how to attract investors, for mobile content and other entrepreneurs

Walter Adamson

Digital Investor

& i-mode Content Forum

www.imodestrategy.com

[email protected]

March 2007

Attracting Investment for Mobile Content Projects

Maximising your Chances of Success

Mobile Content Australia Summit 2007

ContactContactContactContact: [email protected] Slide 2

12 / 6 / 3 rule:12 / 6 / 3 rule:12 / 6 / 3 rule:12 / 6 / 3 rule:

• ““““Surprise meSurprise meSurprise meSurprise me””””

• The pitchThe pitchThe pitchThe pitch

• ItItItIt’’’’s about their moneys about their moneys about their moneys about their money

TipsTipsTipsTips

Contents


The VCs get boredThe VCs get boredThe VCs get boredThe VCs get bored:

• 100 strike-outs between home runs

• Be global be new be exciting

• Create competition between funders

eg Skype

The “surprise me” factor


Start by showing its worthwhileStart by showing its worthwhileStart by showing its worthwhileStart by showing its worthwhile:

• The Market

– How big it is

– How fast it is growing

The Pitch – Opening Move


ItItItIt’’’’s about yous about yous about yous about you:

• Your Offer and Technology Advantage -IP, sustainability

• Why people will Buy it and How (direct, indirect, margins)

• The Team and their ability to deliver

The Pitch – Mid-game


ItItItIt’’’’s THEIR livelihood that interests thems THEIR livelihood that interests thems THEIR livelihood that interests thems THEIR livelihood that interests them:

• The Ask, and the Payback for the investors

• How you're going to Spend the money and how the VCs can Control it

• The Risks and your Mitigation

• The Financials

It’s about THEIR Money


• On Your Feet

• The Inventory – Preparation

• Get Help

• The Valuation

Tips


• Don’t tell them its unique

• Do explain how you are going to succeed when you get less moneyget less moneyget less moneyget less money and everything takes more timetakes more timetakes more timetakes more time than you imagined - the Last Man Standing the Last Man Standing the Last Man Standing the Last Man Standing StrategyStrategyStrategyStrategy.

• Do give them some time back

Tips – On Your Feet


You need more than the pitchYou need more than the pitchYou need more than the pitchYou need more than the pitch:

1. Business Plan & Strategic Growth Plan

2. Valuation Model

3. Investor Memorandum

4. Investor PresentationPresentationPresentationPresentation – the pitch

Tips - The Inventory


You donYou donYou donYou don’’’’t pull your own teetht pull your own teetht pull your own teetht pull your own teeth:

• This is a specific discipline

• Hawking yourself leads to soiled goods

• There are experts with a track record

eg. BSI www.bsi.com.au Investor Forum

Tips - Get Help


The valuation is a negotiationThe valuation is a negotiationThe valuation is a negotiationThe valuation is a negotiation:

• Not an accounting exerciseNot an accounting exerciseNot an accounting exerciseNot an accounting exercise

• Key is market validation & the valuation modelKey is market validation & the valuation modelKey is market validation & the valuation modelKey is market validation & the valuation model

• Be realistic & know the jargonBe realistic & know the jargonBe realistic & know the jargonBe realistic & know the jargon

Tips - The Valuation

$1.00mTotal$1.25mTotal

25%$250,000Investor20%$250,000Investor

75%$750,000Owners80%$1.00mOwners

%Value%Value

PostPostPostPost----money Valuationmoney Valuationmoney Valuationmoney ValuationPrePrePrePre----money Valuationmoney Valuationmoney Valuationmoney Valuation


Walter Adamson

Digital Investor Pty Ltd

[email protected]

m: 0403 345 632, Skype: walter

www.digitalinvestor.com.au

Contact

how to attract investors, for mobile content and other entrepreneurs

Economy & Finance