7. Good reasons to raise equity finance
Pre-requisites
Large Potential
Unique Product Passionate
Market
Or Concept Founding Team
Opportunity
Implications…
Intense
Need to move
competition
rapidly
likely
VC funding supports
Rapid Product
Hiring Partnerships
Development
Infrastructure Commercialization
Internationalization
8. 1. Elevator Pitch 6. Proprietary Tech
2. The Problem 7. Competition
3. Your Solution 8. Marketing Plan
4. Market Size 9. Team / Hires
5. Business Model 10. Money / Milestones
19. Sharing relevant information
Pre - first meeting Pre - termsheet Post - termsheet
∗ 100 page business • Dialogue rather than • Some additional
plan not required
documentation – expect reference calls with
lots of meetings partners / customers
∗ 20 page ppt which
• Calls with current / • Personal reference calls
clearly answers prospective customers or
main questions is partners
• Legal / accounting audit
best bet (if relevant)
∗ Product • Meeting broader team • Drafting legal
∗ Market
∗ Business Model • Brainstorming around documentation
∗ Team strategy
∗ Competition • Identifying key hires post
∗ Product Roadmap
∗ closing
Technology
Overview • Formal presentation to
∗ Business VC partnership
Development
∗ Financial Status
2-4 weeks 1-2 Months
22. Approaching VC’s
∗ Investing is a people business, and getting a
meeting is all about “who you know”
∗ Best way to approach a VC is some form of
introduction
∗ If you don’t know a VC, find someone who knows you
and get them to introduce you
∗ Entrepreneur, professor, attorney… (Linkedin…)
∗ Sending a plan to info@vcfirmname.com is a waste of
time