Last week I attended the BOSS 2011 Conference put on by the Barefoot Executive, Carrie Wilkerson. Was an incredible experience!!! While I was there I participated on the "Power of People: Buzz, Publicity and Social Media panel and also conducted a breakout session on Financing and Funding. As you can see I am multi-talented speaking on two such diverse topics. Not sure that is so much true as much as that I have just been around a long time. I spent the first 15 years of my career focused exclusively on financing both bank and investment funding. In the past five years I have continued to counsel on funding but my focus has shifted more to helping people build awareness of their business using social media. FYI...the social media is a lot more fun.
The funding presentation was pretty much technology free done on a flip chart. Given how bad I write and spell I promised that I would put together some slides for those that participated in the session and post them here and I thought I could share with them with all of you too.
I'll let the slides speak for themselves but the basic premise is that there is a funding continuum that dictates what kind of funding you should be seeking based on where your business lies on the continuum. Having said that the type of business you have also dictates what kind of financing you can obtain. Traditional businesses with normal growth models need not look to private equity investors as they will have difficulty reaching the level of scalable growth needed to support the return needs of investors. Likewise, high-growth technology businesses may have difficulty dealing with banks due the business's need for growth capital and the lack of collateral. The key for early stage businesses is to have a great product, plan and strategy that will allow them to move further down the continuum closer to they type of funding they are seeking. The attached slides touch on each stage of the Funding Continuum with some insights on working each stage of the process.
Let me know your thoughts / questions and we'll figure out how to get you some money.