close

Вход

Забыли?

вход по аккаунту

?

Packaging the Company and Preparing for

код для вставкиСкачать
WHITE
&
LEE
LLP
Soup to Nuts 2001
A Brave New World
January 20, 2001
Bruce W. Lichorowic
Bruce Lichorowic
1
Soup to Nuts 2001
PACKAGING THE COMPANY AND
PREPARING FOR FUNDING
What can you expect?
Bruce W. Lichorowic
Bruce Lichorowic
2
Background…BWL
пЃ®
Focus
пЃµ
пЃ®
Issues
пЃµ
пЃ®
Funding, operational, marketing
Partners
пЃµ
пЃ®
Solutions for troubled companies
VC’s, Angels, Board, Entrepreneur
20+ years
пЃµ
Turnarounds
Funding Environment
“So what’s going on?”
пЃ®
210 Start-Ups…shut down*
пЃµ
$1.5B in venture capital
пЃµ
60% in Q4, ’01
пЃ®
Dot com lay-offs…~15,000
пЃ®
Investors are nervous
* Reuters, 1/17/01
Bruce Lichorowic
4
Smart $ Became Dumb $…
пЃ®
Before Mega-funds
пЃµ
VC’s had time to work with their
companies
пЃµ
Be active board members
пЃµ
Make strategic introductions
пЃµ
Contribute to the success
Bruce Lichorowic
5
Smart $ Became Dumb $…
пЃ®
After Mega-Funds
пЃµ
VC Partner must invest more $
пЃµ
Carry more Deals
пЃµ
Sit on more Boards
пЃµ
Spend less time with their Companies
Bruce Lichorowic
6
We Live in Interesting Times
“If your looking for $”
пЃ®
VC’s Activity
пЃµ
1 year ago…. 4-5 financings a week
пЃµ
Today… ~4-5 financings a month
пЃµ
Taking Care…Current Portfolio
пЃ®
Funds being returned…LLP’s
пЃ®
Institutional Investors…On Hold
пЃ®
Possibility of economic recession
пЃ®
Reminders of early 80’s
Bruce Lichorowic
7
What does this all mean?
“B2B”
пЃ®
Back 2 Basics
пЃµ
Strong…“addressable” market
пЃµ
Strong Technology…”secret sauce”
пЃµ
Strong Team…no OJT
пЃµ
Business model…that makes sense
пЃ¬
пЃ®
Strong business propositon!
Rethink Quickly
пЃµ
Bruce Lichorowic
Don’t throw everything out!
8
Preparing for Funding…Today
1.
Market…
1.
2.
Technology
пЃµ
3.
Does it work?
Team
пЃµ
4.
Identified the Problem your Fixing ID
Right People
Business Model
пЃµ
Bruce Lichorowic
Holds Water…
9
Early Stages Financing
пЃ®
Need to Identify your Stage
1.
Seed
2.
Series A
3.
Series B
4.
Series C
Bruce Lichorowic
10
Seed Round
0-6 months
пЃ®
Market/Marketing
пЃµ
пЃ®
Technology
пЃµ
пЃ®
Founders
Business Model/Plan
пЃµ
пЃ®
Whitepaper
Team
пЃµ
пЃ®
Markets Identified, Web Site
One pager Executive Summary
Fundraising
пЃµ
Bruce Lichorowic
Founder/Angels
11
Rethink… Technology
1 0 1 1 0 11
1
0 1
1
0
1
0 0 1
0
Internet
Personalization
Technique
Dynamic
segmentation
of on-line
users
пЃ®
пЃ®
пЃ®
Adaptive
response to
on-line users
Cooperative
Multi-Agent
Search
“Secret Sauce”… Core Technology
