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Pros and Cons of Different Cultivation Methods
Chris Wrenn - Aessance Corp Jennifer Martin - Cultivation Sector Consulting
Raising Money for Your Startup – A Tactical Guide Sara Batterby
• Startups forever • Designing an Angel Fund and understanding risk • Absorbing the investor mindset • Leading a raise • Doing it my way with Hifi Farms
Who Am I and Why Am I Here? From Angel Investing to Oregon Cannabis
Emotional: • Mindset • Story • Authenticity • Confidence and trust • Be a hero!
Tactical: • Preparation • Cohort Capital • Presentation • Communication • Close
Art and Science Fundraising is Tactical and Emotional Work
• Timing - Set a date and stick to it. Don’t jump the gun! • Format - Your investor folder - Complete = confidence • Structure - Understanding debt and equity • Components:
Preparation Demonstrate Strong Understanding of your Business
- Incorporation documentation - Investment instrument - Executive summary/business plan
- Pro forma - Excel is your friend
- Pitch - only if you need it
• Stage - F&F, Seed/Angel, Series A • Friends - You and your team, make a list! • Networks - Who can you reach and how? • Platforms - You have to stand out • Momentum - Work it and turn pull into push
The Cohort Raise Effective Fundraising is a Team Sport
• Always start with a conversation! • Send materials, schedule a follow up call/meeting • Constant communications and updates = engagement • Leverage your cohort to build credibility and appetite • Commitments - Ask for a number, date and likelihood • Fortify - Don’t rush. Treat commitments like your board
Presentation and Communication Investors are People Too
An Investment Opportunity Be Direct, Be Specific
We are seeking:
$400K in equity or debt capital.
$100K of this is currently closed or committed.
Using a convertible note with a valuation cap of $8M.
We are looking for investors who can add strategic value to our board and our future plans for growth!
Address Investor Returns and Exit Blending Value Creation and Residual Returns
• Board approved distributions starting month 25 of plan • Preparing for for acquisition and/or national scale in 3-5 years
Acquisition at $100+M is not a pipe dream in cannabis.
Being the best will bring us the best opportunities in the market
as it emerges here and throughout the US.
• Power – Establish an authentic sense of scarcity • Timing - Set a date for closing commitments • Confidence - Hold your space and assume the close • Keep youR cohort together and steer them into the deal
Close Be the Leader of Your Raise
Emotional: • Mindset • Story • Authenticity • Confidence and trust • Be a hero!
Tactical: • Preparation • Targeting • Presentation • Communication • Close
Art and Science Fundraising is Tactical and Emotional Work
• Challenge intimidation by knowing your value • Read between the dollar signs • Be present but not overly attentive • Never fall into waiting. Google drive is your friend • Use email for updates and confirmations only • Insist on a level playing field. Walk away from arrogant
money
Mindset – It’s All About You Be the Sort of Professional that You Would Want to Invest In
Mindset – It’s Not About You Understand the World Outside Your Business
Mindset Designed With an Investor Mindset
Standard and unique protections for your investors:
• Capped salaries You get paid when we get paid • Founders equity Vested over 3 years • Governance Strong, engaged board • Commitments Extensive vetting and scrutiny • D&O insurance You are covered
Get ahead of investor concerns to streamline and speed up due diligence
Story Be Bigger Than Your Business
What nobody tells you in business school: • Read between the dollar signs • Be in service • Invest in others • Make Family
Authenticity, Confidence and Trust Be Yourself
