2 Venture Capital “Secret” #10 The purpose of your business plan is not to get your company funded.

Slides:

Advertisements

Similar presentations

Venture Capital Model Presumes & Leverages Multiple Failures 1.Funds designed for participating in many big at bats 2.VC fund managers (GPs) participate.

Advertisements

What gets our attention?-- First meeting and beyond PRESENTATION:

Project Title Speaker Name Job Function Organization type ( maximum 10 words – reflecting project concept and results )

© Venture Okanagan 2013 Your Company Name [Note: Font size should be age of audience divided by 2]

Raising Money in Small Companies November 11, 2004 Dale H. Munk.

VENTURE CAPITAL INVESTMENT COMPETITION VCIC W ELCOME ! ________ R EGIONAL F INALS Organizer: update for your region. Created by Organizer School Logo Here.

Module 4 The Search for Capital. Module 4 Topics Sources of Capital Background Start-up Ongoing Operations Growth.

Funding MBAX 6100 Entrepreneurship & Small Business Funding Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado.

Chapter 14 Venture Capital Chapter 14 Entrepreneurial Finance, Smith and Kiholm Smith Venture Capital.

Course Introduction Corporate Finance: MBAC 6060 Spring 2003 Professor Jaime Zender.

Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002.

Fueling Up: Funding Your Commercial Space Company’s Startup or Growth 5 th International Workshop on Lunar Surface Applications April 17, 2015.

Private Equity, Venture Capital, and Angel Investing Attracting Investment Yonsei UIC TAD Creative Technology Management.

Private Equity Fund Structure - Best Practices June 24 th, 2014.

Venture Capital How to Sell Your Soul for a Buck.

Money Day Assess Your Need and Readiness For Venture Capital Content provided by Gazelles Systems Content by Gazelles Systems.

The Business Plan. Why write a business plan? Always when a new venture needs outside funding Early in the planning process when you are looking at a.

Informal Risk Capital & Venture Capital. Financing the Business Stages for Financing Stages for Financing Early-stage financing Early-stage financing.

Vcapital Confidential1 Startup Workshop Presentation to.

© Keiretsu Forum NY All rights reserved Your Company Name [Note: Font size should be age of audience divided by 2]

Financing Your Venture It is not as hard as you think!

Venture and Growth Capital. Equity Investments  Holding on to ‘what you’ve got’  Equity investments are a ‘trade-off’ game…

Venture Capital How to Sell Your Soul for a Buck.

Corporate Venturing Shortcomings Lack of experience in the market entered Entered market already served by parent Lack of sustained top management support.

Russian Venture Company Fund of venture funds Basic terms Ministry of Economic Development and Trade Russian Federation.

Business, Law, and Innovation Entrepreneurial Finance Lecture 5 Spring 2014 Professor Adam Dell The University of Texas School of Law.

Professional Venture Capital 1 ENTREPRENEURIAL FINANCE.

Angels v. Sharks Securities and Investments. Angel Investors An angel investor or angel is an affluent individual who provides capital for a business.

Venture Capital When You Need It When You Don’t Union Square Ventures 915 Broadway New York, NY

1 private equity. 2 Topics for today Topics for today  What is venture capital?  What do VCs look for?  VC process  VC value added process  VC terms.

Funding a start-up: How to raise your first round Jayan Ramankutty Founder/CEO YuMe Networks BITSAA.org, June 25 th 2006.

Life Science Venture Capital 11th Annual NIH SBIR/STTR Conference July 1, 2009 Randy H. Weiss, Ph.D. Partner, Triathlon Medical Ventures.

Fundraising Takeshi Ebihara.

Show Me the Money! Entrepreneurial Financing Built by Stambaugh/2009 Jeff Stambaugh Dillard College of Business/Rm 257A

Venture Capital and the Finance of Innovation [Course number] Professor [Name ] [School Name] Chapter 1 The VC Industry.

Venture Capital Club 2003/2004 Introduction September 10, 2003.

By- Rahul Jain Venture Capital Financing. 2 What Is Venture Capital? High Risk Capital Seeking 50%+ Annual Rates of Return High Risk Capital Seeking 50%+

Website: Venture Presentations & Business Plan Development for Entrepreneurs SCI2 Business Incubator.

How venture capital works Zider, R How venture capital works, Harvard Business Review, November-December,

Attracting Capital: Roger Kitterman General Partner, Mi3 Venture Partners “What do Venture Capitalists Want to See”

Your Business Plan UC Santa Cruz September 23, 2000 Steve Mushero GLOBALTECH -

P roviding early and growth stage venture capital to: Experienced entrepreneurial teams with Excellent business propositions and Great market opportunities.

Use to hash it out! Cut clutter, tease ideas, fix problems. 5 things I learnt during a 3 month fellowship at a top Silicon Valley VC Firm.

Financing High Growth Ventures ETP Courage: Risk and the Dimensions of Work Life Cycle of a Business Venture Bootstrapping Self, Friends and Family.

Ch 15 Raising Capital. 1. Financing life cycle of a firm: Early stage financing and venture capital Usually people with ideas contact banks at first.

