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How to Develop a New Product, Take it to Market, and Finance it
November 1, 2016 (2-Hour Workshop)
Jim Wasson, Ph.D., MBATechnology Commercialization Business Consultant
SC Small Business Development [email protected]
843-804-9026
Small Business Development Centers
• We are a federal and state program - funded by Congress and administered by the SBA
• We provide confidential business consulting at no charge to you
• We have 20 SBDC Centers in South Carolina• Technology Commercialization for the coastal
area is provided by the Charleston SBDC Center
SC SBDC Economic Impact• 1,278 Jobs Created / Saved • $52.9 Million in Capital Formation • $1.4 Billion in Government
Contract Awards• 183 New Businesses
Started • Over 5000 Small Businesses and
Individuals Served
ROI = $46.8 MM in Per Capita Income
Your Facilitator
• Founder of three small high-tech business– Growth Strategies International, LLC – ProLink, Inc. (GPS Golf Course Management System)– Avionics Engineering Services, Inc.
• Chief Technology Officer at BAE Systems, Inc.– Responsible for new product development for 16 product lines
• 20 years at Boeing and GE as Director/Manager– Engineering / Program Management / Business Development
• Chair of University of Phoenix Graduate Business and Management College and MBA Professor
Keys to Success
Probabilityof technicalcompletion
(MVP)
Overallprobabilityof success =
Probability ofcommercialization
given technicalcompletion
XProbability of
economicsuccess given
commercializationX
EngineeringFocus
MarketingFocus
Financial Focus
How will you make moneyfrom your new product idea?
Invention/Innovation
Proof of Concept
MarketValidation
Final Product Development and Initial Production
CompanyExpansion
(Jobs)
Pre-Commercial Arena Commercial Arena
Idea generation, prototyping, presentation, data collection, analysis and learning
BUSINESS PLAN
BUSINESS MODEL• Who's your target customer?• What customer problem or challenge do you solve?• What value do you deliver (Value Proposition)?• How will you reach, acquire, and keep customers?• How will you define and differentiate your offering?• How will you generate revenue?• What's your cost structure?• What's your profit margin?
Start-Ups: Testing a Hypotheses
SCALING
Business Case
AGENDA• Concept Feasibility
– Forming a Business– New Product Development
• Business Case– Product / Market Fit– Value Proposition
• Scaling Your Business– Prototype to Production– Distribution Channels
• Financing Your Business– Sales, Costs and Profits– Debt and Equity Financing
Forming a Legal Entity
• Sole Proprietor• General or Limited
Partnership• Limited Liability
Company (LLC)• S-Type Corporation• C-Type Corporation
CEO
COO CFO CTO
ADMIN
ORGANIZATION CHART
Product Development Process
IdeaGeneration
ConceptDevelopment
and MVP Testing
MarketingStrategy
Development
IdeaScreening
BusinessModel
Development
ProductDevelopment and Testing
Manufacturing And Distribution
Financial Analysis
Where are you in launching your Product?
Concept Analysis – What is Innovation?
• An innovation is a new match between a need and a solution.
• Successful innovations create value. • An invention has the potential to become a
successful innovation. • An opportunity is the seed that might become an
innovation. • Development of new products and services that
meet a customers need better than current alternatives do.
What is an MVP?
• A Minimum Viable Product has only the minimal set of features necessary to demonstrate the ability of the product to satisfy a customer need
• An MVP is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort
• The final, complete set of features is only designed and developed after considering feedback from the product's initial users
MVP Key Characteristics
• It has enough value that people are willing to use it or buy it initially
• It demonstrates enough future benefit to retain early adopters
• It provides a feedback loop to guide future development
• It assumes that early adopters can see the vision of the final product and provide valuable feedback needed to guide developers forward
Systems Engineering ProcessSystem ConceptClarify ProblemEstablish NeedEstablish Value
Feasibility Study
System Definition / Preliminary Design
Functional Reqmts. Cluster functions into
subsystemsSystems analysis on
alternativesDesign Specifications
Detail Design / Systems Development
Detail design of oper and support systemsDevelop test models
and test systemsDesign production
capability (make/buy)
Systems EvaluationSystem Analysis
Modification
Systems Operation/SupportInstallation, test, maintenance,
training, enhancementProduction
Systems EvaluationSystem Analysis
Modification
Phase-Out
WHAT? HOW?
