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Learn the basics of raising capital for agribusiness and energy projects. Discover the key factors to consider and how to prepare for funding sources. Understand the importance of a well-crafted business plan and assembling a strong team.
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Private Funding for Agribusiness and Energy Technologies Christopher R. Sackett BrownWinick 666 Grand Avenue, Suite 2000 Des Moines, IA 50309-2510 Telephone: 515-242-2470 Facsimile: 515-323-8570 E-mail: sackett@brownwinick.com
Who is BrownWinick? • Who is Chris Sackett (and why is a lawyer talking to us about funding agribusiness and energy technologies)?
VERY GENERAL OVERVIEW - BASICS OF RAISING CAPITAL • Key concerns for all companies raising capital – whether agribusiness, energy or other projects.
3 Most Important Factors to Funding Sources: • Your Team (internal/management and external) • Market Opportunity/Need • Your Technology/Idea
Be prepared • Know your business plan, valuation, financials and projections inside and out. • Know your audience (who are they and why would they want to invest in you? what motivates them?). • Know your subject matter, competition, market, etc. • Have accurate/quality presentation materials (pitch, slide deck, executive summary, business plan, evidence/validation).
Context is important: • Who are you presenting to? • Friends and family • Angel investors • Seed capital fund • VC/Private equity • Bank/SBA • Government agency/program • At what stage of the company? • Proof of concept • Development stage • Expansion/growth • What do you want and for what purpose (i.e., debt, equity, uses, valuation)?
The importance of your business plan • The key document for running your business AND raising capital. • Focus on the Executive Summary and pro formas – lenders and investors will. • Know your specific funding need – sources and uses.
The importance of people • Assemble your team early (internal and external) • Qualities • Talent • Experience • Motivation (equity?) • Connections • Continuity
Get (and keep) your business, financial and legal house in order. • Corporate documents and minutes • Governing documents (i.e., contract with owners) • Material contracts • Protection of IP • Financials, accounting records, tax returns
Link to Iowa Venture Capital Guide and Iowa Seed/Angel Capital Guide: http://www.investiowa.com/icic/web.nsf/ pages/iowafunds.html
Website: www.brownwinick.com Toll Free Phone Number: 1-888-282-3515 OFFICE LOCATIONS: 666 Grand Avenue, Suite 2000 Des Moines, Iowa 50309-2510 Telephone: (515) 242-2400 Facsimile: (515) 283-0231 616 Franklin Place Pella, Iowa 50219 Telephone: (641) 628-4513 Facsimile: (641) 628-8494 DISCLAIMER: No oral or written statement made by BrownWinick attorneys should be interpreted by the recipient as suggesting a need to obtain legal counsel from BrownWinick or any other firm, nor as suggesting a need to take legal action. Do not attempt to solve individual problems upon the basis of general information provided by any BrownWinick attorney, as slight changes in fact situations may cause a material change in legal result.