© 2007 Thomson South-Western Chapter 26 Entrepreneurial Finance And Venture Capital Professor XXXXX Course Name / Number.

Stephanie McCoy March 9, I.Venture Capital Process II.Venture Capital Investing Trends III.Industry Compensation IV.Dos and Don’ts Agenda.

Why Innovation thrives in U.S.. Innovation & GDP Growth GDP Innovation => ↑ full potential.

April, FINANCE 101 FOR START-UPs April 18, 2008 Robert S. Smith Principal – Bridgepoint Consulting, LLC.

How venture capital works Zider, R How venture capital works, Harvard Business Review, November-December,

F317 – Venture Capital & Entrepreneurial Finance Why Venture Capital Exists.

Michigan Business Brokers Association The Venture Capital Process December 8, 2015 Presented by TGap Ventures General Partner: Jack Ahrens.

New Jersey Technology Commercialization Conference December 8, 2004.

Sources of Finance.

Venture Capital 2016 Data & Views from VCs and LPs 1.

PRESENTATION2: “ THE EXECUTIVE SUMMARY” MASTERS IN MARKETING & INTERNATIONAL BUSINESS JUAN ANTONIO CRUZ ALVARADO INSTITUTO CULINARIO DE MEXICO.

September 3, 2014 Technical writing. Well…not really. This is actually a “Business Writing” course.  Often called Workplace Writing.

The Business Plan. A written summary of: ► An entrepreneur’s proposed business venture ► The operational and financial details ► The marketing opportunities.

FEBRUARY 25, 2014 © Emergence Confidential SEAN JACOBSOHN | VENTURE

©2009 Cooley Godward Kronish LLP. All rights reserved. STARTUP 2009 LEGAL SERIES Topic #2 Forming an Entity.

Venture Capital Financing The Venture Capital Method B.G. Bisson.

DEVRY FIN 516 Week 4 Homework Check this A+ tutorial guideline at For more classes visit.

PROFESSIONAL VENTURE CAPITAL

65 Questions Venture Capitalists Will Ask of Startups

Your School or Club Logo Here

What Is It and What Does It Mean?

Where Economic Development Meets Venture Capital: Impact Investing

Types of Business Organization

Michael R. Bristow et al. BTS 2018;3:1-8

Informal Risk Capital, Venture Capital,

Presentation transcript:

2 Venture Capital “Secret” #10 The purpose of your business plan is not to get your company funded

3 Venture Capital “Secret” #10 The purpose of your business plan is not to get your company funded o The goal of your business plan is to progress to a meeting

Typical Annual VC Deal “Funnel” 1,000 Plans Received 150 Companies Met 25 Serious Due Diligence 5-10 Deals Done

5 Venture Capital “Secret” #9 Start-up companies don’t get funded by VC firms

6 Venture Capital “Secret” #9 Start-up companies don’t get funded by VC firms o Start-up companies get funded by partners at VC firms

7 Venture Capital “Secret” #8 VCs are inherently lazy (well, at least overworked)

8 Venture Capital “Secret” #8 VCs are inherently lazy (well, at least overworked) So it’s your job to make it easy for the VC o Get a high-quality intro o Develop a great executive summary o Why is your proposal compelling?

9 Venture Capital “Secret” #7 Not everyone at a venture capital firm is actually a venture capitalist (i.e., has investment authority)

10 Venture Capital “Secret” #7 Not everyone at a venture capital firm is actually a venture capitalist (i.e., has investment authority) Analyst  Associate  Principal  Partner

11 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you

12 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you Example 1: Does the VC firm currently have capital available to invest?

13 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you Example 1: Does the VC firm currently have capital available to invest? When did they raise their last fund? When did they invest in their last new portfolio company?

14 Venture Capital “Secret” #5 VCs may not always be (totally) honest with you Example 2: In what potentially competitive companies has the VC firm already invested?

15 Venture Capital “Secret” #5 VCs may not always be (totally) honest with you Example 2: In what potentially competitive companies has the VC firm already invested? Which companies do you view as directly competitive? Most portfolio companies are listed on their website!

16 Venture Capital “Secret” #4 VCs may not always be (totally) honest with you Example 3: The reason a VC passes on your deal may not be exactly what they tell you

17 Venture Capital “Secret” #4 VCs may not always be (totally) honest with you Example 3: The reason a VC passes on your deal may not be exactly what they tell you Nobody wants to burn bridges

18 Venture Capital “Secret” #3 The squeaky wheel really does get the grease

19 Venture Capital “Secret” #3 The squeaky wheel really does get the grease Unless, of course, the VC learns to dread the interaction Be brief Be pleasant Be informative

20 Venture Capital “Secret” #2 You know more about your science… but the VC knows more about venture capital

21

22 Venture Capital “Secret” #2 You know more about your science… but the VC knows more about venture capital “I’ll give you your price… if you give me my terms” o Liquidation preferences o Dividends o Redemptions o Voting Features

23 Venture Capital “Secret” #1 VCs are not in the investment business

24

25

26 Venture Capital “Secret” #1 VCs are not in the investment business

27 Venture Capital “Secret” #1 VCs are not in the investment business o VCs are in the returns business