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High–growth entrepreneurial businesses — in a variety of growth stages — often recognize the need for an infusion of new capital. This can be for a variety of reasons, such as starting up, marketing, developing new products, funding expansion into new markets, or expanding capacity to meet growing demand. But raising capital is always a time–consuming and skill–intensive task, one that requires a level of dedicated focus that most company founders and leaders just cannot find time for. Their first commitment is to building their business, delivering their products, managing their company, and supporting their customers. For this reason, they benefit from outside assistance in the search for new capital. But this assistance has to come from a source that understands capital markets and how they operate; a source that understands the dynamics between high–growth tech–based companies and equity–based at–risk / high–return capital.
We are that source.
There are three service areas we offer that involve some mode of capital introduction or exchange. These include:
- À La Carte Services for High–Growth Businesses
- The Legacy Innovation Pitch Tank Program™ — A Private Virtual Incubator
- Sale & Licensure of Intellectual Property Rights
Legacy Innovation Group is not a legal or financial advisor, and does not offer or provide either legal or financial advising services.
À LA CARTE SERVICES FOR HIGH–GROWTH BUSINESSES
We have deep experience in helping company founders, across a broad range of industries, prepare themselves and their business for securing funding — both initial and follow–on. Our skills – well-honed over many years of doing this – include opportunity assessment, business model design, platform definition, market segmentation, customer profiling, go-to-market strategizing, adoption modeling, growth forecasting, detailed financial modeling, business plan creation, and winning pitch deck creation. More importantly though, over the years we've coached our share of founders in delivering their pitches and securing their funding. This all adds up to a big advantage for founders when it comes to jump–starting their efforts to get their business off the ground and growing.
To this end, we offer a series of à la carte services aimed at helping high–growth businesses find the investors they need to work with, and ultimately secure the funding they need to move forward. Since these services are offered à la carte, we only render those services the business requires. There are sixteen services.
Please note that each service step assumes the preceding steps have been completed (either by us or the business itself), and that the business is ready to move on to that step. Generally speaking, if that is not the case and the business is not yet ready to pursue a particular step, we will not render that service. This is for the business' own sake, and so as to ensure that what we do is in the business' overall best interest.
Opportunity Assessment — We work with founders to study in-depth the problem they have chosen to tackle and establish why this is or is not a problem worth solving. This means that together we have to demonstrate the problem has enough scope to it — which is to say that it affects enough potential customers — that a sound solution to the problem can achieve the scale needed to serve as a viable foundation for a high-growth business. If this cannot be convincingly demonstrated (including through consideration of near-term trends and expected adoption rates), then we point them in a different direction, until they find a problem that is worth solving. This minimizes their chances of going down a wrong path and wasting their time and investors' capital, producing up front an inherently capital–efficient starting point.
Business Model Design — Based on our extensive knowledge of leading current business models, we work with founders to establish the most appropriate business model for the new venture. This includes clearly articulating what the business' unique value proposition will be, what it is therefore selling, to whom it is selling, how it is delivering, where it is delivering, when it is delivering, and – most importantly – why it is delivering this. We also articulate what the associated brand experience and brand message need to be, and how the mechanics of the monetization process need to work.
Platform Definition — We undertake research for the business to establish the most appropriate technology platforms and high-level architectures on which to build its primary offering platform. This ensures good line-of-sight to being able to execute the technological aspects of the business.
Market Segmentation — Relative to the business' unique value proposition, we analyze its overall market using an Outcome-Driven Innovation (Jobs-To-Be-Done) perspective. This allows us to optimally segment the market according to customer needs, so that the business can understand how it must position this value proposition to maximize reach into each of those segments.
Customer Profiling — Based on the preceding Market Segmentation, we identify the business' key customer segments and create Personas for each segment. This allows the business to know how to shape its brand messages so that in each case the message optimally resonates with that segment. Where needed, we build Empathy Maps for each segment so as to better understand the consumer psychology involved.
Go-To-Market Strategizing — We work with founders to define the most viable path to market for the business, detailing out the necessary development, launch, operations, sales, and marketing strategies. In each case, our objective is to maximize early traction while optimizing sustained growth so as to ensure adequate runway at any given time.
Adoption Modeling — Based on the business' projected TAM / SAM / SOM and its intended marketing strategy, combined with the classical Diffusion–of–Innovation (S–Curve) model, we build an anticipated adoption model for the business (or some new wave of it) over time.
