Ready, Set, Grow Invest in your business and plan for growth.
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Ready, Set, Grow Invest in your business and plan for growth
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Transcript of Ready, Set, Grow Invest in your business and plan for growth.
Ready, Set, GrowInvest in your business and plan for growth
9am Capital options, timings and costs10am Telling your story12pm Lunch12.30pm ESOPs1.30pm Succession Planning3pm Capital Transaction4.30pm Networking
Agenda
Capital Orientation
When your business is investment ready, our team can help you access investor networks. Based in New Zealand and overseas, our capital specialists are well placed to connect your investment opportunity to the most appropriate funding source.
Better by Capital is designed to demystify the capital raising process, giving your business the best chance of accessing the right capital, at the right time, to help fund your international growth.
Better by Capital is made up of the following services:
Better by Capital
will help you to understand and identify the best approaches and investment sources for your business, before you start to raise, or re-structure capital flows.
will help you become investment ready. A NZTE capital specialist will help you prepare a capital plan that presents your business in the best possible light. Specific activities will help strengthen your ability to attract the right type of capital your business needs to unlock growth.
Capital Orientation…
Capital Readiness…
Capital Connection…
Capital Options
Debt vs. equity
Debt Money that is borrowed
Normally comes from banks
Needs to be paid back, usually with interest.
Equity Money invested in a venture
No legal obligation to repay the principal
Requires the sharing of ownership and profits with the investors.
Capital Orientation
Capital landscape
Pre-Revenue Establishment
Growth
Expansion
Friends and
Family
CrowdFunding
Grants
Angels
VentureCapital
Debt
Strategic
PrivateEquity
Debt
Strategic
IPO
$
Friends and family
Easy accessPatienceFriendly terms
Pro$0-$250k
$
Lack of sophisticationFailure impacts familyLimited capital
Con
EarlyPre revenuePre productConcept
Stage
Capital Orientation
Government grants
Non dilutive Founder friendlyStretch capital
Pro$10k-$500k+
$
Lack of sophisticationCompliance costsPublic information
Con
EarlyGrowthProject specific
Stage
Capital Orientation
Angel funding
Passionate investorsAccess to networksSmart capital
Pro$10k-$1m (single)$100k - $2m (group)
$
Limited reachInvestment termsLimited funding poolPersonality fit
Con
EarlyPre revenueGrowthProof of concept
Stage
Capital Orientation
Angel groups
Capital Orientation
Angel backed companies
Venture capital
Professional investorsAccess to networksLeveraging potential
Pro$1m - $10m
$
Capital term/ExitLoss of controlRelocationExpensive
Con
RevenueProfitHigh-growthScalability
Stage
Capital Orientation
Private equity
Professional investorsAccess to networksLeveraging potential
Pro$10m - $50m+
$
Capital term/ExitLoss of controlRelocationSector Specific
Con
LateMBO/ExpansionProven marketScale
Stage
Capital Orientation
Venture Capital
Stage
Auckland Auckland Auckland Wellington US
Focus: Bio/FoodFund Size:$100m
Min/Max: $1m/$5m
Focus: AnyFund Size:$31m
Min/Max: $50k/$4.5m
Focus: AnyFund Size:$70m
Min/Max: $5/$15m
Focus: TechFund Size:$50m
Min/Max: $500k/$2.5m
Focus: TechFund Size:$40m
Min/Max: $500k/$5m
Auckland Auckland Auckland Auckland Auckland
Focus: AnyFund Size:$675m
Min/Max: $5m/$50m
Focus: AnyFund Size:$75m
Min/Max: $1m/$10m
Focus: AnyFund Size:$250m
Min/Max: $5m/$50m
Focus: AnyFund Size:$225m
Min/Max: $8m/$25m
Focus: AnyFund Size:$80m
Min/Max: $1m/$25m
Private Equity
Capital Orientation
VC backed
Stage
Private Equity backed
Bank Debt
Maintain ownershipLeveraging potentialFlexible
ProLoanFactoringLoC
$
InterestCredit availabilityBanking covenantsCollateral
Con
RevenueTypically asset backedTrack record
Stage
Capital Orientation
Strategic/M&A
International partnerCustomer Supplier
$
ExitUnequal partnershipLoss of controlStaff issues
Con
Any
Stage
Market connectionsScaleSkill transferExit option
Pro
Capital Orientation
IPO/Listing
MV$5m+
$
“Dumb” capitalCompliance costsShareholder issuesFailure is public
Con
Any
Stage
ControlLarge pool of capitalProfileShareholder options
Pro
Capital Orientation
Am I investible? History of the business
Realistic financials preparedFunding requirements
Market size and growth
Market validation
Competitors/differentiation
Barriers to entry
Environment/regulatory
Competitor awareness
Future products (scalable)
Management quality
Investment Checklist
Management motivation
Track record
Team quality
External advice
Company valuation
Deal expectations
Coach-ability
Exit strategy Governance