From: “Managing Business & Engineering Projects” by John M. Nicholas
Defining the “What”User Requirements System Requirements
Vehicle must accelerate from 0 to 60 mph in 10 sec & seat 6 people
Vehicle size, weight, horsepower, kind of transmission
House must be spacious for a family of 4 Number and size of rooms
Space Station must operate life support, manufacturing, and lab
Type and kilowatt capacity of power generating equipment
Computer system must provide summary reports on a daily basis
Type of computer hardware, software, collection, entry, storage and processing
What is your user requirements? What are your system requirements?
From: “Managing Business & Engineering Projects” by John M. Nicholas
Analysis and Selectionof the “How”
Objectives
Problem Formulation
Alternatives
Resources, Constraints
Selection Criteria
Systems Model (PMP)
System Concept
Concept Formulation
Research and Trade-Off Analysis
Analysis andJudgement
Verify
Iterate Systems Analysis to Optimize Solution
From: “Managing Business & Engineering Projects” by John M. Nicholas
Technical Maturity
Pre-Concept RefinementMaterial Solution Analysis
Technology DevelopmentEngineering and Manufacturing Development
Production & Deployment
Technology Readiness Levels
Rapid prototyping and MVP market testing reduces overall risk and cost
Intellectual Property
• Non-Disclosure Agreements• Copyrights © • Trademarks™ ®• Trade Secrets• Design Patents• Utility Patents• Plant Patents• Provisional Patent Applications
USPTO Pro Se Assistance: [email protected]
1-866-767-3848
Concept Analysis Summary
• Innovation is a match between a need and a solution - successful innovations create value
• A Minimum Viable Product has the minimal set of features necessary to demonstrate the ability of the product to satisfy a customer need
• Bringing a new product to market requires experimentation to determine a viable solution solves a real problem that customers want
AGENDA• Concept Feasibility
– Forming a Business– New Product Development
• Business Case– Product / Market Fit– Value Proposition
• Scaling Your Business– Prototype to Production– Distribution Channels
• Financing Your Business– Sales, Costs and Profits– Debt and Equity Financing
Product / Market Fit• Who are the customers?• What problems do they have?• What solution are you proposing?• Who will be your competition?• What is your value proposition
– Why is your solution better than the competition?
• What is the market size?
“A product must be relevant to the customer (demand pull) or so innovative that that its existence changes the game (technology push)” MG Ted Bowlds
Role of Marketing
• Determine customer needs • Forecast product demand• Control and manage demand
– Marketing Plans, Programs, Promotional Campaigns
– Sales, Discounts, Incentives
Market Research
• Systematic design, collection, analysis• Reporting of data and relevant findings• Regarding a specific market condition
www.census.govwww.bea.govwww.sec.govwww.bls.govwww.sba.gov
Market Strategy Planning
CustomersNeeds and other
SegmentingDimensions
CompanyMission, Objectives
Resources
CompetitorsCurrent &
Prospective
SWOT
TargetMarket
Product Place
PromotionPrice
External Market EnvironmentTechnology Political & Legal Social & Cultural Economic
Targeting &Segmentation
Positioning &Differentiation
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Marketing Mix
The Four Customer 4’c
CustomerSolution
CustomerCost
Commun-ication
Conven-ience
TargetMarket
Product Place
PromotionPrice
Value Propositions
• Our product/service is for (target customers)
• Who are unhappy with (situation or alternative)
• Our product is a (new product)
• That provides (solution)
• Unlike (current alternatives
ProLink’s Value Prop
• Our product/service is for resort golf courses• Who are unhappy with slow speed of play • Our product is a golf course management
system• That provides 10% -15% increased revenue• Unlike relaying on persistent ranger surveillance
Revenue Generation via Leasing per Round of Golf:Golf Course: 25,000 rounds/year x $50/round = $1.25MM. 10% = $125,000 increase/yr.ProLink, Inc.: 25,000 rounds/year x $2/round = $50,000 x 2 years = $100,000 break even
Customer Adoption
2 1/2%Innovators
13 1/2%Early
adopters
34%Early
majority
34%Late
majority16%
Laggards
Time of adoption innovations
Stages:• Awareness• Interest• Evaluation• Trial• Adoption
Characteristics:• Relative advantage• Compatibility• Complexity• Divisibility• Communicability
Fitbits, Tablets, I-Phones were all technologies that adopters were late to embrace
The Product Life Cycle
EMBRYONIC GROWTH MATURE AGING
REJUVENATE?GROW NEW BUSINESS
IMPROVE COMPETITIVE
POSITIONLAUNCH NEW
BUSINESS
ESTABLISH COMPETITIVE
POSITION
SUSTAIN COMPETITIVE
POSITION
DIFFERENTIATION
COST REDUCTION
CUSTOMER SUPPORT
COST REDUCTION EXTEND RANGE OF PRODUCTS
IMPROVE FEATURES
REDUCE COST
RENEW?
