© John colley 2012 http://jbdcolley.com The Six Minute Strategist Business Strategy, Make Smarter Decisions Can you find me the Right Investor?
Can you find me the right investor 5 oct 2012
Jan 14, 2015
"Can you find me the right investor?"
"What are the chances of success?"
"What are the odds of finding an Investor for my Company?"
I am asked these questions all of the time as if finding investors for companies was like throwing darts at a dart board; if you hit the bull you get funding, Right?
Well not quite. In this blog piece and the accompanying video, I will try to share with you some of the complexities in the funding process. I want to try to demonstrate that building a systematic funnel is much better than throwing darts!
Lets start by looking at some statistics from Crunchbase. This free online database lists over 100,000 companies and over 30,000 funding rounds. Crunchbase also shows us that there have been literally thousands of Seed Rounds, Angel Rounds and Series A, B and C rounds. Furthermore over 9,000 funding rounds are unattributed.
In our research over the past decade, we have identified over 1,200 investors in the UK and this dataset only has a small number of Angel and High Net Worth investors. We are predominantly talking about funds, networks and family offices.
So where do you start?
In the video I walk through a series of factors that need to be taken into account when trying to select investors.
These include:
Investor Type
Sector
Stage
Funding Round
Deal Size
Risk
Geography
VC Portfolio
VC Specific Odds
Investment Criteria
Deal Criteria
Process
Documentation
Term Sheet
VC Deal Flow
Conflicting Interests
Unfortunately, finding the Right Investor involves kissing a lot of frogs!
I do not believe that there are any short cuts, they take too long!
Claim your Free Six Minute Strategist Six Minute Audit at http://jbdcolley.com
If you would like to discuss with me how we can assist your business, please email me at [email protected] or call me on my UK cell phone +44 7813 672 612
Thank you for joining the Conversation!
"What are the chances of success?"
"What are the odds of finding an Investor for my Company?"
I am asked these questions all of the time as if finding investors for companies was like throwing darts at a dart board; if you hit the bull you get funding, Right?
Well not quite. In this blog piece and the accompanying video, I will try to share with you some of the complexities in the funding process. I want to try to demonstrate that building a systematic funnel is much better than throwing darts!
Lets start by looking at some statistics from Crunchbase. This free online database lists over 100,000 companies and over 30,000 funding rounds. Crunchbase also shows us that there have been literally thousands of Seed Rounds, Angel Rounds and Series A, B and C rounds. Furthermore over 9,000 funding rounds are unattributed.
In our research over the past decade, we have identified over 1,200 investors in the UK and this dataset only has a small number of Angel and High Net Worth investors. We are predominantly talking about funds, networks and family offices.
So where do you start?
In the video I walk through a series of factors that need to be taken into account when trying to select investors.
These include:
Investor Type
Sector
Stage
Funding Round
Deal Size
Risk
Geography
VC Portfolio
VC Specific Odds
Investment Criteria
Deal Criteria
Process
Documentation
Term Sheet
VC Deal Flow
Conflicting Interests
Unfortunately, finding the Right Investor involves kissing a lot of frogs!
I do not believe that there are any short cuts, they take too long!
Claim your Free Six Minute Strategist Six Minute Audit at http://jbdcolley.com
If you would like to discuss with me how we can assist your business, please email me at [email protected] or call me on my UK cell phone +44 7813 672 612
Thank you for joining the Conversation!
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Transcript
© John colley 2012
http://jbdcolley.com
The Six Minute StrategistBusiness Strategy, Make Smarter Decisions
Can you find me the
Right Investor?
© John colley 2012
The Six Minute Strategist
http://jbdcolley.com
© John colley 2012
The Six Minute Strategist
http://jbdcolley.com
© John colley 2012
Crunchbase Statistics
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http://jbdcolley.com
© John colley 2012
The Six Minute Strategist
http://jbdcolley.com
How big is the Tech Funding Market?
100,000 + Companies8,277 Financial Organisations133,000 People4,721 Service Providers30,867 Funding Rounds7,128 Acquisitions
© John colley 2012
The Six Minute Strategist
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What do the funding rounds look like?
6,044 Seed2,611 Angel6,390 Series A4,094 Series B2,098 Series C9,022 Unattributed
© John colley 2012
The Six Minute Strategist
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Can’t See the wood for the trees?
© John colley 2012
Investor Type
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Friends & Family High Net Worth
Founders and Management
Existing Shareholders Family Offices
Venture Capital Private Equity
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Sector
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Agriculture
Biogas
Biotech
Building Products
Capital Goods
Chemicals
Clean Tech
Commodities
Computers
Conglomerates
Construction
Consumer
Depository InstitutionseCommerce
Education
Electronics
Energy
Engineering
Entertaining
Environmental
Financial Services
Food and Beverage
Gaming and Lodging
Government
Healthcare
Hotels, Restaurants & PubsIT Services
Industrial
Infrastructure
Intellectual Property
Internet
Leisure
Life Science
Luxury
Media
Medical
Metals
Mining
Mobile
Paper
Natural Resources
Oil & Gas
Packaging
PharmaceuticalsPaper
Real estate
Renewables
RetailSecurity
Services
Steel
Transport
Utilities
VC
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Stage
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SeedAngel
Series ASeries BSeries CSeries DPre IPO
PEAcq Finance
Public to PrivateBuy and BuildEquity Release
ReCapSpin OutBridgeActiveRescue
TurnaroundLBOMBOMBI
ExpansionMezzanine
Venture DebtJunior Equity
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Funding Round
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What round are you Doing?
© John colley 2012
Deal Size
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Fund Size Sweet Spot
<100k <500k <2m
<10M <100M >100M
£ or $
© John colley 2012
Risk
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Prototype Product
Customer Market
Scale Expansion
© John colley 2012
Geography
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Limitations
Proximity Market
Location
© John colley 2012
Portfolio
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Does it Fit?
Does it Compete?
© John colley 2012
VC Specific Odds?
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500
1%5
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Customer Pain
Pre- or Post Revenue
Investment Criteria
ProfitableCash Flow BreakEven
Min Deal Size Max Deal Size
Minority Majority
Investment Style Board Seat
Sole Investor Syndicate
© John colley 2012
Deal Criteria
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Management
Customer Pain
Product Solution
Customer Pain
USPs
Competition
Market Size
ScalabilityExit Route
Valuation Funding need
Market Opportunity
Stage of Business
Channels to market
© John colley 2012
Process
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Identify Approach Meeting
InformationInformal DDInvestment Review
Term Sheet Formal DD Conditional Approval
DocumentationFormal ApprovalClose
© John colley 2012
Documentation
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Elevator Pitch Executive Summary
Management Presentation
Business Plan Financial Plan
Market Research DD Material
Management Information
© John colley 2012
Term Sheet
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Economic Control
Other
© John colley 2012
In the Deal Flow
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© John colley 2012
Conflictinginterests
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Founders
Employees
ExistingShareholders
New Investors
Board of Directors Management
© John colley 2012
Kiss a lot of Frogs
The Six Minute Strategist
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© John colley 2012
Can you find me the Right Investor?
The Six Minute Strategist
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I’m sorry, we don’t have time for short cutsthey take too Long!
© John colley 2012
Want to know More?
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Contact me Now
John Colley
07813 672612
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