Tech
7. Competition
8. Marketing Plan
9. Team / Hires
10. Money / Milestones
InnovaHub
The four S of Innovation ©
Individuals that inspire through their wishes innovation
Professionals that utilize their skills and knowledge to propose innovative solutions for a prize.
Inventors or innovators that seek to to sell, license, or fund their inventions.
Entrepreneurs, organizations, and investors that are looking for new ideas, solutions, or inventions.
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
an effective elevator pitch is illustrative and tangible.
picture your idea
3 keywords + your name
describeyour idea
to
60 to a max of 90 seconds
….. tell me more…
keep your eyes shut while someone reads your text out loud
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
100 page business plan not required
20 page ppt which clearly answers main questions is best bet
Product Market Business Model Team Competition Product Roadmap Technology
Overview Business
Development Financial Status
Sharing relevant information
Pre - first meeting Pre - termsheet Post - termsheet
• Dialogue rather than documentation – expect lots of meetings
• Calls with current / prospective customers or partners
• Meeting broader team
• Brainstorming around strategy
• Identifying key hires post closing
• Formal presentation to VC partnership
• Some additional reference calls with partners / customers
• Personal reference calls
• Legal / accounting audit (if relevant)
• Drafting legal documentation
2-4 weeks 1-2 Months
Investment Size
Equity Financing
SeedEarly StageSeries A, (B)
Later Stage(B),C,D…
Pre-IPO / Buy-out
PrivateEquity
Potential Sources of Funds
0 - €1m
Grant-funding
University seed funds
Friends and family
Angel Investors
(Venture Capital)
€2m-€20m
Venture Capital
(Wealthy) Angel investors
€5m-€20m
Venture Capital
€30m+
Specialist Late stage tech investment funds
Hedge Funds
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
Stimulate and motivate the investor to learn more. Hook them on the first page. Most investors are inundated
with business plans. Your first page must make them want to keep reading.
Keep it simple. After reading the first page, investors often do not understand the business. If your business is truly complex, you can dive into the details later on.
Be brief. The executive summary should be 2 to 4 pages in length.
The Executive Summary
© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]
Investing is a people business, and getting a meeting is all about “who you know”
Best way to approach a VC is some form of introduction If you don’t know a VC, find someone who knows you
and get them to introduce you Entrepreneur, professor, attorney… (Linkedin…) Sending a plan to [email protected] is a waste of
time
Approaching VC’s
ALEXMORLANDO
www.linkedin.com/in/alexanderorlando
www.facebook.com/alexander.m.orlando
www.InnovaHub.com
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