1 Getting First Funding to Take a Company From Nothing to Something Non-VC Funding Sources and Bootstrap Strategies Presented by Robert A. Adelson, Esq.

Slides:

Advertisements

Similar presentations

ONLINE BUSINESS. Business Plan for Online Business  What Is Included In A Business Plan? There are four main parts to a business plan: 1. the description.

Advertisements

Breaking Out or Breaking Through Wealth Building through Entrepreneurship Jeffrey Robinson, Ph.D. NYU-Stern School of Business 2005 NSBE National Convention.

1. Introduction 2. Funding Instruments 3. Public Funding 4. Support from Banks 5. Private Equity Investment 6. Venture Capital 2.

Bootstrapping and Financing the closely held company

SMALL BUSINESS PLAN GUIDE

5 Steps to Build a Strong Business Credit Profile Get the funding you need now! Presented by Amber Colley.

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

Unit 4: Utilizing Financial Documents

Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado 1 Competitive Advantage.

Invention to Venture Section 7 Finding the Money Different Forms of Financing or Not All $ is Created Equal plus The Reality Show: A Panel Discussion ©

© 2006 G. Yelle. All rights reserved. Why Do Ventures Need Financing.

New Venture Financials and Business Valuation One Asset Management Limited.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurial Mindset and Main Topics in a Sustainable Business Plan By Gonzalo Manchego Business Consultant.

803 North Main Street Ann Arbor, MI (734) managing partners: Lisa M. Kurek Michael Kurek,

George McAllister ext The SBTDC is a business advisory service of The University of North Carolina System operated.

Being a Business Owner Section 4.2.

FINANCING. ENTREPRENEURIAL RESOURCES  As a Business owner you must consider both the long term and short term capital needs for your company  What are.

Business Final Steps First Steps Research your Market Research your Business Set up your Business You and your People Financial Projections Fund your Business.

Chad Barden Financing Options for Entrepreneurs. Discussion Overview Available Options Venture Capital Private Equity (Angels) Grants Strategic Partners.

1 Strategies to Mitigate U.S. Market Entry and Operating Risks to the Home Country Parent and its Shareholders Tycho H. E. Stahl, Esq. Arnall Golden Gregory.

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Chapter 2 Financing the New Business.

San Antonio Veteran’s Business Summit 2014 Presented by Ron Edinger October 30, 2014 Working Capital Options for small, mid-sized, and large companies.

Computer Maintenance Entrepreneurship 1 Copyright © Texas Education Agency, All rights reserved.

Part 4 PowerPoint Presentation by Charlie Cook Copyright © 2003 South-Western College Publishing. All rights reserved. All rights reserved. Finding Sources.

How to Finance Your Business Start-Up Aizhan Tursunbayeva

Stage 10 Arranging Financing. Sources of Financing How will you finance your business? Personal savings Credit from suppliers Loans and mortgages from.

WELLS FARGO FOOTHILL M&A Discussion for Kuhn Capital Chicago2/12/04.

1 Who is SCORE ? Welcome to this Seminar An Introduction to Starting & Growing a Small Business.

Dun & Bradstreet (D&B), the world’s leading source of business information, provides the industry leading knowledge and expertise for entrepreneurs to.

11-1 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Part IV: Start-up Financial Strategy Chapter 11: Funding the Technology Start-up.

Chapter 13 Designing an Entrepreneurial Organization.

Strategies for ICT-enabled Competitiveness and Job Creation Jim Jaffe President and CEO National Association of Seed and Venture Funds March 30, 2011 World.

Lecture 10 $$$$$ Raising Money $$$$$$ Debt and Equity for a New Company Ken Pickar Lecture Feb 16, 2011.

Sami Aly Issues in Telecommunications15 January 2002 Financial Plan Company profitability{Income statement} –Affects viability of the business.

Entrepreneurship Chapter 10 Financing Strategy: Debt, Equity, or Both?

© 2005 Mark T. Schenkel1 Mark T. Schenkel, Ph. D. Belmont University Financing Issues in New Ventures Foundations of Entrepreneurship.

Financing. Definitions ASSETS- things that are owned and have monetary value. ASSETS- things that are owned and have monetary value. CURRENT ASSETS –

1 Getting Initial Funding— Taking your company from Zero to Something Some Tips from Don Freeman (Been there, done that) October 2, 2007.

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Traditional Money Sources Banks Government loan programs.

