1.1 An Insider’s Guide: Negotiating with a Business Angel Investor...................................21.1.1 Fact #1: Your Investment Summary is NOT your Executive summary......................21.1.2 Fact #2: Angel Investment does NOT happen overnight............................................31.1.3 Fact #3: Angel Investment is not just about Money....................................................31.1.4 Things to do & questions to ask Investors during negotiations…...............................31.1.5 UPDATE TO ARTICLE:............................................................................................5

1.2 Investment proposal template............................................................................................61.2.1 How to write the perfect Investment Proposal on Venture Giant................................6

1.2.1.1 Six points on the perfect investment pitch:...........................................................61.2.2 How to write the perfect Investment Summary...........................................................7

1.2.2.1 1. Investment Title Guidelines:.............................................................................71.2.2.2 2. Investment Summary Guidelines:.....................................................................8

1.2.2.2.1 Ideas to mention here are:..............................................................................81.2.2.2.2 Sample Investment Summary: (500 Characters)..........................................8

1.2.2.3 3. Investment Description Guidelines:.................................................................81.2.2.3.1 Venture Giant Insider Edge:..........................................................................81.2.2.3.2 Address key issues like:.................................................................................81.2.2.3.3 Sample Investment Description:....................................................................8

1.2.2.4 Venture Giant Insider Edge:.................................................................................91.2.2.4.1 So use expressions like:.................................................................................9

1.2.2.5 Pearl....................................................................................................................101.3 Entrepreneur Resources www.venturegiant.com...........................................................111.4 17 Questions Startup Founders SHOULD Ask Potential Investors..............................131.5 25 Primary Reasons Why Startups Fail..........................................................................141.6 Common Mistakes First-time Entrepreneurs Make.......................................................151.7 The Business Proposal/Plan Checklist...........................................................................161.8 20 Questions You Should Expect In Your Next Investor Pitch.....................................171.9 21 Important Tips For The First-time Startup CEO......................................................181.10 Andreessen Horowitz On Startups..................................................................................191.11 15 Steps To Heaven, Finding A Business Angel............................................................201.12 Make Your Brand An Experience, No Just A Logo.......................................................21

1.12.1 Emotional connections….........................................................................................211.12.2 Demonstrating passion (not just talking about it!)..................................................211.12.3 People share actual experiences...............................................................................211.12.4 It’s official: customers love it!.................................................................................21

1.13 3 Great Ideas for Small Business Marketing..................................................................231.13.1 1. Outstanding Customer Service............................................................................231.13.2 2. Visual advertising................................................................................................231.13.3 3. Inform, Educate and Collaborate.........................................................................23

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1.1 An Insider’s Guide: Negotiating with a Business Angel Investor

The Internet is saturated with articles on 'how to pitch your idea'; ‘how to draft and implement your pitch to perfection’ ad nauseam but there are simply not enough articles and resources out there on how a relatively inexperienced entrepreneur should deal with hard hitting investors when meeting them to raise external investment for their business.As an established entrepreneur and angel investor network that has featured thousands of investment proposals to genuine, high caliber angel investors (follow link to view our database of investors) that have included investors from the UK Sunday Times Richlist, one of the former Founders of Skype, and even one of the former directors of Morgan Stanley, we have been in a unique position to see both sides of the funding equation between entrepreneurs seeking investment capital for their business and the angel investors that are looking to invest in these high risk ventures. In fact, entrepreneurs that know how to negotiate in the right way, ensures that:

1. You will receive better terms - in terms of % equity you will continue to own in your company vs. the investment capital you raise.

2. You will not lose a potential deal because you have failed to value what a business angel investor can actually bring to your company (know-how, experience, network of contacts), and…

3. You will be able to walk away from the deal (if need be) as getting the right answers to the right questions from an investor will empower you to walk away if it is not right for you. It is wise to always 'go with your gut' in these situations but it is important to remain impartial during negotiations and to ask the right kinds of questions that may well uncover red-flags and most importantly not put-off a potential investor.

So you have a full business plan with financials. You are armed with industry stats and have made your investment pitch to an investor. Now what? 

1.1.1 Fact #1: Your Investment Summary is NOT your Executive summary 

Angel investors are highly successful business people that have a lot of money behind them which is why they are able to afford to invest in high risk; high reward non-traditional investment propositions (YOU!). As a result of this, they will get approached daily by pie-in-the-sky entrepreneurs and time wasters that just want to talk about their ideas but not really make any of the sacrifices that are necessary to build a truly profitable business. So when you are invited to deliver your investment pitch to an angel investor it will be important to stand out from the crowd by knowing your business plan inside out (including the financial section), having a great presentation that may include PowerPoint slides with graphics demonstrating your key points of your investment pitch and by having a well-written one page ‘investment summary’ (which is NOT your executive summary) prepared especially for the angel investor you are pitching to, ready to be handed out straight after your initial pitch or preferably handed out after the Q&A session when your meeting has ended which will act as a refresher.The decision to invest will never be made during your initial pitch BUT the decision NOT to invest could be so it is vital that you articulate yourself and speak in a language that a potential investor finds reassuring and knowing your business plan inside out will help with building your credibility in the meeting.Handing out a fully bounded business plan after your investment pitch, when an investor has not asked for a copy, will likely cause the investor to just flick through it and archive it somewhere in his office. A half page or one page investment summary on the other hand will formalise and add credibility to your investment pitch and will increase the chances of an investor perusing the key points of your pitch at their own leisure time. In case you would like to find out how to write the perfect investment summary or would like to know the real differences between an executive summary and an investment summary please follow this link.

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1.1.2 Fact #2: Angel Investment does NOT happen overnight

Receiving investor interest and pitching to them successfully is hoop #1. The process of actually signing contracts and receiving angel investment will most probably be hoop #4 or #5 and can take many months to complete as experienced angel investors will not draft contracts and send funds over without first seeking out their own legal advice or guidance at key points during negotiations from their own network of advisors. So remaining patient, strategic and prepared to answer all types of questions during this time will be the best strategy moving forward.

