Section 9
t
en
anagem
ssional M
ed Profe
Dedicat
g Value)
(Buildin
Phase 3
Phase 4
Founders and Early investors
Exit goal (5-7yrs from start)
via eg a trade sale, management
buy-out (MBO), IPO.
Early Trading
Board Reconstruction
Service Contracts
Financing
(Business Angels, Consortia, Funds)
Marketing
Investment Agreement
Service Contracts
Business Contracts
Financial Direction & Accounts
Drive for volume sales and profits
Business Premises
More Financing
(VC's, Investment Banks, Private Equity Firms)
The funding process is like a relay race, in that there are a number of distinct phases where
different funders are willing to participate. So there is a number of "equity gaps" and the baton
can be dropped at each phase. It is important, therefore, to think ahead and to try to arrange
a smooth handover. Likewise, there are different people skills required at the various phases
and, so, "talent gaps" can appear. So it is vital to have access to good networks of business
and marketing people. This requires constant management and is a very dynamic process.
It is just as critical to success as the quality of the spin-out's technology, product or service.
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