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For some reason entrepreneurs are
expected to use a lawyer for legal issues, an accountant for accounting
issues but - when it comes to raising capital, they are expected
to be omnipotent. There is a process to raising venture capital
successfully and, while NBI cannot guarantee the ultimate success
of a capital raise, it can increase the likelihood for a successful
raise. NBI can provide the following services:
Capital
Raising Strategy
Venture capital is not always the best solution to a company's capital
needs. NBI clients have turned down venture capital term sheets
and prospered, raised grant financing and found innovative ways
to fund their business. NBI will help you assess the most appropriate
financing strategy for your company and its best estimate on the
likelihood of success.
Business
Plan
In some cases you may be able to raise financing without a business
plan but you will not get your best valuation without one. Institutional
investors who receive hundreds of plans a year will require a professional
plan to even get past their analysts. NBI will help you develop
a fundable plan in a format that a potential investor will expect
and that addresses their investing criteria. The plan will also
include GAAP-based projected financial statements created with justifiable
assumptions.
Initial
Investor Communications
Your initial communication to a potential investor is not likely
to be your business plan. It will be a cover letter, executive summary,
a voice mail you leave or your "elevator speech" at a
business event. These initial communication tools are often overlooked
yet have the ability to make a lasting bad first impression. NBI
will advise you on how to create awareness and interest in preparing
these initial communications.
Investor
Recruitment
It is unlikely that investors will change their investing criteria
to fit your deal. Therefore, it is imperative that appropriate investors
are targeted. NBI will help identify an initial pool of investor
candidates, determine if their investor profile, portfolio, fund
life cycle, desired deal size and other criteria fit your deal,
and will manage the time consuming communication process with minimal
disruption to you and your staff.
Investor
Pitch
You will likely have several opportunities to make your pitch to
a potential investor: your executive summary, business plan, your
first qualifying phone call, your initial presentation and the committee
presentation. It is unlikely you will get a second chance if you
do not execute any one of these properly. NBI Advisors will help
you prepare your various pitches and critique them from an investor's
perspective to ensure you are prepared each step of the process.
Due Diligence
"Done Deals" can become undone during the due diligence
stage. Non-standard financial reporting practices, poor intellectual
property management, unreported liabilities, mismanaged pipeline
forecasting, - there are a myriad of red flags that can kill a deal
prior to closing. NBI Advisors knows these types of red flags and
can advise you on corrective action before the start of the due
diligence stage. NBI Advisors will work with your lawyers, accountants,
auditors (if any), analysts, and others to enable you to successfully
complete the due diligence stage without any last minute, deal killing
surprises.
Closing
The closing of a large investment requires timely management of
high priced lawyers, accountants, analysts and others following
a tightly controlled critical path to ensure a cost effective closing
and a process that does not lag and leave you open to unforeseen
negative events. NBI Advisors can advise you during this process
by developing a critical path to closing that will ensure that all
necessary activities are executed in a priority order that will
lead to a timely and successful close.
Post-Closing
Little consideration is often given to the post-closing planning
requirements of receiving venture capital. It is possible that you
will convert to a different corporate entity creating personal tax
consequences. It is likely that you will have to appoint one or
more directors to your newly formed Board and Committees. You will
have to develop new policies and procedures to comply with your
stock offering. NBI will help you anticipate and execute these time
consuming tasks so that you can focus on executing your business
plan.
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NBI
ADVISORS 10725 SHEPPARDS
WAY DR SUITE 200 GLEN
ALLEN VA 23060 804-756-7372
SECURITIES OFFERED BY:
Waterford Investor Services, Inc.
(member
FINRA/SIPC)
Home office: 1201 S. Highland Ave. #2
Clearwater, Fl. 33756
(727) 441-1616
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