Terence S. Phillips,
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What Medicare Won’t Cover11/14/2019  Original Medicare — Part A hospital insurance and Part B medical insurance — offers broad coverage at a relatively low cost, but there are many potentially expensive health-care services that are not covered. Some may be fully or partially covered by a Part C Medicare Advantage Plan, which replaces Original Medicare, or a Medigap policy, which supplements Original Medicare. Both are offered by Medicare-approved private insurers. (You cannot have both a Medicare Advantage Plan and a Medigap policy.) Whether you are looking forward to Medicare in the future or are already covered, you should consider these potential expenses in your strategy for paying health-care expenses in retirement.  Deductibles, copays, and coinsurance. These costs can add up if you have a serious health condition, and — unlike most private insurance — there is no annual out-of-pocket maximum. Medicare Advantage and Medigap plans may pay all or a percentage of these costs and may include an out-of-pocket maximum. Prescription drugs. For coverage, you will need to enroll in a Part D prescription drug plan or a Medicare Advantage plan that includes drug coverage. Dental and vision care. Original Medicare does not cover routine dental or vision care. Some Medicare Advantage and Medigap plans may offer coverage for either or both of these needs. You might also consider private dental and/or vision insurance. Hearing care and hearing aids. Some Medicare Advantage plans may cover hearing aids and exams. Medical care outside the United States. Original Medicare does not offer coverage outside the United States. Some Medicare Advantage and Medigap plans offer coverage for emergency care abroad. You can also purchase a private travel insurance policy. Long-term care. Medicare does not cover “custodial care” in a nursing home or home health care. Part A hospital insurance does cover medically necessary stays in a certified skilled nursing facility for the first 100 days after a qualifying hospital stay of three or more days, with no out-of-pocket cost for the first 20 days, $170.50 per-day coinsurance for days 21–100 (in 2019), and no coverage beyond 100 days. You may be able to purchase long-term care (LTC) insurance from private insurers. A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the LTC insurance policy. It should be noted that LTC insurance carriers have the discretion to raise their rates and remove their products from the marketplace. This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2019 Broadridge Investor Communication Solutions, Inc.  
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 If you are engaged to be married, or expect to be soon, it’s important to consider how this change in the relationship (and legal status) will affect your finances. Discussing the following topics well in advance may keep surprises and disagreements from disrupting your newlywed bliss. Share debt stories. Many Americans bring college debt into their marriages, and some individuals have had severe credit challenges. Taking a close look at both credit reports may help resolve debt and credit issues before they spiral out of control. Discuss banking and bill paying. Working together to prepare a preliminary household budget may help you start off on the right foot. If you decide not to pool all your income and assets, make sure you clearly define what belongs to each of you separately and what responsibilities you will share. Some married couples use a joint account for living expenses and separate accounts for personal spending.  Look closely at company health plans. You may need to coordinate two sets of workplace benefits, so keep in mind that many companies apply a surcharge to encourage a worker’s spouse to use other available coverage. Compare the costs and benefits of having both of you on the same plan versus keeping your individual coverage with each employer.
Anticipate joint income taxes. Most married couples pay more total tax when they file separately than when they file jointly. But there are rare occasions when filing separate returns could result in a lower combined tax liability or provide another benefit. For example, if you or your fiancé have federal student loans, filing separately might help you qualify for a lower monthly payment under an income-based repayment plan. Combining your incomes could land you in a higher (or lower) tax bracket, so you may want to check and adjust your employer withholding to avoid owing money at tax time. If you expect a larger refund, you might reduce your withholding and put that money to better use (such as paying off debt or boosting savings). Consider a prenuptial agreement. A prenup is a written contract that states how assets will be owned during the marriage and divided in the event of divorce. A prenup may be unnecessary if the engaged couple are both young and have comparable wealth levels. But if either partner owns (or expects to inherit) substantial assets — or has significant debts — crafting a premarital agreement may be worthwhile. Prenups are commonly used to help protect the financial interests of children from a previous marriage or to account for other special circumstances. If a couple intends to pay off one partner’s student loans together early in the marriage, an agreement might credit the other spouse for that help in the event of a divorce. Similarly, if one partner expects to support a spouse through professional school (law or medical), an agreement may stipulate how he or she will share fairly in the professional’s future income. This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2019 Broadridge Investor Communication Solutions, Inc.
