TECH LAW FOR STARTUPS

Angels or Dragons? How to prepare your

business for investment

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DUG CAMPBELLMBM COMMERCIAL LLP

6TH APRIL 2011@dugcampbell

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PREPARATION IS KEY

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FUNDING OPTIONS

BOOTSTRAPPING GRANT FUNDING DEBT FUNDING (BANKS etc.) ALTERNATIVES: REVENUE BUSINESS ANGELS VENTURE CAPITAL

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WHAT IS A BUSINESS ANGEL?

“SMART” MONEY EXPERIENCE/CONTACTS CREDIBILITY & LEVERAGE LOCATION SYNDICATES ACTIVE/PASSIVE DECISIVE: TIMESCALES EIS

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WHAT DO YOU NEED TO SHOW?

SOLID POTENTIAL FOR RETURN GOOD PLAN FOR THE CASH WINNING ATTITUDE SEASONED TEAM COMPETITIVE EDGE WELL-DEFINED EXIT STRATEGY

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FIND THE RIGHT ANGELS

PERSONAL CHEMISTRY DEEP POCKETS LOCATION CO-INVESTMENT STAGE

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BUSINESS PLAN

TEAM/TECH/TRACTION EXECUTIVE SUMMARY GROWTH POTENTIAL FORECASTS COMMITMENT ROUTE TO MARKET EXIT STRATEGY FINANCIAL PROMOTION / FSMA

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THE PITCH

THE 10/20/30 RULE (Guy Kawasaki)

1. PROBLEM 6. COMPETITION2. SOLUTION 7. TEAM3. BUSINESS MODEL 8. PROJECTIONS / MILESTONES4. UNDERLYING MAGIC 9. STATUS & TIMELINE5. SALES & MARKETING 10. SUMMARY /CALL TO ACTION

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THE INVESTMENT PROCESS

TERM SHEET DUE DILIGENCE INVESTMENT AGREEMENT ARTICLES OF ASSOCIATION DISCLOSURE LETTER SERVICE CONTRACTS INTELLECTUAL PROPERTY

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INVESTMENT AGREEMENT

MONEY IN RETURN FOR SHARES WARRANTIES (LIMITS) CONSENT MATTERS UNDERTAKINGS INFORMATION RIGHTS INVESTOR DIRECTOR/OBSERVER MONITORING FEE RESTRICTIVE COVENANTS

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ARTICLES OF ASSOCIATION

APPROVED ISSUES COMPULSORY TRANSFER GOOD/BAD LEAVER DRAG/TAG PROVISIONS

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WHICH WILL ALL LEAD(HOPEFULLY) TO...

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