Focus Take-Aways
Leadership & Mgt. • With globalized financial markets, you effectively compete against every other
Strategy company in the world when you seek financing.
Sales & Marketing
• Given this, you must devise a strategy for approaching the capital markets.
Corporate Finance
Human Resources • Marketing concepts such as positioning your investment opportunity in the market
Technology & Production and differentiating your offering make the difference between failure and success.
Small Business
• Investors aren't looking only for the highest return; they also want to avoid big risks.
Economics & Politics
Industries & Regions • Learn to explain your value proposition to investors in 10 minutes or less.
Career Development
• How you raise cash depends on where your firm is in the corporate lifecycle.
Personal Finance
Concepts & Trends • Start-ups usually begin by "bootstrapping" – borrowing funds from friends and
relatives.
• Different types of "angels," or investors, consider different types of projects
attractive.
• The "Strategy-Tactic-Value Triangle" will help you find appropriate investors.
• Position your company as a solid investment that promises an excellent return.
8 8 8 7
To purchase individual abstracts, personal subscriptions or corporate solutions, visit our Web site at www.getAbstract.com
or call us at our U.S. office (954-359-4070) or Switzerland office (+41-41-367-5151). getAbstract is an Internet-based knowledge rating service and publisher of book abstracts.
getAbstract maintains complete editorial responsibility for all parts of this abstract. The respective copyrights of authors and publishers are acknowledged. All rights reserved. No part of
this abstract may be reproduced or transmitted in any form or by any means, electronic, photocopying, or otherwise, without prior written permission of getAbstract Ltd (Switzerland).
Recommendation
This book is a little like a football play that looks great on the blackboard in the locker
room but doesn’t quite deliver once the players take the field. The concept is excellent:
adapting marketing theory and techniques to the business of acquiring investment capital
for your firm. Unfortunately, authors Philip Kotler, Hermawan Kartajaya and S. David
Young spend a lot of time reviewing basics, such as potential sources of capital, and not
enough on the marketing techniques themselves – which they don’t begin discussing
until about two-thirds of the way into the book. This shortcoming (and the lack of case
histories) is balanced, however, by the authors’ keen, market-oriented analysis of the
characteristics that appeal most strongly to the various types of investors. This book
outlines a smart, methodical approach to finding investors. getAbstract.com recommends
this book despite wanting more information on methodology, believing that even an
incomplete marketing approach to financing is better than chaos in the huddle.
Abstract
Raising Cash
How you raise capital depends on your company’s place in the corporate lifecycle, which
begins with a start-up phase, moves into an expansion phase, then proceeds through
post-IPO growth to a phase of low growth, called maturity, and finally to the inevitable
“Marketing theory decline that most companies endure.
and practice
involve a highly Start-ups typically engage in “bootstrapping:” resorting to creative and unusual methods
disciplined
approach to
of raising money and constraining costs. After bootstrapping, your firm may seek capital
identifying the best from venture capitalists or “corporate venturing.”
sources of capital
and convincing If you decide to take your company public, you probably will hire a “financial intermediary,”
them of a high such as an investment banking firm, to present your IPO to potential investors. IPO
reward-to-risk commissions range from four to six percent. The intermediary will organize a series of
ratio in lending
their funds.” road shows to present your offering in financial centers.
“Although the
Assuming your company is able to assuage venture capitalists' uncertainties and close
world’s capital a deal, venture capitalists expect to act as coaches, encouraging you to meet their
markets are bigger financial, growth and operational objectives. Venture capitalists employ specific exit
than ever, the strategies to help them recoup their investments plus good returns. Overall, winning VC
competition for
capital has never funding is far more complex than finding an angel. VCs are professional investors whose
been greater than careers depend on the results they return to their companies; because of that, they take a
it is now.” methodical, systematic and disciplined approach.