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 “There’s not a lot of ‘fun’ in funding.”Raising equity funding for your startup is a long, difficult, and often demoralizing process. However, if you’re successful, you walk away with money that will help your startup grow and become everything you hope it could become. One of the major challenges that founders run across is that raising a round often takes more time than they expected. While a founder might know that your startup is excellent, convincing other people to invest thousands — and potentially millions — of dollars into their company is not a simple task. “I’ve always heard that the rule of thumb is three to four months to do a fund raise — or that you should at least allow for that,” Jenny Lefcourt, a founder and advisor who has raised over $100 million, says. “I think there are plenty of people, depending on the size of the round that they are raising, how successful they’ve been in the past, how far along they are, what their metrics are, where that could be much shorter.” However, it could also be much longer, particularly if they’re trying to raise during the summer months, when the fast-moving venture capital world moves at a slower pace. And during that time, many startups find that the stress of potentially running out of money — or, in some cases, the stress of actually running out of money — to be extremely high. Founders also find it difficult to do what is essentially two full-time jobs simultaneously: running a company and raising money for that company. Another challenge that arises with equity funding is that there are more people involved in running the company. While most founders start with a small, intimate team, each round of funding brings on new investors. Those investors usually expect not only a financial portion of the startup, but also a say in how things are done. In extreme cases, they may even choose to oust a founder, as famously happened with Uber founder Travis Kalanick. “Pursuing an equity fundraise means that, in exchange for the money they invest now, investors will receive a stake in your company and its performance moving forward,” Schroter says. “Equity is one of the most sought-after forms of capital for entrepreneurs, although certainly the least available. Simply put, there are very few equity investors who have a check to write and there are 1000x more Founders with ideas to fund. It’s a supply problem.” But despite these challenges, thousands of startups raise funding every year, implying that the potential rewards outweigh the guaranteed strife and risk. Here’s an outline of what a startup founder can expect at each stage of raising equity funding.  Pre-Seed Funding Pre-seed funding is the earliest stage of funding, so early that many people don’t include it in the cycle of equity funding. At this stage, founders are working with a very small team (or even by themselves) and are developing a prototype or proof-of-concept. The money to fund a pre-seed stage typically comes from the founders themselves, their families, friends and family, and maybe an angel investor or an incubator. Pre-seed funding is a relatively new part of the startup lifecycle, so it’s difficult to say how much money a founder can expect to raise during the pre-seed period. Seed Funding What is seed funding? The very first money that many enterprises raise — whether they go on to raise a Series A or not — is seed funding. (Some startups may raise pre-seed funding in order to get them to the point where they can raise a traditional seed round, but not every company does that.) The name is pretty self explanatory: This is the seed that will (hopefully) grow the company. Seed funding is used to take a startup from idea to the first steps, such as product development or market research. Seed funding may be raised from family and friends, angel investors, incubators, and venture capital firms that focus on early-stage startups. Angel investors are perhaps the most common type of investor at this stage. This is also the end point for many startups. If they can’t gain traction before the money runs out (also known as running out of runway), then they’ll fold. On the other hand, some startups decide that they’re not interested in raising more money — that the level they reach with seed money is good enough or that they’re able to grow more without more investment — and choose to stop raising funding rounds at this point. How much money is involved in seed funding?Seed funding is usually between $500,000 and $2 million, but it may be more or less, depending on the company. The typical valuation for a company raising a seed round is between $3 million and $6 million. SHOW ME THE MONEY!   Series A FUNDING What is Series A funding round? Once a startup makes it through the seed stage and they have some kind of traction — whether it’s number of users, revenue, views, or whatever other key performance indicator (KPI) they’ve set themselves — and they’re ready to raise a Series A round to help lift them to the next level. In a Series A round, startups are expected to have a plan for developing a business model, even if they haven’t proven it yet. They’re also expected to use the money raised to increase revenue. How much money is involved in a Series A funding round?Because the investment is higher than the seed round— usually $2 million to $15 million — investors are going to want more substance than they required for the seed funding, before they commit. It’s no longer acceptable to have a great idea — the founder has to be able to prove that the great idea will make a great company. The typical valuation for a company raising a seed round is $10 million to $15 million. Series A rounds (and all subsequent rounds) are usually led by one investor, who anchors the round. Getting that first investor is essential, as founders will often find that other investors fall into line once the first one has committed. However, losing that first investor before the round is closed can also be devastating, as other investors may also drop out. Series A funding usually comes from venture capital firms, although angel investors may also be involved. Additionally, more companies are using equity crowdfunding for their Series A. Series A is a point where many startups fail. In a phenomenon known as “Series A crunch,” even startups that are successful with their seed round often have trouble securing a Series A round. According to the firm CB Insights, only 46 percent of seed funded companies will raise another round. That means that this is the end point for the majority of early stage startups.   