1 / 22

Full Spectrum of Financial Options September 14, 2011

Full Spectrum of Financial Options September 14, 2011. Agenda. ICCC Program Overview Impact as of 2010 Program Benefits Eligibility and Application Financing your business growth. 1. Inner City Capital Connections Program. Overview. 1.1.

coty
Download Presentation

Full Spectrum of Financial Options September 14, 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Full Spectrum of Financial Options September 14, 2011

  2. Agenda ICCC Program OverviewImpact as of 2010Program BenefitsEligibility and Application Financing your business growth

  3. 1 Inner City Capital Connections Program

  4. Overview 1.1 The Inner City Capital Connections (ICCC) is a free national program designed to drive the growth of inner city businesses. It is the country’s only program that teaches growing inner city companies about capital and matches them with investors to create jobs and local economic prosperity. • History: Seven (7) ICCC events have already occurred: • Los Angeles (2005), New York (2006), Miami (2006), Chicago (2007), New York (2008-09), and Los Angeles (2010). • Partners: The ICIC, Bank of America and Fortune

  5. Timeline 1.1 Training Nominations & Applications Selection of Applicants Oct. 20: Detroit Oct. 25: Webinar Nov. 10: Main Event July Aug. Sept. Oct. Nov. Dec. 5 companies selected to present

  6. Impact as of 2010 1.2 • ICCC companies have raised $372 million in capital: • $150 million in equity financing and $223 million in debt. • 21% CAGR for revenues and 24% average CAGR for employment • 72% of ICCC participants surveyed this year will add a collective 900 new jobs -- a 40% increase • Participants have been featured in publications like the Wall Street Journal, Reuters, Inc. Magazine, Portfolio, PE Hub, MSN Money and Small Business Television

  7. Program Benefits 1.3 Companies will… Discovera full range of financial options • Learn how to optimize business plans to attract potential investors • Buildnetworks and strengthen relationships with investors • Obtaincompany-specific feedback from seasoned investors

  8. Eligibility and Application 1.4 Eligibility Criteria: • Companies headquartered in or having at least 51% of their physical operations in an inner city • For-profit corporations, partnerships, or proprietorships with revenues of at least $2 million or more OR have 40% of their employees located in the inner city Application Process: • Simple one-page application

  9. Application Form 1.5

  10. What to do at ICCC 1.6 • S trategize your approach • T hink about what you need capital for • A ssess your business plan • R ehearse your 5 minute pitch • T rain at the training day • After • During • G ather feedback • R each out to investors • O ptimize new relationships from ICCC • W elcome new wealth creation strategies • L isten: hear what other have to say • E ngage yourself in the process • A sk for feedback: ask investors what they think, not just for their capital • R e-assess your business plan and your strategy • N etwork: meet investors and other companies • Before

  11. 2 Financing your business growth

  12. Capital expansion • Technology • Equipment • Leasehold improvements Growth Requires Capital 2.1 Operational capacity Working capital needs • Management • Sales and distribution • Support and service • Administration • Accounts receivables • Inventory • New sales/orders Equity, Tax Credits Line of credit, Factoring, Equity, Purchase order financing Debt, Tax Credits, Grants

  13. Debt vs. Equity 2.2

  14. Forms of Financing 2.3

  15. The more established your business, the less risk a lender or investor takes on 2.4 Stage Risk Angel and Venture Capital 25-55% high Growth Equity 15-25% Active Investors Return Later Stage Equity 5-18% Mezzanine Risk Capital Passive Investors Debt low Risk high

  16. Equity is the most expensive, risk tolerant form of capital 2.5

  17. Debt Capital Overview 2.3

  18. Debt Considerations 2.7

  19. Equity Overview 2.3

  20. Equity Considerations 2.9

  21. A Successful InvestmentWin-win for founders and investors 2.10 • Growth & Value: • 20% annual growth for five years = $15.3M revenue • Sell company for $30M to third party • Owners get $19M (66%), investors get $10M (33%) original investment Company Example: • $5M revenue, nearing breakeven • Raised $3M of equity, selling 33% of company • Valuation: pre-money + new-money = post money $6M pm + $3M = $9M

  22. Questions?

More Related