© 2009 Getting the Investors’ Attention... And Secure Funding! 1.

© 2009

Getting the Investors’ Attention

. . . And Secure Funding!

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Objectives

Today’s Objectives Overview of the entrepreneur’s dilemma Understand what attracts investors BEFORE

they investigate an opportunity. Understand what convinces investors to

invest in the opportunity. Understand what entrepreneurs should do to

attract the investors’ attention … and ultimately secure funding!

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The Entrepreneur’s Dilemma

. . . Crossing the Valley of Death

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Valley of Death

Commercialization

Research Product Dev Market Dev

Friends & Family Capital

ResearchGrants

Institutional Capital (Venture)Valley of Death

Initial seed capital and government grants but …

Longer than anticipated commercialization

Source: “Commercialization Success in Early Stage Technology Companies”, Rocket Builders, 2004.

Companies have many needs as they develop and commercialize products and follow best practices

Timing will vary and many phases may be repeated

Research Product Dev Market Dev

VentureCapital

ResearchGrants

Friends & Family Capital

Market Research

BusinessPlan

MarketingPlan

ProductLaunch

Lead Gen & Sales

Large VendorPartnering

HRRecruiting

Leadership Development

Mezzanine Debt

InternationalMarkets

Solving the Entrepreneur’s Dilemma

AngelInvestment

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The Hook

. . . What attracts investors

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What is the Hook?

Before we get into the elements of the Hook … a reality check

It’s NOT your great idea!

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Elements of the Hook

Market Opportunity

Value Proposition

Sustainable Competitive Advantage

Execution Plan

4 Elements

of the Hook

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The Bait

. . . Why investors invest

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What is the Bait?

Before we get into the elements of the Bait … a reality check

It’s NOT your great idea!

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Elements of the Bait

Company Valuation

Operations Plan &

Milestones

Return on InvestmentExit Strategy

4 Elements of the Bait

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The Bite

. . . How to get investors to invest

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Before we get into the elements of the Bite … a reality check

It’s NOT your great idea!

How do you get the Bite?

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Solid Bite from Solid Evidence

Building Solid Evidence requires Market Research.

Market research is … Information gathering for the purpose of

making better decisions. A way of finding out what people believe,

think, want, need or do.

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Solid Evidence to Solid Business Model

Business Model Validation

Sustainable Competitive Advantage

Market Research

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Why is it used?

Enables better planning and decision making

Identify and capitalize on opportunityTo reduce financial riskTo maximize financial reward

Sustainable Competitive Advantage

Business Model Validation

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Go-to-Market Planning

Market Assessment

Market Planning

Revenue Planning

ProcessPhases

Go-to-Market Plan

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MPR’s ™

Markets Size Trends Segments

Pains Customer Pain Value Chain Pain

Requirements Customer Requirements Channel Requirements

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About Rocket Builders

Planning and Executing Revenue GrowthReducing Risk and Improving Outcomes

for Key MilestonesMarket EntryProduct LaunchStrategic Partnering

Strategic Planning for Investment or Exit

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Thank you!

Contact

Thealzel Lee & Vicki Prince-WrightPhone 604-839-5388 Phone [email protected] [email protected]

www.rocketbuilders.com