Series B FUNDING What is Series B funding round? A startup that reaches the point where they’re ready to raise a Series B round has already found their product/market fit and needs help expanding. The big question here is: Can you make this company that you’ve created work at scale? Can you go from 100 users to a 1,000? How about 1 million? The expansion that occurs after a Series B round is raised includes not only gaining more customers, but also growing the team so that the company can serve that growing customer base. In order to be competitive, any startup needs to hire excellent people in a range of roles. It’s no longer possible for the founder to “wear all the hats,” so raising enough money for competitive salaries is essential. How much money is involved in a Series B funding round? A Series B round is usually between $7 million and $10 million. Companies can expect a valuation between $30 million and $60 million. Series B funding usually comes from venture capital firms, often the same investors who led the previous round. Because each round comes with a new valuation for the startup, previous investors often choose to reinvest in order to insure that their piece of the pie is still significant. Companies at this stage may also attract the interest of venture capital firms that invest in late-stage startups.  Series C FUNDING What is Series C funding round? Companies that make it to the Series C stage of funding are doing very well and are ready to expand to new markets, acquire other businesses, or develop new products. Commonly, Series C companies are looking to take their product out of their home country and reach an international market. They may also be looking to increase their valuation before going for an Initial Public Offering (IPO) or an acquisition. “Once a company has built a product that’s become a darling in the market, that’s when the Private Equity and Investment Bankers show up,” Schroter says. “These folks aren’t looking for a lot of risk – they let the angel investors and venture capital firms deal with that. They are looking to put massive sums of money into companies that are already winning to allow them to secure their leadership position.” Series C is often the last round that a company raises, although some do go on to raise Series D and even Series E round — or beyond. However, it’s more common that a Series C round is the final push to prepare a company for its IPO or an acquisition. How much money is involved in a Series C funding round?For their Series C, startups typically raise an average of $26 million. Valuation of Series C companies often falls between $100 million and $120 million, although it’s possible for companies to be worth much more, especially with the recent explosion of “unicorn” startups. Valuation at this stage is based not on hopes and expectations, but hard data points. How many customers does the company have? What’s it’s revenue? What’s it’s current and expected growth? Series C funding typically comes from venture capital firms that invest in late-stage startups, private equity firms, banks, and even hedge funds. This is the point in the startup lifecycle where major financial institutions may choose to get involved, as the company and product are proven. Previous investors may also choose to invest more money at the Series C point, although it is by no means required.  Series D FUNDING What is Series D funding round? A series D round of funding is a little more complicated than the previous rounds. As mentioned, many companies finish raising money with their Series C. However, there are a few reasons a company may choose to raise a Series D. The first is positive: They’ve discovered a new opportunity for expansion before going for an IPO, but just need another boost to get there. More companies are raising Series D rounds (or even beyond) to increase their value before going public. Alternatively, some companies want to stay private for longer than used to be common. Each of these are positive reasons to raise a Series D. The second is negative: The company hasn’t hit the expectations laid out after raising their Series C round. This is called a “down round,” and it’s when a company raises money a lower valuation than they raised in their previous round. A down round may help a company push through a tricky time, but it also devalues the stock of the company. After raising a down round, many startups find it difficult to raise again, as trust in their ability to deliver on their promises has eroded. Down rounds also dilute founder stock and can demoralize employees, making it difficult to get back ahead. How much money is involved in a Series D funding round?Series D rounds are typically funded by venture capital firms. The amount raised and valuations vary widely, especially because so few startups reach this stage. Series E FUNDING If few companies make it to Series D, even fewer make it to a Series E. Companies that reach this point may be raising for many of the reasons listed in the Series D round: They’ve failed to meet expectations; they want to stay private longer; or they need a little more help before going public. Other types of startup funding While equity funding is a popular option for startups, particularly tech startups, it’s not the only option for fundraising. In fact, there are number of ways a founder can raise funds for their startup — and some experts believe it’s best to use a combination of methods including: Venture Capital & Series Seed Funding: A, B, C, D, E
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One of the worst parts of fundraising is a lack of positive feedback from potential investors. If you add in the silent treatment, things couldn't get much worse. Here is how to deal with it.
One of the worst parts of fundraising is a lack of feedback from potential investors. Fundraising is hard, and as I've said before, closing your raise is even harder. If you add in the silent treatment, things couldn't get much worse. Potential investors drag their feet. They hate saying "no" so they try to say "no" gently. Or they say nothing. And entrepreneurs hate that.
Here is how to deal with it. When You Get a "No" Investors who say "no" should actually be rewarded. That may not feel natural initially, but try to recognize that they're trying to help you. They're being honest and direct in a hard situation and haven't left you and your company in limbo. A "no" allows you to move on. You should thank them. In Airbnb's earliest stages, it sold boxes of "Obama O's," generic Cheerios with an illustration of Obama on them, during conventions for $40 per box to fund its business. Today an "Obama O's" box sits in the office of Union Square Ventures, a top venture capital firm, as a subtle reminder of what they missed. If Airbnb's story tell us anything, it's that even the best get turned down. In the event of a "no," be polite, thank the investor for their time and direct response, then inquire if they're open to providing feedback on why they declined or what they'd need to see to change their mind. If they seem open to staying in touch, this will help you narrow your search in future rounds and help you convert investors that are the right fit. Getting constructive feedback can also help you decide whether the terms you presented are fair and possibly guide you toward improved terms. When You Get No Response The unfortunate truth is that the vast majority of investors don't respond to pitches. But when there is no response, that should tell savvy entrepreneurs something. Maybe you don't want to admit it to yourself, but if investors aren't responding, they're probably not interested. Don't chase them. 