1.1.3 Fact #3: Angel Investment is not just about Money

Angel Investment is a value proposition for both sides and the past experience as well as the success rate of the potential investor should be recognised and valued correctly by an entrepreneur. Recognising the value that an Investor can bring to your business is an important consideration as an angel investment into your business is not just about the money and the potential savings you will make by not paying interest on the capital you have raised. Think: receiving an angel investment from one of the founders of Skype and the value and experience that they could bring to your start-up. It would be fair in this example to say that the value brought to your enterprise could end up being worth 10 times more than the value of the investment capital itself. So in this scenario, you would be more receptive to receiving less investment and potentially giving away more equity in return for having them join your business as the value of their contribution to your business long term would be worth more than the actual investment amount you are seeking to raise. Valuing an Angel Investor’s possible future contribution to your business will rely on your own due diligence in combination with your intuition and we will address this issue further in the Q&A section below.

1.1.4 Things to do & questions to ask Investors during negotiations…

To start with, it is good practice to ask a potential investor to sign a Non-Disclosure Agreement (or NDA) before revealing any sensitive facts about your business, and asking for an NDA to be signed can do no real harm to both parties. There is a modern school of thought that debates whether or not an NDA is a legally enforceable agreement or not, however, the fact remains that when an entrepreneur insists that a potential investor sign the agreement before entering talks, it sends out some very clear positive signals, namely:

a. That you are serious about your idea or business. b. That you have made it clear, and in writing, that you are now entering talks in areas that

you feel are confidential and that you (in no uncertain terms) do not want the information that is discussed from this point forward (or documents that you subsequently disclose) passed on without your express written permission.

c. And, in the case that a potential investor simply states that they do not wish to sign the NDA (for whatever reason) then this will be a clear indication that you should be on-guard and perhaps less co-operative with the quantity of information you are asked to provide. The usual reason for an angel investor refusing to sign an NDA is that they are already working in areas that conflict with your business; and that would be your first red flag that should seriously make you think twice on the amount of information that you are willing to disclose.

Once the ‘Non-Disclosure Agreement’ is signed (or not signed) this will be a good time to value the contribution that the investor could make to your company by considering questions like:

1) Has the Investor worked in your industry sector and if so what is his/her experience level within it?

2) What resources does the business angel investor already employ that you may be able to leverage? Example: access to office property, access to experienced sales staff, existing know-how in your industry, trade suppliers, or even existing distribution networks to

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wholesalers and suppliers that your product could piggy bank of? Is there some way to leverage this as part of the angel investment package (example, one or two years free rent on office space)?

3) What companies has the investor invested in to date? What companies does the investor privately own? It may be worth considering carrying out credit checks on these public companies at a later date to provide you with valuable insight on how this investor manages his/her own businesses.

4) From the Investor’s past angel investments, how many of them are similar to your business and industry sector and how well are they doing? Also how many past business angel investment successes has this investor had?

5) From point 4 above, if the investor has had past successes in his angel investments, ask what qualities the entrepreneur had that first attracted the investor to invest in him/her. This can provide you with a candid view on the types of qualities the investor will be looking for in you (!)

6) Has the angel investor exited from any of his/her past business investments? If so, what were the results and how much of it was as a direct result of this investor? Would the Investor be comfortable with you contacting the entrepreneur(s) involved in that business? If not, why not?

7) If you do retrieve the entrepreneurs contact details from point 6 above, call him/her and ask what level of support the entrepreneur received during their time together and was it valuable? Contacting an entrepreneur that has exited and is no longer involved with the investor will yield far more honest and upfront commentary over someone that is still currently involved with the investor for fear of conflicts of interest.

8) How many business investments (NOT traditional investments such as stocks, bonds, property investments etc) has the investor made in the past? This is a revealing question as most experienced business investors will know exactly what they want from you and your business from day 1, whereas, less experienced business investors will be far more hot/cold during your meetings and may tend to make commitments verbally that are later broken when they have consulted with their own network of friends and advisors. This does not happen all of the time, but more often than not, a less experienced investor may seem friendly and agree to a whole host of terms verbally in a meeting and then on the eleventh hour almost schizophrenically change all of the terms they have verbally agreed to. Expecting this may provide you with more lee-way and understanding if this happens.

9) Always be on the look-out for the ‘good cop, bad cop’ routine played by an investor and his advisor. Most important of all, if negotiations are later fully delegated to an investor’s advisor it is best where possible and funds allowing, to have your people talk to his/her people, as it can be quite an exhausting experience trying to negotiate key points and terms with an advisor that does not have the final say on key decisions. Even if the investor states that the advisor has full power to negotiate on his/her behalf ultimately they will not as it is not their money at stake.

10) What payback period is the business angel investor realistically looking at for his/her investment in you? What is the investor’s expected timescales for an exit of his investment? Is the investor looking for a short term, medium term or longer term return on his/her investment?

11) Is the investor willing to be on the board of directors of your company? This can indicate the amount of involvement that the investor is willing to provide over his/her angel investment.

12) Will a Lawyer/Solicitor be drafting the legal documents for the angel investment and deal structure in your company? If so, will you retain your own counsel whilst these documents are drafted? Also, it is not unheard of for an angel investor to take the stance that he will not be using corporate lawyers to draft agreements, as if an investor chose to invest in 8 – 10 companies the total legal bill could turn out to be well over £50,000.00 assuming a lean estimation of £5K per company which is low! Whatever the situation for the investor, an

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entrepreneur should always pay for legal advice before signing any contract so that all terms are fully understood and you enter into any agreements with your eyes wide open.

