the capital continuum (or sources of capital)
TRANSCRIPT
@ 2 0 1 5 J P C E N T E R P R I S E S
@ 2 0 1 5 J P C E N T E R P R I S E S
A “TYPICAL” TIMELINE
F.F.F.
Angel investors
Venture capitalists
Lenders
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements
A “TYPICAL” TIMELINE
F.F.F.
Angel investors
Venture capitalists
LendersFuturistic Historical
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements
A “TYPICAL” TIMELINE
F.F.F.
Angel investors
Venture capitalists
Lenders
@ 2 0 1 5 J P C E N T E R P R I S E S
significant milestones in the form of
revenue or other achievements
Line12fund.com
THE KEY TO LANDING CAPITAL?
Know your target
audience
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SOURCES OF CAPITAL
Skin in the game
Sophistication of deal - easy
Typical funding amount - $0-$25,000
Difficulty in obtaining - easy (if you have the money it isn’t
hard to convince yourself to invest)
Time to obtain - instantaneous
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SOURCES OF CAPITAL
F.F.F
Sophistication of deal - moderately easy
Typical funding amount - $0-$50,000
Difficulty in obtaining - moderately easy (this group invests
not on idea but trust)
Time to obtain - nearly instantaneous
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SOURCES OF CAPITAL
Crowdfunding
Sophistication of deal - moderate
Typical funding amount - purchase price x # of customers;
average is up to 10k
Difficulty in obtaining - moderate (it takes creativity to stand
out)
Time to obtain - between 30-60 days
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SOURCES OF CAPITAL
Microfunds
Sophistication of deal - moderately easy
Typical funding amount - a few hundred to $25,000
Difficulty in obtaining - moderate
Time to obtain - less than 30 days
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SOURCES OF CAPITAL
Grants
Sophistication of deal - moderate
Typical funding amount - up to millions of dollars
Difficulty in obtaining - extremely difficult
Time to obtain - many months
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SOURCES OF CAPITAL
Pitch competitions
Sophistication of deal - easy
Typical funding amount - winnings; usually $1,000-$25,000
Difficulty in obtaining - moderate (depending on the
competition)
Time to obtain - from a few weeks to a few months depending
on the schedule
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SOURCES OF CAPITAL
Strategic partnerships
Sophistication of deal - moderately difficult
Typical funding amount - $5,000-$100,000
Difficulty in obtaining - difficult
Time to obtain - many months
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SOURCES OF CAPITAL
Angel investors
Sophistication of deal - sophisticated
Typical funding amount - $50,000-$2,000,000
Difficulty in obtaining - difficult (the rule is pitch 100 get 1)
Time to obtain - 6-12 months
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SOURCES OF CAPITAL
VCs
Sophistication of deal - extremely sophisticated
Typical funding amount - millions or hundreds of millions
Difficulty in obtaining - extremely difficult
Time to obtain - years
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SOURCES OF CAPITAL
Alternate finance
Sophistication of deal - moderate
Typical funding amount - % of revenue
Difficulty in obtaining - moderate
Time to obtain - less than a month
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SOURCES OF CAPITAL
Lenders
Sophistication of deal - moderate
Typical funding amount - $50,000-$350,000
Difficulty in obtaining - difficult
Time to obtain - months
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