how to be a money magnet€¦ · flickr rashmi sinhar slideshare arianna huffington huffington post...

International Women’s DayCelebrates Entrepreneurs

How to be a Money Magnet

Caterina FakeFlickr

Rashmi SinharSlideshareSlideshare

Arianna HuffingtonArianna HuffingtonHuffington Post

“Fo get “Fo get ChinaChina IndiaIndia“Forget “Forget ChinaChina, , IndiaIndiaand the and the InternetInternet: : and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Economic Growth Is Economic Growth Is Driven by Driven by Driven by Driven by

WomenWomen ””WomenWomen..The EconomistSource: Headline, The Economist

Purpose:Purpose:u poseu poseTo present the To present the To present the To present the opportunity opportunity opportunity opportunity for for increasing increasing for for increasing increasing wealthwealth of female of female wealthwealth of female of female business ownersbusiness ownersbusiness ownersbusiness owners

Getting FINANCE is the next fiveGetting FINANCE is the next fiveGetting FINANCE is the next fiveGetting FINANCE is the next fiveminutes.minutes.

FINANCE is FINANCE is Character Character FINANCE is FINANCE is Character Character Community Community Co u tyCo u tyCommitmentCommitment

(And Profit, Passion)(And Profit, Passion)

FINANCE is a FINANCE is a ——CHOICECHOICE..

Problem 1Problem 1Problem #1Problem #1isisisis

Opportunity #1Opportunity #1Opportunity #1Opportunity #1

Slides atSlides at …

emdacanada comemdacanada comemdacanada.comemdacanada.comMoney MagnetMoney MagnetMoney MagnetMoney Magnet

Li k diLi k di GGLinkedinLinkedin Group Group d dd demdacanadaemdacanada

You Know Financingg

LegacyBusiness is an

investmentHigh performance focus

Stage 2 – Owner Controlled

ProductBusiness is my product

Owner ControlledBusiness is a

lifestyleKnowledge focus

High performance focusCEO partnersSurvive beyond the

Owner

Stage 1 - Product

Business is my productProduct is good - it will

sell itselfCEO does many role

Knowledge focusCEO runs the

team

How Do you Know?Specialized knowledge What Do You Know?

What Can You Do?Listening skillsand skills (e.g. engineering

or IT or biologyHow is that knowledge

created?

Strategy, marketing, operations, finance

Customer needsCompetitionB i l & P P i t

Listening skills Receive feedbackEmotional

intelligenceSuccession planning

Business plan & PowerPointp g

Product Lifestyle Legacy

Growth of the Business

Product Lifestyle Legacy

Product – Caterina Fake2003 – Ludicor (bankrupt )Fake took photo-sharing:Flickr2005 Flickr was acquired 2005 - Flickr was acquired by Yahoo! for $50M 2009 - co-founded Hunch2009 co founded Hunch2011 - Hunch was acquired by eBay for $80M2012 – Pinwheel Raised $7.5 M , RedpointV t $2M i d Ventures. $2M in seed funding

LegacyBusiness is an

investmentHigh performance focus

Stage 2 – Owner Controlled

ProductBusiness is my product

Owner ControlledBusiness is a

lifestyleKnowledge focus

High performance focusCEO partnersSurvive beyond the

Owner

Stage 1 - Product

Business is my productProduct is good - it will

sell itselfCEO does many role

Knowledge focusCEO runs the

team

How Do you Know?Specialized knowledge What Do You Know?

What Can You Do?Listening skillsand skills (e.g. engineering

or IT or biologyHow is that knowledge

created?

Strategy, marketing, operations, finance

Customer needsCompetitionB i l & P P i t

Listening skills Receive feedbackEmotional

intelligenceSuccession planning

Business plan & PowerPointp g

Product Lifestyle Legacy

Growth of the Business

Product Lifestyle Legacy

Lifestyle - Linda HaynesLifestyle Linda Haynes

Ace Bakeries1992 A l t t• 1992 Angel start up

• 2008 Sold to2008 Sold to Private Equity $15M

• 2011 Sold by PE for $120M$120M

LegacyBusiness is an

investmentHigh performance focus

Stage 2 – Owner Controlled

ProductBusiness is my product

Owner ControlledBusiness is a

lifestyleKnowledge focus

High performance focusCEO partnersSurvive beyond the

Owner

Stage 1 - Product

Business is my productProduct is good - it will

sell itselfCEO does many role

Knowledge focusCEO runs the

team

How Do you Know?Specialized knowledge What Do You Know?