13) In terms of deal structure, if an Investor is purchasing equity, what type of shares will the Investor be purchasing (common shares or preferred shares) and have you spoken with your accountant or tax advisor in terms of the potential tax benefits and downfalls to the different types of structures an investor may propose? Always do check if there are any warrants or share options attached, or would the investor instead wish to assume responsibility for some kind of debt in your company? If so, do ask your lawyer to check whether the debt will be classed as subordinate debt or convertible debt.

14) And finally, Net Worth of the investor - though you may never reasonably know what the exact net worth of your potential investor is, it is important to understand that an investor should have at least 7 - 10 times more in liquidity over the amount that they are going to be investing in you. So if you are seeking an Investment of £50,000, the angel investor should have around £500,000 of liquid assets (shares, positions in gold, cash etc) that are easily convertible to cash over the short term whilst also being able to service their own debts.

The reason why the question of net worth is important is because an investor that you choose to partner with must always provide strength to your business relationship, and this strength cannot come from someone who is constant fear of losing their investment if the venture fails or does not make money in the first quarter. This is not a question of wealth but affordability and as a result, it is important that as much due diligence is carried out beforehand to ensure that the investor can actually afford to invest in your company and potentially be a good bed fellow with you.

The following points above are only considerations and by no means exhaustive but should set out a good foundation to the types of questions you should consider finding out over the course of your ensuing negotiations with an investor.Entrepreneurs must always remember that even though it appears difficult to raise angel investment now, making a wrong choice with the wrong investor today will almost certainly be impossible to separate from tomorrow so you owe it to your ‘future-self’ to ask as many questions as you can today.

1.1.5 UPDATE TO ARTICLE:

We have received emails from entrepreneurs that are looking for a list of questions that angel investors will ask and a good list of questions can be seen here: Angel investor Due Diligence. Ensure that you have answers to these questions before meeting an Investor. Again, the above link is not exhaustive, but it is a good start when preparing to meet an Investor for the first time.Article written by and contributed by:Rishi Anand Founder and Managing Director of VentureGiant.comFind angel Investors at Venture Giant. If you are a Tech Start-up or Small business looking to take your businesses to the next level, Venture Giant connects entrepreneurs & SMEs to Angel investors that are seeking to invest and provide angel investment to start-ups and established businesses.

Standard DisclaimerThe opinions expressed here are entirely of the author’s and as a result the author cannot take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented in this guide. Whether you are successful in raising investment from an angel investor or not, it is always important to seek independent advice from professionals before consummating any type of angel investment deal.

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1.2 Investment proposal templateHow-to-guide on writing the perfect investment template summary

As an established Investment network, we have been responsible for reviewing literally thousands of investment proposals and one of the repeating themes that we have been asked over and over is to explain the methods that can be employed to create the perfect investment proposal that will GRAB a business angel investors interest and have him/her almost demanding to discuss the investment pitch further!We have seen seemingly weak business ideas receive alot of investor investor interest on the day of despatch only because their investment proposal had been well written and well thought out!I believe it is possible for all entrepreneurs to write really great investment proposals (no matter the experience level) – and this article hopes to explore some of the crucial elements that you should think about whilst crafting your perfect investment pitch.I have also taken the liberty of enclosing a sample investment summary that I am sure will be of great benefit to entrepreneurs looking to create their own investment proposals but not knowing how to apply some of the points that I will talk about below.My main aim with Venture Giant was not only to create a portal that can get entrepreneurs connected with Angel Investors so as to raise the necessary angel funding that they require but to also create more and more resources of useful, actionable articles that can assist entrepreneurs actively to become ‘investment-ready’ – and this to all in a very reasonably priced environment.From the feedback we are receiving I am now starting to see more and more entrepreneurs benefiting from the knowledge and experience that is featured in our News Channel. At the very least (according to one of the emails I received recently) entrepreneurs are now demanding more from Angel investors and citing the correct investment terms when doing so, and this is very encouraging.As Venture Giant is primarily an angel Investment deal flow service for angel investors, high net worth individuals and angel syndicates our main aim has always been to send out the most attractive investment opportunities to our investors that read well, make sense, and ARE investable.Ultimately, if the investment proposals we send out to our Investors on Venture Giant are not up to this standard then we are at a risk of losing active angel investors that sign up to use our service.

1.2.1 How to write the perfect Investment Proposal on Venture Giant

It is in my interest to ensure that our entrepreneurs’ submit investment proposals that are of a certain caliber and meet our guidelines of service.So, the main purpose of this article is to concentrate on how to create the perfect investment opportunity that can be used to submit onto Venture Giant, or for that matter - on any other investment network.

1.2.1.1 Six points on the perfect investment pitch:

1. The first point I would like to address is that regardless of what you are seeing in the press and in the media about the recession and shrinking GDP data - there will always be money out there for businesses that can MAKE money. Always was there, and will always be there. So your investment proposal must always be geared towards this important point. So make your proposal sound like it can actually make money by creating a convincing proposition.

2. Second point to consider when describing your product is to KEEP IT SIMPLE! I have seen it to many times and it is deeply disappointing for me – an entrepreneur submits a really good opportunity to our angel Investors, but it turns out to be too darn complicated!

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Yes agreed, it is important to show to a potential angel investor that you know your stuff – but keep your investment proposal simple.When investors look through your investment summary they are going to scan through it - and using jargon rich words like CMS, CRM will inevitably confuse and put-off most Angel Investors and move them away from your value proposition! Ignore this advice at your own peril – Use simple words like Software - not a CRM solution! Online media/advertising instead of PPC campaigns etc.

3. Another major point that I have seen entrepreneurs overlook is what Industry sector their business is in! Let me give you an example: ‘What industry sector is Google in?’Think about it for one second: Immediate responses will inevitably always be: Computer, Software, but NO. It’s Advertising! Why? Because 96% of Google’s revenue comes from advertising! So as an industry sector, you would choose Internet, and Advertising. You do not want to lose potential investors because you chose Computers or Software instead of Advertising or Media!

