4. Dialing for Dollars! What do I do? Who do I sell to and what do I sell them? How do I get the money? Oops!?!
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7. Sources of Capital Friends & Family Government Angels Venture Capital Banks & Lenders Employees
8. Sources of Capital Partners or Investment Cttee Self Credit Manager Decision Maker Diversified or Focused Focused Diversified Sector Focus Passive or Active Passive or Active Passive Degree of Participation Lots Some None Follow On Capital Slow Medium Medium Speed to Close Early Early Late Stage of Investment VC’s Angels Banks
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10. Understanding Investor Motivations Investors Self Corporate Fiduciary Responsibility Yes No Yes Portfolio Approach 5 – 7 yrs 5 – 7 yrs 1 – 3 yrs Liquidity Horizon 2% and 20% Exit Value x % Owned Interest Rate Fee Structure Exit Value Exit Value Interest How do they get paid? VC’s Angels Banks
19. Can’t Get Money? Synonyms for “NO”: “ Maybe” “ We have no money right now” “ NO” “ We want to follow a lead” “ Later” “ Maybe” “ Needs a new CEO” “ It’s too early” “ Doesn’t fit our mandate”
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21. Deal Terms and Structure The Basics: Date Amount Legal Fees Price Capital Structure Investors Pre-Money Valuation
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24. Deal Terms and Structure The Not So Basics: Board Seats Common Shares Dividends Control Liquidity Preference Drag Along Preferred Shares Anti-Dilution