Underlying technology behind the products
Meet customers needs and applications
Bruce Lichorowic
12
Series A
6-18 months
пЃ®
Market/Marketing
пЃµ
Analyst Approval
пЃ¬
пЃ®
Technology
пЃµ
пЃ®
VP Engineering, Proof of Concept, Alpha
Team
пЃµ
пЃ®
Development, Marketing
Business Model/Plan
пЃµ
Basic Executive Plan
пЃ¬
пЃ®
VP Marketing, Core Message, PR Launch
VP Business Development
Fundraising
пЃµ
Bruce Lichorowic
Lead VC with Existing Angels
13
Rethink… Cash Required Breakeven
$1,400
TOTAL
CASH
REQUIRED
$1,200
$1,000
BREAKEVEN
$800
$600
$400
$200
$JU N
Bruce Lichorowic
JU L
AU G
SEP
OCT
NOV
DEC
JAN
F EB
MAR
AP R
MAY
14
Series B
12-24 months
пЃ®
Market/Marketing
пЃµ
пЃ®
Technology
пЃµ
пЃ®
Beta or FCS
Team
пЃµ
пЃ®
Customer Approval
CEO, VP Sales, Marketing Professionals
Business Model/Plan
пЃµ
Detail Plan
пЃ¬
пЃ®
Strategic Partnerships
Fundraising
пЃµ
Bruce Lichorowic
Syndicate of Investors, Lead VC
15
Rethink… Product Roadmap
Q2 2001
Q3 2001
Q4 2001
1H2002
2H 2002
Product #1
1.0
PRO
1.0
2.0
PRO
2.0
Product #2
PRO
1.0
1.0
PRO
2.0
Product #3
1.0
Bruce Lichorowic
2.0
16
Series C
18-24 months
пЃ®
Market/Marketing
пЃµ
пЃ®
Technology
пЃµ
пЃ®
CFO, Audit Firm
Business Model/Plan
пЃµ
пЃ®
FCS with milestone releases
Team
пЃµ
пЃ®
Key Message…”why are customers buying?”
Polished Presentation, Focus Plan,
Reference Sites
Fundraising
пЃµ
пЃµ
Bruce Lichorowic
Syndicate Investors with VC Lead or
Mezzanine if IPO is imminent
17
Rethink… Revenue Sources
пЃ®
пЃ®
пЃ®
Licenses
Hosting
Professional
Services
7%
93%
Licenses & Hosting
Bruce Lichorowic
Professional Services
18
Rethink… Annual Cash Required
16%
19%
19%
5%
41%
Contractors & Professional Services
Employees & Employee Benefits
Recruiting Fees
All other expenses
Capital Equipment
Bruce Lichorowic
19
Rethink… Cash Detail
ACTUAL
D E S C R IP T IO N
B E G IN N IN G C A S H B A L A N C E : *
JA N
FEB
$ 4 6 8 .6
$ 5 2 0 .1
M AR
$
2 7 0 .8
$
APR
M AY
JU N
JU L
AUG
SEP
OCT
NOV
5 4 5 .9
$ 1 1 1 .9
$ 9 3 2 .6
$ 4 ,9 3 2 .8
$ 7 ,2 6 0 .5
$ 6 ,1 1 8 .4
$ 4 ,9 7 0 .7
$ 3 ,7 6 7 .3
—
C A S H F R O M IN V E S T M E N T S O R L O A N S :
• S eries B P referred F in a n cin g
$ 2 5 0 .0
—
$ 5 0 3 .9
—
—
—
—
—
—
—
• S eries B 2 P referred F in a n cin g
—
—
—
—
1 ,5 0 0 .0
5 ,0 0 0 .0
3 ,5 0 0 .0
—
—
—
—
• C red it a n d /o r L ea se L in e fo r C a p ita l
—
—
—
—
—
—
—
1 3 0 .0
1 2 5 .0
1 1 2 .5
1 0 1 .5
• In terest In co m e & O th er
1 .1
0 .8
8 .6
3 .6
0 .7
0 .1
1 .2
6 .2
9 .1
7 .6
6 .2
$ 2 5 1 .1
$ 0 .8
$ 5 1 2 .5
$ 3 .6
$ 1 ,5 0 0 .7
$ 5 ,0 0 0 .1
$ 3 ,5 0 1 .2
$ 1 3 6 .2
$ 1 3 4 .1