4. Don’t be shy! Talk about your Funding Requirements with no shame! How do you wish to use the money that you raise? What will you purchase – and why is it needed? These are all very valuable questions, and they must be addressed in your investment proposal.

5. Include your background/experience information ONLY if it is relevant to your business or investment proposal. Do you have complementary skills that will assist you in running your business and turning it into a success? If so, talk about this. If not, does your management team have the necessary skills? Talk about this! If not, then skip it for now!

6. Scalability! Does your business have global appeal? Make sure you include this if it does! Facebook, Google are scalable globally. If you would like further in-depth analysis of any of the terms listed above, we have written entire articles about each aspect of your investment proposal and this can all be located in Venture Giant’s News channel.

1.2.2 How to write the perfect Investment Summary

on Venture Giant for submission to Angel investorsVenture Giant is NOT an ‘unmoderated forum’. All investment proposals are checked by us, and we do not approve all investment proposals.TO maintain a fair and equitable environment please always ensure that you do not mention your company name or supply any types of contact details in your investment proposal that you submit on Venture Giant. So instead of using your company name use a generic term, like "our Aeronautics Company" or “Media Trading Platform”. Alternatively use expressions like: “Our Limited Company,” or “We”, “Us”, “I”An investment proposal by a company called "Media Deals" is attached below and through our assistance received a lot of attention on Venture Giant.Please review it - and though it may not be related to what your industry and/or business, this sample investment proposal will at the very least give you an idea of the quality of investment proposals that we send out to our registered investors.

1.2.2.1 1. Investment Title Guidelines:

The investment title of your proposal must explain what your business does. So create a compelling enough title that will position your business to be understood instantly in the investor’s mind before he/she has even read your investment proposal! Consider also that the Subject line of the email that is sent out to our registered angel Investors will include your Investment title. A simple, catchy, snappy title will ensure that an investor will open his email and read your entire investment proposal that he receives through Venture Giant. A good title will also ensure that any other investors browsing through our angel investment network will be compelled to read more! 

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Sample investment Title: (25 Characters): Media Trading Platform 

1.2.2.2 2. Investment Summary Guidelines:

This is the public part of your proposal and this must compel an investor to want to read the ENTIRE investment description.

1.2.2.2.1 Ideas to mention here are:

a. Why your investment opportunity is attractive!b. How much money is needed, and how will it be used?c. What will be the return on investment (ROI) for an Angel Investor and when will they

see this return?Ideally you should aim to write this paragraph AFTER you have created and drafted your entire investment pitch below, so as to ensure that you do not miss out any important facts!

1.2.2.2.2 Sample Investment Summary: (500 Characters)

We have created a state of the art UK media trading system that offers Print-media-buyers and ad-sellers (newspapers, magazines and publications) the opportunity of accessing real-time print ad inventory for which agencies and/or advertisers can either buy or bid for. We are seeking a £50k angel investment to be used for Working Capital and Online Marketing. Based on our projections, Angel Investors will see a ROI in year 2 of 34%!

1.2.2.3 3. Investment Description Guidelines:

Your Investment description that you create on Venture Giant will have to answer the question:“What’s in it for the Angel Investor!” – I have seen it to many times! Entrepreneurs talk and talk about their product and business…. And then that is it! Strike a balance, and talk about your business, how you will make money, why you are seeking investment and how an investor will make a return!This is your investment pitch – and don’t forget to add some Industry Statistics! A simple search on Google will reveal some interesting facts that you can include in your investment proposal.

1.2.2.3.1 Venture Giant Insider Edge:

Your investment Description is essentially your pitch (or elevator pitch).

1.2.2.3.2 Address key issues like:

a. What makes your investment proposal an attractive investment opportunity?b. How much money is needed, and how will it be used?c. What will be the return on investment (ROI) for an Angel Investor and when will they

see this return?This can be effective as a teaser to attract the initial attention of an angel investor particularly when using email or an online angel investment matching service.

1.2.2.3.3 Sample Investment Description:

(3000 Characters)Our Online Media trading system has been in development for the past 12 months. It offers Print-media-buyers and sellers the opportunity of accessing real-time print ad inventory for which agencies and/or advertisers can either buy or bid for.Publishers always have excess adverts to sell at discounted rates before their 7PM print deadline (the "deadline discount" game) and there is a great demand for this ad-space as it is usually

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heavily discounted. But in the UK there is no way of accessing these heavily discounted ads. The only real way is to create relationships with magazines, and/or, call each publication and ask them for a 'deadline discount'.Our online eBay type bidding system aims to solve this problem by enabling magazines, newspapers and other publications to advertise their 'deadline discount adverts' to people wishing to purchase these adverts. All discounted advertising space is automatically categorised by magazine type, ad-size and cost.Purchasing an ad on our online trading system involves a user simply "adding the advert" to their shopping basket and paying for it via a credit or debit card. We expect to generate revenues from these purchases of between 6% and 8% on all transactions. It is FREE for Media publishers (magazines and newspapers) to upload their advert availability.This trading platform can be scaled globally, and my longer term plans is to license the platform to individuals on a country to country basis. Apart from the upfront and ongoing revenues, further commercialization could come from INTERCONNECTING the databases together from each country. So, a UK based customer who was looking to buy advertising space could also browse advertising opportunities in India (for example) and if that customer from the UK system subsequently chose to purchase an advert in a different country, we could automate and revenue share between licensees. The commercialization possibilities are endless.The IndustryIt is often stated that 'offline media (magazines and newspapers) is in serious trouble'. However all the real-data points to the contrary. According the media handbook 2007, it is estimated that the value of consumer magazines are £7.2bn and the business media industry - including magazines are valued at £18bn to £20bn. Magazines themselves - the printed ones - have continued to flourish in the last decade since the launch of the Internet. At least one new title is launched every day of the year and has resulted in rising total volumes of sales and of consumer expenditure on printed products. The Advertising Association (AA) predicts a 15.6 per cent increase in consumer magazine ad-spend over the next 12 years, taking overall advertising investment in the industry from £750m in 2006 to £889m in 2018, which is a view shared by the UK's leading advertiser, Procter & Gamble, who have increased their investment in print by 10.7 per cent over the last two years.In SummaryWe believe that our online service could do amazingly well in the fight against online advertising as advertisers identify how effectively magazine advertising can build customer loyalty. Our online service has now been created and is all set to launch.I have had 10 years experience in the publishing business, and I have worked with Random House and learned their marketing methods. I have seen this gap in the market, and I believe an online media trading system is much needed. Using my skills, and experience in this space, I believe that I can turn this business into a great success and commercialize this media trading platform to generate sustainable turnover and profitability.This Media Trading System is a Win/Win business solution for print media. Advertisers will get discounted ad-space and publishers of magazine will get to move inventory in a much easier, faster and streamlined way.Please contact me to discuss this investment proposal further.

