Ready, Set, Grow Invest in your business and plan for growth

9am Capital options, timings and costs 10am Telling your story 12pm Lunch 12.30pm ESOPs 1.30pm Succession Planning 3pm Capital Transaction 4.30pm Networking Agenda Capital Orientation

When your business is investment ready, our team can help you access investor networks. Based in New Zealand and overseas, our capital specialists are well placed to connect your investment opportunity to the most appropriate funding source. Better by Capital is designed to demystify the capital raising process, giving your business the best chance of accessing the right capital, at the right time, to help fund your international growth. Better by Capital is made up of the following services: Better by Capital will help you to understand and identify the best approaches and investment sources for your business, before you start to raise, or re-structure capital flows. will help you become investment ready. A NZTE capital specialist will help you prepare a capital plan that presents your business in the best possible light. Specific activities will help strengthen your ability to attract the right type of capital your business needs to unlock growth. Capital Orientation… Capital Readiness… Capital Connection…

Capital Options

Debt vs. equity Debt Money that is borrowed Normally comes from banks Needs to be paid back, usually with interest. Equity Money invested in a venture No legal obligation to repay the principal Requires the sharing of ownership and profits with the investors. Capital Orientation

Capital landscape Pre- Revenue Establishmen t Growth Expansion Friends and Family Crowd Funding Grants Angels Venture Capital Debt Strategi c Private Equity Debt Strategi c IPO $

Friends and family Easy access Patience Friendly terms Pro $0-$250k $ Lack of sophistication Failure impacts family Limited capital Con Early Pre revenue Pre product Concept Stage Capital Orientation

Government grants Non dilutive Founder friendly Stretch capital Pro $10k-$500k+ $ Lack of sophistication Compliance costs Public information Con Early Growth Project specific Stage Capital Orientation

Angel funding Passionate investors Access to networks Smart capital Pro $10k-$1m (single) $100k - $2m (group) $ Limited reach Investment terms Limited funding pool Personality fit Con Early Pre revenue Growth Proof of concept Stage Capital Orientation

Angel groups Capital Orientation

Angel backed companies

Venture capital Professional investors Access to networks Leveraging potential Pro $1m - $10m $ Capital term/Exit Loss of control Relocation Expensive Con Revenue Profit High-growth Scalability Stage Capital Orientation

Private equity Professional investors Access to networks Leveraging potential Pro $10m - $50m+ $ Capital term/Exit Loss of control Relocation Sector Specific Con Late MBO/Expansion Proven market Scale Stage Capital Orientation

Venture Capital Stage Auckland WellingtonUS Focus: Bio/Food Fund Size:$100m Min/Max: $1m/$5m Focus: Any Fund Size:$31m Min/Max: $50k/$4.5m Focus: Any Fund Size:$70m Min/Max: $5/$15m Focus: Tech Fund Size:$50m Min/Max: $500k/$2.5m Focus: Tech Fund Size:$40m Min/Max: $500k/$5m Auckland Focus: Any Fund Size:$675m Min/Max: $5m/$50m Focus: Any Fund Size:$75m Min/Max: $1m/$10m Focus: Any Fund Size:$250m Min/Max: $5m/$50m Focus: Any Fund Size:$225m Min/Max: $8m/$25m Focus: Any Fund Size:$80m Min/Max: $1m/$25m Private Equity Capital Orientation

VC backed Stage

Private Equity backed

Bank Debt Maintain ownership Leveraging potential Flexible Pro Loan Factoring LoC $ Interest Credit availability Banking covenants Collateral Con Revenue Typically asset backed Track record Stage Capital Orientation

Strategic/M&A International partner Customer Supplier $ Exit Unequal partnership Loss of control Staff issues Con Any Stage Market connections Scale Skill transfer Exit option Pro Capital Orientation

IPO/Listing MV$5m+ $ “Dumb” capital Compliance costs Shareholder issues Failure is public Con Any Stage Control Large pool of capital Profile Shareholder options Pro Capital Orientation

Am I investible? History of the business Realistic financials prepared Funding requirements Market size and growth Market validation Competitors/differentiatio n Barriers to entry Environment/regulatory Competitor awareness Future products (scalable) Management quality Investment Checklist Management motivation Track record Team quality External advice Company valuation Deal expectations Coach-ability Exit strategy Governance