1. Phase IV – Invest Desk
Capital Financing Program
July 17, 2012
Carleton University, Dunton, Rm 328
Presented to LTW Founders
on June 5th

2. Background
• Lead To Win (LTW) has generated more than 140 new companies over the
past three years.
• There are at least 20 LTW companies that have developed to the point,
with sufficient growth potential, to embark on serious fundraising.
• Many of these first-time CEOs lack experience in fundraising.
• Invest Desk (Lead To Win Phase IV) is being established to educate, train,
coach and facilitate fundraising for the LTW companies that have reached
the point where they are ready.
• The full LTW ecosystem will be leveraged to make this happen.
• The activity is being led by Mike Foster, James Smith, Laurie Davis and
Claude Haw with support from Tony Bailetti.
• Support from Invest Ottawa, OCE, IRAP and Capital Angel Network is being
requested.

3. Objectives and Criteria
• Objective for participants: Raise sufficient capital to fund the next 18 to 24
months of company development, generally $250,000 or more.
• Criteria for admission: After a formal application process, admission will be
based on the following criteria:
– LTW Phase III graduate (or a qualified opportunity equivalent to Phase III)
– Sponsored by a qualified mentor or advisor who believes that the business is
fundable
– Must be seeking a meaningful round of financing (e.g. $250,000 or more)
• Application process: There will be a call for applications two or three times per
year starting in June 2012. Application will include a brief description of the
company, senior team, current status, mentor/advisor making
recommendation and amount to be raised.
• Mentor/Advisor Qualification Criteria:
– Some formal engagement with the company as a board member, advisor or consultant.
– A credible track record in growing early stage ventures or new ventures within larger
organization.
– Previous involvement in a financing round in some form, as an Angel or VC investor, CEO.
President or CFO.

4. Program Overview
The program will consist of four components as follows:
2. Introduction session (full day seminar/workshop) which will cover:
– Investment process and financial plan
– Defining and refining the audience
– Communications toolkit
– Developing momentum plan
– Closing the deal
3. Review session (1.5 to 2 hours with expert panel)
– Held 2 to 4 weeks following Introduction session
– Pitch to "expert panel" including at least one investor, one experienced CEO and one
service provider (lawyer, accountant, etc.)
– Scheduled only when the mentor/advisor sponsor says they are ready
4. Open pitch session (30 minutes per company)
– Held 2 to 4 weeks following Review session
– Scheduled only when the review panel says they are ready
– Company pitch to a panel of four investors designed to simulate a pitch to a VC firm
(board room setting, real dynamics, including setup, introductions, pitch and Q&A)
5. Support from Invest Desk (Customized)
– Help identifying target investors
– Qualifying target investors
– Help organizing visits to Ottawa by target investor

5. Reference Material
The program will provide each participant with reference material
including:
• Sample pitch deck
• Sample one-page company description
• Sample product brochure
• Template for financial plan
• Template for business plan
• Sample term sheets (debenture and equity rounds)
• Due diligence check list

6. Introduction Session
Day 1 Agenda
Building an “Actionable” Financing Plan
• Seeking Investment as Sales Cycle (1 hr)
– The ”investment” customer: differing psychology/priorities of venture investors
– The nature of the “sale” – hearts, minds, wallets
– The sales cycle: developing credibility and momentum among investors
– Developing an “actionable” financing plan:
• Defining and refining your audience
• Refining a shelf of basic communication tools
• Creating a 6-9 month communications plan to convey momentum
• Funnelling your audience into the “deal”
• Step One: Defining and Refining Your Audience (1.5 hrs)
– Defining your investment needs for company lifecycle
– Canada/USA investment “geography” – where is the money?
– Government program needs, likes and dislikes (FedDev, IAF, IRAP, SRED, OCE)
– Angel investor needs, likes and dislikes
– Venture investor needs, likes and dislikes
– Finding your mate: matching with angel groups
– Making your list dynamic and deal-driven
• Step Two: Developing Your Communications Toolkit (1.5 hrs)
– The role and use of the teaser and the pitch
– Other tools, website, YouTube, testimonials, social media
– Suggested structures and samples – the good, bad and ugly
– Tips and traps for compelling investor meetings
• Step Three: Developing Your “Momentum” Plan (1.5 hrs)
– The toolkit: board, advisors, customers, product milestones/roadmap, patents
– The crucial “first touch”
– Subsequent communications and updates
– Getting closure: under what conditions would you invest?
– Funnelling your audience into catalysts and companions
– Using group/audience pitch sessions effectively
• Step Four: Finalizing the “Deal” (1 hr)
– How to address deal terms as you move through the sales cycle
– Priced rounds vs. convertible debt
– Demystifying valuations: working backwards from exit for the “fair” deal
– Founder stock restrictions
– The “zen” of deal terms: other control and liquidity issues
– The term sheet and steps to closing

7. Prerequisites
Prerequisites for the program include:
• Company Revenue
• Minimum $100K to date
• and/or significant Customer traction
• Established Funding
• Friends and Family, FedDev, IRAP, SRED, OCE
• Minimum of $50K raised to date
• Capital Requirements
• $250K for 6 months
• On exception as low as $100K
• Qualified Mentor / Advisor supporting application
• a board member, advisor or consultant to the company
• credible track record in early stage ventures or new ventures in larger
organization
• involvement in a financing round in some form, as an Angel or VC investor, CEO,
President or CFO.

8. Application Form

9. Timeline
• June 8th: Applications accepted
– Go to http://founders-club.ca/
– Or request from mikefoster500@gmail.com
• June 19th: Deadline for Applications
– Review, questions, clarification and/or contact with advisor
• July 10th: Participants notified
– 8 to 10 Companies
– 2 participates: typically CEO, and Advisor
• July 17th: Carleton University, Dunton Tower,
Sprott School of Business, Rm 328

10. Wrap Up
• Questions?
• Feedback and suggestions?