Instead, here's what you should do:
Keep in mind, the odds are stacked against almost all young companies. When I talk to future capital seekers, I remind them that: "For every 100 investors you talk to at the early stage, you can expect to hear 'no' or nothing at all from 95-98. It's what the entrepreneur does with the 'no' or silence that often determines the outcome." Like Airbnb, the overwhelming majority of VCs passed on Uber in its seed round. There was so little interest initially that Uber was giving "VIP Service" for life to investors willing to put in more than $10,000. The lesson? "No" and silence are just part of the fundraising process. But they are not reasons to give up. Instead, these responses--or lack of responses--should remind you to stay focused and realistic. You have work to do. 
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Early-stage investors often receive more than 100 pitches per month, which means they need to say "no" to over 99%. Alicia Syrett, CEO of Pantegrion Capital, frequent on-air personality on MSNBC and CNBC, shares the most common blunders that get startups rejected. Founder/CEO of Pantegrion Capital and The Point 25 Initiative. CNBC Power Pitch and MSNBC Your Business Regular. Contributor for Inc. Instructor at Columbia University. Board of the NY Tech Alliance.
Why VCs and Angel Investors Say "No" to entrepreneurs | Alicia Syrett | TEDxFultonStreet
Ms. Syrett was named as one of the “25 Angel Investors in New York You Need to Know” by AlleyWatch, one of Wharton’s “40 Under 40” young alumni by Wharton Magazine, and one of Virgin’s “Five Next Generation Leaders Emerging from Tech.” She has been featured in Forbes, TechCrunch, Inc., The Huffington Post, Mashable, Entrepreneur, NPR’s Marketplace, and USA Today. She has also appeared on CNBC’s Make Me a Millionaire Inventor and Cash Crowd, Nightly Business Report (NBR) on PBS, and Fox Business’s Risk & Reward.
She founded The Point 25 Initiative and also wrote a Guide for Entrepreneurs for #MentHERnyc, an event she co-founded. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx
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FRANCHISE RESTAURANT FINANCING8/14/2019  HOW WOULD YOU LIKE TO OWN A RESTAURANT FRANCHISE? LIKE... TROPICAL SMOOTHIE?   Some companies consider this a separate classification of loans. In some ways it is only because the lenders already have most of the information they need to complete the loan. They are familiar with the franchise needs and expectations and only have to evaluate the individual acquiring the franchise. And while most banks shy away from this category you will find this is an easier loan to arrange than most other startup businesses. Our partners are experts in this field and we can arrange loans of up to $25,000,000. Program Highlights
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What Is Venture Capital Funding?5/25/2019 
Venture Capital: What It Is & Why Use It
A comprehensive overview of venture capital, what it is, why startups may use it, how it works, as well as how to get it, and what types of VC are typically available to startups.
Venture capital is financing that’s invested in startups and small businesses that are usually high risk, but also have the potential for exponential growth. The goal of a venture capital investment is a very high return for the venture capital firm, usually in the form of an acquisition of the startup or an IPO. Why Would You Want To Use Venture Capital? Venture capital is a great option for startups that are looking to scale big — and quickly. Because the investments are fairly large, your startup has to be prepared to take that money and grow. Advantages of Working With Venture Capitalist Firms The biggest advantage of working with venture capital firms is that if your startup goes under — as most do — you’re not on the hook for the money because unlike a loan, there’s no obligation to pay it back. Venture capitalists come to the table with a lot of business and institutional knowledge. They’re also well-connected with other businesses that could help you and your startups, professionals that you might want to take on as employees, and — obviously — other investors. Disadvantages of Working With Venture Capitalist Firms While you don’t technically have to “pay back” venture capital, venture capital firms are expecting a return on their investment. That means that a startup that accepts VC money needs to be planning for an exit of some kind, usually an acquisition or an IPO. If that’s not your goal — or if you see yourself running your startup forever — then venture capital is not for you. On that note, part of what venture capitalists want in return for their investment is equity in a startup. That means that you give up part of their ownership when you bring on venture capital. Depending on the deal, a VC may even end up with a majority share — more than 50 percent ownerships — of a startup. If that happens, you essentially lose management control of your company. Lastly, a lot of the due-diligence, underwriting, and vetting of the start-up is paid up front or by the startup. This cost ranges from a few thousand dollars to on upwards to a hundred thousand dollars depending on the project and the amount of underwriting that is involved. But, this cost is very minimum and is a drop in the bucket if your startup is asking a VC for millions of dollars to partner with you or to fund your business. 
