LAUNCHfn strives to
develop a funding strategy that will be effective in helping the client reach
the maximum number of investors, while working within the clients budget.
There can never be any guarantees in the process of connecting companies with
capital because there are so many factors that impact an investors decision
to invest. Many of the reasons for no-go investment decisions can be
identified and remedied before the investment process begins. The purpose of
the Private Equity Application step before a funding strategy is developed is
to identify any obvious obstacles to funding such as:
Incomplete
financials and/or business plan (market/sales strategy, operational
information, barrier to entry not established)
Complex or
confusing message within the investor documents regarding business model or
investment opportunity
Structure of
the offering, perceived cost of the investment relative to a high valuation or
unclear exit and return to the investor
Inexperience
or incomplete management team, and/or attitude of the management conveying a
sense of entitlement or resistance to advice & counsel
Specific
industry focus or niche marketplace that limits the potential number of
investors
Unfortunately, even when a
company has none of these obstacles, they can still fail in their quest for
private equity funding because the interest of the investor wanes. An
institutional investor or venture capital firm may decide they need to
diversify and will not invest in a specific sector, even though they professed
interest right up to negotiations of a term-sheet. A private investor may
decide to invest in another project that rings a specific emotional bell or
may have a personal matter that needs attention, sidelining any private equity
investment transaction. Often, entrepreneurs make the mistake blitzing
through investors and never providing updates, so when the circumstances
change and the investor is ready, they are onto the next new opportunity
rather than the deal they saw 2 months before. They either assume the company
go their funding or have failed since they never heard from them again.
Therefore it is necessary
for an investor relations campaign to include the following:
Simplified
method to communicate opportunity to investors so they will take the time to
learn enough about the opportunity to be enticed to invest more time in
learning more.
Combination
of group presentations and one on one investor meetings to provide an
opportunity for the client to tell their story
Passive
marketing to the interest areas of the investor community through email, press
releases, and interview on radio and TV broadcasts.
Direct Mail
to reach those investors that do not respond to other means of communication,
targeted based on geography and industry preference.
System to
capture investor interest and respond accordingly
Ongoing
communication strategy to communicate updates to investors so they can see the
progress and move a semi-interested investor to an interested and motivated
investor
A
centralized point of information so that no matter how the investor first
hears of the opportunity they have a source of information they can go to.
LAUNCHfn incorporates
elements of these features in the
Investor Relations (IR) Plans it develops unique to each client. Each
client will receive a calendar driven Investor Relations Plan that maps out
when each activity will be done and offers the option to continue the
momentum. Fees are based on the value of the IR Campaign and most of the
fees are deferred until the company receives funds to pay for the cost of the
campaign. We also require an equity participation in the opportunity so we
may play in the long term success of your company. Typically we require a
small amount as part of the initial engagement with the remaining coming on a
pro-rated basis as funds are received. The value of this is added to the
value driven fee for the entire capital raise. The sample Investor Relations
Plans listed below and the fees associated with them are an estimate and may
vary according to the actual needs of the client. These fees are typically
deducted from the total value cost of the campaign once the capital is
received. These fees assume that the business plan is investor ready, the
company has their presentation ready and/or their video complete.
Overview
§
Assistance
with creation of the one page Investor Profile using a template provided by
LAUNCHfn to be handed out to investors, included in direct mail campaigns, and
made available on the web.
§
Promotion
and Announcement of Clients participation in investor relations campaign,
either directed to event or web vide (over 3000 member of national investor
community)
§
Capture
feedback from investors responding to communications, presentations, and
information provided and reported regularly as part of the status check.
§
Ongoing
introduction and identification of potential investors on a non-dedicated best
efforts basis
§
2 updates
sent to investor community during the life of the contract
§
Advice and
Counsel from your strategic capital consultant
§
Strategic
introductions for potential partners and clients
§
Identification of potential lenders to augment private equity requirements
§
Cost depends
on the scope of the campaign
Included in all
LAUNCHfn IR Programs
Assistance
with creation of the one page Investor Profile using a template provided by
LAUNCHfn to be handed out to investors, included in direct mail campaigns,
and made available on the web.
Promotion
and Announcement of Clients participation in investor relations campaign,
either directed to event or web vide (over 3000 member of national investor
community)
Capture
feedback from investors responding to communications, presentations, and
information provided and reported regularly as part of the status check.
