Raising Venture Capital

Raising venture capital The Process by Mr Ties van der Laan Ties Corporate Finance 10, rue des Alouettes, L-1121 Luxembourg-Cents Luxembourg m +352 691 427 566, t/f +352 427 566 e ties@ties.lu, i www.ties.lu Who am I? After nearly ten years in Dutch venture capital companies (ING Group) I am coaching since 1999 entrepreneurs and management teams to raise finance, first through LIFT and from mid 2002 as an independent business coach The preparation (I) About investors and their network: Research on investors complete Targeted networking Criteria for choosing investors clear The preparation (II) On business and strategic planning: Your business plan is perfect Your presentation is impeccable Your pitch is excellent NB. Use an experienced mentor/coach (but keep in the background) The approach (I)  Carefully choose 2/3 investment managers  Check your network thoroughly if someone knows them  If so, convince that person to introduce you and organise a meeting or let him/her send executive summary  If not, send executive summary personally to a chosen investment manager NB. Send executive summary in hard copy The approach (II) If executive summary sent:  Call a week later If interested send business plan (hardcopy)  Call a week later  Confirm meeting in writing Prepare first meeting (I) Know your potential partner  Analyse information on website  Ask people in your network  Call CEO’s of portfolio companies  Prepare questions for investor  Prepare answers to possible questions (especially for tough ones) Prepare first meeting (II) Training and mentally:  Practice your presentation and pitch  Open, honest, enthusiastic and realistic  Show commitment and self confidence Follow-up Assist investor in first assessment:  provide complete and timely information  company visit  customer calls  provide references  postpone discussions on valuation Term sheet =General outline of deal (provided outcome of further due diligence is positive)  Drawn up after several discussions  Content: important assumptions, who’s money when, shareholding, option schemes, board of directors, timing, parties involved, exit strategy etc. Due diligence = research to find out if everything you claim is true Undress via:  Financial: accountants  Legal: lawyers  Market: investor or outside party  Product: investor or outside party  Personal references: investor Result Documentation:  Reps and warranties (of founder/seller)  Legal structure  Company statutes  Shareholders agreement  (Non-executive or supervisory board) Timing Preparation: several months Term sheet: several weeks / months Legal documents: several weeks Most important Investing is people’s business Partnership for 3 to 7 years Investor chooses you You choose investor Ties van der Laan Coach in raising finance for the expansion of businesses To create a winning business plan To approach investors professionally To negotiate with investors successfully Contact details Ties Corporate Finance Ties van der Laan 10, rue des Alouettes L-1121 Luxembourg-Cents Mobile: (+352) 691 427 566 Fax: (+352) 427 566 Email: ties@ties.lu Internet: www.ties.lu