Category: Blog

Taking the Long View

Anyone who is familiar with the basics of corporate finance theory will be conversant with the fact that the theoretical value of a business is Net Present Value (NPV) of future cash flows from the business discounted at the cost of capital applicable to the company – or its perceived …

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The Golden Rule

Raising venture funding and investing for equity has been called “the great financing game”. It’s a game whose rules of engagement, playing conditions and plan of attack – and usually the final score – are dictated by the money. As an early investor of mine said to me as he …

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Venture planning to grab attention

It doesn’t have to be fancy and bound in leather, but your completed Venture Plan should look professionally prepared and be ready for serious review by potential investors. Here’s how to make sure it looks right and does the job. When you sit down to write your plan, think of …

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Crafting a compelling investor briefing

The Investor Briefing Document is your first introduction to a potential investor. The purpose of the Investor Briefing Document is to sell, not to describe. It’s therefore critically important that you create the right first impression. You do not need to explain the entire business plan in 250 words. You …

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Valuing Early-stage Ventures

Agreeing to a valuation of a young and growing business between the existing shareholders and the potential investor can be one of the most difficult issues in an equity investment deal. Valuing a company of any size is never easy but it is especially onerous if that company happens to …

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Reverse Due Diligence

Companies intending to market some or all of their equity in order to raise growth capital should be prepared for the significant amount of Due Diligence that an Angel, Venture Capital or Private Equity investor and their advisors may require before consummating an equity financing deal. A broad definition of …

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Team Sheets or Death Warrants

The Terms Sheet is perhaps the most important document the entrepreneur can get right. All else fall – or hangs – from it. The Terms Sheet sets out the basic framework for the deal. It can be a excruciatingly boring document to develop and read – particularly as the language …

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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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