Find Investors-what are investors looking for-3 minute review

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Uploaded by on Nov 23, 2009

Watch this video now: http://capitalmatchpoint.com/content/find-investors-what-are-investors-lookin... , Hosted by Dave Dambro, The Capital MatchPoint, www.capitalmatchpoint.com, 770.433.8250...I talked a little bit about the three-minute review that an investor would do. And having sat on both sides of the desk as an investor over the past 25 years and as a capital seeker as well, I could tell you, during that three-minute review I talk about, theres some eye catchers that are going to pop out at you and really grab your attention. And Ill tell you what, those are the deals that are going to get in the to-do file. Heres what generally pops out during that review.

First of all, I think patents. If you see a patent, you generally know you got something there that nobody else has. Its worth taking a look at.

Trademarks are pretty good, too.

Additionally, capital invested personally. Ken Honeyman likes to call it skin in the game. and youll here it called that quite a bit. We want to see management teams that have a personal stake in the business and believe enough in it to put their own money behind it before they come and ask the capital provider to add to that.

Management? This is a huge category for me. Executive summaries reveal gems and big names and experience. Companies that have pedigrees. Things like that. If you see a management team thats well rounded, thats great. Occasionally, youll see a gem. It hits you very quickly, goes in the to-do file.

Milestones achieved. Its good to look at a company and see, have they made it to their stated goals so far? Thats a good indication of how theyre going to handle the capital infusion youre thinking about providing for the investor.

The value of the idea, or the product, or the service, as far as in a monetized basis. In other words, whats the market for that idea, product, or service look like? Is it a multi-billion dollar market or is it just pocket? A couple million here and there? Big difference.

Growing market demand versus shrinking market demand. This ones pretty obvious. Everybody wants to get in on the ground floor. Ill give you an example. If you could have got in when the first guys were lugging the big cell phones around in a box, if you could have gotten in on that stage, you were in a growing market. Look where you would have ended up.

Now, another one you look for, and this pops out right away, revenue growth year over year. Always take a look back and see what they did last year or the same quarter and look for the trend. Youll want to see that trend line steadily up. If you see it spiking up, its even better.

Strategic partnerships are also very, very important. Who is this company aligned with? Who is supporting the business model and enhancing it as well?

Lastly, intellectual property. Intellectual property is a little esoteric, but nonetheless it can be valuable. It can be booked as an asset, and it is something to take a second look at.

So, those are the things that really catch the eye of the investor. If youve got some of those things in your business plan, during the three-minute review, theyre going to be popping out. So, be aware of those. If you have any questions as a capital seeker about how to position and package those things and present them, feel free to give us a call at the Capital Match Point at any time. Thats what were here for.

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