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The game of funding (investment) for a startup

Date post: 23-Jan-2017
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Only 2 out of 100 Business gets NOTICED

BRILLIANTLY CRAFTED PITCHPOWERFUL WELL RESEARCHED IDEA

TEAM OF ROCKSTARTRACTION AND BUZZUNIQUE POSITION VIA COMPETITION

Market Size &Potential

Business Model& Milestones

Problem & Opportunity

UniqueIdea

Product & Proposition

Funding?

Competitive Landscape

AcceleratorIdeaIdea ValidationApproach Customer

sell to start-ups

IPO

Venture Capital Roundorganisation buildingImplement Process and Procedure

The story of Typical Start-Ups

Angel Round Industry Grade ProductProduct validation

sell to small and medium Enterprise

Private EquityMerger, AcquisitionGlobal ExpansionConcept RiskExecution RiskScale-Up RiskExecution Risk Scale-Up RiskScale Up Risk

Investor Value AdditionLong Term Capital, Solidly underpinning the Company Growth

The Adoption of management practices, improved Process and increased Productivity

Strategic and Operational Support System

Assistance with subsequent round of Fundraising

Alliances - Due to Investor network on contact and Portfolio Companies

Sharing on Risk and Reward

A partial or total Exit Strategy

Project Timeline

Years

Investor Perspective-Thinks they Look for

7-8Unique TechnologyRockstar Team

Nuts and Bolts Angel Investment

Often successful, exited entrepreneurs or retired business personsInvest both time and money in companiesThey invest their own money

Why they Invest:

Helping Entrepreneurs Stay Engaged - Using experience and SkillsGiving back to communityAn active form of investing

Return on Investment in the Metrics

Nuts and Bolts Venture Capital

A VC is accountable to their Investor

VC have to raise money every or Four to stay relevant

VC have a mandate

VC Do Not Make Money When they Invest, They Make Money When they Raise

Some Tip on Fundraising

Don't Raise Money unless it wants You

Be in Fundraising Mode or Not

Consider No, till they say YES

Avoid Investor who dont Lead

Get the First Commitment

Close Committed Money

Stages of FundraisingStagesEntrepreneur Private Equity FirmReportsApproach the Private Equity Firm along with Elevator Pitch/Business PlanPrepare Elevator Pitch,

Establish Contact. Receive Elevator Pitch,

May ask for detailed Business PlanElevator Pitch

Business Plan

Reference Letter if anyInitial Enquiries and negotiationProvide additional Information.

Reference to CustomersConduct initial diligence

Value the business consider financing structure offer Letter or Term sheetMeet to discuss business plan

Build Relationship

Negotiate outline terms

Stages of FundraisingStagesEntrepreneur Private Equity FirmReportsDue Diligence Submit previous account statement

Contracts signed by the company in the past

Introduction to Advisor, Board Members, Key EmployeeInitiate external Due Diligence

May ask for certain representation and warranteesAccounting Reports

Other ReportsFinal Negotiation and CompletionDiscuss all relevant business Information

Draw up complete documentationDisclosure Letter

Warrantees and Indemnities

Memorandum and Article of Association

Shareholder AgreeementNegotiate Final Terms

Document Constitution and Voting Rights

People you Meet during FundraisingPositionExplanationAnalystThe lowest professional position in Venture firms. crunch numbers or compile industry reports for the kind of deals early investor make.AssociateThe are the people who would have joined from the ranks of Entrepreneurs and Engineers. They are the people who help venture fund in the process of due diligence,Vice PresidentProvide substantial support to portfolio companies and sometimes sits on the board. The position is a feeder for prospective Principal or PartnersPrincipalOn track to becoming a partner who may or may not lead his or her own deals. Principals almost always get carry and may sit on boards of portfolio companiesPartnerThe bosses of venture fund. Most firm have between three and seven partners who gets the majority of the carried interestManaging General PartnersA title generally reserved for a firm founder or highest ranking investor

Things to AvoidWill You Sign an NDA?

I will quit my Job Upon Funding?

Seasoned Management will be hired upon Funding?

These Projection are Conservative?

We Have no competitors?

All we need is to grab 1% of the Market?

811, Udyog [email protected]+91-9873274783Contact Us

AcceleratorIdeaIdea ValidationApproach Customer

sell to start-ups

IPO

Venture Capital Roundorganisation buildingImplement Process and Procedure

The story of Crowdfunding

Angel Round Industry Grade ProductProduct validation

sell to small and medium Enterprise

Private EquityMerger, AcquisitionGlobal ExpansionConcept RiskExecution RiskScale-Up RiskExecution Risk Scale-Up RiskScale Up Risk


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