HumbleRheaume291
出典: くみこみックス
alvin donovan - The most important of my Growth capital Tips is always to possess a solid and effective Business strategy plan, an advanced start-up or development stage company.
Needless to say, only a good strategic business plan is not going to enable you to get funding. But once you've got their attention, then is time to put on your game face and negotiate. Show confidence and expertise in your field.
If you look desperate and don't at least try to negotiate with them, they'll smell blood. In the end, they aren't called vulture capitalists for nothing.
alvin donovan - Here are a few what to remember when conversing with Investment capital Firms for funding:
1. Talk to and talk with as many Venture Capital Firms and Hedge Funds as possible, as you do not know which one's will demonstrate interest and perhaps fund your company. Some have grown to be very specialized in Reverse Merger Funding. In other words, keep as much irons in the fire as possible. Also, in case you are lucky enough to convey more than a single Venture Capital Company considering funding, you can select the one which provides you with better terms.
2. Determine if they've got funded any businesses that are competitors of yours or if they are currently considering funding an organization that may be considered a competitor. You can keep them sign a non-circumvention and non-disclosure agreement. Although it is usually tough to determine if they honor it, most firms do. This way they will think twice about disclosing information received from you should they fund a competitor half a year after reviewing your small business plan. If you think they are doing have too close a connection along with your competitors you then could be a good idea to drop them as an funder.
3. Try to set the policies in early stages so there aren't any very last minute surprises. This can be one of my most important growth capital tips. Agree on the equity percentage they are going to take of one's company. Determine whether they want board representation and when they might require anti-dilution provisions. It is advisable to find out these records sooner rather than later. The questions i hear you ask during the fund raising process will demonstrate your thoroughness and attention to detail. Also, the method that you negotiate with potential investors reveals in their mind how savvy and knowledgeable your management team is overall. Negotiate being a lion not really a lamb. You should be careful not to get rid of the cope with a possible investor that's offering fairly reasonable terms.
4. Push the investment capital firm for any term sheet in which they agree to subsequent rounds of financing in relation to milestones of gross or net profits. It provides you with a built-in funding source if your meet certain goals. It's great to possess funding aligned for your second round so that you do not have to proceed through this painful exercies again. I will be notorious for pushing deals to the term sheet stage as quickly as possible. Unless you get to the term sheet stage, its all just talk. Even if you do have an expression sheet though, there's still no gaurantee you will get funded. Revisions and adjustments can be produced so many people are for a passing fancy page. At least having a term sheet the offer terms take shape and you're simply moving the investment capital investor toward your goal of raising capital. It lessens the probabilities for misunderstandings and gives everyone a clearer picture of what all parties wants from the other. This is among my most critical venture capital tips.
5. Time to contact an attorney. At this time you've got one or more interested investors, and you have an expression sheet. Either before or soon after you get the term sheet obtain competent legal counsel. The amount of money spent on a lawyer to assist you with all the deal terms and understanding all the implications is money well spent. It'll acutually save a little money and/or equity inside your company. Make absolutely certain counsel knows what "clawbacks" and "super preferreds" are, otherwise they don't be that helpful.
6. Always request a "Clawback". A clawback enables you to buy back shares in the investor with a minimal price if you achieve a specific milestone. As an example, in the event you reach $8,000,000 in gross revenues within the second year after funding, your company may repurchase 10% from the shares from your private equity firm for $.10 per share. Be proactive in negotiating terms using the venture capitalists.
7. Can they be also a Strategic Partner or tell you about potential Strategic Partners? In addition to being a funding source, are they another strategic partner that may be in a position to support sales through either another company they've got funded or with an overseas contact. Most Venture Capital Firms have great contacts and connections. Look at them as a funding source in addition to a networking source. Maybe they are able to support advertising, marketing, manufacturing or internet sales. Study on each potential investor you meet or talk to and you can get quite a few of your personal investment capital tips.
alvin donovan - I suppose a few things i have been telling here's you need to be actively engaged in the amount of money raising process. Investors enjoy travelling to a management group with "fire in their belly". Be persistent and aggressive not only in your quest for venture capital but in addition when it comes to negotiating financing terms.
