based on several sources gate2growth Prof. Faltin VCs
on average it takes 6 - 12 months
you should be ready for a due diligence when you start
taste of investor
qualifications/experience of entrepreneur
adressing technical/commercial risks
investment summary, short description of investment opportunity, why investor can make money, capital requirement, purpose of funding, timing of exit, general infos
presentation (see below)
1 or more rounds. Scenario A: small funding, fast milestones preparing a leap frog round. Scenario B: big round.
factors for price tag
several capital infusions with valuation and exit opportunities syndication (creates security for the investor)
if needed: structuring an investor consortium
Every preso should be catered to the individual investor (prepare background info like do the syndicated deals, which sectors, exits ...) preso based on business plan with in-depth insights
competitive position see USPs
business model + sales & marketing strategy
managements background, organizational development - team
financial goals, cost structure ...
outline of exit straegies
milestones plus budget
non-legally-binding terms before due dilligence. Contents goes into shareholder agreement company should have the lead in order to influence the final agreement (SA).
where to put the money
checking of business plan stressful reaction of management is crucial (part of the game) can last months
save some cash for alternatives in order to not be trapped
legally binding involve lawyer
objectives of the agreement
share capital of company and distribution incl. schemes
articles of association and by laws of compan
board of directors, advisory board, director's rules
management of the company
audits and accounts
breaches of SA
voting rights of shares
endorsement of share certificates and escrow account
start and termination of SA
arbitration and governing law
USP in the market
protection against copycats
protect against technological obsolescence
protect against revenue creation obsolescence
marketing as integral part of bizplan
lean on finance
scalability, simplicity vs. complexity
How much will it cost you to acquire a user?
How will you convert him to a paying customer?
How much will you make off him while he is paying you?
What do you estimate churn at and how do you up retention?