Alison Wistner, director of Mercato Partners, presents information to small businesses about finding funding.

1. October 15,
2012
So, you are
looking for
Funding…
But are They Looking
for You?

2. 2 October 15, 2012
About Me
 Mercato Partners
 Skullcandy, Fusion-io, Mediconnect
 Prospector Equity Capital
 AdvancedMD, SolutionReach
 Represent
Mercato on the boards of
Cymphonix, Central Logic, Control4

3. 3 October 15, 2012
Venture Capital Model
 Raise Money
 Invest in Companies
 Help Grow Companies
 Sell Companies
 Return Money to Investors (and hopefully
keep some)

4. 4 October 15, 2012
Venture Capital Investments
 What percentage of startups raise VC?
 How many companies receive VC?
 Why so low?

5. 5 October 15, 2012
What must your company do
to get VC money?
 Return 10X in 5-7 years
 Require $5-10 million in investment
 Address a substantial market (often
defined at $1 billion)
 Possess substantial barriers to entry

6. 6 October 15, 2012
What about Angels?
 Similarcriteria as the VC’s
 $250,000 - $1,000,000 investment range
 Return 10X in 5-7 years
 May be OK with a smaller market
 Might be more flexible

7. 7 October 15, 2012
Growth Equity?
 Reduced risk compared to VC
 Track record of growth (50%+)
 Typically invest at least $10 million
 Exit in 4-5 years
 3-6X returns

8. 8 October 15, 2012
Private Equity?
 Reduced risk compared to VC & Growth
 Solid track Record of profits
 Typically take a majority stake
 Usually put $25 million+ to work

9. 9 October 15, 2012
What Else is Out There?
Revenue Based Finance (RBF)
 Some track record of revenues
 Strong gross margin (40+%)
 Good growth rate

10. 10 October 15, 2012
What Else is Out There?
Banks
 Generally 3 years operating history
 Profitable
 Assets
 Good credit
 Financial covenants
 Term debt vs. line of credit

11. 11 October 15, 2012
What Else is Out There?
FFF (friends, family, fools)
 They are the angels you know
 Have passion for the company or industry
 Interested in supporting you
 Most companies get their funding here

12. 12 October 15, 2012
What Else is Out There?
Crowd Sourcing
 Easy to understand product
 Not very good for services
 Helps to have a strong social network

13. 13 October 15, 2012
Pick Your Best Fit
 Every source of funds has their own criteria
 Know your audience
 Be sure you have what they need
 Not every source is right for your company

14. 14 October 15, 2012
How to Contact Me
 Alison Wistner
 (801) 252 - 4884
 www.mercatopartners.com
 awistner@mercatopartners.com