Professional Documents
Culture Documents
Background
Start-up
Ongoing Operations
Growth
Review
The Search for Capital
need capital
don’t have access to capital markets
have limited choices
owners are often inexperienced
The Search for Capital
Finance Theories: Common Themes
http://edcorner.stanford.edu/authorMaterialI
nfo.html?mid=1374
(3 minutes)
General Sources of Capital
Personal Equity
Friends and Family
Loans from Financial Institutions
Bootstrap Financing
Common Sources of Growth Capital
“Angel” Investors
Venture Capital
Sale of Stock
Profits
Angel Investors
Not Easy
Cluster
Personal Network
Referrals: attorneys, accountants, bankers
Local Associations
Angel Investors: Due Diligence
Business Plan
Product
Nature of Opportunity
ROI
Cashflow
Management Team (Background Checks)
Exit Opportunity
“ Portals” to Angels
VCs and angel investors more cautious, pursued later stage investments
Needs
Of Characteristics
Firm of VC Firm
Identifying a Venture Capitalist
Stage of Development
Amount of Investment
Industry
Services Offered
Reputation
Successful Record
VC Investment Criteria
Entrepreneur
Rate of Potential (50%/year)
Board of Directors
Management Team
Intellectual Property
Exit Opportunity
Venture Capital in Portugal
Screening
Due Diligence
Management Team
Competitive Advantage
Growth Potential
Exit Opportunity
Financial Projections
Intellectual Property
Venture Capital in Portugal
Process
– Underwriter
– Security and Exchange Commission
– Road Show