Raising Entrepreneurial Capital Elsevier提高创业资本集团.pptVIP

Raising Entrepreneurial Capital Chapter 8: Anatomy of a Venture Funding New Techs Criteria for Investors Capital Required $1.575 million, $600,000 in venture capital for expansion of an established, profitable company. Would prefer an active investor with knowledge of the computer industry. Geography The closer the investor, the better. Goals of Investor Meeting Make a strong first impression. Establish good rapport. Be prepared for specific and probing questions on all aspects of the company and the proposal. Know what questions to ask the investor. Expected questions “Your competitive advantage? “Size of your market, and how do you know? Why do you think this company has the ability to achieve rapid and sustained growth in such a competitive industry? What are your financial forecasts based on? How liquid will the company be during the expansion? What do you expect gross margins to be? Negotiating basis Determine opening positions. bottom-line terms and conditions, and acceptable compromises. Consult with your financial advisor and lawyer throughout the process. Think of the investors point of view when determining their terms and negotiating strategy. Stay open-minded and flexible. Look for common ground with the investor. Practical lessons Approach negotiations from a win-win perspective while keeping the investors position in mind as options are considered. Almost everything is up for negotiation. Negotiations may take time and several meetings. Due diligence requests (1) New Techs financial statements for the last three years; three years of income tax returns and payment schedules; details of banking arrangements; Due diligence requests (2) summary (and copies) of the main contracts in place (contracts, leases, patents, insurance policies, mortgage documents, sales or supply contracts, etc.); list of key customers with historical and projected sales data and order backlog, if available; additional industry information on the computer power mod