Commercialising Innovation - Extracts
Commercialising Innovation is a book written by Rick McElhinney and Rodney Overton. The book aims to provide the inspiration, ideas and knowledge to raise funds, invest in and to commercialise great ideas. Below is a selection of extracts from chapter 4 of the book. Click on the link beside each extract and enter you email address to download the complete extract.
Chapter 4 Excerpt 1
Understanding Equity Investment
Financing for the commercialisation of ideas, particularly ‘blue sky’, high technology ideas, with substantial growth potential, may be obtained from angels. Angels are most often equity investors who inject capital and management skills, provide business contacts, do not charge fees and do not require a house as security.
In the 1980s a number of venture capital..... Click on the link to download the complete extract
Chapter 4 Excerpt 2
What is an angel?
Angels are aware that they operate in a relatively high-risk market and will usually obtain expert advice when making investment decisions. Angels originated in the USA where the funding of Broadway..... Click on the link to download the complete extract
Chapter 4 Excerpt 3
Some characteristics of Australian angels
Angels and mainstream venture capital providers have a lot of common characteristics, however there are some key differences:..... Click on the link to download the complete extract
Chapter 4 Excerpt 4
Pitching to investors
Pitching, sometimes referred to as the “elevator pitch”, is a short and concise presentation designed to generate enough interest from an investor to enlist them in a more detailed presentation.
The Founders Forum and Angels Institute business investment events provide a means for investment ready..... Click on the link to download the complete extract
Chapter 4 Excerpt 5
Finding angels
Finding angels does not assist if your venture is not yet investment ready. Becoming investment ready is the first priority and this book should partially assist in this process. If you think you are investment ready, then talk to one of the many consultants and government employees involved in the early-stage..... Click on the link to download the complete extract
Chapter 4 Excerpt 6
Working with an angel
Many angels, having retired early or been retrenched with a large payout, are keen to keep their hand in by offering support to growth businesses. With both venture capitalists and angels, the equity investor acquires an agreed proportion of the company in return for the..... Click on the link to download the complete extract
Chapter 4 Excerpt 7
Requirements and expectations of angels
Angels have preferences for particular stages of investment, amount of investment, industry sectors, and geographical location. It is important that your team have an understanding of the requirements of angels and their expectations before approaching them with your proposal. A good analogy is that any good salesperson will take..... Click on the link to download the complete extract
Chapter 4 Excerpt 8
The initial meeting - screening by the angel
The initial meeting provides an opportunity:
- For the investor to meet with the venture team.
- To meet with key members of the venture team.
- To review the business plan.
- To conduct initial due diligence on the project.
- Make sure that your team arrives on time and dresses to impress - look and present as someone who means business. You will never get another chance to make a first impression!
The initial meeting is an important time for..... Click on the link to download the complete extract
Chapter 4 Excerpt 9
Steps involved in preparing for equity investment
In order to sell your business to potential investors you will need:
- To have clearly identified the direction your venture intends taking with an up to date, practical and workable business plan.
- To have identified the strengths, weaknesses, opportunities and threats facing your venture (see SWOT analysis in Chapter 2).
- To have identified the trends in your market place and industry.
- To have identified a strategy for growth and..... Click on the link to download the complete extract
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