digitalfilipino getting investors

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Attracting overseas investors as a Filipino startup

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  • 1. Attracting Investorsfor your Business Tactics & ExperiencesFrom the field. Michael Michelini

2. Todays Agenda

  • Understanding the mentality of an investor
  • Building trust
  • Why do you need investment?
  • What are you willing to give up?
  • After the investment
  • Real experience - saleslion
  • Real experience NewYorkbarstore
  • New project - ClearCafe

3. Understanding Mentality of an Investor

  • Investors come in all shapes & sizes
    • Believe you should first look for angels / strategic partners in the west.
    • It isnt always directly cash investment
    • Can be also strategic partnership in sales / operations
    • They normally want to be sure
      • You are reliable
      • You will be there when times get tough
      • You are on their side

4. A Business is like a Ship

  • Boat infrastructure. your product /service
  • Map strategy
  • Wind finance / financial investment
  • Sailors your team

5. Crist (Jesus Christ) Formula

  • (C x R x I) / S = T ---- CRIST
  • C = Credibility
  • R = Reliability
  • I = Intimacy
  • S = Self Orientation
  • T = Trust

6. What do you need the investment for?

  • How much?
  • Why, for what?
    • Development?
    • Inventory?
    • Marketing?
  • How long for payback?
  • How long will this last?
  • What do you currently have?
  • Upfront? Monthly?

7. Investors from various sources

  • Customers
  • Suppliers
  • Mentors
  • Agents
  • Trade associations
  • Governments
  • Be creative!

8. What are you offering?

  • 51%?
  • Control
  • Financial obligations
  • Deliverables
    • Pressure
  • TIME!
    • Will spend decent amount of time with investor
  • Technical? Marketing?Local agent?

9. Rev Share Partnership

  • MUST have trust on both sides
  • Example 25% of adjusted gross margin (after inventory + shipping)
  • Try to take position of power
    • Receiving the money
  • 5 year length
  • You believe in the project more than the other

10. Got the deal! Now its just begun.

  • Dont pop the champagne so quickly
  • Now you need to deliver!!!
  • Youve been given a chance

11. Being Reliable

  • Taking an investment is also taking a job
  • Be prepared to report regularly
    • Daily, weekly, monthly checkups?
  • Showing the investor you are putting your full effort

12. Case Study - SalesLion

  • Finland based investor
  • Found us online as another name
  • Saw we were in China
  • Wanted IT partner in Asia
  • Trusted Us
  • Read blogs
  • Month to month operating budget

13. Example - NewYorkBarStore

  • Started in 2004 in NYC apt.
  • Had lots of open passion
  • Complementary skillset
  • Investment was for inventory to grow sales
  • Investor was also aligned interests
  • Investor was also too busy to help, though he planned to be more involved.

14. Current Case- ClearCafe

  • I want to be angel investor in Philippines
  • Find good talent here
  • Good P.R. and marketing
  • Long term investment

15. Conclusion

  • Think from perspective of an investor
  • What type of investor / money do you want?
  • Realize this will be more pressure

16. Question & Answer

  • Michael Michelini
  • [email_address]
  • MaiLiNi.com/blog
  • blog.michaelmichelini.com

@michelini Weibo @michelini Facebook.com/michelini