ABANDON?REVENUE $
INDUSTRY MATURITY
Source: “Third Generation R&D: Managing the Link to Corporate Strategy”, Harvard Business School Press, 1991
Early Adopters Early Majority Late Majority Laggards
Sales Forecast
• Number of potential sales in each stage• Probability and $ at each stage & time to close• Monthly projection of sales revenues
Break-Even Analysis
Determines number of units needed to be sold where revenues equal total cost
$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000
Sales
Fixed Costs
Variable + Fixed Costs
Time
Break Even Point
Business Case
• Estimate total sales by unit– Integrate sales forecast with
production forecast• Estimate costs/profits
– Cost of Good Sold– Gross Profit– Development Costs– Marketing Costs– Distribution Costs– Allocated Overhead– Net Profit
Marginal Cost (MC)Marginal Revenue (MR)
Average Total Cost (ATC) = Fixed Costs (overhead)
+ Variable Costs
en.wikipediaderivative work: Jarry1250 (Costcurve_-_Combined.png)
Pricing Strategies
• Initial Price– Cost of material and service plus profit– Match competition
• Adjust Price– Monitor customer demand– Compare to competition– Insure values to customer– Reduce costs before increasing prices
• Price Set Too Low– Disrupt marketplace (price war)– New business suffers the most
Price Elasticity of Demand =Quantity Demand
Price
Why New Products Fail
• “Over Championing”• Overestimated Demand• Poor Design• Poor Marketing Execution• High Development Costs• Strong Competitive Reaction
Business Case Summary
• Exceptional products deliver customer satisfaction at an acceptable price conveniently
• A unique value proposition solves a customer’s problem better than any other alternative
• Product promotional and pricing strategies vary depending on the stage of the product life cycle
• A Business Model requires a value proposition and a business case to illustrate how revenue will be generated
• Break-Even occurs when sales volume covers both fixed and variable costs
• Financial Analysis requires a sales forecast and estimate of start-up costs and operating expenses to maintain a positive cash flow
AGENDA• Concept Feasibility
– Forming a Business– New Product Development
• Business Case– Product / Market Fit– Value Proposition
• Scaling Your Business– Prototype to Production– Distribution Channels
• Financing Your Business– Sales, Costs and Profits– Debt and Equity Financing
Scaling Your Business
ProblemSolution
Fit
SolutionMarket
FitScale
Pre -Commercialization Commercialization
Focus: Validated learningExperiments: Hypotheses Testing & Pivoting
Focus: GrowthExperiments: Optimizations
Carefully calibrate the growth of your operations so that they are in sync
with your revenue growth
Market Research toProduct Launch
Failure ModeEffects AnalysisAnd Testing
Design and Performance Specifications
RapidPrototyping
Distribution Channels
From Prototype to Production
• Bill of Materials– Metal or fabric? – How many parts?– Open market or custom fit?
• Minimum Order Quantity– Volume price breaks that factor in time to
set up and take down your project plus required labor and material plus profit
http://lineshapespace.com/manufacturing-costs-taking-your-idea-from-prototype-to-production
From Prototype to Production
• Purchase Order– To hit “start,” factories ask for a third to
half the total cost up front
• Tooling– A custom mold or fixture used to make
your product can cost from $1,000 to $200,000. You own it.
