Organizational development & financial Mechanisms: The VC path

suresh@telibrahma.com

Men and women are two different species whose communication is still @ infancy - Bill Cosby

Pre funding - Expectations

Why I did?

Acceleration

Q2Q Vs M2M

Help with future rounds*

Other’s reason Competition

Image

Stability

Nice to have Hands on help

Help in recruiting

For entrepreneurs Control, Cost, Confidentiality

Investors Team, validations, Scale and

sustainability and a great exit

Preparation

Closure

DiscussionPost funding

6-8 months

Learning and reflecting

Focus on business

Positive impulses

• Structure post funding• Network, Network and Network• Get right investment banker• Have a killer demo in a live site

Preparation

• Executive summary• Market sizing• Financial modeling (Peak cash flow

requirement)• Key metrics• Customer case studies/use cases • Differentiation

• Ask for the concerns in their first meeting and address them before giving further info

• Have an eye on portfolio companies of investors you are speaking to

• Plan for unstructured discussion• Each new person deserves a new beginning• Syndication – Choose whom you will speak and

whom investor should speak carefully

Discussion

• Get draft term sheet, dew diligence checklists @ the earliest

• Plan for structuring alternatives• Be in touch with customers (reference checks)• Comprehensive Internal auditing• Caution

•Dew diligence and objective of relationship•Cost of raising funds

Closures

• Restructuring and exit clauses• valuation @ different stages• Financial instruments• What to disclose and what not to?• How many investors should I speak to• When to stop talking to investors

• Exit bar would move upwards & away• Legal, finance and accountability• One more relationship to manage

Post funding

Irrational decisions should be taken positively

Fitment with the nature and status of business

Ask investors for help ( funding, recruitment, contacts)

Don’t expect Investors to Find you See value beyond what you have

spoken about Ignore general mood and public

markets Come back to you after they have

rejected you

Mobile solutions company based out of Bangalore

Bluetooth based media network and properties across India, Europe and US