Some Suggestions on Financing Strategy
- Seek out knowledgeable investors with compatible chemistry
- Tailor your approach, valuation and deal structure to the partner/investor group
- Be able to explain and justify your valuation and have a range of values in mind (build value ahead of financing)
- Develop a financing strategy that lowers the risk for investors
* current return if cash flow permits
* funding in smaller increments
* establish measurable milestones, they communicate value
* up-front commitment for round 2, if milestones are met
- If possible, don’t discuss valuation until your “dream” is sold
- Have…Executive Summary (2 pgs), Presentation (15-18 slides), Business Plan (? pgs)