Date post: | 01-Dec-2014 |
Category: |
Economy & Finance |
Upload: | diglondon |
View: | 281 times |
Download: | 0 times |
Financing options
Fredrik LiliegrenFredrik LiliegrenCo-Founder & CEOCo-Founder & CEO
Shameless Plugs
on
on
My Background
• Over 20 years experience running companies
• Raised over 15 Million across all companies
• Bought and sold companies• Raised private, strategic, venture and
public funds
Types of Financing
• Friends / Family• Crowd• Private / Angel• Strategic• Debt (aka Banks!)• Venture Capital• Public
Friends and Family
• Usually first option in early stage
• Pro’s:– Quick pitch (Known entity)
• Con’s:– Emotional attachment to funds– Limited accessibility (one time only)– Limited amounts
Crowd
• New and unknown
• Pro’s:– Endless supply?
• Con’s:– Legal nightmare– Community involvement not always positive– Unproven
Private / Angel
• Known / established early funding option
• Available in Ontario (Angel groups)
• Pro’s:– Experienced investors with patience– Adds more then funds (other funding, support
services)• Con’s:
– Locally not understanding of this space (games)
Strategic
• A partner in your space / proximity• Stepping stone towards acquisition
• Pro’s:– Knows your space very well– Adds more then funds (distribution, marketing, etc)
• Con’s:– Will have STRONG opinions about how to run your
business– Poison pill towards other possible clients
Debt (aka Banks)
• Very well established system• Expensive since they want interest
+ Guarantees
• Pro’s:– Well established system– Almost unlimited access (depending on your growth)
• Con’s:– Makes only ‘safe’ bets– Not for early stage as you need to show positive cash
flow & profit.
Venture Capital
• Mid to late stage funding only• Available in Ontario but look for
global options
• Pro’s:– Experienced investors– Adds more then funds (other funding, support services,
etc)• Con’s:
– Wants a big piece of your pie (sharks are hungry!)– Aggressive in their demands for growth– Wants an exit strategy in place
Public
• Late Stage funding
• Pro’s:– A instant acceleration of your personal wealth/worth– Gives option to grow via acquisition without cash
• Con’s:– Focus on short term becomes instant– Expensive (pr, finance etc cost goes way up)– Adds constant external pressure
Reflections
• Avoid Friends / Family if possible• Angel / Private investor is a great
option IF you can find them• Banks are best option if you want to
keep control• Look for strategic over Venture /
Public if you goal is to exit in the end