Becoming an Investor
Becoming an Investor
Becoming an Investor
BWA Application for Funding
BWA Application for Funding
Welcome to your Entrepreneur Application for Funding
Applicant / Founder Name
Business Entity Name
Applicant Email address
Applicant Telephone Number
Business Address; Street, City, State, Zip
Please describe the industry problem you are solving and your product/service's solution (250 words max).
Please describe the market and segments into which you are selling
Please describe your business model
How do you make money? What are your revenue streams? How much revenue does a customer represent?
Please describe your value proposition
Who are your clients? Why would they buy from you? What is their motivation? What is their ROI?
Please describe your marketing plan
Provide an overview of your marketing plan. Who are you selling to and how will you reach them? What will they pay?
Please describe your sales plan and channels
Provide an overview of your sales plan. How will you sell to your customers? What channels will you use?
Please describe the use of funds
Please summarize your use of funds and financial projections including cash flow positive and break-even milestones. What is your cost structure and how volatile are your variable costs? Do you have significant inventory and fulfillment issues? What are your five year projections of revenue?
Please provide a management team summary
Provide an overview of the management team. Why is the the right team to win in the market place? What unique skills and experience does the team have? Why should the investor trust the team with their hard earned cash?
Please describe your competitive landscape and competitive advantages
Please describe the sources of competition in the marketplace and your sustainable competitive advantages that will help you win in that same marketplace.
Who are your top 3 most likely acquirers and why
Who are the most likely acquirers in your market that you will target for exit? Are you seeking IPO? Provide examples of prior exits and exit values.
Please describe your commercial traction
Please describe your number and type of users, current and future revenue expectations, key accounts, etc.
What are your key strengths
Please list the key strengths of your business. Why will you win in the marketplace?
What are your key risks
Please list the key weaknesses of the venture. Insufficient capital is not a risk.
What key resources do you possess and need to go to the next level (3 - 5 bullet points)
Please list the key resources that you have and need to propel your company to the next level.
What key customer / partner / vendor relationships do you possess and need to go to the next level (3 - 5 bullet points)
What are your key customer market segments and revenue streams in order of priority (3 - 5 bullet points)
What are the top three metrics to measure success of your venture?
Is your product revolutionary or evolutionary?
Truly disruptive/market changing. Not possible to copy and directly compete.
Disruptive to a segment of the market.
Innovative product or business model that creates a barrier-to-entry for others.
Innovative product or business model, difficult to copy.
Innovative product or business model that allows you to compete on value not price.
Innovative product or business model that is easily copied.
Evolutionary product or business model.
Better mousetrap that is easily copied.
Equivalent product(s) on the market and competing on price.
Neither evolutionary or revolutionary without a price advantage.
What is the compensation structure of your management team?
It is critical that founding teams be properly incentivized for success given the heartaches and headaches they will face in the process. This must be balanced by the company's need to preserve equity for growth and investors. How is the founder's compensation structured?
Strong long-term and short-term equity incentives for all employees that vest with company success or over time. The team is working on below market salaries, but with a detailed strategic bonus structure in place.
Strong equity incentives in place for management that vest over time. The team is working on below market salaries with meaningful bonus compensation.
Below market salaries with vesting equity and bonus plans are in place for management.
Market salaries with minor equity and incentive plans in place.
Market salaries with equity issued at startup with no recourse.
Market salaries with no equity issued at the startup and no incentive plan.
What is the Total Addressable Market (TAM) size for your product and / or service?
The TAM is the size of the market directly addressable by your product or service.
$2B - $10B
$1B - $2B
$500M - $1B
$100M - $500M
What is the competitive landscape for your market?
The competitive landscape consists of your direct and indirect competitors. How do you stack up against them? How will you in the marketplace?
In the market and making solid growth month over month outpacing competitors.
Protected position in an unconsolidated market with clear early adopters.
Unconsolidated market with clear early adopters.
Other startups, but none with superior products or services.
Other startups with competitive products or services.
