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International Women’s DayCelebrates Entrepreneurs
How to be a Money Magnet
Caterina FakeFlickr
Rashmi SinharSlideshareSlideshare
Arianna HuffingtonArianna HuffingtonHuffington Post
“Fo get “Fo get ChinaChina IndiaIndia“Forget “Forget ChinaChina, , IndiaIndiaand the and the InternetInternet: : and the and the InternetInternet: :
Economic Growth Is Economic Growth Is Economic Growth Is Economic Growth Is Driven by Driven by Driven by Driven by
WomenWomen ””WomenWomen..The EconomistSource: Headline, The Economist
Purpose:Purpose:u poseu poseTo present the To present the To present the To present the opportunity opportunity opportunity opportunity for for increasing increasing for for increasing increasing wealthwealth of female of female wealthwealth of female of female business ownersbusiness ownersbusiness ownersbusiness owners
Getting FINANCE is the next fiveGetting FINANCE is the next fiveGetting FINANCE is the next fiveGetting FINANCE is the next fiveminutes.minutes.
FINANCE is FINANCE is Character Character FINANCE is FINANCE is Character Character Community Community Co u tyCo u tyCommitmentCommitment
(And Profit, Passion)(And Profit, Passion)
FINANCE is a FINANCE is a ——CHOICECHOICE..
Problem 1Problem 1Problem #1Problem #1isisisis
Opportunity #1Opportunity #1Opportunity #1Opportunity #1
Slides atSlides at …
emdacanada comemdacanada comemdacanada.comemdacanada.comMoney MagnetMoney MagnetMoney MagnetMoney Magnet
Li k diLi k di GGLinkedinLinkedin Group Group d dd demdacanadaemdacanada
You Know Financingg
LegacyBusiness is an
investmentHigh performance focus
Stage 2 – Owner Controlled
ProductBusiness is my product
Owner ControlledBusiness is a
lifestyleKnowledge focus
High performance focusCEO partnersSurvive beyond the
Owner
Stage 1 - Product
Business is my productProduct is good - it will
sell itselfCEO does many role
Knowledge focusCEO runs the
team
How Do you Know?Specialized knowledge What Do You Know?
What Can You Do?Listening skillsand skills (e.g. engineering
or IT or biologyHow is that knowledge
created?
Strategy, marketing, operations, finance
Customer needsCompetitionB i l & P P i t
Listening skills Receive feedbackEmotional
intelligenceSuccession planning
Business plan & PowerPointp g
Product Lifestyle Legacy
Growth of the Business
Product Lifestyle Legacy
Product – Caterina Fake2003 – Ludicor (bankrupt )Fake took photo-sharing:Flickr2005 Flickr was acquired 2005 - Flickr was acquired by Yahoo! for $50M 2009 - co-founded Hunch2009 co founded Hunch2011 - Hunch was acquired by eBay for $80M2012 – Pinwheel Raised $7.5 M , RedpointV t $2M i d Ventures. $2M in seed funding
LegacyBusiness is an
investmentHigh performance focus
Stage 2 – Owner Controlled
ProductBusiness is my product
Owner ControlledBusiness is a
lifestyleKnowledge focus
High performance focusCEO partnersSurvive beyond the
Owner
Stage 1 - Product
Business is my productProduct is good - it will
sell itselfCEO does many role
Knowledge focusCEO runs the
team
How Do you Know?Specialized knowledge What Do You Know?
What Can You Do?Listening skillsand skills (e.g. engineering
or IT or biologyHow is that knowledge
created?
Strategy, marketing, operations, finance
Customer needsCompetitionB i l & P P i t
Listening skills Receive feedbackEmotional
intelligenceSuccession planning
Business plan & PowerPointp g
Product Lifestyle Legacy
Growth of the Business
Product Lifestyle Legacy
Lifestyle - Linda HaynesLifestyle Linda Haynes
Ace Bakeries1992 A l t t• 1992 Angel start up
• 2008 Sold to2008 Sold to Private Equity $15M
• 2011 Sold by PE for $120M$120M
LegacyBusiness is an
investmentHigh performance focus
Stage 2 – Owner Controlled
ProductBusiness is my product
Owner ControlledBusiness is a
lifestyleKnowledge focus
High performance focusCEO partnersSurvive beyond the
Owner
Stage 1 - Product
Business is my productProduct is good - it will
sell itselfCEO does many role
Knowledge focusCEO runs the
team
How Do you Know?Specialized knowledge What Do You Know?
