Do you have a great idea for your business? If you are tired of working for someone else and think that you’ve got it all to become a successful entrepreneur, why not give it a shot? Owning a business and turning it into a profitable venture is a rewarding experience. After all, as the famous Ron Swanson has said “Capitalism is God’s way of determining who is smart and who is poor“.
However, with great rewards comes greater risks. We all know that almost 95% of all startups would fail in the first five years. The number one reason for this failure is the lack of funding at the right time. Business funding can give your small business the boost it needs to thrive (and sometimes survive). However, the current economic downturn has imposed brakes on the availability of funding. The cost of acquiring capital has significantly risen as compared to the cost of borrowing. Capital acquisition is mostly tossed as Venture Financing in the world of startups. Founders knock on the doors of Venture Capitalists to provide their startups with liquidity that will help them to build their products, acquire labor, and launch.
At Avon River Ventures, we invest in a variety of startups and businesses at various stages of their company building.
What do we invest in?
If your business/startup falls into one or more categories listed below, we would like to find synergies and partner in your courageous risk-taking.
- Projects with Real Estate Investment Requirements (Land, Factory, Multi-Family Housing, Warehouse, Assembly Unit Lines, Hotels, Restaurants, Café, etc. )
- Startups with good founder background (Founder’s resume plays an important role but that is not a deciding factor)
- Equity Financing for businesses that are Net Cashflow Positive and have a few paying customers.
- In the case of startups that are in the stage of developing their product, our investment will be dependent on the strong financial projection discounted over a term of the next 5 years.
We look into businesses and determine if Equity Financing or Debt Financing be more suitable. We have devised and implemented a unique approach of funding a startup/business.
Our Six-Stage Funding Process
- Introduction
We would like you to make an introduction about what you are building at this time. The best way to reach out to us is by sending an email with your pitch deck or a business plan.
2. Review
After you have made an introduction, our team will run certain venture analysis to determine a fair value for your business. This stage helps us to put a price on your business.
We implement various methods of valuation your business. For a startup, we would consider Earnings Multiple, Berkus Method, or Discounted Cash Flow Method.
3. Meeting Invitation
You will hear from one of our venture analysts to present your startup. This is an opportunity for all of us to develop a rapport and explore synergies.
In this meeting, we would also like to learn more about your product and services. You will have to clear and precise while presenting and avoid being ambiguous.
4. Onboarding!
Terms will be negotiated, Engagement Letters will be signed, and onboarding will take place.
Usually within 2 weeks of making an introduction, we onboard most of our companies.
5. Letter of Intent
A Letter of Intent is issued in the third week after the Engagement Letter has been signed and terms of funding have been agreed upon.
This binds us in a soft commitment to get your startup/business funded through us on the term agreed upon in the prior stage.
6. Funding
We are now in the fourth week of our engagement and guess what – You have been funded! Congratulations to both of us on finding synergies.
Well, the real journey begins from here on. We usually like to take an operating stake within your company and hold hands to help you with your product development, customer acquisition, marketing, and prepare you for the launch.
We onboard key Fractional C-Suite Executives from our bench to your business to assist you in financial planning, budgeting, developing your technology infrastructure, mentor your tech team, and help you enter the market & become profitable as soon as possible.
Isn’t this worth exploring? So without further ado, click here and get in touch with one of our Venture Analysts.
We look forward to connecting with you.
[…] Also Read: Our SIX-STEP Process to Fund your business in 30 Days! […]