Successful Startup

Venture Financing

Step-by-Step Guide

  

Venture Capital (VC) Basics

  

By: Venture Planning Associates  (VPA)

U.S. venture capital consulting firm

 

 

Did you know, that there is more money looking for "a good deal" than there are "good deals" looking for money?

Many venturepreneurs would receive more serious consideration from investors and financial angels if they would realize that they are selling a financial package to the financial marketplace, rather than their product or service to a consumer.

The goal of every business plan should be to address upside potential, downside risk, management, potential dilution, and liquidity issues.  >>>

Investors are constantly comparing one investment against another and ranking them in numerous categories.  >>>

To properly evaluate your own project,
put yourself in the place of investors, who want to know the answers to these six simple questions.

 		 

Best Advice to Entrepreneurs

Stages of Venture Capital

Venture Planning Checklist

Customer Assessment

Venture Model

Financial Assessment

Venture Evaluation and Reality Check

Dealing with Banks

 		 

 

 
 

Documentation

To attract and hold investor interest, the business must provide top quality documentation: 

▪ Executive Summary  (3 - 5 pages)

▪ Business Plan  >>>

▪ Due Diligence Material  (Market Studies, Research Papers, Patents, etc.)  >>>

▪ Business Valuations  (Company and investor pre and post investment values)

▪ Deal Structures  (To sell minimum shares for maximum dollar investment)  >>>

 		 

Stronger Business Design

Private Placement Memorandum

Investor Returns, Timing & Cost of Capital

VC Investor Pitch

6Ws  ▪  Spotless

  

 
 

Basic Elements of a Good Deal

There are six basic elements that will entice an investor to take a serious look at your project.  They are:

① Do I like the feel of this project, its market area, and its management team?

② Will I get my capital back off the top? (hopefully not off  the bottom)

③ Is there a big upside potential?  Stock conversions, possible IPO, early payouts, etc.?

④ What assurances will I have that the business plan will be followed and can be executed?

⑤ How will I be involved? Director, consultant, officer, employee?

⑥ What other opportunities are there available that is better than this one?

  

About VC

Best Advice to Entrepreneurs

Stages of Venture Capital

VC Funding

Making the Best of the Venture Capital Obtained

Venture Capital Is Not the Only Way

  

 

 

 

 
 

Critical Deal Criteria

▪ Early investor return of capital.

▪ Premium paid for the risks involved.

▪ Kickers or other incentives not necessarily monetary in nature.

▪ Options to increase equity share or liquidate early.

▪ Tax and legal considerations including state securities laws.

▪ Is the entrepreneur being adequately compensated so that he remains focused on the business and can afford to live during the startup stage?

 		 

Venture Investing

Process

Wise Agreement

Successful Startup

7 Characteristics

INNOBALL

Achieve Much More

 		 

 

 

Vadim Koelnikov personal logo

Smart & Fast

Innovative Entrepreneur

  

 

 

 
 

Venture Planning Associates, USA, a business planning and venture capital consulting business. 

VPA specializes in assisting
disruptive entrepreneurs
and start up companies with financing and assisting them in becoming profitable enterprises.