What Can You Do?Listening skillsand skills (e.g. engineering
or IT or biologyHow is that knowledge
created?
Strategy, marketing, operations, finance
Customer needsCompetitionB i l & P P i t
Listening skills Receive feedbackEmotional
intelligenceSuccession planning
Business plan & PowerPointp g
Product Lifestyle Legacy
Growth of the Business
Product Lifestyle Legacy
Legacy: Theresa CascioliLegacy: Theresa Cascioli
2002 Angel financing t f b k tout of bankruptcy
2006 Deal of the Year by CVCA withVengrowth Private Equity
2007 - Labatt Brewery yoffered $201.4M
GROWTH = #1GROWTH = #1
fear offear offear offear ofwomen business women business women business women business
owners?owners?owners?owners?
IT is your IT is your IT is your IT is your
choicechoicechoicechoicechoicechoice
LegacyBusiness is an
investmentHigh performance focus
Stage 2 – Owner Controlled
ductusiness is my product
Owner ControlledBusiness is a
lifestyleKnowledge focus
High performance focusCEO partnersSurvive beyond the
Owner
Stage 1 - Product
usiness is my productoduct is good - it will tself
EO does many role
Knowledge focusCEO runs the
team
How Do you Know?Specialized knowledge What Do You Know?
What Can You Do?Listening skillsand skills (e.g. engineering
or IT or biologyHow is that knowledge
created?
Strategy, marketing, operations, finance
Customer needsCompetitionB i l & P P i t
Listening skills Receive feedbackEmotional
intelligenceSuccession planning
Business plan & PowerPointp g
Product Lifestyle Legacy
Growth of the Business
Product Lifestyle Legacy
All you need to know …All you need to know …
All you need to know …All you need to know …yy
Finance Finance PeoplePeopleV l Value
All you need to know …All you need to know …yy
Finance Finance Finance Finance PeoplePeoplePeoplePeopleV l V l Value Value
Your RevenuesYour EBITDA iYour EBITDA is
$ ««eeee--bitbit--dahdah» » = An$..... ««eeee bitbit dahdah» » = An approximate measure of a
' titi h company's operatingoperating cash flow
The Perfect AnswerThe Perfect Answer
Jill and Jack buy slacks in black…
How Does An How Does An InvestorInvestor Think?Think?How Does An How Does An InvestorInvestor Think?Think?
The Finance Brain
Y A S lliYou Are Selling LONG TERM
Business Growth
Not Your ProductNot Your Product
Find out yourFind out yourMathematicalMathematical
Mathematical “Fit”$
Sources of Capital (nonSources of Capital (non--bankbank))
Mathematical “Fit”$100M
Investment
Wanted
Public MarketPublic Market
multi millions to billions$100M
Private EquityPrivate Equity
500k to 5m
5m to multi millions
$20M
Venture CapitalVenture Capital
50k to 500k
500k to 5m$5M
Family Family & Friends& Friends
AngelsAngels
50k$10,000
Source: Loewen & PartnersSize of Company
Fund “Fit”There are 5 dimensions:
Deal Type Growth BuyoutsFunds
FocusSmall Large
yp
G h
Funds Funds
Country Specific Global Geography
y pFocus
Mid-Sized Funds B t
Focus
Deal SizeMid-Sized Funds Buyout
Funds
Industry Focus Single Sector
FocusMulti-Sector
Focus
Asset Class Single Asset
Class FocusMulti-Asset
Class Focused
There's no timetable or correct way
for seeking out i t it private equity. Some operate for Some operate for
decades;
OOthers seek capital early in OOthers seek capital early in
life cycle
ACE Bakeries - Family Lifestyle
Some Chose the Buyout Some Chose the Buyout Fund and to Sell 100%
4 Levels of Private Investors4 Levels of Private Investors
1 M & D d1. Mum & Dad, Family, Friends, F lFools
2. Angelsg3. Venture
CapitalistsCapitalists 4. Private Equity
Fund ManagersFund Managers
P ti Y Pit hPractice Your PitchTHE PITCHBNN t 416.384.6770 [email protected]
All you need to know …All you need to know …yy
FinanceFinanceFinanceFinancePeoplePeoplePeoplePeopleV lV lValueValue
2 0002 0002,0002,00050505050
CompetenceCompetenceCompetenceCompetence
LLegacyLegacyvsvs
Lifestyley
Family Lifestyle Chose the Buyout Fund and Sold 100%y
Made $15M?
