What Are Your Financing Options by Tim Jackson
The VeloCity Entrepreneur Bootcamp program has reached week three of its ten week program and this week we are showcasing Tim Jackson, CEO of the Accelerator Centre and a Partner of TechCapital. Late yesterday afternoon, Tim presented a talk on: How to Raise Money.
The night began with a strong set of pitches presented by each of the VEB teams followed by Tim discussing some key points to consider when beginning to raise capital for your company. Tim spoke about the 3 main ways to finance growth which include: Equity, Debt and Profits. He also highlighted the essential components that every entrepreneur should consider when looking at which of the three options are applicable to your company.
Tim later went on to talk about what VC’s look for and what questions they will ask when talking to entrepreneurs:
- Is the product compelling enough for people to change their behaviour?
- Can I create a product out of this technology?
- Will anyone buy this product?
- What major problem does this technology solve?
- Is the problem you are solving something that people care about?
If you are in the midst of beginning your own entrepreneurial venture be sure to ask yourself these questions because if you don’t, VC’s like Tim will!
You may also be wondering what VC’s are looking for in the company’s that they invest in. Here is a list of items essential to all VC’s that Tim so kindly highlighted in yesterday’s discussion:
1. Management team- domain expertise, stage adjusted, willing to “share” and knows what they don’t know
2. Potential customers identified and engaged
3. Large market size- make sure you understand the “real” market
4. Intellectual property- clean, defensible
5. Exit strategy- is there potential for VCs to realize a return
Before you head on over to the folks at TechCapital, be sure to keep these points and questions in mind. After all, it will save you some time, effort and more importantly it may be the difference between a signed contract or a door hitting you on the way out! 😛