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Helping Your Business Clients Attract Outside Capital. Richard C. Bruder, Esq. October 20, 2006. 7457 Franklin Road, Suite 250 Bloomfield Hills, Michigan 48301 (248) 539-2030 [email protected]. Different Stages Attract Different Capital. Pre-Seed Founder’s. - PowerPoint PPT Presentation
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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
(248) [email protected]
Bootstrapping
• Barter• Equity• Cut personal expenses• Buy used• Freeload• Incubators (or home office)• Customers!
(248) [email protected]
How Angels Look At Deals -
(248) [email protected]
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 -
(248) [email protected]
The Ten Advantages
1. Management2. Compelling Idea3. Proven Concept4. Market Size5. Competition6. Financial Projections7. Exit8. Production9. Marketing Plan10. Risk Management
Basic Legal Issues
(248) [email protected]
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
