European Booklet for Entrepreneurs
Originally published: 14/11/2017 14:15
Last version published: 17/01/2018 11:24
Publication number: ELQ-13571-2
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European Booklet for Entrepreneurs

Created to provide entrepreneurs with a better understanding of angel investments.

Entrepreneurs will find that raising equity externally is a very different process to raising other kinds of finance. In this guide, these points are explained and further developed:

-Explaining the relationship between an entrepreneur and an investor is like visualizing a marriage in which there is a planned divorce.

-Beginning to build the foundations of the relationship early on, even before you require funding.

-Carrying out due diligence on the investor you have in mind to research what they are generally interested in.

-Ensuring contact with an investor that you could potentially work with takes into account potential for revenue, management of the business, and exit.

-The best possible outcome for an exit is trading for cash maximizing the value for shareholders involved.

-To show that your business can realistically produce good returns for a potential investor, the revenue potential needs to present a scalable business that is capable of this.

-When writing your business plan, ensure that you have a great executive summary selling the investment opportunity, not just describing the company.

-A well put together business plan that is both intriguing and well thought out is paramount.

-Being on top of and fully understanding your figures.

-Ideally, founders should have 'skin in the game.'

-Be aware that the investor will need to make an agreeable ROI, meaning that you'll need to have a realistic expectation of valuation.

-High liquidation preference multiples can sometimes undermine a seemingly high valuation.

*Originally shared on Eban's Knowledge Centre*

This Best Practice includes
1 Entrepreneurs Guide for Raising Business Angel Investment in PDF Format

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