The number-one issue for every entrepreneur is Money—gettingmoney, raising money, convincing investors to give you money.Whether you are a start up, a small to mid-sized enterprise, or a$100-million company, your biggest problem is always money. Thereis currently a mad rush towards private equity—the new, hotway to get financing—but it remains a mystery to mostentrepreneurs and owners/managers of SMEs. Money Magnetunlocks the puzzle of private equity financing and shows howunderstanding private equity is the first step to growing wealth inyour business.
Historically, the most common ways to raise financing for SMEswas through bank loans or through the stock markets. But banks arenotoriously risk-averse and conservative in lending to smallbusinesses, and the great bull market is over. For most small andmedium sized companies, the small cap public issue market is nolonger a viable source of financing. Enter private equity. Thereare billions of dollars of private equity funds available in Canadaand millions of SMEs looking for money, but the two don’talways know how to find one another and, when they do, usuallydon’t speak the same language. This is the book that explainsto business people what private equity financing is, how it works,how and where to find it, how to be successful in attracting it,and all the advantages and disadvantages of raising financing inthis way.
Money Magnet is for entrepreneurs in emerging growthcompanies who are seeking financing and want to explore thebenefits of the private equity option. In language thatentrepreneurs understand, Jacoline Loewen demystifies the world ofprivate equity in this simple yet comprehensive guide. MoneyMagnet explains what private equity is and how it works;compares it with traditional sources of financing, such as banksand stock markets; explains the different types of private equityinvestors (e.g., angels, venture capitalists, fund managers andinstitutional investors); outlines the benefits and pitfalls;describes how to meet venture capitalists and fund managers; showshow to make a convincing pitch to an investor; reveals what makesinvestors cringe and what makes them open up their cheque book;provides strategies to deal with the four brutal questions allinvestors ask; explains in detail the deal process and the dealsheet; gives advice on common conflicts between investors andentrepreneurs and how to manage them; includes a detailed checklistof what an investor wants to know about you and your business; andmuch more.
From the Inside Flap
The number-one issue for every entrepreneur is Money—getting money, raising money, convincing investors to give you money. Whether you are a start up, a family business, or a $100-million company, your biggest issue is always money.
As traditional finance options tighten up, private equity is an increasingly important source of capital, both debt and equity. There are billions of dollars of private equity funds available in Canada and millions of businesses looking for money, but the two don’t always know how to find one another and, when they do, usually don’t speak the same language.
Intensely practical and laced with first-hand stories from entrepreneurs and financiers, Money Magnet is the complete how-to guide to private equity for business founders and owners: what it is and how it works, how and where to find it, how to be successful in attracting it, and all the benefits and pitfalls of raising financing this way.
Money Magnet is the ultimate insider’s guide to PE, busting countless myths, taking you behind closed doors with investors, and giving you all the tools you need to be successful in attracting private equity:
- Describes how to meet venture capitalists and fund managers.
- Introduces the different types of PE investors (e.g., angels, venture capitalists, fund managers and institutional investors)
- Shows how to make a convincing pitch to an investor.
- Reveals what makes investors cringe and what makes them open up their cheque book.
- Provides strategies to deal with the four brutal questions all investors ask.
- Explains in detail the deal process and the deal sheet.
- Gives advice on common conflicts between investors and entrepreneurs, and how to manage them.
- Includes detailed checklists of what an investor wants to know about you and your business.