1. Director of Investment Services
Business Plan
and
Equity Funding
October 7, 2017
David R Clark
Director of Investment Services

2. Remember, you are looking for equity funding.
Pop Quiz
I want to start a new venture because:
My invention/discovery will help mankind.
I want to build a company dominant in the market.
I want to get rich.
All of the above
Remember, you are looking for equity funding.

3. This show is entertainment but:
Not far from the truth
Hard questions
Business focused
Common format
Deal on the spot not realistic

4. Valley of Death 80% Failure Rate
2004

5. Why a Business Plan that nobody reads?
Business Strategies
Product/Service Development
Sales & Marketing
Financial
Other issues
Management in sync
(Equity Funding World)
Sell the venture
Due Diligence

6. Begin with the Problem Statement
Briefly describe the problem that your product/service is going to solve
Objective is to “capture” the reader
8 – 12 seconds attention span
average adult reads: 200 – 250 WPM
12 sec X 21 WPS = 252 words
Sets up the remainder of the business plan

7. Equity Funding 101 Technology Technology What is the Product/Service?
Note the word “product”
Technology
What is the Product/Service?
What is the value proposition?
Is there protected Intellectual Property?
What stage of development?
Are there barriers to development success?
Technology

8. Equity Funding 101 Market Technology Market What is it? How big is it?
Is there independent evidence of demand for your Product/Service?
Who are the competitors?
What is the differentiator?
What are the barriers to entry?
Market
Technology

9. Equity Funding 101 Management Management Technology Market
Who are you?
What domain expertize?
What entrepreneurial experience?
How much “skin” do you have in the game?
Management
Market
Technology

10. The Management Team Version 1.0
Product/Service Inventor
Marketing
Finance

11. The Management Team Version 2.0
Chief Executive
Product/Service
Development
Finance
Sales &
Marketing
Big Four

12. Attractive Investment?
Equity Funding 101
Attractive Investment?
What is the deal?
When do I “cash out” and how?
What are the key milestones?
What is the funding strategy?
Attractive Investment?
The “exit”
Management
Market
Technology

13. Integrated Timeline ($K)
Year 1
Year 2
Year 3
Alpha
Beta
Product/Serviceion
Development
Hire Sales
Sign 1st Distr
1st Sale
Sales & Mkting
Continued Sales
$20
$110
$15
$205
$120
$90
$135
Cash Balance
$150
$350
Investment
“Dry powder”

14. What really happens Read the first paragraph Look at the financials
$ Revenue line
Look at Management Team
Is there a ‘hook’?
How much &
20X N5?
Can they pull this off?

15. Biggest Mistakes by Entrepreneurs
Talk too much about the product/service and not the business.
Cannot articulate assumptions driving revenue and expenses.
Failing to involve former entrepreneurs.
No independent validations
(1% fallacy; “no competition”)
( of course you think it works)
Failing to realize that investors want to ‘cash out’ - not get a share of profits.
Not understanding IP issues.

16. Tell a Story You know, Barbara, there is a big problem . . . . .
But the good news is, Mark, we have a solution to that problem
Further, Kevin, there are a lot of people that have this problem
Also, we have the team that
can pull this off
Lastly, most importantly,
there is a lot of money to be
made here

17. Do you want to be rich? or
Do you want to be King?

18. David Clark Director Investment Services T3DC 210. 558
David Clark Director Investment Services T3DC