All entrepreneurs seeking capital have these 5 things in common: SNACK. This presentation is about the Art of Raising Capital and understanding the importance of filling your capital funnel. The Kugarand Capital Theory of Private Equity is explained. Created and owned by Karen Rands

1. The Money Hunt©
The Art of Raising Capital:
Filling your Capital Funnel
By Karen Rands
The Money Hunt, by Karen Rands, All Rights Reserved © 2009
http://karenrands.co

2. A Little About Karen Rands
 As the president of Kugarand Capital Holdings, I have
worked with hundreds of entrepreneurs during the past 15+
years, crafting go to market and capital strategy. Preparing
companies to get access to capital through our Launch
Funding Network and The National Network of Angel
Investors
 Best Selling Author of the #1 Primer to learn how to be an
angel investor: Inside Secrets to Angel Investing
 Host of the Compassionate Capitalist Podcast and leader of
the Compassionate Capitalist Movement.
The Money Hunt, by Karen Rands, All Rights Reserved © 2009
http://karenrands.co

3. Ideas > Innovation > Business
 Business Ideas & Concepts > From simple to complex
 A water bottle that works like a balance hand bell for runners
 Semi conductor based passive RFID tag capable of storing phonebook worth
of data now the standard for airlines,
 Converting the rubber from a tree (latex) non-allergenic and a biodegradable raw
material for textiles
 Artificial Intelligence semantic search tool uncovering hidden relevancy between
terms in data files to be applied to bio/med research hypothesis development
 A flat bottom boat that draws only 3 inches of water.... For marsh and low tide
water.... Made so good capable of transatlantic crossing
• All of these entrepreneurs have five key things in common
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

4. Common in Entrepreneurs
• Inspired
• See a need, want to fill it
• Passion
• Live, breath, sacrifice their sanity, financials
• Team Builders....starts to get harder
• Planners
• This is the harder part
• Not intuitive
• Covered this in a prior broadcast....The Secret!
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

5. Need for Capital
• Big common element
• Need it to start
• To build your prototype
• To pay for legal fees, professional fees
• To fuel the growth
• Pay for sales reps, inventory
• Sustain until profitable
• Payroll, rent,
• Pay for the marketing to get the customers
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

6. Sources are common
• YOM
• Your Own Money
• Savings, loan, w2
• OPM
• SBA
• Micro Loan
• Seed Capital – F&F
• Angel Capital
• Venture Capital
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

7. Competition is Fierce
So you think qualifying for a loan is hard....
At least it is cut and dried
have assets, proof of income/cash flow
ability to pay the loan back....you get it
Attracting Capital isn’t as easy
...subjective
way this over that
as soon as they say this is their criteria, the break their
own rules
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

8. Art of Raising Capital
• Very similar to your sales funnel
• SNACK
• S- Strategy
• N= Numbers to fill your funnel
• A=Access to Enough Investors
• C=Communicate
• K=Know the Need
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

9. Strategy
• Part of the process of planning is figuring out how much you
need
• To get started
• To get to profitability
• To build a multi-million dollar business
• Then you figure out your sources
• And do you have access to them
• How are you going to meet them
• How much time is it going to take
• Mention our services
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

10. Numbers
• $25K to $50K is average investment
• 10% --- 10%
• --- 10% of their asset allocation for alternate investments
• Kugarand Theory of Private Equity™
• 1 X 3 X 5 = 15
• 1 Investor
• 3 Sweethearts (due diligence, follow up meetings)
• 15 First Dates to get to 1 investor
• 1 million...$25K increments,
• 40 check writers, 120 Sweet hearts, 600 introductions
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

11. Access
• Using that example
• How in the world do you get access to 600 investors to
look at your deal....think about it and say yae or nae or
maybe.
• Art of Raising Capital Workshop and in our Entrepreneur
Capital Mastery Program we focus on just that....equipping
you to understanding how to get access
• Put yourself in the company of investors
• Entice them with your elevator pitch
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

12. Communicate
• Communicate your vision, your plan, your strategy
• Friends, Families, inexperienced investors will jump
on board because of the emotional sell
• Objective Investors, as Business Angels are much
tougher to close but you must master that sale
• Look for reasons not to invest
• Jaded from prior losses
• Relationship to Risk Ratio
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

13. Communicate
• Communicate at the onset
• Stay in communication through the funnel so their
risk vs reward....relationship balances out
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

14. Know the Need
• What is the motivation of the investor
• Wealth creation
• Bring a product to market
• Balance a portfolio
• Type of return
• What is the risk they perceive
• Figure out how to alleviate their concerns
• When you have done it or have a strategy for it, communicate
it
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

15. SNACK
• Strategy
• Numbers
• Access
• Communication
• Know the need
• Remember it is a numbers game
The Money Hunt, by Karen Rands, All Rights Reserved © 2009

16. Karen Rands
• Passion for entrepreneurism
• Heartbeat of what makes America Strong
• http://KarenRands.co Sign up for the Compassionate
Capitalist Coffee Break video mail, and use the option to
set up an initial consultation call
• Validate your documents
• Coach you on the fine art of raising capital then put you
in our Access to Capital system
• 470-210-4946
The Money Hunt, by Karen Rands, All Rights Reserved © 2009