Category Archives: Fund Raising

Update – Early Stage Business Plan White Paper

This Update – Early Stage Business Plan White Paper information is for the White Paper Startup Presentations To Angel/Seed Stage Investors and Partners Recommendations for Best Practices by John GaleThis White Paper can be downloaded from our page Business Plans

This Post provides updates to this White Paper.

Several of my Editorial Review Board Members and I agreed that the following Update – Early Stage Business Plan White Paper information might be useful to readers of this White Paper:

  • This White Paper is a Guide
    This is noted at the bottom of page 14.  Each startup is unique in its own way.  Include the information that is relevant.  But that does not mean that you can choose to leave information out just to save time
  • Unfair Competitive Advantage
    This is mentioned in Objectives for the First Meeting (Subsection on Investor/Partner Objectives) on page 9 and in Competition on page 18
    To Clarify, fewer startups now have the stronger protection of patents such as those enjoyed by many fabless semiconductor startups.  So the startup needs to develop an unfair competitive advantage of some type that will last while it develops an installed base that it can perpetuate; typically this takes 2-3 years.  That unfair competitive advantage needs to create/include barriers to competitive entry.  Restated; if you can stay 1-2 years ahead of your competitors for 2-3 years; you should have the time that you need to create a substantial installed base of customers.  One of the startup’s CEO’s difficult tasks is to convince potential investors, potential employees, other potential stakeholders and him/herself that this unfair advantage is real and adequate.
  • Competition
    Please see Page 18
    As noted in the White Paper, there is ALWAYS competition for budget dollars/Euros from the perspective of someone buying a product.  This is not understood by many startup CEOs
  • Importance of this information
    As discussed in pages 5-14; each startup has various uses for this information in various formats
    It is worth preparing a robust plan presentation as it becomes the basis of so many other presentations; as it is revised/updated numerous times over the years
  • Unqualified Investors
    The startup presents less information to investors before they are qualified in his mind.  One reason is that a good number of very early stage investors invest only in stealthy startups.  Another is to avoid providing information to investors in competitive startups.  Please see my blog posts on Meeting I, Meeting II and Meeting III

Conclusion

This Post provides an Update – Early Stage Business Plan White Paper.  This is for the White Paper Startup Presentations To Angel-Seed Stage Investors and Partners Recommendations for Best Practices by John Gale and helps the Startup CEO keep up-to-date.

Please See Also

The page on this website titled Business Plans  from which you can download the White Paper on early stage Business Plans

John Gale’s Posts

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List of Marketplaces for Startups

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Capitalization Table for a Startup

Meaning of Capitalization Table A capitalization table for a startup is a spreadsheet that describes the ownership stakes in a startup. A capitalization table is accurate documentation of all the primary shareholders of a startup, in addition to their pro-rata ownership of all the securities granted by the business (common shares, preferred shares, and options),…Continue Reading

Stock Dilution

For a startup, stock dilution is an ownership impact caused by the issue of additional shares of common stock.  When the startup issues more common stock, by definition a stockholder then owns a smaller percentage of the total number of shares.  This is stock dilution.  It impacts both shares and options. From a Silicon Valley…Continue Reading

Alternative Funding for Startups

Traditionally startups use angel investors and venture capital firms as their sources of funding. However, there is alternative funding for startups. Crowdfunding Seedrs and Kickstarter are examples. Please search our Blog Posts for crowdfunding to find 10 posts on crowdfunding. Government grants US Government agencies EU government agencies and EU Country government agencies and other…Continue Reading

List of Silicon Valley Angel Groups

This Post is a partial list of Silicon Valley Angel Groups.  An angel investor is a wealthy individual who invests in a business startup. A few are billionaires.  They provide (primarily) investment and advice to startups. Angels are also known as business angels. Angel investors and some venture capitalists who invest in early stage startups…Continue Reading

Selecting Venture Capital Firms For Your Startup

Selecting venture capital firms for your startup is one of the very important tasks. It is critical to research the venture capital firms that are focused on your needs before you contact them. VC requirements Venture capital firms have evaluation criteria for startups. As a part of your research into specific firms; learn their sector…Continue Reading

Why startup applications for venture capital fail

Many business people want to create startups. Many of the startups apply for venture capital. But an application for venture capital funding has to conform to guidelines and procedures and be selected. The process takes months. Why startup applications for venture capital fail You need to understand both why applicants fail to succeed and why…Continue Reading

Stages of Corporate Venture Capital funding

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List of Debt Crowdfunding Sites in the UK

Debt crowdfunding sites (also known as peer to peer lending sites) are close to offering bank loans in that money borrowed is paid back to the lender with interest.  This can work better for businesses not able or willing to borrow from traditional sources such as banks. The ‘loan’ is spread over many individual lenders…Continue Reading

List of US Crowd Funding Success

While Crowd Funding Success first happened in the United Kingdom, it didn’t take long for American entrepreneurs to follow suit. Since then many new companies have launched and succeeded thanks to this new method. Here are just four US businesses from big to small that can give thanks to the financial phenomenon that is Crowd…Continue Reading

List of Equity Crowdfunding Successes in the UK

Equity Crowdfunding Successes in the UK – 4 startups that succeeded. Do crowd funded startups really make it? It’s a sensible question that anyone looking at opening a campaign will end up asking. The answer is yes, In the United kingdom alone, many small businesses have grown and seen their products flourish thanks to crowd…Continue Reading

What is Rockethub?