1.2.2.4 Venture Giant Insider Edge:

Always try to end with something that the investor should do.

1.2.2.4.1 So use expressions like:

a. We have a full business plan available on request. We are very passionate about our business and we would invite any interested angel investors to contact us now to discuss this investment proposal further with us now.

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b. Always make it easy for Angel Investors to understand your business and investment proposal. Talk about your background and business, and then talk about your product! Yes you have the scientific knowledge on the chemical composition of Biodiesel, but an angel won’t so keep it simple!

1.2.2.5 Pearl

As an entrepreneur you must learn to demonstrate that you can make Angel Investor money! Convince investors that read your investment proposal that your business opportunity is sustainable and that you are the man (or lady) for the job! This is so important! Your investment summary should demonstrate how you are going to translate an Angel Investor's investment into profit for them.Thank you for taking the time to read this brief outline, and I hope that it helps you to create a compelling enough story that will get you the Angel Investor interest - whether it be through Venture Giant, or otherwise!The investment proposal listed above is based upon an online web based service. Please follow this link if you are a Property Developer looking for Property Funding and would like to view a Property development funding investment template.Rishi Anand Founder and Managing Director,Venture Giant

NB: In case you have not signed up yet with Venture Giant and are looking for Investment or investor funding please click on the links below. Venture Giant has streamlined the process of raising investment capital and we are so confident that we can find you the investor contacts that are interested in investing in your business that we do not charge any upfront fees unless we perform! Sign up now. Free registration.Are you looking for Funding and have already prepared your investment summary and Business Plan, and are now ready to get it out to Investors. Submit it to us, and we can promote it to Hundreds of Investors that are already registered to us.

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1.3 Entrepreneur Resources www.venturegiant.com

We have compiled a list of resources that will greatly assist you in attracting the angel investment capital you need by making you more 'more investment ready'. Negotiate, protect yourself, your investment and your intellectual property by using some of the entrepreneur tools and resources below. Protect your IP (Intellectual Property)As an Entrepreneur with a business idea or investment proposal, there will inevitably come a time when you must protect your Trade mark (your brand for example), your copyright, file a patent application, or even protect the design of your product. Protecting your trademarks and patents are essential when you are building a business and Venture Giant discusses the procedure on actually creating and owning your own IP rights.

• Copyright • Design • Patent • Trade Mark

Please click on any of the points listed above to learn more about each of the protections available in the UK and abroad. General Business Viability What: This is a general assessment aimed at testing the general viability of any type of business. It consists of 49 questions and may take up to an hour to completeWho: Anyone with a business or business idea will benefit from this. This is a great starting point if you are new to Venture Navigator. www.venturenavigator.co.uk

UK Business IncubationUKBI works with over 1000 members from central and local government, national and international organisations, HE and FE institutions, science parks, research and development laboratories, innovation centres, commercial clusters, social regeneration projects and the private sector to help create the right environment for innovations and entrepreneurs to succeed.www.ukbi.co.uk

How to Pitch your Business PlanThis is an excellent presentation by a US angel group (Tech Coast Angels) and the tips in this article will help your elevator pitch (or even venture giant video pitch) be a bridge between what you have and what your Investor audience will want. Highly recommended.www.eventuring.kauffman.org

High Tech Startup Valuation EstimatorThis is a fabulous tool for the entrepreneur who needs to know what the premoney valuation is for his/her start-up. As you may imagine valuing a start-up is totally different to the valuing process of an established company because of the high level of risk attached to start-ups. This in combination with little or no proven revenues makes more traditional valuation methods like Price-to-Earnings ratio of little use. Start-up valuations are generally based on qualitative attributes such as the feel or taste of the product, or the expertise, image, leadership, and reputation of the team in the business. Qualitative aspects are abstract and this is a great tool that takes these factors into account and can measure and value your start-up.www.caycon.com

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Entrepreneurial ProfilerRachel Elnaugh's free Entrepreneurial Profiling Test comprises 12 questions and takes about 10 to 15 minutes to complete. At the end of the Test, you will receive an immediate result telling you which of the 9 unique Entrepreneurial Types you Profile as. profile.rachelelnaugh.com

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1.4 17 Questions Startup Founders SHOULD Ask Potential InvestorsBy Thomas Oppong. Published on June 30, 2011.

1. On how many boards do you sit?2. Do you really have enough time to impact the outcome of this investment through your

involvement and engagement?3. Is there a culture of providing bridge capital to a series of objective milestones to get to a

better point to raise our next round of financing?4. Do you have the necessary external relationships to help us build the syndicate for our

next round of financing?5. What are your return expectations?6. Don’t ask for a reference call with a CEO of one of the companies they had to shut down;

just cold call them without telling the VC.7. How do you feel about truly independent outside board members i.e. those with no

affiliation with the firm?8. May I talk to one of the CEOs that you had to remove or delegate from their position?9. Questions on fund solvency are a must.10. what is the size of the fund you would be investing from?11. What is the average size of your first round investments?12. Don’t ask for a reference call with a portfolio CEO: just cold call them without telling the

VC.13. Don’t assume that changes in founding CEOs are a bad thing. What you want to find out

is how the investor behaved in managing these kinds of transitions.14. What was the toughest portfolio company experience you went through? How do you

work through these tough situations?15. How many times have you been through CEO changes in your companies, and how did

you arrive to that change?16. Would you consider this as an investment if the right opportunity and team were to

present it? Why or why not?17. How close does a product need to be to finished before you will consider an investment?

