WORKSHOP: Fundraising with Business Angels - from getting noticed to successfully closing a deal © LBAN
STRICTLY CONFIDENTIAL
1
Getting noticed by Business Angels Get people speak about you Get common contact(s) to introduce you, after strategically having selected them Attend relevant events to mingle with BAs Participate to Startup contests to gain visibility and training Build Personal and Company Branding Use social media to enhance/spread your Personal and Company Branding
© LBAN
STRICTLY CONFIDENTIAL
2
Pitching to Business Angels Pitching within a) 30 seconds, b) 3 mins, c) 30 minutes Form/Content ratio varies accordingly: a) 80% - 20%, b) 60% - 40%, c) 20% - 80% Touch your audience at ✔️ their heart by being compelling ✔️ their head by being clear ✔️ their guts by being credible Your pitch tells a Story that should be consistent to your Company Branding Your pitch comes with a visual that is clear, concise, and creative Know your audience and adapt your pitch to them Be prepared to address all challenging questions and provide more ample details Preferably, have one of the Founders pitch, or your highest ranked CxO
© LBAN
STRICTLY CONFIDENTIAL
3
Pitching to Business Angels (cont.) Your pitch must cover: ✔️ The Vision (vision & mission statement, problem being solved, thorough business model) ✔️ The Commercial Traction (actual achievements, not mere theories) ✔️ The Growth Potential (market of significant size with possible scale-up, differentiation, competitive advantage) ✔️ The Financials (assumptions with projections, YTD income, capital budgeting, ROI) ✔️ The Team (composition, cohesion, expertise, complementarity, operating policies) = ✔️ Good Leadership
© LBAN
STRICTLY CONFIDENTIAL
4
Due Diligence with Business Angels This step varies between investors as there are no universal criteria. It verifies everything claimed during the pitch. It should aim at truthful answers as there could be some legal ramifications, and your image depends on it. Investors talk. The process covers a detailed outine of: ✔️ Financials ✔️ IP ✔️ Corporate Legal Documents and Minutes ✔️ Information on any outstanding litigation ✔️ Employees and Founders ✔️ Client and Supplier Information ✔️ Revenue Streams ✔️ Business Model and Projections ✔️ Capitalisation Table ✔️ Market ✔️ Competition ✔️ Product ✔️ Pricing Scheme ✔️ Other transactions © LBAN
STRICTLY CONFIDENTIAL
5
Term Sheet with Business Angels Angel Investors would usually involve their accountant as well as their lawyers in reviewing/advising on the Term Sheets It covers: ✔️ The Investment Structure (common shares, convertible preferred shares, convertible debts) ✔️ The Key economic terms (quantification of preferred returns and accruing returns) ✔️ The Board structure and reporting ✔️ The Corporate governance and sharesholder agreements ✔️ The NDA
© LBAN
STRICTLY CONFIDENTIAL
6