Scope and type of money which you need for now - if you need to invest a cow lime or lime turned an

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This post was written by Ayelet Torres, a partner in the high-tech at Amit, Pollak, fibrec Matalon & Co. (APM & CO). Mr. Torres accompanied funds, incubators, Akslrtorim, angel investors and entrepreneurs in the legal and business sectors, including funds raising strategy against the leading investment groups in Israel and abroad
In a previous post I wrote about the "Law of Angels" and how to use it to help raise money for. However, not every company is right for raising outline Law angels, and a time when funding environment is not easy for entrepreneurs, the importance of reference entities the right money, proper methodology - has grown. fibrec Time is money and inputs people. You are conducting recruitment is not informed, by way of "all guns blazing", reaching all investors just because you have a connection to it and so on, you get tired unnecessarily, you are not free to engage in greater needs of society development, sales and marketing, fibrec and usually will not achieve the best results, if any. The way you will find that if you had your day in a particular investor, fibrec you would not yet ripe for it, the investor may not want to meet you, even if you got going for many since the original meeting. Not always the case, but the correct construction of the process and fine discretion at any stage of recruitment. fibrec Investor who is right for you?
The company is in (space) - for abstraction, suppose you are a mobile or internet company. fibrec Investors worldwide cleantech or life science you can not manage a very high percentage of cases, even if they sometimes opportunistic investment opportunities in relation to your world. Examine the investment appetite and expertise of each investor through the website, LinkedIn profile and other sources and avoid wasting of your time and the time of patently irrelevant fibrec investors.
The stage where you are (stage) - Suppose you are at the cow - lime or lime. Her funds which are essentially funds Lite Stage (eg, see also below) will not help, unless these funds have a lime young companies. And vice versa - if the company is Round B onwards, there seems no point in turn funds Micro (micro funds) that invest in relatively low amounts projects in preliminary stages. Carefully check the adjustment phase and before investors fibrec turned more appropriate for you.
Type of investor - there are many differences in appetite investment, fibrec the investment model and various value added investors bring to the table; no items Angels funds, Hakslrtorim not working model of incubators, venture capital corporations (corporate venture) do not work property considerations funds, debt essentially different bodies valves equity and so on. You can not post this brief to refer to all entities and major differences between them, although I will expand briefly below, and in any case - carefully examined in consultation with people who know the business environment with those entities rather start, thereby significantly streamlining your recruitment process.
I will give some examples trivial illustration - if restrictions Development Law and scientist who is entitled in terms of export knowledge (IP) from Israel make it very difficult for now, it seems he must not seek monetary scientist or join greenhouses. Whether corporate venture capital entity chooses to invest in you - may rather than "push" you to exit early as some of the funds may be expected to make, but also put the weight on the further development which is a synergistic corporate requirements, prevention of possible cooperation with companies competing in the industry and so on. Understand the type of investor and first took the right investors.
Where you sit - an Israeli company established and operating in Israel, in most cases, more accurately before contacting Israeli bodies and representatives of investment funds and foreign investment entities that are already in the country, only then will direct funds and overseas, including Silicon fibrec Valley. The reasons are many and include - better alignment of local investors in young companies that require closer monitoring and support, comfort (comfort) of foreign funds investing in Israeli venture fund has already invested locally and more.
The company's value (valuation) - As is well known, the value of a company, especially the preliminary stages characterized by the absence of tools Mdidiim valuation is not an exact science. However, the logical space of the fair is a giant unknown. Many investment groups, whether these groups of angels, whether micro or Akslrtorim funds, pre-define the boundaries within which the fair convenient for them and right for them to invest. Check it all means at your disposal visible fibrec and talked with people in the industry fibrec who are familiar with the various investment accepted my body, and avoid the cancellation of her time factors are irrelevant in terms of the company's value, fibrec even if the amount of money you wish to raise is apparent mandate of that body. For example - say you seek to raise half a million at a company value of $ 6 million, before money. There are funds that can give you half a million dollars in terms of the magnitude of the money they manage and the investments they make, but not worth such as equity dictate smaller holdings for money than the fund would like to see.
Scope and type of money which you need for now - if you need to invest a cow lime or lime turned angels, Akslrtorim and micro funds. fibrec If you need millions of dollars isolated - wrote funds Muncher. If more true for the company to raise debt and equity raising lead, and you have collateral that allow it - turned bodies debt and equity entities, and so on.
Goals that money should serve - also the purposes for which the company wishes to raise money radiation on the characteristics of the investor. In the event that money should serve growth (growth), the larger Muncher funds, growth funds and Lite - Stage would be more correct address. In the event that money should serve primarily the continued development of the law of adjustment examined Angels, scientist fibrec and greenhouses programs alongside other investment channels. As greater technological risk and money to serve the litigation fibrec risk - so the funds that specialize in young stages and high-risk will fit you better.
The amount of money you'll need