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1.5 25 Primary Reasons Why Startups FailBy Thomas Oppong. Published on May 24, 2011.

Most startups never get past the first year of operation. Founders blame investors; investors blame CEOs, CEOs blaming the R&D people; R&D people say the product is fine, the market just doesn’t get it, and marketing people blaming it all on the recession. These mistakes have proven to be the reasons for most startup failures.

a. Inability or failure to obtain and/or maintain sufficient capital (for a variety of reasons), whether or not managed poorly.

b. Not learning fast enoughc. Management teams lack flexibility to change direction when needed.d. Focusing on technical development rather than on the customer. (4 Steps to the

Epiphany)e. Founders make something not many people wantf. Building products that cannot scaleg. A lot of potentially good ideas/projects die because the founders quith. Sometimes the market simply isn’t there, founders conduct little or no researchi. Poor allocation of company resources and fundsj. Inability to change your business model where necessary and especially when there is the

need to do sok. Too much money can also creates undisciplined management decisions hence the failure.

You risk spending your money too freely, shortening your runwayl. Lack of trust and commitment   in the founding teamm. When you  build something far more complex than it needs to be.n. Wrong timingo. Lack of long-term vision and plan, passionp. Raising money can sometimes be a HUGE distractionq. Incompatible teamr. Bad hiring. Overly aggressive team expansion, and a high burn rate but no execution in

product and marketings. Not solving customer problemst. Co-founder/CEO who proves himself or herself  overbearing, not valuing his partnersu. Inability to market/sell, manage, iterate, adapt, scale, listen to users/team, handle mistakes

and changev. Poor understanding of how to motivate people and create a happy workforcew. Sometimes startups fail because of unexpected external factors like economic downturnx. Trying to grow too quickly,  scaling up too fast and without  realizing that there are

significant costs to scalingy. “All companies that go out of business do so for the same reason — they run out of

money.” Don Valentine

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1.6 Common Mistakes First-time Entrepreneurs MakeBy Thomas Oppong. Published on May 3, 2011.

a. We underestimated the difficulty of managing a team and undervalued the skills of general management, process, and strategy. Siqi Chen

b. We used our limited resources as a startup to attack markets we didn’t understand instead of focusing on our core competencies, which were fairly unique in the market.

c. It starts with the co-founder: not having one, having the wrong one, improperly dividing responsibilities, or giving too many people the title “co-founder”. AdamRifkin

d. Not realizing that one of the best ways to succeed is to fail fast — sometimes it’s difficult for first time entrepreneurs to launch product, and just get feedback from their target audience. Suzanne Xie

e. Never outsource anything important. Ever. There’s no such thing as a brain transplant. You can get a new heart, a new arm– mechanical things– but you can’t replace the central nervous system. Greg Tapper

f. First-time entrepreneurs often fail to realize that every second of every day costs money. Whether it is rent, salaries, overhead, utilities, or whatever, cash is constantly going out the door, and if you cannot bring cash in (through sales or financing), then you will eventually run out of cash and the game is over. George Kellerman

g. Seeking perfection instead of revenue. Preferring ideation over iteration. Spending all day glued to your screen without stepping back to review the big picture every now and again. Grinding without realising that you are on the wrong path. Believing your own hype. Sam Birmingham

h. To quickly summarize our biggest mistake — it was not having a techie co-founder when our vision was to build a very feature-rich internet publishing platform. This caused us to go down some blind alleys, lose time, and spend money unnecessarily. Evan Rudowski

i. Obsessing over the competition. Be aware of who they are and stay abreast of what they’re up to, but overly focusing on what they’re doing and building takes your eyes off the prize. Matt Hendrick

j. The biggest mistake I made 1 year ago, was recruiting people that I personally liked instead of recruiting people that I really needed. A business is not a social club. Dont recruit people that are your close friends or just because you like them. Jimenez Weerden

k. Picking the wrong partners. Lack of execution brought on by analysis/paralysis. Unrealistic business model. Trying to build the perfect product right out the door. Lack of competitive analysis. Winston Klein

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1.7 The Business Proposal/Plan ChecklistBy Thomas Oppong. Published on September 21, 2011.

1. What is the market space where you will operate?2. Describe the size of the market3. Is it large and rapidly growing?4. What is the competition to your product?5. What is your strategy to deal with competition?6. Has any market validation happened?7. How difficult would it be for somebody to copy your business model?8. Clear definition of product or service9. Is it already developed or can you validate that it can be developed10. Have you clearly defined your customer11. Why is your product / service necessary12. Is it doing something Different / Differently13. Is it “need to have” / “nice to have”14. If IP based, patenting status15. How will you deliver16. Experience of pilots, prototypes etc17. What is your marketing plan sales / Scaling up plan18. Risks / mitigation plan19. Team is fundamental to early stage venture, providing the best collateral for an investor20. Track record21. Coverage of skills – finance, technical, marketing, etc22. Stock/compensation plan23. Advisers, etc.24. Current / Projected for next 3 years25. When will it break even26. Self investment & funding received till date27. Investment sought28. Valuation expectation29. Building an exit option is necessary for yourself, your team, and your investors.30. How do you intend to exit31. When do you want to exit

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1.8 20 Questions You Should Expect In Your Next Investor PitchBy Thomas Oppong. Published on June 3, 2011.

a. What is your competitive advantage?b. What is your unfair advantage; the advantage no one else has or will have?c. What was or will be your most important, early milestone?d. How are you going to make money?e. How do you know this is going to work?f. Who are you and what have you done previouslyg. What do you need to make this successful and how are you going to get it?h. Who is your first customer?i. How will you get to 100 or 1,000 customers?j. Who do you need to hire, when, and how are you going to recruit the right talent?k. what’s your business all about?l. What’s the barrier to entry for competition?m. What’s going to stop big monster company in your space from copying you?n. Why are you raising the money you want to raise?o. How far does that money get you?p. What’s your marketing strategy?q. What’s the team look like? What are your backgrounds?r. Who else have you spoken to?s. How easily can you be copied?t. Who are your competitors and how are you better/different?

