THE LANDSCAPE
Each year more than 200,000 business plans are read by venture capitalists in the United States. According to the Price Waterhouse Money Tree Report, during the 2nd quarter of 2008:
- 990 companies received venture investments totaling $7.4 billion - flat from 2007
- Seed/Early stage fundings declined by 12%, while later stage deals rose by 14%
- Only 30% of early stage companies will go on to raise additional funds
In April 2008, Reuters concluded the IPO market is essentially non-existent and M&A activity is down 30% from 2007, at its lowest level in a decade.
How do you give your company the best shot at being the .005% of companies that flourish? Align yourself with those who have done it before.
RETURN TO BASICS
Early stage companies face fierce pressures from both current and potential investors to perform, or else. Start up companies and venture capitalist alike are returning to business fundamentals:
- Solid business models
- Experienced management teams
- Well defined, target markets
- Proven products
- Defensible intellectual property
- Customers, and
- Predictable, repeatable revenue models
EXECUTION IS KEY
Young companies need solid business models and execution plans from the outset. Achieving rapid sustainable growth separates the successful companies from the failed startups. Development and achievement of specific execution plans builds credibility with customers, employees, and investors. Whether developing initial business strategies, seeking venture financing, developing go-to-market plans, or evaluating potential exit strategies, startup companies need assistance from someone who has been there.
Prevail Ventures assists early stage companies throughout this process:
STRATEGY - core strategy development and detailed business planning
FUNDING - venture capital, private, or strategic
EXECUTION - ‘go-to-market’, value maximization, and exit strategies
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