Competitors with products in an unconsolidated marketplace.
Competitors with products in a consolidated marketplace.
Many mature incumbent competitors with competitive products and services in a mature marketplace.
What key members of management are in place?
Investors invest in teams in markets they like and understand. Please describe your team and their level of participation.
A full management team is in place and the company is in the market growing month over month outpacing competitors.
Key start-up functions covered. For example, executive, technical expertise, finance, administrative, and sales.
Primary start-up functions are covered, For example, executive, technical, and sales.
Executive and technical expertise are covered. Open positions to be filled post-funding
One or two founders working full-time. Open positions to be filled post-funding.
One or two founders working part-time. Planning to go full-time post-funding.
What is the status of revenue generated to date or expected revenues?
Investors typically have a target window of maturity of the companies in which they invest. Please describe the status of your revenue.
Gross revenue over $1M last in the 12 months.
Gross revenue of at least $500,000 in the last 12 months.
Already earning revenue and expected to generate between $100,000 - $500,000 within a one year period.
Crossing the revenue line now.
Less than six months away from generating revenue.
A year or more away from generating revenue.
Two or more years away from generating revenue.
Concept, no beta yet.
What is the status of your product development?
Product/service in the market and generating significant revenue.
Product launched, increasing conversion rates.
Product development complete. Ready to do a full market launch.
Beta testing complete, making final product tweaks before launch.
Beta product/service in testing with early adopters.
Beta product/service will be complete within six months.
What is your valuation?
What is the pre-money valuation of the company.
Raising < $2.5M with a pre-money valuation between $1.5M and $3.5M.
Raising < $2.5M with a pre-money valuation between $3.5M and $5.5M.
Investor decides valuation.
Raising < $2.5M with a pre-money valuation between $5.5M and $7.5M.
Raising > $2.5M with a pre-money valuation over $7.5M.
Raising > $5M with a pre-money valuation of over $10M.
Raising > $10M.
How is your deal structured?
Please describe the general structure of your investment offering.
What is the status of your intellectual property?
Please describe the status your intellectual property including copyrights, trademarks, patents, and trade secrets.
Patents have been vetted in the market place and legally defended.
Multiple patents issued with at least 12 years of patent life left.
One or more patents issued with at least 12 years of patent life left.
Patents are issued and under license.
Notice of patent allowance received.
Office actions on patent.
Patent(s) and copyright(s) filed, protectable trade secrets identified, and trademarks issued.
Trademarks and copyrights filed.
IP identified and treated as trade secrets
No IP identified
What is the exit potential of your venture?
Investors want to know you know how they will get their money back plus returns. Please describe the exit potential for your venture.
Already in discussions with one or more potential acquirers.
Large number of established companies in the market with a clear need for this technology, who are actively acquiring companies in similar markets.
Clear list of acquirers in the market and an established plan to show how our company can provide value as an acquisition target.
Small number of active acquirers.
Seeking IPO; market is willing.
No acquiring companies targeted. Planning to increase revenues and attract the attention of a large company in a couple of years.
No plans to sell the company. Planning to buy back investor shares at some point in the future.
Does your business model allow for recurring revenue?
Recurring revenue means there is typically a high cost of switching, and thus, the client is presumed to be more closely engaged. Please describe your revenue model.
Recurring monthly revenue.
Recurring quarterly revenue.
Recurring annual revenue.
Hybrid product and recurring service model.
Automated sales model with some recurring revenue.
Automated sales model with minor recurring revenue.
Single repetitive manual sales process without recurring revenue.
Are you soliciting under Rule 506(c) general solicitation or 506(b) NOT general solicitation?
506(b) NOT general solicitation
506(c) general solicitation
Have you offered securities (debt or stock) in the past 6 months?
Does your business model allow for high margins?
High margins equate to room for error. Please describe the margins for your product/service.
Very high margin (>70%).
High margin (>50%).
Solid margin (>25%).
Respectable margin (>15%).
Low margin (< 10%).