How Does Venture Capital Work?
A venture capital firm is usually run by a handful of partners who have raised a large sum of money from a group of limited partners (LPs) to invest on their behalf. The LPs are typically large institutions, like a State Teachers Retirement System or a university who are using the services of the VC to help generate big returns on their money. The partners have a window of 7 to 10 years with which to make investments, and more importantly, generate a big return. Creating a big return in such a short span of time means that VCs must invest in deals that have a giant outcome. These big outcomes not only provide great returns to the fund, they also help cover the losses of the high number of failures that high risk investing attracts. Venture Capital Firms Make A Small Number of Investments Although venture capital firms have large sums of money, they typically invest that capital in a relatively small number of deals. It’s not uncommon for a VC with $100 million of capital to manage less than 30 investments in the entire lifetime of their fund. The reason for this is that once each investment is made, the partners must personally manage that investment for up to 10 years. While money is often plentiful, the VC’s time is very limited. With such a small number of investments to make, VCs tend to be very selective in the type of deals they do, typically placing just a few bets each year. Regardless, they still may see thousands of entrepreneurs in a given year, making the probability that an entrepreneur will be the lucky recipient of a big check pretty small. The most common check written by a venture capital firm is around $5 million and is considered a “Series A” investment. It’s relatively uncommon for these checks to be the first capital into a startup. Most startups begin with finding money from friends and family, then angel investors, and then a venture capital firm. Depending on the size of the firm, VCs may write checks as little as $250,000 and as much as $500 million. The smaller checks are typically the domain of angel investors, so VCs will only go into smaller sums when they feel there is a compelling reason to get in early at a startup company. 
Favored Industries for Venture Capital
Venture capitalists also tend to migrate toward certain industries or trends that are more likely to yield a big return. That’s why it’s common see so much venture capital and angel investment activity around technology companies: They have the potential to be a huge win. VCs know that for every 20 investments they make, only one will likely be a huge win. A win for a VC is either one of two outcomes – the company they invested in goes public or is sold for a large amount. VCs need these big returns because the other 19 investments they make may be a total loss. The problem, of course, is that the VCs have no idea which of the 20 investments will be a home run, so they have to bet on companies that all have the potential to be the next Google. Conversely, other types of industries may yield great businesses, but not giant returns. A landscaping business, for example, may be wildly successful and profitable, but it’s not likely to generate the massive return on investment that a VC needs to make it’s fund work. The other reason VCs tend to invest in a few industries is because that’s where their domain expertise is the strongest. It would be difficult for anyone to make a multi-million dollar decision on a restaurant if all they have ever known were microchips. When it comes to big dollar investing, VCs tend to go with what they know. Unlike a bank that takes all interested customers, VCs tend to be far more selective in who they take pitches from. Often these relationships are based on other professionals in their network, such as angel investors who have made smaller investments in the company at an early stage, or entrepreneurs whom they may have funded in the past. 
How Do You Get Venture Capital?
First step for getting venture capital? Getting in front of some venture capitalists. General things to consider when you’re looking for a venture capital firm VCs will expect entrepreneurs to be very buttoned up. They’re writing big checks to a small number of companies, so they have the luxury of only investing in the well-prepared businesses. The first step to finding venture capital is to make a smart introduction to the venture capital firm you’re interested in meeting. Venture capitalists rely heavily on trusted connections to vet deals. While some VCs will take pitches from an unsolicited source, it’s best bet to find an introduction through a credible reference. You also shouldn’t try to contact as many people as possible. Instead, try to find venture capital firms that are the best possible fit for your startup and your deal. The more closely aligned your startup and you, as founder, are with the needs of the venture firm, the more likely you’ll find venture capital firms willing to write you a check. Every pitch to a venture capital firm starts with an introduction to someone at the firm. It helps to know the exact profile of a venture capitalist to know which level of introduction makes sense. Typically it’s starts with an introduction to an associate and then you can work their way up to the full partnership. But if you can’t find any connections? Your next best alternative is to make the warmest possible introduction. You’re looking for any connection you can make to the venture capitalist so that you can demonstrate you’ve done your homework and you’re not just sending out form letters. Look for any background you can find on what previous deals they may have done that relate to your pitch. Look for some recent press that they may have gotten that you can refer to. You just need to create a little bit of warmth and personality to what is otherwise a cold intro. Showing that you’ve already done some of the homework will go a long way toward making sure you don’t wind up in the “deleted” folder. And getting a commitment from a private investor relies on the strength of a founder’s pitch. But the pitch process starts long before a founder finds themselves standing in front of the investor with a pitch deck. Luckily, most VC firms have a documented process founders should follow in order to guide their approach. The Elevator Pitch For a Venture Capital Firm The first thing a founder needs to send to angel investors is an elevator pitch. The elevator pitch isn’t a sales pitch. It’s a short, well-crafted explanation of the problem a startup solves, how they solve it, and how big of a market there is for that solution. That’s it. You don’t need to “sell” the angel investor in the introduction. The opportunity should speak for itself. For more information on email pitches, read “How to Create the Perfect Email Pitch.” The Pitch Profile For A Venture Capital Firm These days, just about everything is done through email, which means just about everything is also available online. Sending an elevator pitch along with a 20 megabyte PDF document is a surefire way to never even make it past an investor’s spam filters. Instead, send a link to your pitch profile, which is an online profile that explains a little bit about the deal and provides a way for the investor request more information. You can create a funding profile on Fundable.com. It only takes a little while and is an easier way to provide a reference back to a company profile than messing with attachments. Investors may also ask for an executive summary but over the past decade, this has become less and less common, with most preferring a pitch deck. Regardless, it’s a good idea to have one prepared — just in case. The executive summary is a two to three page synopsis of your business plan that covers things like the problem, solution, market size, competition, management team and financials of your startup. It’s typically in narrative format and includes a paragraph or two about each section. You can expect the angel investor to jump to the one section they’re most concerned about, read a couple paragraphs, and then maybe look a little deeper. They figure you’ll answer most of these questions in the pitch meeting, so they’re not going to spend too much time on the documents. 
