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Am I guaranteed to find an investor?
No. What we do guarantee is that your materials will be screened against our database of 3,000 Tier 1, 2, and 3 financiers in order to uncover financiers currently funding businesses within your sector, at your stage of development, and within your geography. To further help you, we suggest you review our "Investor Filtering" process under the "Our Services" section of the site. This will give you a detailed understanding of our proprietary process. Separately, we also screen your business against competitors in your space to propely ensure that we've identified all financing sources and perhaps the financiers that should be avoided. Ultimately, we’ll present your offering to a highly targeted group of active financing prospects. If your plan is good, you have a pretty good chance of being funded. However, if your plan is flawed, investors will show little to no interest. Through this entire process, we guarantee to capture critical reconnaissance from the financing community in order to better address and reposition your business, if needed.
Do you help non-technology companies?
Absolutely! We help both high-tech and low-tech companies find the right type of financing partners and the proper capital needed for their ventures. Our primary focus is serving fast growing businesses within sectors demanding great attention.
Why do you insist on reviewing my investor presentation materials?
Simply put - our reputation is on the line. Additionally, we want to see how you think, how you communicate and how you market your opportunity. Equally important, we review up to 1,000 investor documents per annum and can act as your first venture screener in a safe environment.
Do you invest in any of your clients?
Occassionally. If we do, however, our typical investment ranges from $100,000 to $250,000.
What happens when an investor asks for more information?
We will respond immediately by providing the additional level of service and documentation required.
What happens when a financing source requests a full business plan and I don't have one or my current plan needs work?
We have relationships with organizations that will prepare and/or enhance your current business plan for a nominal fee, or of course you are free to revise the plan yourself.
When can I expect to see results from your search efforts?
On average, we experience a 30-90 day window depending on the response times of our financing sources, your turnaround and approval of edited materials, and other mitigating circumstances.
What are my chances of attaining funding?
It is impossible to predict whether any project will in fact get funded. However, there is strength in numbers and your opportunity for success is dramatically and greatly enhanced through our extensive financing network and presentation abilities.
You indicate that investors are looking for a return of at least 10 times their investment in 3-5 years. Am I to understand that if one were to obtain $3,000,000 from a financier, they would expect to see at least $30,000,000 in three-to-five years?
Great question - Yes, investors typically want 10X to 30X returns, and yes, your math is correct. Why so large? An investment in your company is "high risk,” so by nature, they expect a significant return for assuming such risk.
Consider a $3MM investment in your venture is worth 33% of the company. That puts the valuation of your company in the $9MM range ($3MM X 3 or $3MM divided by 33%). Now assume your company grows its revenue base to $75MM in 4 years with that $3MM investment. Assuming a 2X valuation multiple on revenue, your company is now worth $150MM.
Therefore, the investor's original investment of $3MM or 33%, is now worth $50MM, which is a 17X return (33% of $150MM). In real life, you will have raised additional capital, thereby diluting yourself and the original investors, however your valuation should ratchet-up at a faster rate that the dilution assumed.
I hear time and time again that a "management team" is cirtical to successfully raising capital. I don't HAVE a management team, so what should I put in my business plan?
Depending on your stage of development, most investors don't expect a complete management team to be in place. They do, however, expect you to identify some key recruits, along with your time table for hiring key members of your management team.
Our company requires seed funding in the amount of $250K to $1M. Our product is both revolutionary in nature and targets a large growing market. Patents have been applied for or submitted under a ‘provisional’ status. Where can we find investors to build a company around our exciting product?
Please complete the venture capital readiness assessment on our site and we'll contact you within three business days.
Do you use non-disclosure agreements with investors to protect the confidentiality of our business plan?
Typically not. Good financing sources receive thousands of business plans per year, making it nearly impossible to sign non-disclosure agreements. If they did, it could seriously inhibit their ability to fund similar, yet different, ventures or to properly assist their portfolio companies with directional changes. That said, we always push the VC's to sign non-disclosure and intellectual property protection agreements should their latter stage due diligence efforts require a deeper review of the Company's (i.e., patents, source code, etc.).
If I use your services, how do I get in touch with investors?
Once your presentation materials have been approved and signed-off on by all parties, we will identify the hot leads into each financing source identified and initiate our contact thereafter.
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