What is RocketHub and why it is considered one of the best crowd funding websites? If I asked you to name a crowd funding site what would you say? Kickstarter? Indigogo? One of the bigger recognized platforms are probably on the tip of your tongue, the explosion in crowd funding as a financing method has…Continue Reading

How to Understand Startup Valuation

Types of startup valuation How to Understand Startup Valuation is an important issue for a startup CEO. There are different types of startup valuation.  Each is appropriate for startups in different sectors at different stages in their corporate life cycle. The startup valuation methods will be different for each of: Raising a round of investment…Continue Reading

Criteria To Be A Successful Startup CEO

Several have asked what are the Criteria To Be A Successful Startup CEO. Criteria To Be A Successful Startup CEO Vary Depending on the Situation Unfortunately, the criteria to be a successful startup CEO vary depending on the person, his/her experience, the offering of the startup, the target market, the stage in the business life…Continue Reading

First Contact With An Investor

Before First Contact With An Investor In planning your first contact with an investor: Develop a list of criteria that an investor in your company must have Research relevant investors and develop a list of candidates Plan your first contact with each investor Before your first contact with a specific investor: Further research the relevant…Continue Reading

Bad Term Sheet

A term sheet is a document that describes the agreement by which a startup acquires financing.  Some use the phrase Term Sheet to describe the terms of any business agreement.  You should always obtain advice from a lawyer before signing a Term Sheet. Problems in a Bad Term Sheet A bad term sheet may include…Continue Reading

Early Stage Startup Desired Characteristics

At any given time here are thousands of new ventures and startups.  Many have high energy officers and exciting new ideas.  It can be difficult to separate out those with more likelihood of success. Early Stage Startup Desired Characteristics When you see an early stage startup with characteristics such as those listed below, they are…Continue Reading

Unique Information in Your Investor Presentation

Unique information in your investor presentation will help you to stand out. Each new venture needs to be unique.  So during Investor Presentation Development one needs to consider unique information that has not been addressed in other sections. Unique Information in Your Investor Presentation This section/slide of your presentation to investors should address information that does…Continue Reading

Investor Presentation Development – Fund Raising

Fund-raising is a subject the Company usually wants to discuss only with Investors. However, business partners and customers are also interested and in early days may insist on knowing about it. Business development executives and Investors prefer that the Company include valuation expectations. However, the Company is advised to be informed on this; but not…Continue Reading

Robust Business Model

A number of well informed executives feel that for an early stage new venture having developed a robust business model is more important than spending time on writing a good business plan. Robust Business Model The Business Model section/slide of an investor presentation should address: A robust description of the Company’s business model The best…Continue Reading

Investor Presentation Development – Technology and IP

For a first presentation, some technically focused strategic funds and some technology companies will wish to see much more technical information. For example, some in the semiconductor industry will prefer to see a one hour technical presentation at the block diagram level. Investor Presentation Development – Technology and IP This slide should address: What is…Continue Reading

Investor Presentation Development – Competition

  Investor Presentation Development – Competition This section/slide of your investor presentation should address: Who are the competitors? There is ALWAYS competition in the eyes of a prospect. Even if the potential customer is doing nothing, the Company must overcome the customer’s inertia and current allocation of money to unrelated products and services. What do…Continue Reading

Investor Presentations – Customers and Partners

For Investor Presentations – Customers and Partners are essential information.  Having real, paying customers who will talk to potential investors is a key asset for a startup in raising funds.  If you do succeed in raising funds before having paying customers, your valuation will be disadvantageous (terrible). Investor Presentations – Customers and Partners This section/slide…Continue Reading

Investor Presentation – Achievements and Assets

One important aspect of an Investor Presentation – Achievements and Assets.  This is compelling information as to what has been accomplished to date. Investor Presentation – Achievements and Assets This section/slide should address: Description of history or track record including a list of key achievements to date, probably in a timeline format. One example is FDA…Continue Reading

Board of Advisors

Board of Advisors A Board of Advisors is most valuable early; at the angel or seed stage, and less crucial later. This is because potential investors in early stage entities frequently like to see advisors in place.  A Board of Advisors typically includes Advisors of various types (business technological market etc.) as well as attorneys;…Continue Reading

Investor Presentation – Market Opportunity

Investor Presentation – Market Opportunity This section/slide should address: Target markets showing segmentation based on the Standard Industrial Classification Code (SIC Code) or North American Industry Classification System (NAICS Codes); or similar codes as used in your country.  How large is each, how are they growing?  What part of which segments are addressable and why?…Continue Reading

Investor Presentation – Market Pain and Solution

For an Investor Presentation – Market Pain and Solution are must-have key success factors.  Without believing in them the potential investor will not believe in the startup. Investor Presentation – Market Pain and Solution This section/slide should address: What market pain (problem) is addressed? Why is a solution needed? To what sector(s); and to which…Continue Reading

Investor Presentation – Strategy

For an Investor Presentation – Strategy is an essential part.  The overall Strategy by which the new venture will achieve its goals is very important. Investor Presentation – Strategy This section/slide should address: A high level discussion of how the company will accomplish its mission; with an emphasis on the next twelve months. It includes…Continue Reading

Mission Statement in Investor Presentation

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Versions of the Business Plan PowerPoint

Versions of the Business Plan PowerPoint vary for several reasons.  In presenting to an Angel Investor Seed Stage Investor or to a potential Partner a new venture will hopefully make several presentations over the course of several meetings.  Thus agenda and presentations must be prepared for Meeting#1 Meeting #2 and so forth.  During the course…Continue Reading

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