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Stepping into the ring with investors

Stepping into the ring with equity investors is a challenge fraught with danger for any entrepreneur – and especially if they have never experienced a capital raising before. Here are a few insights to key concepts in the business of equity investing: Pre-money vs. Post-money Any serious equity investor – …

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The endless variety of startup value

Start-up companies come in all forms, including those that are driven by “solopreneurs” – such as an innovative professional service provider, and more “lifestyle” companies – for example, an exotic plant nursery or organic bakery. The term “start-up” however is traditionally associated with “venturepreneurs” – entrepreneurs at the helm of …

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Bringing the Deal Together

Assuming the Due Diligence process has not uncovered major issues relating to the prospects or current management of the business, the parties will then prepare and sign formal documentation which sets out the detailed mechanics for the issues set out in the Terms Sheet. In most cases the legal documentation …

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Exit planning – who wants to succeed?

At some point in time, a business owner must seek to exit the business, either by selling to a third party or being bought out by existing and/or new management or handing over the reins of power and control to a known successor. The difference between a deal that generates …

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Understanding Equity Capital

The main reasons that businesses require new equity are to commercialise new products and services; to commence commercial operations; to finance a growth strategy; to change the ownership structure; to restructure the business, or to change the capital structure of the business (“recapitalise’). The venture capital industry classifies Equity Capital …

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The Heart of an Angel

The most common question I get from early-stage entrepreneurs is about how to find Angel Investors. If it seems like they are hard to find – or hard to convince – it could be you are looking in the wrong places. Finding the Angel that is the right match for your venture …

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The Ideal Venture

I had the opportunity of meeting with a couple of highly successful ‘exited’ entrepreneurs recently and the discussion turned to the lessons they had learned from their entrepreneurial exploits and what the ‘Ideal venture” would look like if they were to do it all again. The first one was adamant …

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300 to 1 Odds for SUCCESS, if You Have a VISION…

Leadership has three key elements; Vision, Action and Spirit. Any leader you may have found inspiring will have had a vision – a place they were leading you or others towards. They were taking action on that vision, otherwise it’s “all talk and no action”, an empty promise. And almost …

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Vive l’Enturepreneur!

Unquestionably, entrepreneurs without a tangible passion for their technology, product or service are soon statistics. However, the more experience I accrue from interacting with Angels and VC and developing entrepreneurial ventures, the more I appreciate the importance of the deal and how it is conceived – let alone how it …

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Pre-money vs. Post-money

Any serious equity investor – and savvy entrepreneur – will focus on the pre-money valuation of a company. Both pre-money and post-money are simply valuation measures. The difference between them is simply a matter of timing of valuation. Pre-money valuation refers to a company’s value before it receives outside financing or the latest …

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