| Now that you have written your business
| |
| | at what cost to you?)
|
| plan, have your preliminary financial
| |
| | 8. How much reporting do you have to do
|
| data in place, you need money to make it
| |
| | to them?
|
| happen.
| |
| | After you have looked at the available
|
| How do you find that money? If you have
| |
| | Angels that you can find, the available
|
| saved up some, you can use that, or you
| |
| | Venture Capitalist you can find, you need
|
| can go to friends and family and get some
| |
| | to decide which path is the best way to
|
| money from them, if they support your
| |
| | go for your company and your "style".
|
| concept and think you can do it. (F/F/P
| |
| | If you are confident that you will need
|
| phase)
| |
| | Venture Capital level funding, after you
|
| There are two other sources to go to as
| |
| | narrow your search down to the Venture
|
| well, Angels or Venture Capitalist.
| |
| | Capitalist you are going to target, and
|
| An Angel is a person or group that
| |
| | have answered the above 8 (and a few more
|
| typically gives a startup up idea from
| |
| | I'm sure) questions, you need to decide
|
| $25K to as much as $1M (that much is
| |
| | if you need to go to an Angel first.
|
| typically an Angel Group) to begin
| |
| | At this point you start fine tuning your
|
| developing the Proof of Concept or the
| |
| | financial section to meet the needs of
|
| product itself. You should go to an Angel
| |
| | the Investor you are going to approach.
|
| Funding Source if you need less than $1M,
| |
| | The over all business plan stays the same
|
| and typically less than $500K, to get
| |
| | through this process (unless you are fine
|
| your product built, or if your plan
| |
| | tuning it to meet development/production
|
| requires a Proof of Concept, the Proof of
| |
| | needs due to feedback, etc.). The only
|
| Concept built.
| |
| | part of the business plan that changes is
|
| If you go to an Angel or Angel Group you
| |
| | the Financial Section(s) and that changes
|
| need to look at some factors before
| |
| | based on the target Investors. You
|
| starting to talk to them. Do some
| |
| | already have in your plan the steps to go
|
| research and find out:
| |
| | live and to go to revenue. You have your
|
| 1. What the person/group you are
| |
| | milestones written down, etc, in the
|
| interested in asking money from typically
| |
| | plan, and you have "line items" in the
|
| invests their money in.
| |
| | financial section that correspond.
|
| 2. If they accept Venture Capital as a
| |
| | Example:
|
| future source of funding.
| |
| | You are going to create a software
|
| 3. If they are willing to add more cash
| |
| | hardware intensive service product that
|
| down the line to help reach that "next"
| |
| | requires FCC approval of the Concept. To
|
| milestone.
| |
| | create the Proof of Concept to meet the
|
| 4. If they have contacts with people that
| |
| | FCC needs, you need $750,000, but to go
|
| may be interested in providing more money
| |
| | to revenue you will need roughly $35M
|
| should the need arise.
| |
| | (which includes the $750K). You are able
|
| 5. If they have contacts that may want to
| |
| | to get a Friends/Family/Personal Pockets
|
| use your product/services.
| |
| | (F/F/P) round up of $150K.
|
| 6. How much control/hands on activity
| |
| | Your research shows that the available
|
| they want to have with your company. (Do
| |
| | list of Venture Capitalist out there that
|
| they want to sit on your Board of
| |
| | would fund this project require you to
|
| Directors or Board of Advisors, do they
| |
| | have your FCC permits in place, a working
|
| have any say on how the money is spent
| |
| | model of your service product in place,
|
| within the company?)
| |
| | and 1 solid customer ready to pay for
|
| 7. And if you are going for a lot more
| |
| | your services once you are able to build
|
| money in the near future, if they work
| |
| | out.
|
| with or know any Venture Capitalist that
| |
| | In this example you would need to go to
|
| like your industry/product type.
| |
| | one or more Angel Investors to help you
|
| It is the recommendation of TDBell
| |
| | reach the remaining $600K to get your
|
| Enterprises, Inc., that you work with
| |
| | prototype up and running to do the
|
| your Angel Investors as an Equity Play,
| |
| | testing that will satisfy the FCC. You
|
| meaning they get a small portion of your
| |
| | would want to find an Angel or Angel
|
| company for the money they invest. We do
| |
| | Group that allows for future rounds of
|
| not recommend that you use the money as a
| |
| | Venture Capitalist backed funding. This
|
| loan.
| |
| | group would hopefully be willing to add a
|
| A Venture Capitalist is typically a
| |
| | bit more in if needed to go past any
|
| person or company that has gone to from
| |
| | "gotcha's" that may crop up as you answer
|
| one to many people, companies, retirement
| |
| | the FCC requirements.
|
| funds or other large pools of money and
| |
| | Now that you know you are going to an
|
| created a Venture Fund that is geared to
| |
| | Angel or Angels you rewrite your
|
| one or more industries/products/services.
| |
| | financial section to show an investment
|
| These funds typically finance a company
| |
| | of $150K (F/F/P), the need and the use of
|
| from $500K to over $200M, taking stock in
| |
| | the $600K from the Angels, and when the
|
| the company as "collateral".
| |
| | remain investment of $34,250,000 will be
|
| Like going to the Angel Investors, you
| |
| | requested and how it will be used.
|
| need to look at a few things when you go
| |
| | When you write up your presentation to
|
| to a Venture Capitalist:
| |
| | the Angel(s) you show the Living business
|
| 1. Has the person/group invested in
| |
| | plan, current Financials, and talk to
|
| companies in your industry?
| |
| | your needs.
|
| 2. At what stage of the company (Proof of
| |
| | When you get to the Venture Capitalist
|
| Concept, Development, Revenue in place
| |
| | later you write up your presentation, you
|
| (and if so, at level of revenue is
| |
| | show the current business plan, which no
|
| required), etc.)
| |
| | longer has the Proof of Concept stage in
|
| 3. Are they going to be Sole Investors at
| |
| | it (it's completed successfully, and not
|
| this stage, or are they going to have
| |
| | part of your plans now, living business
|
| other groups joining in this round with
| |
| | plan remember?) but shows next stages
|
| them.
| |
| | over the next three to five years as
|
| 4. How involved are they going to get
| |
| | perceived today, with the financials now
|
| with your company? (Do they want to
| |
| | showing how you spent the last $750K, and
|
| manage the company, etc?)
| |
| | what you will be doing with the next
|
| 5. Do their portfolio companies need your
| |
| | $34,250,000 that you are asking from the
|
| product and will they introduce you to
| |
| | Venture Capitalist.
|
| them if they do?
| |
| | Following this plan of action in
|
| 6. How much of the company stock do they
| |
| | targeting your funding request will save
|
| want?
| |
| | you time, effort and lead to stronger
|
| 7. Will they add more funds to the
| |
| | successes!
|
| company should it be needed? (And if so,
| |
| |
|
