Keynote presentation for inaugural Crowdfunding Made Easy conference, May 31, 2012, Salt Lake City, from Alan E. Hall, speaker, author, investor, HBR and Forbes columnist - courtesy of CfPA

1. Getting Your Idea Funded
by Alan E. Hall
Angel and Venture Capitalist
By PresenterMedia.com

2. ON TARGET
Key Initial Questions for Entrepreneurs
What you should know.
How much money is needed?
Why is the money needed?
How will the money be spent?
What will be the results?
Are you willing to give some ownership?
Can you pay back a loan?

3. ON TARGET
Funding Sources
Match needs and growth
Self
Family and friends
Crowd funding
Angels
Banks and credit union – SBA loans
Private Equity Funds
Strategic partner
IPOs

4. ON TARGET
Investor Issues
Make money.
Harvest –great return on investment
Ownership
Funding amount
Growth
Mitigated risks
Great company
Value add beyond money invested

5. VALUE-ADDED INVESTMENT MODEL
Revenue Development Process
Developing product
extensions
Expanding product SALES
distribution VALUE-ADD
REVENUE
Discovering new Social capital
market segments
Strategic guidance
Improving sales Capitalization
HIGH GROWTH COMPANY EVOLUTION
execution TRADITIONAL
INVESTOR
Governance
VALUE-ADD
COMPANY GROWTH
3

6. ON TARGET
Major Due Diligence Questions
Management Culture
Financials Products/services
Customers Financing
Competition Valuation
Sales Ownership
Processes Exit

7. ON TARGET
Questions
Management Financial
1.Knowledge of industry 1.Revenues
2.Relevant experience 2.Margins
3.Teachable 3.Cost control
4.Profits

8. ON TARGET
Questions
Customers Competition
1.Size of market 1.Number of competitors
2.Buyers 2.Market penetration
3.Sales cycle 3.SWOT
4.Adoption rate

9. ON TARGET
Questions
Sales Processes
1.Routes to customers; direct, 1.Documented steps to follow?
OEM or channel 2.Compliance
2.Sales executive and team 3.Procedures, measurement
3.Experience and knowledge

10. ON TARGET
Questions
Culture Products/technology
1.Behaviors 1.Meets and exceeds
2.Values customers’ needs
3.Known and followed 2.Intellectual property
3.Road map
4.Innovation
5.Competitive

11. ON TARGET
Questions
FINANCING VALUATIONS
1. Sources of money, bank, investors, 1. Pre-money and post money
VCs 2. Comparables
2. Money needed for what, deficit, 3. Negotiation
growth
3. How much and when?

12. ON TARGET
Questions
Ownership Percentages Exit/Harvest
1.Variations, minority or control 1.When?
2.Stages of company growth 2.Expected multiple and IRR
1.Idea 3.Involvement
2.Prototype 4.M&A or IPO
3.Pre-sale
4.Sales
5.Profitable

13. Lessons Learned
1.Great ideas have 4. There must be 7. It takes twice
no value until customers who as long and
will buy. twice as much
commercialized.
money.
2. Its all about 5. Execution is the
8. Invest in lots
revenue and key.
of companies to
profit. play the odds.
3. Experienced 6. Deal with
management is honest people.
critical

14. ON TARGET
Thank you.
QUESTIONS AND ANSWERS