Funding Sources; Securities Compliance "How do I get someone to fund my company? Cash is the lifeblood of any business, especially early-stage, high-growth enterprises. We will discuss: The Capital Fundraising Plan (know how much you need to raise and when to raise it); Grant Funding (what could be better than money you don’t have to repay and doesn’t cost you equity); Securities Law Basics (how to avoid personally obligating yourself to give back every dime of investor money if things don’t go well); “Choose Your Investors Wisely” (how to make smart, practical choices in finding and choosing the money partners for your business). And….of course, your questions!

1. DEVELOPING A BUSINESS
“CAPITAL FUNDRAISING PLAN”
By: Donald H. Baker, Jr.
Presented By: Matthew W. Bower

2. WHAT IS A
“CAPITAL FUNDRAISING
PLAN”?

3. A “Capital Fundraising Plan” or “CFP” is a
self-diagnostic plan or tool that combines a
business operational plan with a funding
needs assessment.
WHAT IS A “CAPITAL
FUNDRAISING PLAN”?

4. The CFP helps answer three questions:
 HOW MUCH investment capital the company
needs.
 WHY AND WHEN investment capital is
needed.
 WHAT is the right way to think about
valuation and other key investment terms.
WHAT IS A “CAPITAL
FUNDRAISING PLAN”?

5. HOW TO MAKE A “CFP”

6.  Step One. Choose a relevant time frame –
three to five years.
 Step Two. Develop a list of the most
significant business and operational
milestones (“Key Milestones”) during the
timeframe in Step One. (But not funding
milestones.)
HOW TO MAKE A “CFP”

7. A “Key Milestone” is a measurable event
which, if it happens, results in your
business being recognizably more valuable.
“Recognizable” just means that it is
meaningful, not that the change in value is
huge.
HOW TO MAKE A “CFP”

8.  Step Three. For each Key Milestone:
◦ What is your “Shopping List” of necessary non-monetary
resources (personnel, equipment, etc.)?
◦ How much time is needed?
◦ How much do the one-time items in your Shopping List
cost?
◦ What do the ongoing items in your Shopping List cost
over the time frame?
HOW TO MAKE A “CFP”

9. Your “one-time items” costs plus your
“ongoing items” costs over the time frame
equals your “Investor Ask” for each Key
Milestone.
HOW TO MAKE A “CFP”

10.  Step Four. Repeat the process for each
Key Milestone.
 For Key Milestones that are post-
revenue, reduce the total by net
contributions from sales and operations
HOW TO MAKE A “CFP”

11. At the end of the CFP process, you will have:
 A three- to five-year business picture
 A description of your “Key Milestones”
 A “Shopping List” for each Milestone
 A forecasted “Investment Ask” for each Key
Milestone
HOW TO MAKE A “CFP”

12. QUESTIONS?
Matthew W. Bower
Safford & Baker PLLC
mbower@saffordbaker.com