What Can You Do?Listening skillsand skills (e.g. engineering

or IT or biologyHow is that knowledge

created?

Strategy, marketing, operations, finance

Customer needsCompetitionB i l & P P i t

Listening skills Receive feedbackEmotional

intelligenceSuccession planning

Business plan & PowerPointp g

Product Lifestyle Legacy

Growth of the Business

Product Lifestyle Legacy

Legacy: Theresa CascioliLegacy: Theresa Cascioli

2002 Angel financing t f b k tout of bankruptcy

2006 Deal of the Year by CVCA withVengrowth Private Equity

2007 - Labatt Brewery yoffered $201.4M

GROWTH = #1GROWTH = #1

fear offear offear offear ofwomen business women business women business women business

owners?owners?owners?owners?

IT is your IT is your IT is your IT is your

choicechoicechoicechoicechoicechoice

LegacyBusiness is an

investmentHigh performance focus

Stage 2 – Owner Controlled

ductusiness is my product

Owner ControlledBusiness is a

lifestyleKnowledge focus

High performance focusCEO partnersSurvive beyond the

Owner

Stage 1 - Product

usiness is my productoduct is good - it will tself

EO does many role

Knowledge focusCEO runs the

team

How Do you Know?Specialized knowledge What Do You Know?

What Can You Do?Listening skillsand skills (e.g. engineering

or IT or biologyHow is that knowledge

created?

Strategy, marketing, operations, finance

Customer needsCompetitionB i l & P P i t

Listening skills Receive feedbackEmotional

intelligenceSuccession planning

Business plan & PowerPointp g

Product Lifestyle Legacy

Growth of the Business

Product Lifestyle Legacy

All you need to know …All you need to know …

All you need to know …All you need to know …yy

Finance Finance PeoplePeopleV l Value

All you need to know …All you need to know …yy

Finance Finance Finance Finance PeoplePeoplePeoplePeopleV l V l Value Value

Your RevenuesYour EBITDA iYour EBITDA is

$ ««eeee--bitbit--dahdah» » = An$..... ««eeee bitbit dahdah» » = An approximate measure of a

' titi h company's operatingoperating cash flow

The Perfect AnswerThe Perfect Answer

Jill and Jack buy slacks in black…

How Does An How Does An InvestorInvestor Think?Think?How Does An How Does An InvestorInvestor Think?Think?

The Finance Brain

Y A S lliYou Are Selling LONG TERM

Business Growth

Not Your ProductNot Your Product

Find out yourFind out yourMathematicalMathematical

Mathematical “Fit”$

Sources of Capital (nonSources of Capital (non--bankbank))

Mathematical “Fit”$100M

Investment

Wanted

Public MarketPublic Market

multi millions to billions$100M

Private EquityPrivate Equity

500k to 5m

5m to multi millions

$20M

Venture CapitalVenture Capital

50k to 500k

500k to 5m$5M

Family Family & Friends& Friends

AngelsAngels

50k$10,000

Source: Loewen & PartnersSize of Company

Fund “Fit”There are 5 dimensions:

Deal Type Growth BuyoutsFunds

FocusSmall Large

yp

G h

Funds Funds

Country Specific Global Geography

y pFocus

Mid-Sized Funds B t

Focus

Deal SizeMid-Sized Funds Buyout

Funds

Industry Focus Single Sector

FocusMulti-Sector

Focus

Asset Class Single Asset

Class FocusMulti-Asset

Class Focused

There's no timetable or correct way

for seeking out i t it private equity. Some operate for Some operate for

decades;

OOthers seek capital early in OOthers seek capital early in

life cycle

ACE Bakeries - Family Lifestyle

Some Chose the Buyout Some Chose the Buyout Fund and to Sell 100%

4 Levels of Private Investors4 Levels of Private Investors

1 M & D d1. Mum & Dad, Family, Friends, F lFools

2. Angelsg3. Venture

CapitalistsCapitalists 4. Private Equity

Fund ManagersFund Managers

P ti Y Pit hPractice Your PitchTHE PITCHBNN t 416.384.6770 susan.kirwin@ctv.ca

All you need to know …All you need to know …yy

FinanceFinanceFinanceFinancePeoplePeoplePeoplePeopleV lV lValueValue

2 0002 0002,0002,00050505050

CompetenceCompetenceCompetenceCompetence

LLegacyLegacyvsvs

Lifestyley

Family Lifestyle Chose the Buyout Fund and Sold 100%y

Made $15M?

