the art of cross border fundraising 2013
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The Art of Cross Border FinancingBy: David Solomon
3 Daniel Frish Street., Tel Aviv - 64731 - Tel: +972 3 695 06 66 - Fax: +972 3 695 02 22
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SOLOMONCAPITAL is a leading Israeli based Investment House, providing investment banking as well as corporate finance services that include; Fundraising, M&A, Financial Restructuring and Business Strategic Consulting to Israeli, and International companies.
David Solomon Group CEO
With over 20 years of experience, David Solomon, is one of Israel's leading experts in the field of Corporate Finance. David, is the former Managing Partner of Cukierman & Co. Consulting Ltd, the founder and the CEO of B-PLAN, 4HIGHTECH [Investment Bank], and Micromedic Technologies [Listed on the Tel Aviv Stock Exchange].
Mr. Solomon has worked with high profile clients in the global market such as IBM, Scitex, Bezeq, Bank Discount, Bank Hapoalim, Bank Leumi, Israel Airospace Industries [IAI], QUALCOMM, Dor Energy, RAPAK and others.
Mr. Solomon lectures in Courses in academic and other institutes. David is the author of various books including: "From Seed to IPO", "Business Planning in the Post Bubble Era", and "Biomedical - from Research to Market, The Business Challenge". He has successfully worked with dozens of emerging companies and is accredited with over a hundred winning business plans
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From The global Press…
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The Art of Cross Border Financing
2013
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Source of funds & Life Cycle
Start up Growth Maturity Decline Rebirth
Non DilutedGrants
DilutedAnglesVC’sCrowded VC’s
Banks
Private EquityPublic Equity
BondsBanks
Private EquityPublic Equity
Restructuring[Debt- Restructuring]
RestructuringPrivate Equity
Restructuring[Debt- Restructuring]
RestructuringPrivate Equity
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Local Private Equity
Cross Border Private Equity
Local Public Equity
Cross Border Public Equity
Series2
Series1
0%10%20%30%40%50%60%70%80%90%
100%
2012 2013
Small/ Mid Cap :Equity
Cross Border Public Equity
Local Public Equity
Cross Border Private Equity
Local Private Equity
0%10%20%30%40%50%60%70%80%90%
100%
2012 2013
Small/Mid Cap :Debt
Local Private Debt
Local Private Debt
Source of funds
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Main Causes for Unsuccessful Fundraising• STRATEGY - Lack of Clear strategy or wrong
strategy [wrong source, wrong timing, wrong valuation]
• PREPARATION - Poor Preparation
• COMMUNICATION - Poor Company/Investor
Communication,..Losing Credibility
• BAD LUCK…If you fail to plan you plan to fail
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The Investor Perspective
Remember !!
It is all About Risk Management
The Company is focusing on the OPPORTUNITY the Investor on the
RISK
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The Process
Pre • Reality check - Evaluation, Reality check
and putting together the right STORY• Strategy - Building up the best Strategy• Preparation - Be ready… Plan and
Preparation
On Air• Communication• Pitch - [road show]• Negotiation
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The Strategy
• Why - How much -Where - When• Where is the Meat? • Valuation• Fundraising Plan
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The Preparation
• STORY - Build up the Right Story [Team, Problem/opportunity, Technology / solution, Sustainable advantage, Business model
• BE READY - Be ready for Due diligence [Balance sheet, IP, Agreements ..]
• BUSINESS PLAN Prepare Wining Business Plan [ Pitch Presentation, Teaser
• TEAM Be sure you have the best team
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The Road Show
• Be sure you know the investor agenda• Be sure you got the right excess• Be ready with 10 min pitch and ..bring with you
lot of PATIENCE and Small EGO…• Be ready for long process
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The Valuation & Deal Price
• Valuation [Fair Market Value ] is just the first stage for Deal Pricing
• Valuation Model : Market price, DCF aDCF • Deal Benchmark will do the trick
Deal Price : Public equity > Private Equity
Leave some meat to the Investors
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Make Sure the Numbers Add Up
• Long-term financial projections• Near-term operating plan• Capital requirements• Capitalization structure over multiple rounds5.
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Build Credibility
• Personal Credibility• Advisers / industry experts• Strategic partners• Investors/board members• Clear Plan &Business Models
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TOP LIES
• Our projections are conservative• Our target market is $56 billion• We have no direct competition• No one else can do what we do• Our contract with Nokia will be signed next
week• I’ll be happy to turn over the reins to a new
CEO!
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FACT!:Main Causes for Unsuccessful Fundraising are:
Lack of clear STRATEGYPoor PREPARATION -
Broken COMMUNICATIONBAD LUCK…
Contact me today for :
BUSINESS PLAN - FIRM VALUATION - FUNDRAISING - M&[email protected]
YOUR GATEWAY TO SUCCESS
Thank You