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Can You Raise A Million Dollars?

Sep 4, 2008
This competition is the ultimate business plan competition for entrepreneurs in the Atlanta Georgia Area. The competition is created to encourage entrepreneurs to broadcast their business model and passion on SPEC Talk Radio and in front of investors at the NBAI Private Equity Investor Forum.

Between September 1st and December 15th Launch Funding Network will run this business plan competition to give early stage and emerging growth companies an opportunity to see if they have what it takes to Raise A Million Dollars.

Each company that gets the Green Light approval to enter into the LAUNCHfn Access to Capital System will have an opportunity to tell their story to thousands of potential investors, clients and joint venture partners on the acclaimed SPEC Talk Radio Show with host, Karen Rands.

Part of their participation in the Access to Capital System will give them an opportunity to present their business opportunity at a regularly scheduled NBA Private Equity Forum.

The first companies to take advantage of the LAUNCHfn Access to Capital System will receive cash credits toward the cost of the services package proposed. The awards and bonuses for entering the competition are valued at over $8000.

The companies qualifying for the September 10th event will have 4 months towards achieving their goal of raising $1,000,000 and will have two more opportunities to meet investors and provide updates on their progress at the October and December NBAI Private Equity Investor Forums. Companies are offered many valuable tools and products FREE at each stage of the admission process.

Although there can never be a guarantee that a company will raise their full round of capital, because there are so many variables in the process. A company can improve their odds through creating a compelling story and taking as many opportunities as possible to pitch that story to investors.

How to Enter the competition?

Investor Preparation:

1. Messaging: Can entrepreneurs articulate the value proposition: to entrepreneurs target market and to the investor on how they will get a "pay raise" by choosing to put their money in an entrepreneur's company.

2. Structure: Do investors know how much the company is looking for and what part of the company entrepreneurs will give up for that? Is it based on solid inputs to establish the value of the stock?

3. Offering: Whether seeking $100,000 or $1,000,000, there are documents that must be signed and entrepreneurs must establish a legal protocol for collecting the money. That protocol includes documents such as a Private Placement Memorandum (PPM) explain the opportunity and the risks, and an Investor Questionnaire to validate the investor has enough wealth to make the investment, and legal documents that actually complete the transactions such as a Subscription Agreement and Stockholder Agreement.

4. Budgeting: Reality Check: It costs time and money to raise money. Entrepreneurs must plan accordingly. They can either spend a lot of time identifying, scheduling, meeting with each investor and following up and following through. This involves potentially hundreds of meetings and getting a lot of "no's". It is very difficult to raise a lot of money, in a timely manner, and run and manage a fast growing early stage company.

Often entrepreneurs hire an investment banking firm, broker dealer, or professional services firm in that business to help them manage the investment raise process. The seed round should be done on their own, without paying any fees. Once they are beyond their seed round, they need to adopt strategies that will put them in front of hundreds of investors over a reasonable amount of time. This includes participating in business plan competitions, investor forums, and as many opportunities as possible to "pitch" to investors.

There are fees associated with putting these events on and therefore a cost to be anticipated and budgeted for in raising millions of dollars of private equity investment. Entrepreneurs should only pay to present to a group of investors after they have raised a seed round and part of their next round and find their raise slowing down and need access to a new pool of potential investors.
About the Author
Launch Funding Network (LAUNCHfn) and The Network of Business Angels and Investors (NBAI) collaborate to help entrepreneurs succeed by delivering needed
resources and early stage capital. Learn more at
http://www.FindInvestorCapital.com
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