Venture Financing



Venture Valuation and Keeping Your Share

A Guide for Entrepreneurs


By: Venture Planning Associates



When it comes to finding an investor for your venture why should 'FAIR SHARE' be an issue?

Problems arise when entrepreneurs, experts in their field, find themselves in unfamiliar territory, and easily intimidated by the financial 'expert' controlling the funding, and the financial future of the deal. Some deals fail to get off the ground because the investor wants an UNFAIR RETURN. Others never see the light of day because the entrepreneur is unwilling to part with an appropriate share in EXCHANGE for INVESTMENT CAPITAL.



Venture Marketer

 Vision >> Example

Mission >> Example

Entrepreneurial Team






A SUCCESSFUL NEGOTIATION dictates that both parties walk away from the table as winners. How do you protect your interests and ensure that the deal you strike is fair for all concerned? The best way is to do your homework. Know as much or more about the true VALUE of YOUR DEAL as your PROSPECTIVE INVESTOR. By preparing a solid business plan that addresses everything an investor wants to know, you become an expert in his field.

In the process, you will learn for yourself the fair asking price, as well as the best and worst case scenarios. At this stage, you are selling a FINANCIAL PACKAGE, not your product or service. It must be competitive in the marketplace in the areas of risk, return, liquidity and technical issues.


VC Investor Pitch



8 Issues

Spotless Pitch


How To Deliver Your VC Investor Pitch






Here are the basics:

Develop Comprehensive Financial Data

Determine the funds required and their use, by back fitting the cash flow requirement of your business plan.

Decide on an EXIT STRATEGY for the investor and yourself.

Keep and Hold; Acquisition; Initial Public Offering (IPO)

Each requires different cash management strategies, Include a comprehensive pre and post investment valuation analysis for your business plan and exit strategy.

Develop a TERM SHEET or DEAL STRUCTURE based on the prospective investors’ required rates of return for the stage of your business.



High Profits

Revenue Model

Management of Financial Risks

Venture Financing


Investor Return Options

Exit Strategy




PowerPoints for sale

for Teachers

Outstanding Innopreneur





Business Valuation Study

One of the most frequently used methods to evaluate risk and reward scenarios is the FIRST CHICAGO METHOD, which requires developing THREE FINANCIAL PLANS and assigning probabilities to the outcome of the plan.

1. Your plan is successful and goes public or gets acquired.

2. Your business is moderately successful (15% after taxes).

3. The business fails, and is liquidated.

Assign a realistic probability to each scenario, and calculate a COMPOSITE VALUE. Then calculate the AMOUNT of STOCK to be offered based for a required rate of return (e.g. 40%). Back-calculate how much of the business to sell.


Small Business Valuation

Valuation of a Start-up Company

Valuation Quantification Techniques

Internet Business Valuation

VC Valuation: Sample-cum-Worksheet







Investment Plan

This is the document outlining in further detail the timetable of required equity and debt financing, and the payback, or liquidation, of the investor's position under various scenarios. This is where the 'DEAL' is structured to MAKE YOUR BUSINESS ATTRACTIVE to INVESTORS.

By being prepared, not only will you know what is fair, you will have the confidence to stand up to those who would gladly demand, and get, more than you should give them in order to be successful. An important aspect of all fund raising is to consider the effects of DILUTION and RATES of RETURN for MULTIPLE ROUNDS of FUNDING.


Business Plan Evaluation by VC Investors

What Every Investor Wants To Know

How Investors Read a Business Plan

Questions Asked

Investment Evaluation Criteria