new canaan advisors u. conn school of business (9 january 2014)

Getting Funding for Your BusinessU. Conn - School of Business (MGMT 5894)

January 2014

New Canaan Advisors Overview 4

What is the role of finance in your firm? 9

How do you get your idea funded? 11

What are important lessons I learned? 15

Contents

School of

Business

New Canaan Advisors Overview

New Canaan Advisors LLC (“NCA”) was founded in 2008 and is headquartered in Stamford, Connecticut. We are a leading Northeastern U. S. business/real estate advisory firm that provides public and private organizations with a unique resource for transforming underutilized assets and facilities into new strategic opportunities. In short, we bring “real value to your real estate holdings”.

We help meet your evolving needs as a “trusted advisor” to help manage your real estate development, planning and implementation process. ”We help you bring the ideas of your dreams into the light of day”

WHO IS NEW CANAAN ADVISORS?

NEW CANAAN ADVISORS LLC NCA OVERVIEW

Curtis C. Battles is the Chief Advisor/CEO of the enterprise. Curt has over 25 years of strategy development, asset management, project planning and operational expertise in the hospitality, beverage and commercial real estate industries.

Prior to starting New Canaan Advisors his most recent experience has been helping lead the Grand Central Terminal and World Trade Center Redevelopment projects in New York City.

Curt specializes in helping public/private partnerships reinvigorate properties and transform undervalued assets into vibrant commercial projects that breathe new life into urban locations.

WHO IS NEW CANAAN ADVISORS?



WHAT IS OUR UNIQUE DIFFERENCE?

Seed Stage – Establish Strategic Vision

Sprout Stage – Determine Main Options

Sapling Stage – Oversee Project Implementation

Tree Stage – Manage Long-Term Returns

SPROUT SAPLING TREESEED

NCA has developed a proprietary approach that assists its clients in moving a project from initial concept to portfolio oversight.

What is the role of finance in your firm?

WHY DO WE REALLY CARE ABOUT FINANCE?

NEW CANAAN ADVISORS LLC WHY DO WE CARE

• Product Development & Testing• Operations• Marketing & Sales• Organizational Structure• Flexibility• Strategic Direction• Long Term Valuation

The capital raised through debt and equity investors will impact all facets of your growing enterprise.

How do get your idea funded?

WHAT TYPE OF INVESTOR WILL YOU ATTRACT?

NEW CANAAN ADVISORS LLC FUNDING STRATEGY

• Friends and Family(“Bootstrapping”)

• Angel Investors(“Initial Converts”)

• Private Equity/Venture Capital(“Money at a Cost”)

• Government and Foundation Grants(“Non-Dilutive Funding”)

• Economic Development Agencies(“Slow and Steady”)

The innovative nature and uniqueness of your business concept can draw a broad range of potential funders

WHAT DO INVESTORS LOOK FOR IN A FIRM?


• Unique Idea – The product or service under consideration fills a special need in a rapidly growing market segment of particular interest to the Investor

• Seasoned Team – The proposed management team has demonstrated success growing an enterprise from start-up through its cash out phase (e.g. going public or strategic sale)

• Special Assets – The firm holds a portfolio of soft assets (e.g. intellectual property/patents) or hardware (e.g. manufacturing facilities or distribution network) that cab be liquidated if the business ultimately fails

Funders typically fall into one of the following three categories when deciding on new entrepreneurial ventures

HOW DO YOU PITCH YOUR IDEA?


• Be Confident – Remember that you are the subject matter expert on your concept! You must radiate high energy and not get distracted from the key message points of your unique proposal.

• Anticipate Questions – Expect that there will be objections to some portion of your presentation. Trust in your fellow team members to answer technical inquiries outside your expertise as it demonstrates depth to Investors.

• Think Outside the Box – Consider innovative alternatives to traditional funding sources when your encounter rejection (that is sure to occur). For instance, partnering with a firm that has complimentary technology could help get over the hump.

Potential funding partners will range from those who can commit after an informal discussion to a long formal approval process

What are important lessons I learned?

• First, you are the primary product being evaluated by any potential investor. It can take numerous interactions to build the rapport and trust needed to yield a cash influx.

• Second, you will be raising funds on an on-going basis as a rapidly growing enterprise always needs additional resources.

• Finally, it is much easier to deal with a smaller pool of diversified capital sources. The more funders that you must “schmooze” the less time to accomplish critical tasks to advance the business.

WHAT ARE LESSONS I HAVE LEARNED?

NEW CANAAN ADVISORS LLC LESSONS LEARNED

Three key things I found to be true that hopefully save you some “growing pains” are as follows: