What Does Investor-Ready Mean? It is one thing to have a suitable investment opportunity and quite another to be Investor-Ready. What do investors look for? What turns them on? What turns them off? In simple terms, being Investor-Ready means understanding the key points that investors want to know about your business opportunity so they can decide whether or not they are interested in making an investment. 

It means putting yourself into the mind of an investor and presenting from their point of view. It means knowing how to position your opportunity so that it has as much chance for success as possible to attract investors. It means doing a lot of homework and a lot of rehearsing and mostly, at the end of the day, having a real-world viable and fundable business opportunity. 

Investors are your customer of equity – how will you get money out of their pockets and into your business? The following check list is a good start in determining whether or not your business is Investor- Ready. We suggest you take a few moments and complete this checklist because the chances are you will discover some gaps in your Investor Readiness profile.

For Venture Capital

Y

N

 

Y

N

Are you operating in a high growth industry? Have you provided details of Key Customers/Markets?

 

 

Can you demonstrate a well thought out exit strategy?

 

 

Is there a first to market advantage?

 

 

Is the business solvent? Are you able to detail projected earnings and provide Cashflow, Profit & Loss and Balance Sheet forecasts?

 

 

Do you have an effective management team? Have you provided Director’s CV’s?

 

 

Is your organisation able to supply audited financial statements and projected operational and financial statements?

 

 

Is there a diversification of company directors and employees skill base? 

 

 

Is the legal structure of the group and the relationship of the company with subsidiaries and/or holding companies appropriate?

 

 

Do you have innovative products or services?

 

 

Are you able to provide details of types of shares and share distributions to potential investors?

 

 

Are you ready to accept equity?

 

 

 

 

Are the company’s accounting policies in accordance with accounting standards?  

 

 

Are the shareholders realistic about your company’s market value?

 

 

Is the company in compliance with environmental, equal employment opportunity and other regulatory requirements?

 

 

Is there a global market for your products or services? Are there any commercial contracts in place?

 

 

Are you able to supply a copy of the Constitution for the Company?

 

 

Is there a valuation of the IP?  Is the IP registered?

 

 

Is there a current Shareholders Agreement?

 

 

Have you identified the level of funding required e.g. business angel or venture capital and/or bank borrowing?

 

 

Is there is no major litigation, pending or potential?

 

 

Do you have a comprehensive business plan?

 

 

Does the company have a properly constituted board which meets at regular intervals?

 

 

Is there clear evidence of market need for your product / service?

 

 

Are there any ‘private company adjustments’ including: inappropriate stock valuations, private expenditures and excessive salaries, superannuation and other benefits for shareholders?

 

 

Can you clearly articulate the attributes of your ideal investor?

 

 

Are private and company financial affairs separated in the operations of the business?

 

 

Generally

 

 

Does the company have adequate insurance coverage with regard to public and professional indemnities?

 

 

Do you have the ability to identify company weaknesses and offer valid, productive solutions to these?

 

 

Are the directors’ credit cards or holidays funded through the company?

 

 

Are current employee contracts in place for all staff?

 

 

And

 

 

Are you able to supply the following basic information about the company: names, addresses and contact personnel of the company’s professional coaches, including legal, auditors, principal bankers and investment bankers?

 

 

 

Have you perfected your pitches / presentations to investors? Have you prepared your ‘Elevator Statement’?

 

 

Has market research been undertaken by a third party to date?  Are you able to provide the primary and secondary sources of information?

 

 

Are you ready to undergo the due diligence process and have you prepared a DD Pack for potential investors?

 

 

Are you able to list all potential domestic and international market segments?

 

 

 

 

 

Is there a clear indication of the market size?

 

 

 

 

 

Have you completed your competitor analysis including identifying barriers to entry?