Wednesday, October 20, 2010

Is it really venture you want?
Venture capital investors are looking for a normal rate of return on their individual investments that are at least 50 percent IRR (annual return). As an entrepreneur to be approaching this group, ask yourself these questions: Can I deliver this? Am I enough driving? Do I have the right product and market structure in order to succeed?
It is important to remember that the number of applicants who receive capital invested in their company are much fewer than those who did not receive.

A business plan and not a list of promises
Investors expect realistic revenue projections. The basis for these expectations to be based on well-thought-out, bottom-up forecasts of customer data for customer and activities required for processing. It is not excellchartsautomatik to demonstrate the vision and future prospects without the informed projections and plans.
A concrete and clear business plan already in its early life is a must. Claims must be avoided as much as possible.

Leadership - who will deliver what is said in the business plan?
The management of the company is expected to perform as stated in the business plan . To not promise more than can be delivered is important. Not least in view of future investment rounds in which a good track record of previous plans can be essential for success.
What is there to help in efforts to manage the business plan expectations? Here it is important to show that there is access to a network of expertise and knowledge, ranging from legal to marketing and strategy skills. Demonstrating a desire and willingness to take on board the necessary external knowledge can be crucial for attracting investors' interest and to demonstrate the competencies that must be recruited, to be replaced and / or upgraded. Being able to demonstrate experience of previous successful expansion project is a powerful ingredient.

Exits
A venture capitalist is to deliver returns to its investors in order to in turn be able to travel for future capital investments. It is therefore important to give a clear picture that it is not the individual in the company which is the overarching importance and it is the project / company to be successful and therefore persons. Show therefore a good understanding of how the market looks in terms of competitors, size, market structure (the buyers / sellers) mm and a vision of how an exit could go to and which ones may be the actual buyers.

Take advice from as many as needed
Finding capital can be for the applicant to be a recurring task. However, for investors, it is their full-time employment. Search, therefore, advice from many sources with knowledge of investment processes. These sources include accountants, lawyers, corporate finance and banking professionals. The purpose of information gathering is to create a realistic investment prospectus relating to the conditions and values as a supplement to the business plan.
The advisers are also knowledge of the venture capitalists who invest in the project and using it to streamline the capital increase. The Swedish Venture Capital Association's website and this directory is also a tool in the design and sökarbetet.
Seeking help to communicate the investment prospectus to investors may also be well advised to adapt the presentation to various situations ranging from so-called elevator-pitches short, concise, to complete long surveys. Such advisers may be as Connect, which also helps with investment forums and contacts with investors, and other advisers can be found in the Swedish Venture Capital Association's membership directory.

Show off who runs the company!
In the previous paragraph, we emphasized the importance of a strong management team, strong network, board, etc. but these can not replace the important role of president has to present and convey the feeling of an exciting investeringspropå. Delegating showcase the work should be avoided. A good and stimulating cooperation begins at the first meeting.

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