Raising funds In today’sEconomy
Powering your start-up
Presented by
Bob Chua – CEO
Pulse Group PLC (Ticker: PGRP)
“Money Makes Money”
• Powering growth
Sources of funding
SolidBusiness Idea
StrongManagement
Fund’sto
Grow
IP Protection
Starting-up
• Stages of funding
Sources of funding
$
Year’sPre-Seed$25K-$50K
Seed$150K-$500K
Series-A$1m-$10m
Series-B$5m-$15m
Mezzanine/Pre-IPO$10m-$20m
IPO$40m-$500m
Second round$Xm
• Sources of funds
– Pre-seed (3F’s Family, friends and fool’s)
– Seed (Grant’s, Seed-fund’s, Angel’s)
– Series-A, B, C, D (VC’s)
– Mezzanine/Pre-IPO – PE’s, Private Investors, or Institutions
– IPO – Financial Institutions and Public
– Secondary round’s – PE’s, Hedge Funds, Public etc.
Sources of funding
“Nothing is FREE in this World”
• Selecting Investors– What they’re looking for from you
Sources of funding
Track Record
ProfitabilityRevenue
Solid Product’s/ServicesIP Protection
Clean StructureClean Accounts
Strong ManagementClear Exit Strategy
Scalability
Clients Brand
Clear Vision
Board Seat
BrandEnergizers
Financial Modeling
• Selecting Investors– What you should be looking for from them
Sources of funding
Value-Add
SynergisticInvestee’sSynergistic Team
Domain Expertise
Strong Board Member/s
Track-recordGood and Fair
Valuation
Good reputationDeep-pockets
“What now?”
• Responsibility
– Spend Proceeds Wisely
– Invest for the future
– Be conscious of the investment tenure, terms, and exit strategy
– Deliver on your promises
Post funding
The Economy Today
The realities of 2009 and beyond
1. 2009 is going to be a tough year
2. Investors are sitting on piles of cash, there IS money out there
3. Exit Strategies are unclear
4. Valuation’s will be brutal
5. Shareholder value will be critical
6. Cost of capital will be high
7. There will be as many opportunities as there are challenges
8. Survival of the fittest
Closing Thoughts
1. Put your money where your mouth is
2. It’s about the fast eating the slow, not the large eating the small
3. Tread carefully with external funding, but raise funds nonetheless
4. Timing is everything
5. Scale your business quickly
6. Create and illustrate profits
7. Continue to aim for the next big thing
8. Deliver shareholder value
“ A Pessimist finds problems in an opportunity. An Optimist finds
Opportunity in a problem”
– Winston Churchill
Words of Wisdom
Thank You [email protected]
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