http://lineshapespace.com/manufacturing-costs-taking-your-idea-from-prototype-to-production
From Prototype to Production
• Quality Control– Work with factory to understand the
steps required to translate handmade or low-volume prototypes into large quantities
• Packaging– If your product is destined for retail
shelves, you’ll need packaging– Not just to protect your product, it’s
your marketing pitch
http://lineshapespace.com/manufacturing-costs-taking-your-idea-from-prototype-to-production
From Prototype to Production
• Shipping– Budget $1,000–$5,000 for relocating your
wares to storage
• Storage– Unless you have a garage, you will need a
storage center
http://lineshapespace.com/manufacturing-costs-taking-your-idea-from-prototype-to-production
Feasibility Assessment
RISK CUBE
Scaling Your Business Summary
• Incremental prototyping and product and market testing reduces overall risk and cost
• Scaling to production requires adding purchasing, tooling, quality, packaging, shipping and distribution functions
• Must consider economic, technical, operational and schedule feasibility factors
AGENDA• Concept Feasibility
– Forming a Business– New Product Development
• Business Case– Product / Market Fit– Value Proposition
• Scaling Your Business– Prototype to Production– Distribution Channels
• Financing Your Business > > Break?– Sales, Costs and Profits– Debt and Equity Financing
Bootstrapping• Bootstrapping is self funding to
avoiding the need to raise external financing
• 90 percent of entrepreneurs use
bootstrapping, since other people’s money comes with negative strings attached– Investors have Board Seats– Monthly Financial Reports– Constant Oversight – Justify Pivots– Constantly worry about Payback– Take over Control & Boot you out
"Bootstrapping with Friends and Family" https://www.youtube.com/watch?v=sfvwzUbBH4I
As long as you can bootstrap, not at the sacrifice of competitive advantage, bootstrapping is a
really powerful thing because it allows you to be totally devoted to your vision.” - Nick Woodman
(Founder and CEO of GoPro)
Bootstrapping Methods Work out of your home or
share office space Lease equipment or buy
used equipment Coordinate purchases
with other businesses Barter for services Federal Lab CRADA
Compensate with equity Obtain payments in advance Obtain vendor financing Emphasize profitability over
revenue growth Making due – manage on a
shoestring budget Get free advice on how to “do-it-
yourself”
Requires creativity, ingenuity, thriftiness and cost-cutting
http://techlinkcenter.org/crada
External Financing
• Family and Friends• Crowdfunding• Angel Investors and VCs
Equity
• Credit Cards & Bank Loans• Peer-to-Peer Lending• Angel Investors
Debt
• Grants.gov• SBIR.gov• Fedbizops.gov
Grants &Contracts
Sources of Funds
SavingsBank LoansCredit CardsFamilyBusiness AcquaintancesAngels InvestorsClose FriendsVenture Capital FirmsGovernment Grants
Kauffman Foundation survey of the 5,000 fastest growing U.S. companies
Angels versus VC Funds• Pre-Seed and Seed Capital Funds
– No product or organized company yet - still in the exploratory stage– Few Angels and VCs fund at this stage and amount invested would be small– Funding typically by Founder, Friends, and Family, and/or Crowdfunding– Create a sample product, fund market research, cover administrative costs
• Startup Capital Funds– Sample product available with at least one principal working full-time– Angel funding to cover recruitment of other key management, additional
market research, and finalizing of the product or service– Most Angels prefer sacrificing near-term profitability to maximize growth
• Early Stage and Expansion Capital (Series A/B Rounds)– After 2-3 years, management team is in place and sales are increasing– VC funding to increase sales to break-even, improve productivity, or efficiency– Private Equity Firms lever the business with debt to reduce equity investment
Staged InvestmentsStages: Tech Discovery Proof-of-Concept Design Develop Deliver
Scale
Investment: $25K $100K $500K $1MM $5MM $10MM $50MM
Type: Pre-Seed Funds Seed Start-Up Early Stage (A) Expansion (B)
Founders
Friends & Family
SBIR Phase I & II
Crowdfunding
Angel Investors
VC Funds
Private Equity
Loans / Bonds
Sources:
Valuation (3X Revenue): $1MM $5MM $15MM$30MM $150MM
Banking Basics
• Commercial & Retail Banks– Business Checking Account– Business Loans
• Investment Banks for Exit Strategy– Mergers and Acquisitions (M&A)– Initial Public Offerings (IPO)
• Buys common shares and sells them on the stock market– Leveraged Buy-Outs (LBO)
• Limited Partners in Private Equity Fund buy preferred shares of stock from company
• Stock is “leveraged” with Bank Loan
Know Your Credit Scores
Reports and Scores• Experian, Trans Union, and Equifax
Correcting errors
Where to get a free credit report• Report: Annualcreditreport.com• Score: myfico.com
How to Talk to a Banker
• Know how much you would like to borrow and what it will be used for
• Know how much you can afford to borrow
• Prepare a Loan Package• Be prepared to discuss your
ability to repay and terms• Be prepared to offer
collateral to secure the loan
Loan Package Components
Business Plan Loan Request Description of Collateral
Opening Day Balance Sheet
Summary of Start-up Costs
Sources and Uses of Capital
Personal Financial
Statement(s)
Lease Agreement
Tax Returns Resume(s)
Why do I need a Business Plan?