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1.9 21 Important Tips For The First-time Startup CEOBy Thomas Oppong. Published on May 22, 2011.

1. Hire the absolute best people you possibly can2. Find a couple trusted, experienced advisors/mentors.3. Start simply, prioritize, and maintain focus4. When fundraising, ask people for advice, not money5. Create several financial models and options6. Get hold of your financials and legals7. Build the team. Focus on key management team hires and assume you’re going to make a

few mistakes8. Build a Board and focus on on people who a) you can trust, b) have a track record and

understand the space(s) you are playing in, c) can bring ideas on talent, financing and growth (sales, product, etc.), and d) understand the venture and growth financing landscape.

9. Make sure your option and equity agreements are rock solid, and your employment agreement is fair and competitive with what an investor would expect.

10. Your choice of partners and investors should be thought of as permanent and are therefore the most important two decisions you make.

11. Don’t be afraid to have tough conversations. Its the best thing for the business, your employees and you

12. Build a culture you and your employees will be proud of13. Take advantage of conferences and events that can expose your product or service to your

target audience14. Most first time founding CEOs want to do everything and want to be involved in

everything15. Trust your team but constantly measure them on goals16. Nothing matters more than the people and the culture, get it right and you are on the right

track17. If you are failing, fail fast and move on18. Be attentive of opportunities and make the most of them19. Be agile and keep your eyes on market trends.20. Check out the library by Y Combinator http://ycombinator.com/lib.html21. Listen to customers and iterate where necessary

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1.10 Andreessen Horowitz On StartupsBy Thomas Oppong. Published on March 25, 2011.

1. The most important attribute required to be a successful founding CEO is leadership2. All CEOs should work on the vision component of leadership3. To create the original innovation to start a company, founders must exhaustively

understand the technology required, the likely competitors (past, present, and future), and the market in all its variations and segmentations

4. As CEO, you must consider the systemic incentives that result from your words and actions. While it may feel good in the moment to be open, responsive and action oriented, be careful not to encourage all the wrong things

5. A technology startup is all about the entrepreneurial team and their vision6. Building a great company is a team sport7. Trust is essential to building a great company8. Product is the heart of any technology company9. The technology business is fundamentally the innovation business10. The best way to understand the entrepreneurial process is to go through it. If you haven’t

been through it, it’s kind of hard to learn from a book11. The process of scaling a company is not unlike the process of scaling a product. Different

sizes of company impose different requirements on the company’s architecture12. Be mindful of your company’s true growth rate as you add architectural components. It’s

good to anticipate growth, but it’s bad to over-anticipate growth13. Without a well-thought out, disciplined process for titles and promotions, your employees

will become obsessed with the resulting inequities14. Nothing will accelerate your company’s development like hiring someone who has

experience building a very similar company at larger scale15. CEO evaluation need not be a byzantine, unstated art. All people, including CEOs, will

perform better on a test if they know the questions ahead of time16. While it may work to have individual employees who optimize for their own careers,

counting on senior managers to do all the right things for all the wrong reasons is a dangerous idea

17. Every time your company gives someone a promotion, everyone else at that person’s level evaluates the promotion and judges whether merit or political favors yielded the promotion

18. If the latter, then the other employees generally react in one of three ways:a. They sulk and feel undervaluedb. They outwardly disagree, campaign against the person, and undermine them in

their new positionc. They attempt to copy the political behavior that generated the unwarranted

promotionThese tips were taken from Marc Andreessen’s blog and Ben Horowitz’s blog(Parners at Andreessen Horowitz : venture capital firm)

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1.11 15 Steps To Heaven, Finding A Business AngelBy Thomas Oppong. Published on June 20, 2011.

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.Here are 15 action steps you can take to find angel investors for your startups.

1. Don’t start your search looking for any investor, begin by looking for the perfect angel2. The best angels you will find are the ones who know you personally, or know a member

of your team or advisory board3. Identify the people you want to engage and then see if you can get to them via your

network using LinkedIn.4. Give them a  good reason to invest.5. Search private equity websites, trade mags, financial papers, and competitors’ sites6. Call a professional venture capitalist and ask if he or she is aware of an angel investor

group.7. Look at the “Principle Shareholders” section of initial public offerings (IPO) prospectuses

for companies in your area. This will tell you who has cashed out big.8. Get an invitation to present to a local angel group. Most won’t take cold calls, so you’ll

need to wrangle a referral.9. StartupNation.com offers a soup-to-nuts array of great startup information, including

angel investor insights, developing an elevator pitch, and much more10. Submit your application to the leading online website national databases of angel

investors11. Find the right investment advisor, or member of your advisory board, and the “match-

making” will happen.12. Being referred by someone with whom an angel investor has already worked with, is the

easiest way of getting connected to him.13. There are better chances of interacting with an Offline angel investor since he is known

through some referral or some business association or via some meetings and fairs.14. There are some good books out there to help, like “Attracting Capital from Angels”, by

Brian Hill and Dee Power.15. Raising money is hard, but don’t get discouraged. Take every “no” you get as an

opportunity to learn something and refine your idea. If you can’t get someone to say “yes”, figure out what you need to change or just go out and prove them wrong!

