LA SALLE CENTER FOR ENTREPRENEURSHIP BUS100 PRESENTATION: “BANK ON IT” FINANCING YOUR CONCEPT

INTRODUCTION The Sycamore Group, Services business $0 start-up capital Board, ownership: me + 1 Rapid growth financed through bank loans and steady cash flows MODA Technology Partners, Product business, heavy R&D, high fluctuations in cash flows $8.5M over multiple investment rounds: angels, venture debt, VC Board: me + 6 directors; Ownership: me + 28 investors Logic360, 2013-present $100,000 founders start-up capital Board, ownership: me + 1 Services business

DEFINITIONS What is Capital? Uses of Capital in each of these businesses…  Crystal Cut Landscaping  New concussion-proof hockey helmet invention  FlappyBirds.com

SOURCES OF CAPITAL Where to find capital depends on level of risk/return involved. WHAT IS RISK? Perceived probability of success and failure. New, unproven iPhone app startup venture: 70 year-old candy manufacturing company: High risk Low risk

ROLE OF CAPITAL Flow of capital critical to global economic success.

HOW DO WE “GET” CAPITAL? Lifecycle of innovation and entrepreneurship… (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP Introspection Problem Identification Opportunity Analysis Solution Two primary outputs of the innovation lifecycle: 1.Business Plan2. Financial Plan

BUSINESS PLAN, FINANCIAL PLAN Business Plan CONTENTS: Opportunity summary, description of products/services, target market analysis, go-to-market strategy and distribution channels GOAL: Align each piece of your business for cadence toward profitability; demonstrate your confidence but acknowledge your risks PURPOSE: Outline “how” we’re going to get there Financial Plan CONTENTS: Operating budget, sales projections, revenues, COGS GOAL: Demonstrate profit potential, determine initial money (capital) needed to start the venture; outline the assumptions and goals to reach your profit potential PURPOSE: Tell us “where” we’re going (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

HOW DO WE “GET” CAPITAL? Lifecycle of Venture Funding… (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP Business Plan Elevator Pitch To Investors Investor Inquisition Roll the Dice: Go/No-go

INVESTMENT (ELEVATOR) PITCH Within seconds, you need to be able to tell your story: BRIEF introduction Background on the problem or opportunity you are addressing Your product/service Estimates Facts and Figures to support your claims Your “ask” (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

WHAT DO INVESTORS LOOK FOR? Each opportunity is evaluated on three basic criteria: MARKET Have you convinced the investor of the market’s demand for your product/service and size of your target market? (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

WHAT DO INVESTORS LOOK FOR? Each opportunity is evaluated on three basic criteria: MODEL Do you have a sound business plan and financial plan that demonstrates a path to profit? (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

WHAT DO INVESTORS LOOK FOR? Each opportunity is evaluated on three basic criteria: MANAGEMENT Has your team been convincing and confident in its presentation, demonstrating your ability to proactively identify and address risks, organize resources to deal with problems, and illustrate your entrepreneurial spirit and capabilities to succeed? (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

QUICK REVIEW 1.Capital (money) needed to launch new ventures. 2.Investors are crucial to our economic lifecycle 3.Investors are of different types: lenders (banks), private investors, institutional investors, governmental grants 4.Ventures receive funding by satisfying three basic criteria: Market Model Management (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP

LA SALLE SHARK TANK CONCEPT: OneSole Shoes Roles and participation: Panelists will share their thoughts and impressions throughout the investor pitch. Audience votes thumbs up, thumbs down throughout the presentation. (C) 2014 LA SALLE CENTER FOR ENTREPRENEURSHIP Lauren Schechter Aka Barbara Corcoran Peter Tiano Aka Mr. Wonderful Samantha Brodie Aka Lori Greiner Terry Li Aka Daymon John Nick Galiano Aka Mark Cuban