Pitch Deck For Venture Capital Firms
A pitch deck is essentially a business plan or executive summary spread across 10 to 20 slides in a PowerPoint document. Investors like pitch decks because they force you, the founder, to be brief, and hopefully use visuals instead of an endless list of bullet points. The pitch deck is your friend and most trusted ally in the pitch process. You’ll use it as your main collateral item to get meetings, it will be the focus point of your meetings, and it will be what investors peruse after meetings. The Pitch Meeting For Venture Capital Firms Once the investor has reviewed the your materials and determined they are interested in meeting with you, the next step is to arrange a time for a pitch meeting. In some cases — particularly with early stage investment — the pitch meeting is more about the investor liking you as a person than it is just pitching the idea. So take a little time to establish rapport. Investors will more often invest in an entrepreneur they like with an idea they have some reservations about than an idea they like and an entrepreneur they think is a jerk. During the pitch, you’ll run through their pitch deck and answer questions. The goal isn’t to get to the end of the pitch deck in 60 minutes or less. The goal should be to find an aspect of the business that the investor actually cares about and zero in on that point. If the investor wants to spend 60 minutes talking about the first slide, you shouldn’t rush them. There are no points awarded for presenting the 20th slide. Focus on the conversation. 
The Business Plan For Venture Capital Firms
Venture capital firms don’t actually read business plans, but they sure are glad when founders have one. Business plans aren’t really about the document itself — they’re about the planning that goes into composing the document. It’s highly unlikely that you’re are going to get asked to submit a full business plan to a venture capital firm, but it is likely that you’ll be asked all of the hard questions that could be answered in the business plan, so putting one together is a perfect way to prep for your meeting. Luckily, we have Bizplan’s business planning software to help you with this step. The Financials For Venture Capital Firms Of all the documents that you’re going to be expected to be armed with, the financials are the most important. Most venture capital firms are going to expect a reasonable four-year projection of the income and expenses of the business. They’ll want to know how quickly you’ll be able to get the business to break even. They’ll want to know what you’re intend to use their money for. And, of course, they’ll want to know how you intend to get their investment back to them — with a healthy return. You should be prepared to provide an income statement, use of proceeds, and breakeven analysis at the very least. Due Diligence For Venture Capital Firms The last item is kind of a catch-all that we’ll call “due diligence.” When the venture capital firm gets more interested in a deal, the next phase of discovery is called due diligence. During this phase, they’ll dig into all the details of the business, from financials to the details of how the business model works. This is where all of the research and support you’ve put together will be put to the test. They’re likely going to ask you to prove how you arrived at the market size they’re going after. You may get asked to have your early customers talk to the venture capital firm. Assume the firm is going to do its best to make sure everything you said actually checks out. Lastly, a lot of the due-diligence, underwriting, and vetting of the start-up is paid up front or by the startup. This cost ranges from a few thousand dollars to on upwards to a hundred thousand dollars depending on the project and the amount of underwriting that is involved. But, this cost is very minimum and is a drop in the bucket if your startup is asking a VC for millions of dollars to partner with you or to fund your business. 
What Types of Venture Capital Are There?