D tDo you want
t b QUEENQUEENto be QUEENQUEENO dOr do you Want to be RICH
All you need to know …All you need to know …yy
FinancesFinancesFinancesFinancesPeoplePeoplePeoplePeopleV l V l Value Value
Anita Anita RoddickRoddick:: Former Founder Former Founder and CEO of The Body Shopand CEO of The Body Shop
“Nobody talks about “Nobody talks about Nobody talks about Nobody talks about entrepreneurship as entrepreneurship as entrepreneurship as entrepreneurship as survival, but that’s survival, but that’s ,,exactly what it is.”exactly what it is.”
Got to Do The Work
Meaty Problem1 Business Model1. Business Model2. Revenue Model 3. Competition4. Competitive Advantage p g
5. Unique Selling Proposition- Secret Sauce
6 Add bl k t6. Addressable market
“In real life strategy“In real life strategy“In real life, strategy“In real life, strategyis actually veryis actually veryis actually very is actually very
straightforward Pickstraightforward Pickstraightforward. Pickstraightforward. Picka general directiona general directiona general direction a general direction
and implementand implementand implementand implementlike hell”like hell” ——Jack WelchJack Welchlike helllike hell Jack WelchJack Welch
Positioning – Be Different
Positioning Lakeport BeerOntario-based brewery focused on producing value-priced quality beer for the Ontario take-home market
Meaty Problem: Lakeport's willingness t t k hi f th di t to take ownership of the discount beersP iti i $24 Positioning: Only one at $24 plus deposit that puts on company name
C i lC i l d d CascioloCasciolo made made
$70M $70M $70M $70M
All you need to know …All you need to know …
PeoplePeopleppValueValueFinancesFinancesConfidenceConfidence
––Economist Economist cover, Jan 02.2010, as cover, Jan 02.2010, as
women surpass 50% in U.S. workforce/ women surpass 50% in U.S. workforce/ “Women’s“Women’seconomic empowerment is arguably the economic empowerment is arguably the
biggest social change of our times ”biggest social change of our times ”biggest social change of our times.biggest social change of our times.
The greatest dangerThe greatest dangerThe greatest dangerThe greatest dangerfor most of usfor most of us
hhis not that our aim isis not that our aim istoo hightoo hightoo hightoo high
and we miss it,and we miss it,but that it isbut that it is
too lowtoo lowtoo lowtoo lowand we reach it.and we reach it.
MichelangeloMichelangelo
P ti Y Pit hPractice Your PitchTHE PITCHBNN t 416.384.6770 [email protected]
Money MagnetMoney Magnethttp://moneymagnetbook.blogspot.comhttp://twitter.com/jacolineloewenhttp://twitter.com/jacolineloewenLinkedIn :[email protected]
Sourcing Capital for Growth Companies
How Did These Women do It? ZIPCARZIPCAR
• 2000 Antje Danielson, Robin ChaseChase
• Borrowed another country’s business
• Met over Day Care• Met over Day Care• Expertise • Steve Case’s Revolution Private Equity
• IPO market value of $1.12BValue of $199 million.
• Time's 100 Most Influential People in 2009,• Governor's Award for Top EntrepreneurGovernor s Award for Top Entrepreneur • Start-up Woman of the Year.• Business Week, Fast Company’s Fast 50 • Fortune CIO and InfoWorld magazines
Catelina FakeCatelina Fake“As a VC Investor Myself
I am Gender Neutral”
CCanadaanada leads the world in leads the world in CCanadaanada leads the world in leads the world in governmentgovernment--funded R&D funded R&D –– but but
we’re lacking the local VC we’re lacking the local VC we’re lacking the local VC we’re lacking the local VC and PE market to turn clever and PE market to turn clever
ideas into businesses. ideas into businesses. “When it comes time to take “When it comes time to take When it comes time to take When it comes time to take
the step toward the step toward i li ti h i li ti h commercialization, we have commercialization, we have
Achilles heelAchilles heelan an Achilles heel.Achilles heel.
Private Private EquitysEquitys’ Credo’ Credo
L d l h h ldL d l h h ld11. Liquidity to early shareholders. Liquidity to early shareholders2. Accountable and do the work2. Accountable and do the work
d d h M kd d h M k3. Understand the Private Market 3. Understand the Private Market processprocess
H h h lH h h l4. Hire the right people4. Hire the right people5. Top notch Board5. Top notch Board
U d f l dU d f l d6. Upgrade financials and systems6. Upgrade financials and systems7. Far wider sale options: strategic, 7. Far wider sale options: strategic,
ti lti lpartialpartial
l hl hGreater WealthGreater Wealth