Seeking advise - Funding Presentation?

foreverforever subscriber Posts: 1
edited December 2015 in Startup Funding
I have own Limited company with me and my wife with equal percentage,doing small consultancy and currently turnover of $200K. Now i have a new business plan, approaching the venture capitalist or angel investor etc(pls advise who ever best ) raising 20 millions for this project. And projected annual turnover 18 million in first year and Second year 30 millions, and there after 45 millions and annual profit will come around 15% on turnover. To investor should i offer has equity basis or debt funding?.. If equity basis, how much equity should i offer ? If it's debt funding, what to offer.

Sorry I am newbie in this funding concept. Kindly advise best way to go forward?

Comments

  • SmartadvicesSmartadvices subscriber Posts: 2
    Hi,

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  • JonnyWJonnyW subscriber Posts: 4
    you'll need a financial model as well http://www.corporatefinanceinstitute.com/ has plenty of courses and examples that can get you started or
  • McCandlessMcCandless Boca Ratonsubscriber Posts: 52 Bronze Level Member
    Know going in that your revenue projections and executive team's experience will be the most important factors - not your business concept.

    I've raised a ton of cash successfully when doing this right, and looked like an idiot who wasn't worthy of the capital I was trying to raise when doing this wrong. The concept is secondary. I can't stress this enough. :)

    If you don't have a solid revenue model, you aren't ready to raise capital.

    When a VC reads your plan, they're reading the cover page, going straight to the revenue projections and seeing if it fits their financial model (how much you need, how much you'll make, how long it will take). Then they'll read about you, your team, and your advisory board. Then they'll read your concept and plan.

    If you have existing revenue that can scale, and your future revenue projections are realistic, then you're ready to pitch.

    Last thing: know the VC's preferences before you submit. They don't want to own your company and be a long-term partner, they want to make a return on their investment within 3-5 years. Some will want to want to double their money, others will want ten times their money, so do your research on who you're pitching to and make sure your goals are aligned with theirs. 

    It's nothing like Shark Tank in the real world... Most VC's are in it for the short term. They'll want to own the lion's share of the equity up front (to protect their investment, not so they can steal your business out from under you), and they want to go away later. They may want 50-80% of your company, and that's OK - because they'll gladly relinquish that equity by getting bought out in a second capital raise from a different VC when your company is worth more. That, or arranging a merger, is how they'll make their investment back.
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