• Roadmap to the future• Gives basic structure • Translates your thoughts
and ideas to paper• Forces you to make a
budget• Necessary item for almost
every Funding Source
Business Plan Components
• Executive Summary• Company Background• Product/Service• Target Customers• Market Analysis• Competition• Barriers to Entry (IP)• Business Strategy
• Advertising/Promotion• Strategic Alliances• Organization• Financial Projections
– Sources & Uses of Funds – Balance Sheet – Income (P&L) Statement– Monthly Cash Flow
• Future Plans
Financial Projections
• Sources & Uses of Funds– List amount of funding needed and
expected source of each fund– List start-up costs - all items needed in
order to get the business running– List working capital needed based on cash
flow projections• Balance Sheet (Net Worth)
– Shows what you own (assets), what you owe (liabilities), and your equity (investment + retained earnings)
Assets(what the company owns)
Liabilities and Capital(what the company owes)
Must equal
Sample Balance Sheet
Financial Projections
• Income or P&L Statement– Gross Profit Margin– Net Profit Margin– Determines tax liabilities
• Monthly Cash Flow– Money that comes in and goes out to cover day-
to-day operations– Company can be profitable but still have negative
cash flow – may need to have a line of credit
Sample P&L Statement
Sample Cash Flow Statement
Are You Profitable?
• Gross Profit Margin (GPM)How much do you have left to pay fixed costs?
• Net Profit Margin (NPM)How much do you have left…period!
• Return on Total Assets (ROTA) How much do you make on the investment you have in the company?
Income Statement
(Sales – Costs of Goods Sold = GPM)
(Gross Margin – Operating Expenses, Interest and Taxes = NPM)
Balance Sheet
(Profit + Interest Income / Total Assets = ROTA)
Commercial Lending
• 6 C’s of Credit– Character/Credit
history– Capital/Equity– Capacity to
Repay/Cash Flow– Collateral– Conditions– Confidence
Evaluation Criteria
SBA 7a Loans
• Maximum $5MM Loan Guarantee– Secured by real estate are eligible to be financed up to
90% of the cost– Not secured by real estate are limited to 80% of cost – Business acquisitions are limited to 75%
• Lower payments due to longer amortization– Acquire, improve, or refinance real estate up to 25 years– Loans limited to non-real estate are limited to 10 years– Useful life equipment can be extended up to 15 years
SBA 7a Loans
• Don’t have to be fully collateralized– Borrower provides a full personal guarantee of the loan and
pledges “all available” business (and personal, if necessary) assets
• No loan covenants– Your business does not need to meet arbitrary goals or
numbers to keep your loan
• Never a balloon payment– SBA loan is fully amortized and cannot include any balloon
payment
Example: $500,000, 5-year loan, Prime + 2.25%, Guarantee Fee 3.0%
Equity Financing Questions• Why are you the right team?• Why are you going after this opportunity? • How do you know this is needed? • What are the early indications of product market fit?• What is the business model? What is the pricing?• What are the unit economics?• How are you going to acquire the customers?• What will this business be like in three years from now? • Who are the right investors? Why would they invest?• How do you get in front of them? https://angel.co• What will be important to them? https://gust.com
Equity Crowdfunding• Title III of JOBS Act to provide Seed Funding
– Finally, unregistered securities can now be sold to unaccredited investors (net worth < $1MM)
• A Small Business can raise up to $1MM/year• Maximum investment $100K/each/yr.
