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Helping Your Business Clients Attract Outside Capital. Richard C. Bruder, Esq. October 20, 2006. 7457 Franklin Road, Suite 250 Bloomfield Hills, Michigan 48301 (248) 539-2030 rbruder@elp-law.com. Different Stages Attract Different Capital. Pre-Seed Founder’s.
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Helping Your Business Clients Attract Outside Capital Richard C. Bruder, Esq. October 20, 2006 7457 Franklin Road, Suite 250 Bloomfield Hills, Michigan 48301 (248) 539-2030 rbruder@elp-law.com
Different Stages Attract Different Capital Pre-Seed Founder’s Seed Friends and Family Early Stage Angel Investors Mature IPO/Merger (248) 539-2030 rbruder@elp-law.com
Bootstrapping • Barter • Equity • Cut personal expenses • Buy used • Freeload • Incubators (or home office) • Customers! (248) 539-2030 rbruder@elp-law.com
What Do Angels Look Like? (248) 539-2030 rbruder@elp-law.com
How Angels Look At Deals - The Five Challenges 1. Technology - Can It Be Done? 2. Development - Can We Make It? 3. Production - Can We Make It Profitably? 4. Market - Will Someone Buy It? 5. Execution - Is This The Team To Do It? (248) 539-2030 rbruder@elp-law.com
How Angels Look At Deals - The Ten Advantages 1. Management 2. Compelling Idea 3. Proven Concept 4. Market Size 5. Competition 6. Financial Projections 7. Exit 8. Production 9. Marketing Plan 10. Risk Management (248) 539-2030 rbruder@elp-law.com
Resources for Entrepreneurs (248) 539-2030 rbruder@elp-law.com
Where to Find Angels (248) 539-2030 rbruder@elp-law.com
Typical Deal Structure Preferred Stock Convertible Debt (248) 539-2030 rbruder@elp-law.com
Basic Legal Issues Choice of Entity Founders Agreement What does each provide? What time commitment? What percent ownership? Vesting? Invention Agreement? Non-compete? Securities Law Due Diligence Lite (248) 539-2030 rbruder@elp-law.com
Q & A (248) 539-2030 rbruder@elp-law.com