1. How to Raise Capital Best Practices

2. Exploit a window of opportunity Make critical operating investments for which you lack existing resources to fund Decrease your financial exposure Why Raise Capital?

3. Debt Short-term: working capital Long-term: property, plant& equipment Equity Accelerate value creation to capture an opportunity Long-term growth & sustainability Rescue un-bankable company Pursue the right TYPE of Capital

4. Balance of “Smart” Money with Cost of Money Self, family & friends (inexpensive) Gov’t/Higher Ed Grants/services Banks/Receivable/Equipment financing Investors (smart & expensive) Pursue the right SOURCE of capital

5. Industry & Stage Focused: pursue good matches only Customers & Vendors Private investors Venture Capital Funds Equity Sources

6. You CAN succeed if you Have the right team with the right plan Pursue the right capital (source & type) Understand & engage your audience effectively Work hard & refuse to quit Get ready to be expertly tested: Compared Held accountable Rejected Raising Capital: MAJOR Effort

7. A strong leadership team is a must Sales makes you credible Profit makes you powerful Operate with Excellence

8. Clearly articulate: The important problem you are solving The market opportunity (and obstacles) How you will compete successfully Results you will realistically achieve Create a Masterful Business Plan

9. Subject matter experts AND deal experts Consultants CEOs Attorneys Accountants Bankers Build the right Advisory Team

10. Have experts opine & explain the value Be reasonable Dilution that gets you where you want to go is NOT “giving up” a piece of your company Determine the Valuation

11. Appoint an expert Lead/Negotiator Be prepared to answer important questions Have diligence materials ready to go Create list of “best fit” investors/lenders & determine best route to contacting each The Sales & Marketing Process

12. Follow their lead, get on their wavelength Be confident, never cocky Answer questions honestly & directly Don’t “try” to sell Evaluate their “fit” and ability to add value Investor Meetings

13. We don’t need advice We have no competition Our Plan doesn’t need improving We don’t know who will buy our software because every industry should want it If we build it, they will come Deal killers

14. 3-12 months Many “no’s” Investor confidence in Management means a better offer Process Expectations

15. Critical path to building substantial wealth Investors & lenders have plenty of capital & reasonable terms for the best Be one of the best! Final Pointers