The different types of venture capital are based on the stage the startup is in. 1. Early stage funding Early stage funding includes seed funding and Series A. The very first money that many enterprises raise — whether they go on to raise a Series A or not — is seed funding. (Some startups may raise pre-seed funding in order to get them to the point where they can raise a traditional seed round, but not every company does that.) The name is pretty self explanatory: This is the seed that will (hopefully) grow the company. Seed funding is used to take a startup from idea to the first steps, such as product development or market research. Once a startup makes it through the seed stage and they have some kind of traction — whether it’s number of users, revenue, views, or whatever other key performance indicator (KPI) they’ve set themselves — and they’re ready to raise a Series A round to help lift them to the next level. In a Series A round, startups are expected to have a plan for developing a business model, even if they haven’t proven it yet. They’re also expected to use the money raised to increase revenue. Because the investment is higher than the seed round— usually $2 million to $15 million — investors are going to want more substance than they required for the seed funding, before they commit. It’s no longer acceptable to have a great idea — the founder has to be able to prove that the great idea will make a great company. The typical valuation for a company raising a Series A is $10 million to $15 million. 2. Expansion funding Expansion funding includes Series B and Series C. Companies that make it to the Series C stage of funding are doing very well and are ready to expand to new markets, acquire other businesses, or develop new products. Commonly, Series C companies are looking to take their product out of their home country and reach an international market. They may also be looking to increase their valuation before going for an Initial Public Offering (IPO) or an acquisition. For their Series C, startups typically raise an average of $26 million. Valuation of Series C companies often falls between $100 million and $120 million, although it’s possible for companies to be worth much more, especially with the recent explosion of “unicorn” startups. Valuation at this stage is based not on hopes and expectations, but hard data points. How many customers does the company have? What’s it’s revenue? What’s it’s current and expected growth? Series C funding typically comes from venture capital firms that invest in late-stage startups, private equity firms, banks, and even hedge funds. 
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Other Financing Options
While venture capital can be a great option for startups, there are a lot of other financing options available. If you’re looking for other ways to raise money for your startup, don’t miss our other guides In Our Upcoming Blogs:
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 Need to find investors to launch a startup or scale your business? There’s more than one way to approach fundraising and to get noticed by those with the capital you need to get to the next level. No matter how great your product or business idea, how lean you can operate, and how big you’ve grown already, more capital and financial leverage will almost inevitably be a necessity. Even the best funded and hyper-successful billion dollar startups have been engaging in more fundraising rounds than ever before. Having enough working capital and runway to get to your next milestone is vital for giving your business the chance to live to its full potential. Of course, the chances of receiving a random call from some super-sized venture capital firm or the producers of Shark Tank are pretty small. Especially, if you haven’t already attracted some well connected investors. Thankfully, for today’s entrepreneurs, I’ve seen an increasing number of ways startups are getting noticed, found and are connecting with potential investors. If you haven’t landed the money you want for your next series yet, consider these options and then share a great pitch deck with interested parties to convince them of the potential of your business. If you need guidance, the pitch deck template by Silicon Valley legend Peter Thiel is a great example of simple story telling in slides to help you get funded.  1) Online Fundraising Platforms The past five years have given birth to virtually countless online fundraising platforms. They have become highly popular with sophisticated and accredited individual investors, angels, and even banks and funds looking for new ways to deploy capital. The major platforms run from peer-to-peer lending sites which offer business loans to donation based, debt and equity crowdfunding portals. For donations you can try Kickstarter or Indiegogo. For equity crowdfunding platforms the most popular platforms are the following: •AngelList •Seedinvest •StartEngine •CircleUp •Wefunder Even if you don’t use online platforms to raise all the money you want, they can be powerful for getting noticed. The key is finding the right match in a platform for your venture and needs, as well as being realistic about what it will take to make a campaign work. 2) Events Success in business and fundraising is all about visibility, getting noticed by the right investors, who you know, and who knows you. Attending events is a great way to achieve this. Try to find out who is attending the event ahead of time and schedule meetings to be productive. This can be pitch nights for presenting your own opportunity and meeting active investors who are there, engaging in coding marathons, or simply getting out to organized networking functions and industry trade shows. If you are operating an early stage company, you may want to consider attending any of the following events: •WebSummit •Money2020 •TechCrunch Disrupt •SXSW •Collision To get ahead of the competition and take a more passive route, consider attending other events where your investors are likely to be. Think sporting events, charity fundraisers, film festival and yacht shows. 