$ 1 2 0 .1
$ 1 0 7 .7
3 0 d a y s fro m d a te o f sh ip m en t
—
—
—
—
—
—
$ 1 4 .2
$ 1 .6
$ 1 5 .7
$ 1 .7
$ 6 0 .2
6 0 d a y s fro m d a te o f sh ip m en t
—
—
—
—
—
—
3 2 .4
4 .0
0 .4
4 .5
0 .5
9 0 d a y s fro m d a te o f sh ip m en t
—
—
—
—
—
—
—
1 6 .2
2 .0
0 .2
2 .2
—
—
—
—
—
—
$ 4 6 .6
$ 2 1 .8
$ 1 8 .2
$ 6 .5
$ 6 3 .0
TO TA L C A SH G EN ER A TED :
$ 2 5 1 .1
$ 0 .8
$ 5 1 2 .5
$ 3 .6
$ 1 ,5 0 0 .7
$ 5 ,0 0 0 .1
$ 3 ,5 4 7 .7
$ 1 5 8 .0
$ 1 5 2 .3
$ 1 2 6 .6
$ 1 7 0 .7
C A S H R E Q U IR E D F O R O P E R A T IO N S :
• S a la ries fo r E m p lo y ees
• In su ra n ce, P a y ro ll T a xes, E m p lo y ee B en efits
• C o m m issio n s
• R ecru itin g & O th er P erso n n el E xp en ses
• C o n tra cto rs/T em p o ra ry P erso n n el/L eg a l/A u d it
• C o st o f S a les/O th er M a teria ls/O ffice S u p p lies
• C o m p u ter H a rd w a re/S o ftw a re E xp en ses
• A ir T ra v el/A u to m o b ile/E n terta in m en t/H o tel
• A d v ertisin g /P ro m o tio n s
• E q u ip m en t R en ta l & M a in ten a n ce A g reem en ts
• F a cilities/U tilities/C o m m u n ica tio n s C o sts
• O th er E xp en ses
C A S H R E Q U IR E D F O R O P E R A T IO N S :
$ 5 4 .8
1 0 .0
4 .2
7 .2
8 0 .4
1 0 .3
—
1 4 .9
1 2 .2
2 .5
0 .8
—
$ 1 9 7 .3
$ 5 2 .5
6 .2
2 .5
5 .9
1 1 9 .7
1 .1
—
5 .8
3 0 .6
—
2 2 .4
1 .5
$ 2 4 8 .2
$ 8 2 .4
7 .3
2 .5
—
5 0 .8
—
1 .2
7 .8
1 3 .1
—
0 .7
0 .8
$ 1 6 6 .6
$ 1 8 5 .5
2 0 .2
3 .7
3 0 .0
9 3 .1
0 .3
—
2 .1
2 8 .0
—
6 .6
5 .9
$ 3 7 5 .4
$ 1 5 8 .3
1 5 .5
5 .5
6 5 .0
2 6 0 .0
2 .0
1 0 .0
2 5 .0
3 4 .0
—
1 2 .5
1 7 .2
$ 6 0 5 .0
$ 2 2 0 .0
4 1 .6
5 .1
5 5 .0
2 1 4 .1
2 9 .3
3 8 .0
3 4 .0
6 1 .0
2 3 .0
1 2 .5
1 6 .5
$ 7 5 0 .0
$ 3 7 1 .3
7 0 .2
0 .6
6 0 .0
1 8 5 .0
3 1 .5
4 2 .8
2 9 .8
8 6 .0
2 1 .0
2 6 .5
2 0 .5
$ 9 4 5 .0
$ 4 2 7 .5
8 0 .8
5 .6
6 0 .0
1 9 0 .0
3 1 .5
4 2 .8
3 4 .0
9 6 .0
2 1 .0
2 6 .5
1 8 .8
$ 1 ,0 3 4 .5
$ 4 5 2 .5
8 5 .5
0 .6
5 2 .5
1 9 0 .0
3 1 .5
5 2 .3
3 4 .0
7 1 .0
2 4 .0
2 6 .5
1 8 .7
$ 1 ,0 3 9 .1
$ 4 9 5 .8
9 3 .7
2 1 .5
5 2 .5
2 0 5 .0
2 9 .3
4 2 .8
3 9 .1
3 6 .0
2 2 .0
2 6 .5
2 5 .2
$ 1 ,0 8 9 .4
$ 4 9 5 .8
9 3 .7
2 4 .9
5 2 .5
2 0 5 .0
3 1 .5
4 2 .8
3 9 .1
3 6 .0
2 2 .0
2 6 .5
3 7 .2
$ 1 ,1 0 7 .0
C A S H R E Q U IR E D F O R C A P IT A L A N D O T H E R
• P rep a y m en t req u ired fo r lea se o f a fa cility
• C a p ita l P u rch a ses
• C red it a n d /o r L ea se L in e fo r C a p ita l P a y m en t
• In terest E xp en se
• T a xes p a y a b le
C A S H R E Q U IR E D F O R C A P IT A L A N D O T H E R
—
$ 2 .3
—
—
—
$ 2 .3
—
$ 1 .9
