1. Mad Bad and Dangerous
Liberate, Achieve!

2. Common Elements of Debt Financing.
Typically governed by a loan agreement – a “promise” to repay the debt, a promissory note
A fixed credit limit = amount of the loan
Interest rate fixed or variable
The loan’s time period
Payment dates for principal and interest
Any late payments
Fees charged by the lender
Collateral description
Prepayment
Other requirements such as monthly, quarterly or annual financial reports
Interest expense and out of pocket costs to get debt financing are deductible expenses
Key: has no ownership in the business and doesn’t participate in its earnings

3. Additional Documentation
Ownership formation
Cash infusion or cash injection
Collateral
Business plan
Financials
Lease
Personal guarantee
Other pertinent business items

4. Investors: FFF, Angels, & VCs
Friends, Family, and “Fools”
Individuals & Angels
Venture Capitalists
An Investor will expect a Return on Investment (ROI)
and will take a stake (equity) in your company. Some investors may exercise a board seat, engage as advisors, offer access to their networks, and actively support the growth of the business while others may be “silent” partners.

5. Angel investing: Risk profile of various asset classes
Seed funding/FFF
Angel investing (JumpFund)
Private equity
Commercial real estate
Return on investment (%)
Small cap U.S. equities
Large cap U.S. equities
Corporate bonds/ MBs
Money market funds
U.S. Treasury bills
Risk (Low to high)
Source: Adapted from Golden Seeds “Angel Investing Series 2013”

6. Investment Criteria Common Themes: Strong management team/founder
Scalability
Market Potential/Differentiation
Customer Discovery/Early Traction
Exit potential: 10-20x return on investment within 3-5 years
JumpFund:
Woman-owned, C-level position, significant equity in company
Scalable to min $20mm within 5 years; strong ROI potential
Sustainable revenue model; customer traction; market opportunity
Located within SE region

7. Chattanooga & Regional Investor Landscape
Seed Capital: Brightbridge (Women Entrepreneurs Center), TSBDC, ACE (Access to Capital for Entrepreneurs, N.GA), Pathway Women’s Business Center (Nashville)
“Angel” Investors: Individuals, JumpFund, Blank Slate Ventures, Solas Ventures, Chattanooga Renaissance Fund, Spartan Ventures
Angel Capital Group (Knoxville), Angel Roundtable (Nashville Area), Lighthouse Fund (Knoxville), JumpStart Foundry (Nashville)
Venture Capital: LaunchTN (Incite Fund), Nashville Capital Network, LampPost Group, Meritas Ventures (Tullahoma)