Attracting Investors for your Business

Tactics & Experiences From the field.

Michael Michelini迈理倪

Today’s 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

Understanding Mentality of an Investor• Investors come in all shapes & sizes– Believe you should first look for angels / strategic

partners in the west.– It isn’t 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

A Business is like a Ship

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

Crist (Jesus Christ) Formula

(C x R x I) / S = T ---- CRIST

•C = Credibility•R = Reliability•I = Intimacy•S = Self Orientation•T = Trust

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?

Investors from various sources

• Customers• Suppliers• Mentors• Agents• Trade associations• Governments

• Be creative!

What are you offering?

• 51%?• Control• Financial obligations• Deliverables– Pressure

• TIME!– Will spend decent amount of time with investor

• Technical? Marketing? Local agent?

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

Got the deal! Now its just begun….

• Don’t pop the champagne so quickly…

• Now you need to deliver!!!• You’ve been given a chance

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

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

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.

Current Case- ClearCafe

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

Conclusion

• Think from perspective of an investor

• What type of investor / money do you want?

• Realize this will be more pressure

Question & Answer

Michael Michelini迈理倪mike@shadstone.com

MaiLiNi.com/blogblog.michaelmichelini.com

@micheliniWeibo @micheliniFacebook.com/michelini