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The HVCFI / iCANny Entrepreneur’s Breakfast Forum July 11, 2012 What Investors Look for When Evaluating Your Business for a Potential Investment
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The HVCFI / iCANny Entrepreneur’s Breakfast Forum July 11, 2012
What Investors Look for When Evaluating Your Business for a Potential Investment
Stonehenge aims to catalyze rapid growth of companies in up-and-coming markets by backing passionate entrepreneurs solving business problems. Stonehenge is focused on finding investment opportunities in underserved markets, areas where there is an abundance of entrepreneurship and innovation, but a relative shortage of locally available professionally managed capital.
Stonehenge’s Nationwide Footprint
Stonehenge is a Partner in the Communities we Serve
Why Entrepreneurship?
Why Entrepreneurship?
Why Entrepreneurship?
YOUR FACE HERE
Why Entrepreneurship?
Why Entrepreneurship?
Why Entrepreneurship?
Entrepreneurship for America’s Future
Chart from NVCA Venture Impact report, 2011 http://www.nvca.org/index.php?option=com_content&view=article&id=255&Itemid=103
What is Venture Capital?
Chart from NVCA Venture Impact report, 2011 http://www.nvca.org/index.php?option=com_content&view=article&id=255&Itemid=103
What is Venture Capital?
Chart from NVCA Venture Impact report, 2011 http://www.nvca.org/index.php?option=com_content&view=article&id=255&Itemid=103
What is Venture Capital?
Chart from NVCA Venture Impact report, 2011 http://www.nvca.org/index.php?option=com_content&view=article&id=255&Itemid=103
So, START YOUR COMPANY!
Where to Get Help Early
Hudson Valley Pleasantville Syracuse
But…How will I finance it?
Making investments at the earliest stages of a company’s development
involves extraordinary risk. Young companies have little or no collateral to
secure bank loans, no assets or track records to attract financing from private equity firms and no opportunities for short term gain to
interest hedge funds. Venture capitalists step in and assume this risk by providing capital.
First…A Detour
Is Venture Capital Right for My Business
How Your Investor Sees It
How Your Investor Sees It
Back on Track
Is Your Company Appropriate for Venture Capital?
What Kinds of Companies Attract Venture Capital?
What Kinds of Companies Attract Venture Capital?
How to Find the Right Match
There exists a HUGE Capital Gap when you need it most
Typical starting pointat which venture capitalinvestment takes place
Concept
SEED/Start-Up
Individual AngelsAngel Groups
Early Stage VC
Mid/Later Stage VCCAPITAL GAP
Friends/Family
AchievingLiquidity Event
"Capital Gap"15
EARLY GROWTH LATER
NegativeReturns
STAGE
FUNDER
($ millions)Revenue
20
25
Start-Up
7
Years
5
10
1 2 3 4 5 6
VC Financing is Increasingly Hard to Find
Regionally Active Early Stage Funding Assistance
Where does Stonehenge Growth Equity fit in?
Growth Stage: Post product, revenue, market introduction • Mitigates technology risk • Mitigates market adoption risk • Mitigates financial risk
Mitigate risk, support rapid growth • Business model is proven and scalable • Capital invested is used to support
accelerating growth • Significant upside with improved win/loss ratio
Technology-Enabled Businesses • Applying technology to solve
business problems • Typically recurring revenue models • No capital intensive R&D cycles • Usually software and/or services
Where does Stonehenge Growth Equity fit in?
Stonehenge Focus • Intersection of Healthcare and IT • Post product development, early revenue,
reference customers • $1 million investment (including match)
What we won’t do • Drug Discovery • Medical Devices • Science Projects • Heavy hardware investment
Innovate NY • $5 million allocation + matching funds • Seed-stage fund • New York based companies
Active Partnership Promotes Success
Active Board Participation • Strategic Planning • Sales & Marketing • Corporate Governance
Deep Network of Relationships • Recruiting • Service Providers • Other Investors
Trusted Advisors to Entrepreneurs • Support early stage companies • Honest feedback, timely response • Willing to talk before you’re ready for investment
Keys to Attract Capital: Management Team
Keys to Attract Capital: Solve a BIG Problem
Keys to Attract Capital: Generate Revenue
Keys to Attract Capital: Be Passionate
Thank You Brian S. Model Managing Director, Stonehenge Growth Capital 152 West 57th Street, 20th Floor, New York, NY 10019 (212) 265-9380 [email protected]
