urBIZassist participated as a panelist to the New York University Abu Dhabi beautiful cohort of young entrepreneurs, discussing SHIFTING SANDS. If you are a "traditional" small business and have not yet considered "OPM" Other People's Money, maybe this is a good time to consider. Perhaps your competitors are already doing so.
Thank you Klaus Miserra for the invitation.
In partnership with the United States Mission to the UAE, startAD, the Abu Dhabi-based accelerator powered by Tamkeen and anchored at NYU Abu Dhabi opens applications every year within it's Academy of Women Entrepreneurs program. This tremendous U.S. Department of State initiative gives enterprising women workshops, knowledge, and presents opportunities to launch and grow their businesses.
urBIZassist was very honoured to present views from an Investor perspective, to support, motivate and align the cohort to consider key elements before pitching to potential investors. These include:
Return is always assessed in relation to the amount of risk the investor is willing and able to take. The risk-return trade off associates low levels of risk with low potential returns, and high levels of risk with an expectation of high potential returns.
The greater the risk, the higher the expected return. This is where the stage of the startup is highly relevant. Early-stage startups tend to come with higher risk, but also have the potential for higher returns. The reality is that the majority of startups fail, and only a small minority go on to become successful. From an investor perspective, that means loosing the investment. For the ones that succeed, the rewards can be large. Investors tend to look for successful startups, where the potential payoff is enormous, with a higher expectation of return, the earlier the stage.
The holding period allows for the return to materialize before exiting. The Holding Period Return is the total return on the investment over the period for which the asset or portfolio has been held. Why does it matter? because the time of entry and time of exist can make all the difference between a positive or negative return. Investors will look at holding periods based on their risk appetite, and overall portfolio of investments. The average holding period for angels and VCs tends to be long, up to 10+years.
Control and voting rights depends on the risk appetite of the investor. There are a number of mechanisms available to increase the control of one or more groups of shareholders, such as the founders versus investors or all holders of a certain series of stock. As entrepreneurs begin to consider financing for their startups, understanding structuring of the transaction, control and voting issues, today versus in the future, is key.
Are you starting this journey and looking for a Pitch Deck or startup Kit? Look no further, urBIZassist team of expert have a package for you.
We’re excited to announce urBIZassist monthly Founder Round Table & Speed Networking Webinars. This will help you improve your basic knowledge as an entrepreneur, while connecting with like-minded entrepreneurs.
Ready to take the next step in your business journey? Our team is here to help you get started. Book a free demo with our experts to explore how we can support your vision and set you up for success. Discover tailored solutions and personalized strategies that will give you a head start. Don't wait—reach out today and let's turn your dreams into reality!
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