| p>Often companies wanting to grow, raise growth | | | | campaign to attract capital means a few things:o You |
| capital by offering investors part of their company | | | | are seeking the right amount capital for your stage |
| through an equity acquisition or private equity | | | | of business and valuationo You have an investor |
| offering. Since 77% of all the companies that are | | | | ready business plan that clearly explains your value in |
| considered by Angel Investors for investment do | | | | the marketplace and how you will produce a return |
| NOT receive investment, it is more important than | | | | on investment for your investorso You can |
| ever for companies to prepare, expose, and | | | | effectively communicate your investment opportunity |
| communicate effectively with investors. | | | | in a few minuteso Appropriate documents to |
| Companies often arrange one on one investor | | | | facilitate the investment (PPM, Subscription |
| meetings or participation in group settings which | | | | Agreements, etc) |
| create unique opportunities for companies to "tell | | | | Exposing your company to the investor community is |
| their story" to investors. The challenge entrepreneurs | | | | a numbers game and must include:o A multi-faceted |
| face is the time it takes to meet with the hundreds | | | | approach that includes group presentations, one on |
| of investors they will need to market to in order to | | | | one, press releases and internet driven programso |
| close the few on investing in their company. Often | | | | Exposure to hundreds of investors to find the few |
| entrepreneurs must choose between building their | | | | that will investo A system to manage the follow up |
| business or raising money. That is why so many small | | | | and maintain records regarding investor status |
| emerging growth companies hire investor relations | | | | Communicating with the target investor community |
| firms to manage the time consuming part of a capital | | | | through an investor relations program is important for |
| raise, leaving the critical negotiations and discussions | | | | many reasons:o Similar to attracting a new customer, |
| with them as the owner of the equity. | | | | sometimes it takes 2 or 3 exposures to gain their |
| Companies are always seeking ways to improve the | | | | business (investment)o Investors may have an initial |
| efficiency of the process. One of the ways | | | | interest but want to see how the company |
| companies are successfully getting their message | | | | progresses before they commit their investmento |
| across to a larger group of qualified investors in a | | | | During the months it takes to attract capital |
| "high tech, high touch" way is with video elevator | | | | investors focus and liquidity changes, maintaining |
| pitches. Every entrepreneur knows they must have a | | | | communication with them could move them from a |
| good "elevator pitch". The "elevator pitch" is an | | | | no, not now to a yes |
| industry term for the time it takes the entrepreneur | | | | The video elevator pitch itself is usually a two minute |
| to ride the elevator and tell their story to a | | | | video going over all of the important company |
| prospective investor before he/she gets off the | | | | business information that promotes the company as |
| elevator. A video elevator pitch is a little longer than | | | | a solid option for those investors seeking private |
| a ride in an elevator, but has a similar goal. How long | | | | equity investments. The video should be edited to |
| will an investor sit listening to a video on a | | | | show only the most vital and important information |
| computer....about 2 minutes?! A video elevator pitch is | | | | that will attract an investor. The video should be |
| an effective way to briefly expose targeted | | | | imbedded in the web page and not require any |
| investors to the company, provide necessary | | | | download on the investor's computer. Video elevator |
| information, and lead the investor toward the next | | | | pitch programs should come with a password to |
| step, which is making contact to get the necessary | | | | protect important documents such as the company's |
| investor centric documents. | | | | business plan and financials, and investor documents. |
| There are three things every company must do as | | | | Public, non-confidential information that provides a |
| part of the process of attracting investors: Prepare, | | | | snapshot on the company should be included on the |
| Expose, and Communicate. | | | | web page. A one page executive summary in PDF |
| Preparing to meet with investors and begin you | | | | format should be provided as an optional download. |