Ongoing
introduction and identification of potential investors on a non-dedicated best
efforts basis
2 updates
sent to investor community during the life of the contract
Advice and
Counsel from your strategic capital consultant
Strategic
introductions for potential partners and clients
Identification of potential lenders to augment private equity requirements
High Tech High
Touch IR Campaign Budget $5000
Creation of
the customized Virtual Investor Web page with 2 minute video
elevator pitch, link to downloadable/printable investor profile, and
password protection access to investor documents.
Provision of
video guide and coaching on the structure and script for the video
Investor
Marketing campaign to Mail professional cover letter with link to Clients
custom Virtual Investor Web page, and Investor Profile. __200
accredited investors
Structured
follow up with investors visiting the Virtual Investor Web Page
Hosting of
the web page for ___120 days
Marketing of
Virtual Investor Web page to 3000+ Investor Community
Monthly
electronic press releases showcasing the company and creating market interest
from targeted affinity group of investors with links to the Virtual Investor
Page
Organization
of web driven type investor presentation to present to new investors
Option to
continue at a negotiated rate after 120 days. Rate varies according to number
of mailings, press releases, etc that will be handled.
Event Driven IR
Campaign Budget $2500
Participation in an organized angel investor event (NBAI Luncheon or Dinner),
or coordination of client only investor briefing
Presentation
Services: includes review, recommendations of changes, Coaching for delivery
to investor audience, dry run practice sessions
Invitation
to over 100 investors in Atlanta Area database to attend event and meet
Client, and open invitation to broader investor community of over 3000 entries
Organized
Follow up with the attendees of the event to attend a follow up session or
phone conference
Invitation
to non-attendees to participate in the event follow up
Investor
Profile sheet included on LAUNCHfn Website for 60-90 days following the event
Option to
provide updates at future events
Full IR Campaign
Budget $7,500 to 10,000
Integration
of the event driven and the high-tech high-touch investor relations program to
create a comprehensive plan to maximize the reach of the company to the
targeted investor community and the full management of the effort so the
company can focus on continuing to build their business.
Creation of
the customized Virtual Investor Web page with 2 minute video
elevator pitch, link to downloadable/printable investor profile, and
password protection access to investor documents.
Provision of
video guide and coaching on the structure and script for the video
Investor
Marketing campaign to Mail professional cover letter with link to Clients
custom Virtual Investor Web page, and Investor Profile. __300
accredited investors
Structured
follow up with investors visiting the Virtual Investor Web Page
Hosting of
the web page for ___120 days
Email
Marketing of Virtual Investor Web page to 3000+ Investor
Community
Monthly
electronic press releases showcasing the company and creating market interest
from targeted affinity group of investors with links to the Virtual Investor
Page
Organization
of web driven type investor presentation to present to new investors
Option to
continue at a negotiated rate after 120 days. Rate varies according to number
of mailings, press releases, etc that will be handled.
Participation in an organized angel investor event (NBAI Luncheon or Dinner),
or coordination of client only investor briefing
Coordination
of other investor events, assistance with marketing the company at the event
and managing the follow up
Presentation
Services: includes review, recommendations of changes, Coaching for delivery
to investor audience, dry run practice sessions
Invitation
to over 100 investors in Atlanta Area database to attend event and meet
Client, and open invitation to broader investor community of over 3000 entries
Organized
Follow up with the attendees of the event to attend a follow up session or
phone conference
Invitation
to non-attendees to participate in the event follow up
Investor
Profile sheet included on LAUNCHfn Website for 60-90 days following the event
Option to
provide updates at future events
Other elective
services
Strategic
advice and counsel regarding capital formation strategies, operational
strategies, Investor Relations
Development
of Private Placement Memorandum or option to buy tools to do it yourself
Board of
Advisors development
Executive
Management Development, Retained Search
Participation and coordination of radio interview nationally syndicated
broadcast on equity strategies and entrepreneurs (billed separately)
Participation and coordination of TV program
Coordination
and assistance in preparing for and shooting the 2 minute Investor video
(billed separately)
Identification and coordination of participation in selected angel and
investor events (billed separately)
Upgrade
direct mail contacts
Creation of
Investor Presentation
Development
of an investor ready business plan, extracted from existing operating business
plan
