This document provides an overview of raising funds for startups at different stages and from different sources. It discusses the stages of funding from pre-seed to IPO and examples of funding amounts. It emphasizes that startups need a solid business idea, strong management, and intellectual property protection to attract investors. The document also outlines what investors look for from startups and what startups should look for in investors. It stresses the importance of using funding wisely and delivering on promises to investors.
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MSC Malaysia InnoTech Johor - Raising Funds In today's Economy
1. Raising funds In todays Economy Powering your start-up Presented by Bob Chua CEO Pulse Group PLC (Ticker: PGRP)
3. Powering growth Sources of funding Starting-up Solid Business Idea Strong Management Funds to Grow IP Protection
4. Stages of funding Sources of funding $ Years Pre-Seed $25K-$50K Seed $150K-$500K Series-A $1m-$10m Series-B $5m-$15m Mezzanine/Pre-IPO $10m-$20m IPO $40m-$500m Second round $Xm
5. Sources of funds Pre-seed (3Fs Family, friends and fools) Seed (Grants, Seed-funds, Angels) Series-A, B, C, D (VCs) Mezzanine/Pre-IPO PEs, Private Investors, or Institutions IPO Financial Institutions and Public Secondary rounds PEs, Hedge Funds, Public etc. Sources of funding
7. Selecting Investors What theyre looking for from you Sources of funding Track Record Profitability Revenue Solid Products/ Services IP Protection Clean Structure Clean Accounts Strong Management Clear Exit Strategy Scalability Clients Brand Clear Vision Board Seat Brand Energizers Financial Modeling
8. Selecting Investors What you should be looking for from them Sources of funding Value-Add Synergistic Investees Synergistic Team Domain Expertise Strong Board Member/s Track-record Good and Fair Valuation Good reputation Deep-pockets
10. Responsibility Spend Proceeds Wisely Invest for the future Be conscious of the investment tenure, terms, and exit strategy Deliver on your promises Post funding
12. The realities of 2009 and beyond 2009 is going to be a tough year Investors are sitting on piles of cash, there IS money out there Exit Strategies are unclear Valuations will be brutal Shareholder value will be critical Cost of capital will be high There will be as many opportunities as there are challenges Survival of the fittest
13. Closing Thoughts Put your money where your mouth is Its about the fast eating the slow, not the large eating the small Tread carefully with external funding, but raise funds nonetheless Timing is everything Scale your business quickly Create and illustrate profits Continue to aim for the next big thing Deliver shareholder value
14. Words of Wisdom A Pessimist finds problems in an opportunity. An Optimist finds Opportunity in a problem Winston Churchill