– Net worth or income <$100K: $2K or max 5%– Net worth or income >$100K: max 10% invest
• Rules for Small Business– Must use one investment platform at a time– Provide financial report to investors and SEC– Independent audit if more than one round
http://crowdfundcapitaladvisors.com/cca-reg-cf-index
Equity Crowdfunding Sites
• Wefunder• SeedInvest• StartEngine• NextSeed• FlashFunders• CrowdFundingSTAR • Crowdboarders.com• TruCrowd• IndieCrowdFunder• Jumpstart Micro
https://www.sec.gov/spotlight/jobs-act.shtml
Equity Crowdfunding Sites are NOT Fundraiser Sites like KickStarter or Indiegogo
https://republic.co/learn/investors/eligibility
Investor Pitch Deck (10/20/30)
• Start with a real world Problem or Opportunity • Solution – tell a story how you solved their pain• Size and growth potential of market opportunity• How the business model funds the business• Competitive advantage and barriers to entry• Start-up team strengths and experience• Marketing, Promotions, Advertising and Sales Plans• Projected revenue and expenses over 5 years• Immediate investment required and use of funds• Projected investor return and exit strategy
http://www.slideshare.net/QuintinAdamis/pitch-deck-template-by-guy-kawasaki
Equity Ownership
• Stock – Unit of equity ownership in a company (junior to debt) – Common Stock
• Issued to founders, employees and consultants
– Preferred Stock• Issued to Angel and VC investors• Preference over common stock on
dividends, distributions, liquidation and redemption (see backup slide for details)
Preferred Stock
• Charter terms -Liquidation preference -Dividend rights -Conversion rights -Veto rights
• Contractual control and protection -Voting control and board seats
-Veto rights -Equity participation rights -Registration rights
Courtesy of Foley Hoag LLP © 2016
Investor Term Sheets
• Outline of the terms of the transaction– Typically a Convertible Promissory Note
• Not a binding agreement to fund– Subject to due diligence and other provisions
• Confidentiality– Prohibits disclosure of terms and its existence
• Exclusivity– May give the investor some period of exclusivity (typically 30 to
60 days)
Courtesy of Foley Hoag LLP © 2016
Convertible Note• Debt that is payable before any return on equity
(stock) is distributed • Converts into stock upon specified events
– Equity financing (e.g., Series A round)– Sale of the company
• May have a cap (maximum conversion price) regardless of valuation
• Bears interest which will convert into equity along with the principal
• Maturity Date based on achieving next milestone
Courtesy of Foley Hoag LLP © 2016
Example - Convertible Note
• $100K convertible note, 5% interest, 25% discount • Converts to equity upon raise of $1MM • 18 month term • Series A round at $1.00 per share • Note converts into shares of Series A round:
- Principal + interest = $105K - Note converts at 25% discount ($0.75 per share) - $105K / $0.75 = 140,000 shares of preferred stock
• New investors get only 100,000 shares for $100,000
Courtesy of Foley Hoag LLP © 2016
When to use Notes• Usually simpler, faster and cheaper than preferred stock
financing through a Series A round• Generally speaking
- $500K or less, use convertible notes - $1MM or more, use preferred stock
• Consider if parties can’t agree on Company’s value: - Often the company and the investors just can’t agree
on the value of the company at an early stage– Notes are a way to treat angel money fairly by deferring a valuation until
institutional equity firms can negotiate
http://www.startupcompanylawyer.com
Courtesy of Foley Hoag LLP © 2016
Valuation versus Dilution
31.2
31.2
16.7
16.7
4.2
Angel Seed Round
Founder 1Founder 2AngelOption Pool Uncle
19.2
19.2
13.513.52.6
30.2
1.8
Early Stage Series A Round
Founder 1Founder 2AngelOptionsUncleVC Employee
Company Valuation = $500K$500K x 31.2% = $156,000
Company Valuation = $10MM$10MM x 19.2% = $1,920,000
Note: Stock Options are considered Deferred Compensation under IRC Section 409A
Aggregate Dollars Invested ÷ (Pre-Money Valuation + ADI) = Ownership PercentagePaul Graham’s Advice: Only give up N% equity if it will result in 1/(1-N) growth
Financing Summary• Bootstrapping avoids the need to raise
external debt or equity financing• Debt financing is based on ability to repay
the loan with interest and is secured by collateral
• Equity financing requires giving up a portion of ownership to provide investors with an return on investment
• Early-stage financing can include loans, convertible notes, and preferred stock
• Exit strategies can be IPO, M&A or LBO
Questions?
843-804-9026
Please schedule an appointment:
Jim Wasson, Ph.D., MBATechnology Commercialization Business
Consultant SC Small Business Development Centers
Citadel Bond Hall - Room 256A6296 Rivers Avenue, Suite 302, North
843-804-9026 or 607-727-4727