How do you finance a new venture?
Why do so many Business Plans fail to get funded?
Investors have very specific criteria to map against startups when gauging their fitness for funding. I will focus on the process of fund-raising for new innovations. This will help you to acquire a deeper understanding on the venture capital world and what appeals to investors. You will also be exposed to the issues, dilemmas, and challenges faced by early market adopters, and why finding the right money to fund your business is critical to your venture’s growth path.
You are expected to be able to articulate and sell your business vision in a PowerPoint deck, capable of capturing the imagination of potential investors and partners in wanting to invest in your vision. You will be given an opportunity to practice your pitching skills; timing, sequencing, choreography, core versus backup slide selection, non-PowerPoint alternatives, issue prediction and objection handling will be covered.
You will also be exposed to various terms in investment agreements, and be familiar with the terminology used in venture capital. What purpose do term sheets serve? What are the basic components? Who is protected? How do terms differ between earlier and later stage investments? How do terms change under varying market conditions? This workshop will include dedicated sessions on the nuts and bolts of fundraising. The topics of: amount raised and valuation, the financing structure, instruments used by Investors to limit risks, the reps and warranties, investor rights and the management terms and conditions will be discussed in detail.
In 2014, companies and individuals across the globe raised $16.2 billion through crowdfunding. That’s a 167-percent increase from 2013, when $6.1 billion was raised. On the heels of a record year, crowdfunding is projected to lap itself again. This year, 2015, the industry is expected to generate $34.4 billion. Based on these numbers, it is yet another tool at your disposal. There is no denying that crowd funding is a fundamental change in the way entrepreneurs may choose to fund their businesses. Just as the PCs brought computers to the masses, so too does crowd funding put innovation in the hands of the masses (the crowd). This workshop will also look the options available to you to ‘crowd fund’ your venture.
This workshop will help you to:
Understand sources of grants and investment capital to fund continued innovation development and growth, and criteria for successful funding
Have a greater appreciation of the dilemmas and trade-off decisions entrepreneurs face in raising capital
Understand the different investor groups and their primary motivations for investing in new businesses
Develop the necessary skills and have practiced these skills in presenting and selling your business idea (dream) to seasoned investors
Understand the basic terms and conditions in a fund raising exercise and be able to craft a basic term sheet with favourable terms to your venture, but still contain the necessary provisions to satisfy investors’ conditions
Understand how to raise money from the crowd (crowd funding)