Investment Attraction

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Investment Attraction Growing your company
through outside investment
SpringBoard West Innovations October, 2008
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Theres Never Been a Better Time!

• Building your business takes time the markets
  will recover!

No, Im not kidding!
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Launching a Successful Business
If you dont know where you are going, how will
you know when you arrive?
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Two Ways to Get There

• Organic Growth
• OR
• Equity Funding

As opposed to cant get there from here!
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The Beginning is the Same for Both
Change isnt emotion. Its real work,
organization and strategy. You have to roll up
your sleeves, make sacrifices, build structure.

• Research, study, debate
• Examine all risks
• Talk to everyone
• Customers
• Advisors, mentors, supporters
• Focus on the competition
• Need long term view
• Predicting the future?
• A fully digested plan
• Time is of the essence

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The Fork in the Road
If you dont know where you are going, any path
will do.

• Complete Business Case
• Critical Decision
• Outside Investment or Not?

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Pros and Cons
Facts do not cease to exist because they are
ignored. Aldous Huxley
Organic
Equity

• 100 ownership
• Ultimate flexibility
• Slower growth
• Advisors have no vested interest

• Give up ownership
• Advisors have a vested interest
• Accelerated growth
• Shift in management role

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Benefits
..of the right investor

• Connected to your markets
• Vicarious experience
• Another view
• Access to management teams
• Support

Its just as serious as getting married. Maybe
More!
The right investor joins your trusted advisors,
making your team more viable.
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The Money Trail?

• A sly rabbit will have three openings to its
  den.Chinese Proverbs

Some of life's greatest enjoyments and most of
life's greatest disappointments stem from your
decisions about money. Robert G Allen
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Getting There
With that solid business case in hand. . . .

• Build a capitalization plan
• Build a Plan B
• Right Investor
• Right terms
• Prepare
• Due diligence
• Negotiations

Knowing how to be a good investor makes you a
better business manager and vice versa.Charlie
Munger
Shop. . . .
You are the sales person . selling an investment
opportunity
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• You can't overestimate the need to plan and
  prepare. In most of the mistakes I've made, there
  has been this common theme of inadequate planning
  beforehand. You really can't over-prepare in
  business!Chris Corrigan

A clear vision, backed by definite plans, gives
you a tremendous feeling of confidence and
personal power.Brian Tracy
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Success!?
The winner is the chef who takes the same
ingredients as everyone else and produces the
best results. Edward de Bono