Search for Angels:  By developing a new minority-focused angel fund, the Atlanta Urban League’s Lucy Holifield hopes to boost entrepreneurs to the next level of growth.  Lucy Holifield knows that hard work and sweat equity can fuel a company’s growth only to a certain point. To go farther and faster, you may need outside money. Joanna Soto Carabello, Contributing WriterLearn More

With the Stock Market and Real Estate Market in flux, Investors join the Network of Business Angels & Investors as Private Equity Investment Rises as the New Wealth Creation Strategy.

With the real estate market softening and the stock market in turmoil, high net worth men and women are re-discovering the value of diversifying their portfolio with investments in private companies before they go public or get acquired. One organization, NBAI, is leading the way in this trend toward private equity investing by offering education for those new to angel investing and by providing a forum for wealth creators to consider qualified private equity investment opportunities. Two companies recently received funding Atlanta, GA, (PRWEB) August 14, 2007 — The Network of Business Angels & Investors (NBAI) has provided the Atlanta community of high net worth individuals a forum for making private equity investments for 14 years. Since 2005, under the management of Karen Rands, NBAI has partnered with the LAUNCH Funding Network to pre-screen companies and to help those companies syndicate with other angel investor groups. As a result, the members of NBAI have invested in 10 companies in 2 years, making NBAI the most active angel investor group in the south east (PRWEB news release). The latest companies to receive funding from the NBAI investors are ID Rank Security and Micro Technology Inc. ID Rank Security offers a suite of network security products that protects data at rest with encrypted hard-drives, military grade security on transmission of data at 10 Gb without any degradation of performance, and comprehensive management of the secure operation and use of computers, mobile devices and other devices connected to the network. Micro Technology Inc has successfully collaborated with eBay to bring their Brick-N-Click product to market. For the first time, small retailers can completely integrate their on-line e-business with their traditional storefront business, managing inventory, product promotions, accounts receivable and back office operations with one product. Both companies have growing revenues and are still open to private equity investment. Information on both companies can be found on the LAUNCHfn website under Portfolio Companies. NBAI hosts private equity forums every 6 weeks with 5-6 companies being approved to present to the audience of accredited and sophisticated investors. With a national focus, NBAI is expanding through syndication with other angel investor groups and establishing chapters in other areas of the country. Accredited investors are invited to visit the websites listed to learn more about joining or attending an upcoming forum. Sophisticated Investors wanting to plug into the Network of Business Angels & Investors exclusive community for high net worth individuals looking to get involved in the high stakes game of angel investing can RSVP to attend one private equity forum before becoming a member. The next Private Equity Investor Forum is August 15th in Atlanta. This event will be followed by forums on September 25th, and November 7th. Companies wishing to apply for consideration to present to this group of investors can register and complete an application at the LAUNCHfn website. Companies wishing to learn more about how to prepare for and attract investor money can subscribe at www.GetInvestorMoney.com. MORE ABOUT THE NBAI MEMBERS: The members of NBAI are walking billboards for Robert Kiyosaki’s right side quadrant (Cashflow Quadrant) of business owners and investors. By buying shares of many private companies that will someday go public or get bought at a higher valuation, they create passive income. With the softening of the real estate market for spec investment, private equity is returning as the darling of sophisticated investors that understand the value of buying at wholesale and selling at retail to create desired passive income. Sophisticated investors often use the stock market, with average returns over time of just 8% to 13%, to park their money until a better investment opportunity comes along. By putting a portion of their portfolio into private equity investment, although risky, NBAI Members anticipate returns of 4X to 10X the original investment. The risk associated with private equity investing has been the biggest obstacle for most potential high net worth investors. Having a community to learn, collaborate and prosper is imperative for those investors wishing to enter into the high stakes world of private equity investments and NBAI is proud to announce they have openings for new members and new chapters.

PODCAST: Starting Up, Seeking Capital, Meeting Investors
From analyzing the hottest areas in which to launch a new business in today’s world, to finding ways to finance them – we cover a lot of valuable ground in this show.  We also look at the move towards making Atlanta a tech hub, or at least a recognized one.

Lee and Andy examine various ways in which to identify the hot new markets – running the spectrum from kids to tweens to boomers, and then addressing bigger issues and pet love, along with the other growing markets.