—
—
—
$ 1 .9
—
$ 7 0 .8
—
—
—
$ 7 0 .8
—
$ 6 2 .2
—
—
—
$ 6 2 .2
—
$ 7 5 .0
—
—
—
$ 7 5 .0
—
$ 2 5 0 .0
—
—
—
$ 2 5 0 .0
—
$ 2 7 5 .0
—
—
—
$ 2 7 5 .0
—
$ 2 6 0 .0
$ 3 .6
$ 2 .0
—
$ 2 6 5 .6
—
$ 2 5 0 .0
$ 7 .1
$ 3 .8
—
$ 2 6 0 .9
—
$ 2 2 5 .0
$ 1 0 .2
$ 5 .5
—
$ 2 4 0 .7
—
$ 2 0 3 .0
$ 1 3 .0
$ 7 .0
—
$ 2 2 3 .0
$ 1 9 9 .6
$ 2 5 0 .1
$ 2 3 7 .4
$ 4 3 7 .6
$ 6 8 0 .0
$ 1 ,0 0 0 .0
$ 1 ,2 2 0 .0
$ 1 ,3 0 0 .0
$ 1 ,3 0 0 .0
$ 1 ,3 3 0 .0
$ 1 ,3 3 0 .0
$ 5 1 .5
($ 2 4 9 .3 )
$ 2 7 5 .1
($ 4 3 4 .0 )
$ 8 2 0 .7
$ 4 ,0 0 0 .2
$ 2 ,3 2 7 .8
($ 1 ,1 4 2 .1 )
($ 1 ,1 4 7 .7 )
($ 1 ,2 0 3 .4 )
($ 1 ,1 5 9 .4 )
C A S H F R O M IN V E S T M E N T S O R L O A N S :
C A SH FR O M R EV EN U E:
C A SH FR O M R EV EN U E:
T O T A L C A S H R E Q U IR E D :
N E T C A S H F L O W : P o sitiv e / (N eg a tiv e)
Bruce Lichorowic
20
Rethink… Marketing Strategy
пЃ®
пЃ®
пЃ®
пЃ®
пЃ®
пЃ®
пЃ®
No Hat-Tricks
True sustainable pipeline
No big splash
Don’t announce before the
product is ready
Build on yourself
Marketing should grow with the
company
Keep in Balance
пЃµ
Bruce Lichorowic
Marketing vs Engineering
21
Rethink…Channel Strategy
Channels
• Seed Accounts
• Early Adopters
• Major Accounts
Direct Sales
Indirect Sales
Integrators
Business Development
Bruce Lichorowic
Market Segments
• Mid-Market
• Vertical Markets
Technology Integrators
Marketing Partners
22
Rethink…Team
пЃ®
Clear roles and responsibilities
пЃ®
General management experience
пЃ®
Morph… functional skills
President
President
Sales
Bruce Lichorowic
Marketing
Product/Service
Development
Operations
Finance &
Administration
23
Top 10…Must Haves
1. One Page Business Brief
2. Value Proposition…10 words
3. Stay 6-9 months ahead…burn rate
4. Hit your established milestones
5. Get a reference customer site…ASAP
6. Calculate to the month…breakeven
7. Accurately describe…use of funds
8. Hire a respectable management team
9. Business Integrity*
10. Strategic Partnerships*
Bruce Lichorowic
24
Top 10…Personal Checklist
1. Don’t fall in love with the product or
the company
2. Funding is a full-time job
3. Don’t assume VC’s are going to Help
4. Constantly rethink your Plan
5. Watch out…quick fix consultants
6. Check your ego at the door
7. Plan on 3 near-death experiences
8. Always tell yourself the truth
9. Know where the “Exits” are
10. Trust your instincts
Bruce Lichorowic
25
Bruce W. Lichorowic
Specialist for Distressed Companies
Bruce Lichorowic
26
Документ
Категория
Презентации
Просмотров
3
Размер файла
328 Кб
Теги
1/--страниц
Пожаловаться на содержимое документа