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Presenta(on to Business Exchange Club Wednesday, September 29, 2010
Tony Chan – Founder and CEO
The 5 Ps to Finding Capital and A4rac7ng Investors To Your Business
A Quick Survey
– WHO has wriKen a business plan?
– WHO has pitched to investors?
– WHO has successfully raised funds ?
– 1 in 10 business plans wriKen ever gets funded
• FACT: RAISING FUNDS IS A DAUNTING TASK
Quick Survey Part 2 Why Raise Funds?
a) I don’t need to risk or put up my own capital
b) I need to pay off my debts and the company’s bills. If not, we will be broke soon.
c) I want to grow my business and take it to the next level. I will reach profitability and return an investment for investors.
RAISE MONEY FOR THE RIGHT REASONS
Why Investors Invest ?
1. I like you, I believe in your dream and vision
2. I like your product and I can contribute to your business with my experience…
3. I think you will make a return on my money and a big fat profit
ALL THE ABOVE ARE TRUE (THINK LIKE THE INVESTOR)
The 5P’s of Finding Capital and AKrac(ng Investors to your business
1. Planning 2. Promo(on 3. Placement
Tony Chan
4. Presenta(on 5. People
Steve Bruce
About me
Tony Chan • 15 years in Financial Industry
• 2 years with Thomson Financial Reuters
• 4 years in UBS / SBC Warburg
• 3 start-‐ups during the dot com period. Raised around USD$15m
• 4 years in offshore fiduciary – offshore banking
• MBA –Interna(onal Management
• Interests – Entrepreneur Club, start-‐ups and early stage businesses.
Founder and CEO, Asia Pacific DealFlow Ltd
Zetland Financial Group General Manager, Corporate Finance and Investments
P1: Planning
• Its in your head – get it on paper • Summarize – sketch out your idea • Discuss, share, find advice • Refine the idea • Business Plan not always necessary • Financials – es(mate your income and expenses
• When to start fund-‐raising?
Rounds of corporate funding
STARTUP EARLY STAGE HIGH GROWTH
Size of funding
Size of funding
stage of growth
P1: Planning (business plan)
Typical Business Plan Outline:
1. Execu(ve summary 2. Product and services 3. Market and industry
overview 4. Management team 5. Financials 6. Related informa(on
APDealFlow web 2.0 template
1. Exec Summary 2. Template business
plan (leg) 3. Pictures 4. Videos 5. PowerPoint 6. Document sharing
P2: Promo(on – Who is your target investor?
Angel Investors Venture Capital and Private Equity
Friends and Family Bank Loans / SME grants and schemes
LEVEL OF DIFFICULTY
SIZE O
F FUNDING
Promo(on : Using APDealFlow
Promo(on – APDealFlow deal content
• Standardised template format for deals
• Media rich ( pictures, videos, PowerPoint)
• Promo7on – pushing deals to investors and Agents
• Distribu7on – can promote deals via LinkedIn, Facebook user groups
• Security – informa(on can be locked and requires request and approve
Promo(on – AP DealFLow assists in Planning, Promo(on and Placement
OTHER AGENTS
AGENT’S CLIENTS
ANGEL INVESTORS
VC and PRIVATE EQUITY
INVESTEE COMPANIES
AGENT
Promo(on – Using the APDealFlow network
Intermediary
Intermediary
PULLING DEALS
Intermediary
Investors
PRIVATE EQUITY
PUSHING TO INVESTORS
AGENT
(P3) Placement – closing a deal
• What is a fund-‐raising – a placement of shares
• Start with a term sheet – on your terms • Nego(ate with calm, be professional • Use Agents to nego(ate sensi(ve issues • Strive to find common ground • Stay away from Brinksmanship • Agree and s(ck to your agreement
Placement – steps in closing a deal
Steps in closing a deal
1. Ini(al contact 2. First formal mee(ng 3. Exchange of informa(on 4. Informal due diligence 5. Term sheet nego(ated 6. Investor quality review 7. Term sheet issued 8. Investment approval 9. Formal due diligence 10. Formal approval 11. Legal documenta(on 12. CLOSING
( Raising Angel inves8ng and corporate finance, Dr Tom Makcaskill)
ADVICE
GET HELP
Get an AGENT – Lawyer – Accountant – Corporate Finance
Promo(on – why use Agents
• PLANNING -‐ Deals can be done professionally • PROMOTION -‐ Finding Investors for yoou • PLACEMENT – Nego(a(ng and closing the deal
• BONUS – Most agents work on success basis
WARNING -‐ ***ADVERTISEMENT **
• My other AGENT hat • Zetland Fiduciary Group • Corporate Finance & Investments • Venture capital to pre-‐IPO deals • Deal-‐range from USD2-‐5m • Capabili(es – – Offshore structuring – Fund-‐raising – Deal documenta(on – Post Deal – trust and fidicuary
Freebies
1. Free Ebook, Raising Angel inves(ng and corporate finance, Dr Tom Makcaskill). Please find from my site www.apdealflow.com
2. Video on How to pitching to VCs , David Rose, Pitching Coach and VCs, www.ted.com
3. Free Lis7ng on APDealFlow worth USD$200. Contact me. [email protected]
Finally -‐ OTHER Ps in fund-‐raising
Passion� Product � Personality � Performance � Practice �
Personal networks � Persistence �
Final thoughts
• Fund raising is very difficult to succeed • It gets easier the more you prac(ce it
• APDealFlow is a plarorm to PLAN and PROMOTE
• Use Agents to do your PLACEMENT
• Its about You and your business
Go forth, create, build and prosper
A bit of fun – WALL STREET
IS GREED GOOD ?
The 5P’s of Finding Capital and AKrac(ng Investors to your business
1. Planning 2. Promo(on 3. Placement
Tony Chan
4. Presenta(on 5. People
Steve Bruce