In our special episode on finding investors for any company seeking funding, we get to the heart of what you need to do.  No matter if you are a startup, an established company seeking 2^nd or 3^rd round funding, or a company with a new division to launch, we brought top talent to the studio to answer the questions that have been keeping you up at night. 

For “been there, done that” advice, we turned to Jeff Haynie, one of the founders of E-Hatchery, and Vocalocity, and now Hakano and Southern Fried Tech.  For those who also want to be investors, or find those investors, we were fortunate enough to have the expertise of Karen Rands, of Network of Business Angel Investors and Launchfn, to help you better understand and prepare for this journey.

Karen recommended checking out:
www.getinvestormoney.com - free ebooks and other raise money info
www.dothedeal.org

And Jeff suggested:

www.ycombinator.com
www.techstars.org
www.hitforge.com

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Uniqueness is Power is your business growth solutions show where each week you hear from professionals with ideas on saving your bottom line, on increasing sales, and on unique perspectives on new and original companies.  If you know of a company who’d be a good Business Booster (money saver/maker) or Unique of the Week (stands out from the crowd) – please drop Andy a line.  If you know someone who owns a business or works in marketing, please forward this on to them.

Direct download: UiP_April_26_2007.MP3
Category: podcasts — posted at: 9:59 AM

Five companies received private equity funding this year, who presented at the NBAI Private Equity Investor Forum events.  Since 1994, $24,120,000 has been invested from our NBAI organization.

If you are ready to meet with investors, click here.  If you are an investor, click here.

Brought to you by VC South, Action International, Stanford Financial Group, The Network of Business Angels & Investors, and Launch Funding Network.  This is an exclusive, private angel investor membership and networking organization founded in 1994.  Our members are active stock market, real estate or private equity investors, who accumulate income producing assets that rank in the top 10% of the American population.  Investing shares in private companies earns 4 times or more the investment far exceeding stock and real estate portfolios.

Presenting your qualified opportunity to investors will increase your chances of funding.  Independent firms, who work with investors and understand their viewpoint, can identify obvious obstacles to funding through a complete business analysis.  Assessing that your business plan is clear, concise and compelling is achieved by meeting the following criteria. 

1. Identify and examine your market opportunity, your company’s role in that market, your competitive and market analysis

2. Evaluate your proof of concept and validation of your product or service

3. Verify your business has clear business objectives and milestones for financial, sales, customer database, internal organization, and employees

4. Identify your business strategies for growth, infrastructure, and development for financial accounting and human resources

5. Check for any fatal flaws in your plan that would keep an investor from investing
   Appraise that your concepts are in clear and concise terms that an investor will understand

6. Determine if your revenue and financial Performa makes sense for your business model

7. Assess your plan from the investor’s point of view, the ability to attract capital at the best value, and meet the expectations of professional investors and lenders

To ensure that your business plan powerfully presents your ideas and strategies, the Business Assessment report should provide valuable recommendations on the strengths and weaknesses of your business model.  The funding strategy given based on all the information gathered from the assessment enables your company to clarify the right investor or financing for your company’s particular industry, stage, funding round, and unique selling proposition.

Your first presentation should be no longer than 8 – 15 minutes.  Back up charts and other visuals can be used to expand on a point.  Use our Top 8 Killer Investor Presentation Points as a guide.                                                             

1.  Opening Remarks

2.  Mission Statement

3.  Market Opportunity

4.  Description of Product or Services

5.  Management

6.  Marketing Strategy

6.  Capital Needs

8.  Closing Remarks

1.  Opening Statements

Opening statements should be concise and to the point. Introduce yourself and any other members of your management team who are present.  If possible, have one of your creditable investors speak for a couple of minutes on their personal insight as to why they invested.  It should not be an investor who is a close relative or is part of the management team. 

Get excited and have passion about your opportunity.  Create a buzz about your deal, so that investors will spread the word about your company to other investors.

Comment:    Give a concise and professional overview that gives investors attending some insight as to your organizational skills.  The tone you set for the presentation is critical. Be professional, but find some areas where you can add some humor without being a comedian.

“First impressions are very important.”

2.  Mission Statement

In one or two sentences, state the mission of your business.

3.  Market Opportunity

In a short paragraph, demonstrate to the investors the specific market opportunity or need for your product or service.  Be specific with how many actual products or services can be sold and in what time frame.