Copyright 2013 Jack M. Kaplan & Anthony C. Warren Bootstrapping and Financing the Closely-held Company Patterns of Entrepreneurship Management 4 th Edition,

Entrepreneurship Business Plan Utilizing Financial Documents.

Standard Mkt MP 6 MKT-MP-6 Employ financial knowledge and skill to facilitate marketing decisions. ESSENTIAL QUESTION: HOW IS PERSONAL FINANCE SIMILAR/DIFFERENT.

Financing Your Business. Getting Started Bootstrapping: Operating a business as frugally as possible and cutting all unnecessary expenses.

 Ventures require many different types of resources in order to be successful and to grow.  Some resources such as furniture, equipment, raw materials,

Women in Energy Conference Mariame McIntosh Robinson FINANCING YOUR ENERGY PROJECT.

Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado 1 Funding, Management, Competitive Advantage.

Topic 3: Finance and Accounts

Starting a New Business Start out as small as you can to save money.

Chapter 7 Obtaining the Right Financing for Your Business University of Bahrain College of Business Administration MGT 239: Small Business MGT239 1.

Early Stage Funding Patterns of Entrepreneurship Chapter 6 Funding Sources.

Technology Ventures: From Idea to OpportunityChapter 18: Figure 18.1 Idealized cash flow diagram for a new enterprise.

Finance (basics).

Technology Transfer Office

Unit 4: Utilizing Financial Documents

Small Business Management, 18e

Venture Capital Is It For You. Is Your Venture Ready. by Barry G

Unit 4: Utilizing Financial Documents

Commercialization Strategies

FINANCIAL BUSINESS PLAN

FOR VENTURE BUSINESSES

Unit 5.1 Utilizing Financial Documents

Financing the Small Business Start-up

Registration No. Contact Details of Applicant Startup Pitch Deck

Unit 4: Utilizing Financial Documents

Creating a Fundable Start-up: From Soup to Nuts

Ch. 8 Utilizing Financial Documents

Business Plan Preparation

Chapter 11 Sources of Capital

Starting a Business.

Presentation transcript:

1 Getting First Funding to Take a Company From Nothing to Something Non-VC Funding Sources and Bootstrap Strategies Presented by Robert A. Adelson, Esq. Engel & Schultz, LLP – Boston, MA October 2, 2007

Robert A. Adelson, Esq. © All Rights Reserved 2 Non-VC Cash Funding I: Loans, Government & Institutions Bank Loans, Home equity Asset based lenders A/R, inventory, factors Equipment Financing SBIR & STTR Fed Grants Phase I: k; delays Competitive; Govt needs Leverage to commercialize MA Quasi Public Agency loans Local Job creation incentives University / incubators Private Foundations

Robert A. Adelson, Esq. © All Rights Reserved 3 Non-VC Cash Funding II: Commercial Partners & Licensing Customers / Suppliers Large sale order, advance pay Favorable supply terms to you Strategic Partners Manufacturing Rights Distribution rights Leverage scale, channels Pro: Valuation, possible exit Con: Reliance, captive risks Technology Licensing Restricted, product, application Escrow, IP rights, Upfront Payments

Robert A. Adelson, Esq. © All Rights Reserved 4 Non-Cash & Thrifty techniques To Build Enterprise Value Management team Equity allocation Commissions Responsibilities shared Board of Advisors Strategic Advisors Experience, credibility, contacts Informal but involved & respected In-License of Technology University / Govt Laboratories Outsource/Offshore development IP on a Shoestring ITU Trademarks / Trade secrets Copyrights / Provisional Patents

Robert A. Adelson, Esq. © All Rights Reserved 5 Bootstrapping Strategies To save Cash, delay VC funding Manage cash flow Delay Payments of all kinds Good credit history/references You’re late but you pay Avoid fixed commitments Part-time, temp employees Consultants Subleased /shared space Virtual office Manage customer expectations Outsource where possible

Robert A. Adelson, Esq. © All Rights Reserved 6 Tending to needs of Founders To delay or avoid VC funding Keeping the day job Salary & Access to business resources CAUTION: Clean careful departure! Using your severance Including COBRA benefits Paid window of opportunity Shadow management Ready to join when funding in place Keeping your sanity for long haul NOT necessary to bankrupt yourself Or divorce spouse & family Consulting for revenue Keeping cash positive is Keeping the dream alive to succeed

Robert A. Adelson, Esq. © All Rights Reserved 7 Thank you! Robert A. Adelson, Esq. Engel & Schultz, LLP 125 High Street, Suite 2601 Boston, MA x 205