D tDo you want

t b QUEENQUEENto be QUEENQUEENO dOr do you Want to be RICH

All you need to know …All you need to know …yy

FinancesFinancesFinancesFinancesPeoplePeoplePeoplePeopleV l V l Value Value

Anita Anita RoddickRoddick:: Former Founder Former Founder and CEO of The Body Shopand CEO of The Body Shop

“Nobody talks about “Nobody talks about Nobody talks about Nobody talks about entrepreneurship as entrepreneurship as entrepreneurship as entrepreneurship as survival, but that’s survival, but that’s ,,exactly what it is.”exactly what it is.”

Got to Do The Work

Meaty Problem1 Business Model1. Business Model2. Revenue Model 3. Competition4. Competitive Advantage p g

5. Unique Selling Proposition- Secret Sauce

6 Add bl k t6. Addressable market

“In real life strategy“In real life strategy“In real life, strategy“In real life, strategyis actually veryis actually veryis actually very is actually very

straightforward Pickstraightforward Pickstraightforward. Pickstraightforward. Picka general directiona general directiona general direction a general direction

and implementand implementand implementand implementlike hell”like hell” ——Jack WelchJack Welchlike helllike hell Jack WelchJack Welch

Positioning – Be Different

Positioning Lakeport BeerOntario-based brewery focused on producing value-priced quality beer for the Ontario take-home market

Meaty Problem: Lakeport's willingness t t k hi f th di t to take ownership of the discount beersP iti i $24 Positioning: Only one at $24 plus deposit that puts on company name

C i lC i l d d CascioloCasciolo made made

$70M $70M $70M $70M

All you need to know …All you need to know …

PeoplePeopleppValueValueFinancesFinancesConfidenceConfidence

––Economist Economist cover, Jan 02.2010, as cover, Jan 02.2010, as

women surpass 50% in U.S. workforce/ women surpass 50% in U.S. workforce/ “Women’s“Women’seconomic empowerment is arguably the economic empowerment is arguably the

biggest social change of our times ”biggest social change of our times ”biggest social change of our times.biggest social change of our times.

The greatest dangerThe greatest dangerThe greatest dangerThe greatest dangerfor most of usfor most of us

hhis not that our aim isis not that our aim istoo hightoo hightoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowtoo lowtoo lowand we reach it.and we reach it.

MichelangeloMichelangelo

P ti Y Pit hPractice Your PitchTHE PITCHBNN t 416.384.6770 susan.kirwin@ctv.ca

Money MagnetMoney Magnethttp://moneymagnetbook.blogspot.comhttp://twitter.com/jacolineloewenhttp://twitter.com/jacolineloewenLinkedIn :jbloewen@loewenpartners.com

Sourcing Capital for Growth Companies

How Did These Women do It? ZIPCARZIPCAR

• 2000 Antje Danielson, Robin ChaseChase

• Borrowed another country’s business

• Met over Day Care• Met over Day Care• Expertise • Steve Case’s Revolution Private Equity

• IPO market value of $1.12BValue of $199 million.

• Time's 100 Most Influential People in 2009,• Governor's Award for Top EntrepreneurGovernor s Award for Top Entrepreneur • Start-up Woman of the Year.• Business Week, Fast Company’s Fast 50 • Fortune CIO and InfoWorld magazines

Catelina FakeCatelina Fake“As a VC Investor Myself

I am Gender Neutral”

CCanadaanada leads the world in leads the world in CCanadaanada leads the world in leads the world in governmentgovernment--funded R&D funded R&D –– but but

we’re lacking the local VC we’re lacking the local VC we’re lacking the local VC we’re lacking the local VC and PE market to turn clever and PE market to turn clever

ideas into businesses. ideas into businesses. “When it comes time to take “When it comes time to take When it comes time to take When it comes time to take

the step toward the step toward i li ti h i li ti h commercialization, we have commercialization, we have

Achilles heelAchilles heelan an Achilles heel.Achilles heel.

Private Private EquitysEquitys’ Credo’ Credo

L d l h h ldL d l h h ld11. Liquidity to early shareholders. Liquidity to early shareholders2. Accountable and do the work2. Accountable and do the work

d d h M kd d h M k3. Understand the Private Market 3. Understand the Private Market processprocess

H h h lH h h l4. Hire the right people4. Hire the right people5. Top notch Board5. Top notch Board

U d f l dU d f l d6. Upgrade financials and systems6. Upgrade financials and systems7. Far wider sale options: strategic, 7. Far wider sale options: strategic,

ti lti lpartialpartial

l hl hGreater WealthGreater Wealth