Sample of Opening & Mission Statements

Good afternoon, my name is Tom Jones. I am the founder and President of XYZ Corporation.  Assisting me today is our CFO, Richard Smith. 

Accelerated use of latex gloves and latex covers for medical devices to protect against infectious diseases over the past two decades has resulted in as many as 17 percent of healthcare workers affected by latex allergies.  A greater risk is with the general population that is not aware of the allergy until they come in contact with latex during a medical procedure.  XYZ has identified the cause for the allergy and has determined a process for making latex virtually non-allergenic. 

We have a contract to distribute our process to 72 countries and are raising $500,000 to fulfill the contract.

4.  Description of the Product or Service

4.  Describe what product or service your company sells.  Keep it simple.  Don’t bring up technical or confusing information.  Details are usually brought up in later meetings.  It is important to be specific on the product or service’s unique value to customers and why your company is different from the competition.  It is imperative that you show how your company will attract customers who will purchase what you are selling. 

5.  Marketing Strategy

Many companies who have had good products and services did not become successful.  One reason is to clearly identify your company’s marketing strategy.

Talk about the value of your strategic alliances and partnerships. Investors look for aggressive marketing as a key component to success.  Therefore, choosing a marketing method is critical to achieving your success.  Will you be marketing directly or use strategic partnerships and alliances?  This is vital, since the cost to market directly can be very costly.  Using strategic partners, alliances, or resellers could be a much more valuable marketing and sales strategy.

     “Create a buzz about your deal by being articulate, passionate, and with complete understanding of your opportunity.”

6.  Your Management Team

Describe each key person who is important to making the company successful.  Most investors recognize that having a management team of friends and relatives is usually not a good idea and could be a critical mistake to the company in many ways.  

Assemble the best talent you can find, with strong managerial skills, and explain to the investors why this management team, under your guidance, can lead the company to success.

If your management team is not in place, it is vital that you at least identify key personnel who will join your business at some future event or date, (such as after funding has been obtained).

“Investors are attracted to people who have been successful
in other businesses.”

7.  Capital Needs

It is very important to outline the need for funding and why your company should be considered for an investment.

Understanding the importance that each investor is very interested in how you are going to spend their money.  Demonstrate exactly how your company will prudently spend the money. 

Be sure to have an easy to understand, detailed month-by-month written use of funds that backs up what you say in your presentation.  In a summary format, reveal the use of funds and projected salaries.  Investors look favorably on first year salaries of $40K – $60K tied in with some performance clause.  Investors usually don’t want to pay for high salaries.

8.  Closing Statements

Be sure to say ‘Thank you’ to the investors for their time and invite them to an demonstration, a visit to your facility, or to an additional meeting with more in-depth information.

The gold is in the follow-up.  Keep investors informed about your progress in an investor relations campaign.  Ask if there are certain areas they would like you to address.  When possible, get their feedback on what they liked and any concerns they may have.

“Practice until you can deliver the presentation by memory.”

To create a Buzz about your deal and generate momentum for your offering, you need to tap in to the investor network you are creating with investors.  Investors who liked the deal, but have not yet invested, are your BEST source for potential new investors.  Therefore it is important to keep interested investors updated with news about your company to increase the likelihood of investment.  Maintaining communication, with not yet committed investors, is imperative to a successful capital raise.

Communicate with existing investors so they can ‘brag’ to their friends (and potential investors).  Have an ‘elevator pitch’ with an easy verbal explanation, so that after the presentation, investors walk away able, and desiring to talk about this hot investment offering they just saw. 

Objective investors examine the overall business model and investment opportunity. Objective investors see dozens or more offerings each year. How do you think they determine which businesses to invest in? They look for reasons NOT to invest. By examining your complete business model and investment opportunity they can determine red flags.

5 Reasons an Investor Will Not Invest:

1. Incomplete financials and/or business plan (market/sales strategy, operational information, barrier to entry not established)

2. Complex or confusing message within the investor documents regarding business model or investment opportunity

3. Structure of the offering, perceived cost of the investment relative to a high valuation or unclear exit and return to the investor

4. Inexperience or incomplete management team, and/or attitude of the management conveying a sense of entitlement or resistance to advice & counsel

5. Specific industry focus or niche marketplace that limits the potential number of investors

Many of the reasons for no-go investment decisions can be identified and remedied before the investment process begins. How can your company determine if you business model and investment opportunity is investor ready?