Capital Raise

When it is time to raise money from professional investors, it is time to seek professional advice

"The most important rule of raising money privately: Look for a market of one. You only need one investor to say yes, so it’s best to ignore the other thirty who say ‘no.’"

Ben Horowitz, Co-Founder of Andreessen Horowitz

Investor Targeting

Synopsis

One of the most critical aspects of any capital raise is finding the right investors. We help entrepreneurs find and target investors using AI, large volumes of publicly available and premium private capital market data, and a global network of market participants.

Global Network

Integro builds and maintains relationships with investors, bankers, and corporate executives in Silicon Valley and throughout Europe, built over more than a decade of broad experience in the finance and technology sectors. We utilise our relationships to match entrepreneurs not just with capital, but with investors who represent non-financial strategic value as well. We prefer to source capital for our clients through our rolodex of first degree connections when possible.

Algorithmic Targeting

We combine our capabilities in advanced analytics in conjunction with access to vast funding and investor data to help partners source prospective investors. In short, we are able to predict the investors that are most likely to invest in a given business and rank those investors in terms of fit with contact information. Our proprietary algorithms can be fully customised to the attributes desired and of importance for each individual client.

Deliverables

  • Investor Targeting
  • Capital Sourcing
  • Investor Relations

Pitch Decks

Synopsis

A pitch deck is often a company’s first impression with a potential investor. We help clients present their businesses in a way that communicates value through minimalist visual design, rock solid financial modeling, and concise storytelling

Time is Money

The biggest mistake an entrepreneur can make when creating a pitch deck is to build a deck that is too long and provides granular information that is not of interest to investors’ long term perspective. VCs spend on average no more than 3 minutes and 50 seconds reviewing a deck, therefore entrepreneurs who try to communicate everything about their business ensure investors retain and understand closer to nothing. 

Order Matters

If length is the most important variable, the sequencing of a deck is undoubtedly a close second. Much like a deck that is too long will lose an investor’s attention, a deck that does not highlight the information of greatest importance to the investor will have the same effect. While every pitch requires a unique slide sequencing, we strongly recommend leading with an investment thesis and, by default, recommend the preferred order suggested by Sequoia Capital.

Sequoia Capital Preferred Order

Minimalism in Design

In terms of design, less is almost always more. The singular focus of a professional investor is determining the probability of earning a sufficient return on a given investment. Poor design will always reflect negatively on a pitch, however over-designed pitches can reflect equally unfavourably. Utilising a minimalist clean design ensures investors are able to digest and retain the most critical information. 

Deliverables

  • Narrative Development
  • Custom Visualisations
  • Pitch Deck Design

Valuation

Synopsis

Expecting to out-negotiate professional investors on valuation is challenging Lionel Messi to a shoot-out or Stephen Curry to a free throw competition… A detailed valuation model will ensure that at the very least, you score some points.

What is a Business Worth?

A common question for entrepreneurs seeking a funding round or exit is “What is my business worth?”. We believe a business is worth exactly what you can convince someone to pay for it. The ability to convince an investor or buyer a business is worth a certain value hinges upon a reasonable quantitative analysis in conjunction with effective persuasion.

Valuation Method Matters

In order to effectively persuade an investor or buyer of a valuation it is of the utmost importance to select the right valuation method. Two parties can debate reasonable numbers until both blue in the face, however discussions will never progress to negotiation if the wrong valuation method is used. For example, an early stage pre-revenue startup would never use a Discounted Cash Flow (DCF) method as all future cash inflows are assumption based. A Comparable Transaction or VC Valuation Method would be more compelling, whereas a profitable company might consider a DCF or a weighted combination of two methods.

Deliverables

  • Capitalisation Table
  • Dilution & Exit Analysis
  • Business Valuation

M&A / Exits

Synopsis

We act as a trusted advisor to entrepreneurs and startups during the M&A process providing strategy, negotiation, and quantitative support.

Process Preparation

The decision to begin an M&A process is not one to be taken lightly, nor is it a decision that should be rushed. Many investment banking firms will push entrepreneurs towards pursuing an exit before they are prepared in order to earn increased fees, or even worse, when there is little chance of a successful exit. We help clients assess whether the timing is right for a sale before paying large investment banking fees.

Management of Deal Process

As a sole advisor, we utilise our buy and sell side M&A experience to run a thorough process from contacting a broad universe of potential investors to final negotiation and implementation. For transactions involving outside investment banking and legal firms, our clients outsource the communication, logistics, and due diligence involved in working with such entities to us, allowing clients to remain focused on business operations and ensure outside firms are not over-billing the deal.

Aligned Interests

We only represent startups and entrepreneurs on M&A engagements, never professional investors and buyers. This approach allows us to fully align incentives with the startups and entrepreneurs we represent and eliminate potential conflicts of interest that arise when advisors represent both sides of the table.

Deliverables

  • Due Diligence
  • Buyer Targeting Analysis
  • Deal Modeling
  • Negotiation Support

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We look forward to helping you achieve your strategic and operational business objectives.