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The Venture Capital Industry
The Venture Capital Industry
Venture Capitalists
Responsibilities
Types of firms
Management of funds
Multiple funds
Private equity investing
Investment focus
Period of investment
Corporate venturing
Commitments of capital
Advisors and fund of funds
Disbursements
Syndications
Exits
Initial Public Offering
Mergers and acquisitions
Valuations
Management fees
Carried Interest
Refresh your concepts
What do Venture Capitalists look for
What do Venture Capitalists look for
Management team
Entrepreneurial traits
Leadership
Vision
Integrity
Openness
Dedication
Winning strategies
Winning strategies
Aim for a big market
Look for commitment
Know who you're talking to
Right contacts are vital
Make realistic assumptions
Provide clear milestones
Address your weaknesses
Don't exaggerate
Be buzzword compliant
State why you're different
Reveal the strengths of your team
Justify your target customers
Keep it simple
Executive Summary
Venture Capitalists are busy
Operative social device
Merging technology with vision
Crystallizing your concept
Future touchstone
Recall
Be Prepared With Your Business Proposal
Be Prepared With Your Business Proposal
Turning point
Using a broker
Make it brief
Ground rules
Swing for the fences
Look for a viable partner
Build mutual trust
Don't overdo things
Don't ignore competition
Be convincing
Be focused
Package an eye turner
Copies
Style of type
Graphs and pictures
Newspaper articles
Cover
Binding
Self analysis
Major Sections of a Business Proposal
Major Sections of a Business Proposal
Summary
Business and its future
General
Nature of the business
Business history
Business of the future
Uniqueness
Product or service
Customers of the product
Industry or market
Competition
Marketing
Production
Production
Production characteristics
Suppliers
Subcontractors
Backlog
Property and facilities
Equipment
Utilities
Research and development
Patents and trademarks
Litigation
Government regulations
Conflicts of interest
Corporate structure
Insurance
Taxes
Publications and associations
Illustrative information
Management
Management
Directors and officers
Key employees
Consultants
Management fidelity
Conflicts of interest
Stock options
Stock option plan
Principal shareholders
Employment agreements
Remuneration
Financing
Financing
Common stock
Preferred stock
Convertible debentures
Capital structure
Collateral for the financing
Guarantees
Conditions
Reporting
Use of proceeds
Ownership
Dilution
Fees paid
Investor involvement
Financial statements
Risk factors
Risk factors
Limited operating history
Limited resources
Limited experience
Market uncertainties
Production uncertainties
Liquidation
Dependence of key management
What could go wrong?
Other items
Return on Investment and Exit
Public offering
Sale
Buyback
Return on Investment
Analysis of operations and projections
General
Ratio Analysis
Results of operation
Financial conditions
Contingent liabilities
Financial projections
Test your fundas
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