The Story, Team, Exit Strategy, Investment Vehicle
Having collaborated with more than 100 start-ups on generating pipeline and revenue and several F1000’s, we’ve found that quite often the biggest challenge they face as a business – raising capital.
So we partnered with Day One Experts to help our customers better understand how to structure their company to be able to raise the capital they need, at the best possible terms they can raise it at while giving the investor a win/win investment vehicle.
Four Pillars or Foundations of an Investable Business
Story – What is your sector/industry. What is the problem? What is your solution?
(This seems very simple and overused but it is not. Founder/company must clearly understand it and be committed to it).
Why is this important? It defines how big is the opportunity. It clarifies the impact the problem is having on the industry ie the pain point this solves. It allows for all to understand the complexity and effort required to solve. (Easy or hard and is the solution tech/service/product/etc. That defines what is being invested in which drives what the potential/options exit/returns could be).
Team – Most important. Can your team execute on the story you just told?
Why is this important? The team is what makes it possible to turn the solution into a reality. If you don’t have the team then build it. (The right team protects capital because its proven good people can make up for a miscalculated story or narrowing exit opportunities ie ability to solve while solving).
Exit/Return – How are you defining the win…. This will indicate how long and how big or small is it.
Why is this important? If the TEAM executes the STORY is the EXIT/RETURNS possible.
Investment Vehicle – What structure is the capital being held and delivered in. (Ie all the forms you said).
Why is this important? (How you take in capital affects everything…….hiring, next round, exit, ability to be acquired, ability to grow, and etc.). So many people forget that this single part truly can determine whether or not you can grow or get an exit/return. *notice how each pillar is interrelated to the others.
If your company is looking to raise the next round and would like to have a free assessment done on your four pillars, let us know. We’ll get you an audience with the CEO!