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1.12 Make Your Brand An Experience, No Just A LogoBy Thomas Oppong. Published on April 27, 2014. 0

Your email marketing campaign has gone straight to spam; you can count your Twitter followers on one hand and your expensive new logo has gone totally unnoticed. Ever get the feeling people just aren’t that into you anymore?Between sidebars, pop-up ads, suggested posts and all the other web-based noise out there (not to mention old-fashioned print and broadcast advertising), it’s hardly surprising consumers are more than a little jaded. It’s a problem – but it’s an opportunity too: and that’s where experiential comes in.

1.12.1 Emotional connections…

Truly great experiential marketing is about much more than merely getting noticed: it’s about creating something memorable in a way that allows the consumer to experience the brand (rather than being talked at about how fantastic it is).It could be about breathing fresh life into an already massive product. For instance, if your caffeine and sugar-based drink is already the market leader, where else is there left to go? How about printing the 150 most popular first names on your bottles and inviting everyone to ‘Share a Coke’. Next, sit back and watch as the nation’s Facebook Newsfeeds are dominated by images of people doing just that.For those companies that don’t already have their product absolutely everywhere just yet, experiential marketing is much more about building brand awareness. This could be letting customers get their hands dirty to demonstrate a new organic food product – or perhaps staging a street-based challenge to show off a new satnav-based app.Experiential marketing can also be used very effectively for communicating serious issues in an engaging way. For instance, read about how The Body Shop teamed up with experiential market leader LOLA’s promotional staff to highlight the issue of animal testing.

1.12.2 Demonstrating passion (not just talking about it!)

Your mission statement says you’re passionate about whatever it is that you do. That’s fine, but wouldn’t it be nice to have some evidence to back it up?By getting involved in experiential marketing, you’re showing your customers that you’re so proud of your product you want them to get their hands on it (or at least experience it in some way). More than that: you’re showing them you’ve put in the time and effort (and sheer imagination) to come up with a means of interaction that’s actually memorable.

1.12.3 People share actual experiences 

When people are talking about your brand, you’ve brought it to life. Live, face-to-face experiences expertly tailored for your target audience: these are shareworthy events for those who experience them.And when those new customers tell their social media contacts about the fantastic experience they’ve had with your brand, word’s likely to spread. As Facebook’s Mark Zuckerberg put it, “People influence people. Nothing influences people more than a recommendation from a trusted friend… A trusted referral is the Holy Grail of advertising”.

1.12.4 It’s official: customers love it! 

Of course it’s enjoyable for the customer – after all, it’s curated specifically for them (if it’s done right, that is)! But does it work as a marketing tool?

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Here’s some stats from the Event Marketing Institute’s EventTrack report:95% of consumer respondents said participating in a recent event made them more inclined to

purchase the products promoted52% said they bought the product or service marketed at a recent event attended54% said they bought a product or service at a later date88% of event attendees who buy once say they become regular customersCan you afford not to look at experiential marketing in 2014?LOLA Events is a UK wide promotional and event staffing agency providing fantastic promotional staff, event staff, hostesses and catering staff for unique parties, product launches, conferences and events.

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1.13 3 Great Ideas for Small Business MarketingBy Contributor. Published on March 30, 2013.

Businesses today have a wide variety of options when it comes to marketing and advertising. At the base of all of those options is branding. For any business, cost is always a concern. While most start-ups, small businesses and even larger firms are cutting back, there are still some effective ways to get the company name established without spending a small fortune.

1.13.1 1. Outstanding Customer Service

This is the number one thing when it comes to branding for a company. One of the main reasons is that one bad word can sprout a whole tree full of bad press, while a kind word does just the opposite. Start by developing a system for feedback through a Facebook and Twitter page. Regularly monitor customer comments and reply to all inquiries expediently. When a customer makes a positive comment, thank them on the network and if possible, individually.Another great method to ensure that the best customer service is provided at all times is to take each complaint as an opportunity to turn it around into something positive. After all, it isn’t the unfortunate experience that defines a company, but how the company reacts to it.Jumping through a few hoops lets a firm get its exercise while demonstrating how special customers are to them. It also impresses people and allows them to develop a brand affinity with your products and services.

1.13.2 2. Visual advertising

Visual advertising is a very powerful medium. The methods available, however, such as cable and television ads are extremely expensive and are usually cost prohibitive. Banner advertising is one method that any company, regardless of size or budget, can afford. The high impact imagery of even something as simple as a large font can draw a great deal of attention. The same holds true for vibrant colors and thoughtful designs.When it comes to advertising, people remember the images they see. This is why potential and existing customers are more apt to become interested in a brand when they regularly see material that reminds them of the company and their services.With banners, companies can announce new stores, specials and contests. They can also get recognized at local community and large scale events. The number and types of banners available are limitless. Best of all, they cost very little to produce, nothing to maintain and are reusable.

1.13.3 3. Inform, Educate and Collaborate

Using social media outlets like Twitter, Facebook, Tumblr, YouTube, Instagram and Pinterest are key in today’s business marketplace. In the process, think about ways to inspire interaction. Find out where the target market is and provide something of value, by way of information or discounts, to motivate a favorable response.Joining social networks where the target audience exists is very effective for marketing. Collaborate with influential people to make your firm stand out. Be selective about whom you partner with to retain integrity while getting more exposure.Above all, providing content that is useful and engaging is one of the best ways to draw customers in organically. Using banners is another method to attract customers without actually selling. In this way, people are able to become familiar with a brand with repeat and consistent exposure. When customers are able to see and hear the branding message as often as possible, it

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is the most effective way to promote and expand any business or other activity that wants to attract attention.

With small business owners in mind, Nadine Swayne shares these helpful points of marketing. At Signazon, you can find effective marketing materials for your company. They offer a wide variety of storefront advertising solutions, banners and offset printing services to complete all of your advertising needs.

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