digitalfilipino getting investors

• 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