helping your business clients attract outside capital richard c. bruder, esq. october 20, 2006 7457...
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Helping Your Business Clients Attract Outside Capital
Richard C. Bruder, Esq.
October 20, 2006
7457 Franklin Road, Suite 250Bloomfield Hills, Michigan 48301(248) [email protected]
Different Stages Attract Different Capital
Pre-Seed Founder’s
Seed Friends and Family
Early Stage Angel Investors
Mature IPO/Merger
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Bootstrapping
• Barter• Equity• Cut personal expenses• Buy used• Freeload• Incubators (or home office)• Customers!
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What Do Angels Look Like?
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How Angels Look At Deals -
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The Five Challenges
1. Technology - Can It Be Done?
2. Development - Can We Make It?
3. Production - Can We Make It Profitably?
4. Market - Will Someone Buy It?
5. Execution - Is This The Team To Do It?
How Angels Look At Deals -
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The Ten Advantages
1. Management2. Compelling Idea3. Proven Concept4. Market Size5. Competition6. Financial Projections7. Exit8. Production9. Marketing Plan10. Risk Management
Resources for Entrepreneurs
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Where to Find Angels
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Basic Legal Issues
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Choice of Entity Founders Agreement
What does each provide? What time commitment? What percent ownership? Vesting? Invention Agreement? Non-compete?
Securities Law Due Diligence Lite
Q & A
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