3) Social Media Social media can be your best friend as a lean startup or solo entrepreneur looking to test the market, gain traction, and attract investors. It makes it easy to be discovered, and is still one of the most cost effective methods of reaching others. You can take an inbound approach with your own posts and updates, or take a more active approach with collaborations and leveraging sponsored posts or influencers. Direct messaging can be powerful too. If you can get the social profile handles of well fitting investors, it might only take one great message to connect with the capital your startup needs.In the event you need VCs you can always go to Crunchbase and research for those investors that are actively investing in your industry. When it comes to social media, here are the most popular channels and how to use them: •LinkedIn for cold messages or to seek quality introductions to pass the social proof with guarded investors such as Venture Capital investors. In my opinion, LinkedIn Premium is totally worth for unlocking certain features. •Facebook for meaningful relationships after you have been able to meet with an investor once or twice. It is critical to build the relationship to generate trust. •Twitter for thoughtful conversations and engagement with relevant information shared by the investor.  4) Blog Blogging is one of the most underestimated methods of attracting inbound attention, telling your story, progressing potential investors through the thought process of wanting to invest in you, and remaining visible through each series of fundraising. Even without a website or blog of your own yet, you can publish via Medium or LinkedIn. Moreover, another good option is to go to the blogs of the investors that you are looking to target. They all read their comments and often engage with responses. Leave a thoughtful comment to get noticed and start building the relationship from there. Investors that are probably the most active right now on blogs include: •Fred Wilson •Mark Suster •Hunter Walk •Brad Feld •Matt Turck •Seth Levine •Jalak Jobanputra •Fred Destin •Tomas Tunguz •Bill Gurley 5) Email Simple emails have proven to be able to get the attention of notable angel investors and VCs. They’ve even be responsible for the launch of some very important and notable startups. Here are 3 Proven Email Templates That Helped Entrepreneurs Raise Millions. 6) Apply to Accelerators Popular startup accelerator programs always have an open invitation for applications from serious entrepreneurs. If accepted, you’ll likely get a modest check to keep developing your work, as well as introductions to other investors, business advice and help in staging future fundraising rounds. Just make sure you know the terms and look for a good fit before you apply, or accept the help. Typically Accelerator programs include a demo day. This is when the startups attending the program pitch to a crowd of investors. I listed recently the ones to highly consider in the piece 10 Startup Accelerators Based on Successful Exits. In the event the accelerator that you are considering is outside of the list included in the piece above, I would highly recommend to do extensive research to verify the type of success stories and the track record from such program. You may be better off using that equity that you intended to allocate to the Accelerator to create instead a very active board of advisors and incentivize them to help with making investor introductions. 7) Start Sharing Your Product Fundraising and growth needs to be strategic to be successful. Yet, far too many entrepreneurs and startups aren’t focusing enough on just getting their product or service out there in the hands of customers, influencers, and in turn, in front of investors. If you can acquire real customers, you will be under less pressure to seek outside money. When you do, you can achieve better terms, from better investors. If sales are tough, then there are freemium and hybrid business models that can help get your product in the market, and starting to generate some buzz.  8) Bootstrap Your Business Provided that your business isn’t operating in an industry that requires lots of startup capital, like manufacturing or transportation, you can potentially fund your own venture—and it may be more feasible than you think. For instance, even if you don’t have enough in savings to run the operation, you could get a 0% / low interest APR business credit card, offering you the chance to borrow cash for a period of time without incurring interest. Perhaps you think funding the business yourself carries lots of risk—and it does. But it’s important to consider your potential. Brent Gleeson, a leadership and team building coach specializing in organizational transformations, states, “if you believe in your vision and have an absolute refusal to accept failure as an option, you should feel comfortable investing your own money into the business.” Investing some of your own money will usually make investors and lenders more willing to partner with you down the line. 9) Raise Capital By Asking Friends and Family Raising capital through friends and family is a viable option for many. According to the Global Entrepreneurship Monitor, 5% of US adults have invested in a company started by someone they know. Caron Beesley, a content marketing specialist and SBA contributor, advises that you ideally select a friend or family member with solid business skills. She also suggests that you “narrow your list down to friends or family who have faith that you will succeed, who understand your plans, and who are clear about the risks.” Once you’ve done that, Beesley stresses that you must demonstrate passion and due diligence by having a sound business plan and direction. Also, be realistic about how much money is needed. Finally, make sure to agree on what form the funding will take. They could be a loan or equity in your company. If the money is a loan, agree to a repayment plan and use a P2P lending website to document everything and manage the loan. 10) Apply for a loan Even as technology creates new ways of raising capital, traditional financing products remain the primary way small businesses fund their operations. According to the Small Business Administration (SBA), almost 75% of financing for new firms comes from business loans, credit cards, and lines of credit. Generally speaking, the small business loans with the most favorable rates and terms are going to be SBA loans and term loans from banks and other financial institutions. To get approved, you typically need to meet requirements like the following:
These aren’t hard and fast rules and will differ depending on the lender. If you don’t qualify for a term loan with a good APR, there are other, albeit more expensive, types of funding available. If you have outstanding invoices, you could opt for invoice financing to get that money faster. Or, if you need cash for machinery, tech devices, office furniture, or something similar, consider equipment financing. Before applying for a small business loan, make sure to prepare any loan documents you’ll need to show ahead of time. You’ll be asked to show a profit and loss statement, balance sheets, tax returns and bank statements. In some cases your personal information may be checked as well.  |
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O: 877.528.0702 | F: 239.236.0211 | INFO@TSPFINANCIALGROUP.COM