Growth Forecasting — Based on the preceding Adoption Model, combined with the business' intended monetization and pricing strategies, we build financial growth models forecasting how its revenues are expected to grow over time.
Detailed Financial Modeling — Based on the preceding Growth Forecast and the business' intended Go-To-Market Strategy, we develop fully-detailed multi-year Profit & Loss, Cash Flow, and Balance Sheet statements. At the same time we also undertake J-Curve Analysis, Break-Even Analysis, and Investor Return Analysis for a variety of investment scenarios.
Business Plan Development — We lay out all the critical elements of the business plan in proper order for investor consumption, and help founders work through the necessary operations plans, marketing plans, sales plans, learning plans, P&L statements, and so forth, such that the final business plan is a sound representation of what a well–executed version of the business should look like. As part of this, we help founders capture appropriate founder bios so that they can position themselves as competent business leaders capable of launching and growing the business, including how they will leverage the business' advisors. We can also stress–test the business plan and coach founders on "pivoting options" should those become necessary.
Pitch Preparation — We work with founders to develop up–to–date marketing and pitch materials for the fund–raising effort. This will generally include the formal business plan, an investor prospectus (executive summary), and a collection of pitch decks. Where appropriate, it may also include mockups, prototypes, or other facsimiles of the offering. We work with founders to ensure these materials are well–designed and expertly–crafted so that they tell the right story, and do so in a compelling way. Pitch decks are customized to the nature of the investor being pitching to, and to the character of the story founders are trying to tell.
Pitch Coaching — We coach founders / principals on how to most effectively pitch the business to investors and on what to expect from the process. This maximizes their readiness, and ultimately their chances of securing the funding they seek. It also allows them to make the best use of their time and efforts in pitching, as well as that of investors — something investors will greatly appreciate. This in and of itself helps to create a professional image that conveys confidence in their ability to run and scale the business.
Identification — We undertake custom research for the business to identify the most appropriate investors for its needs. In that each business is unique, with its particular industry / market, value proposition, financial projections, equity structure, geographic footprint, and so on, and each investor likewise has its own areas of focus, targets, and processes, this becomes an exercise of matching the two in order to find the best set of prospective investors for the business. Since there are so many factors involved, this requires a comprehensive search in order to identify as many potential investors as possible and thereby maximize the chances of securing the investment. Our research is based on the information in our investor database and our knowledge of what is happening in the investment community.
Due Diligence — Founders / principals choose select investors from the output of Step 13, and we then conduct in-depth reviews of those investors — as few or as many as they like. The purpose of these reviews is to profile specific investors in greater detail. This can include such factors as their: investing thesis, investing philosophy, current fund valuation, current investment portfolio, recent exits, standard or typical deal terms, typical deal value, general partner profiles, approach to management embedding, other investors they syndicate with, and other pertinent factors. In most cases, we know where to access difficult–to–find information about these investors. This level of insight can go a long ways in helping founders know exactly who they are dealing with, and deciding if these are investors they feel comfortable doing business with.
Solicitation — In certain cases, we engage in active solicitation of the investors identified in Step 14 on behalf of the business. We solicit these investors via listing sites and direct email in an effort to identify those investors who find the business attractive as a potential investment opportunity. Whenever an investor expresses an interest in learning more, we will typically host a follow-up phone conversation, and then if satisfied, will pass them on to the company's representatives. If desired, we can assist in arranging the initial investor / founder pitch meeting. Being able to solicit on a business' behalf requires the business to share with us certain information regarding its operations and finances.
Presentation — A member of our team will travel with the business' representatives to the investors' offices and support them in presenting the business and the associated investment opportunity. We coach these representatives on how best to position the business to be a compelling investment opportunity, and on how to most appropriately answer investors' questions. Just as with solicitation, this requires the business to share with us certain information regarding its operations and finances.
Regardless of the round of financing being sought — Seed, Series A, Series B, Series C, or beyond — we are well versed in the cash–for–equity marketplace and its relationship to high–growth businesses. This includes such institutions as:
- Embryo Investors — typical investments of $5K – $20K
- Incubators & Accelerators — typical investments of $10K – $100K
- Angel Investors — typical investments of $20K – $500K
- Angel Syndicates — typical investments of $100K – $1M
- Micro & Pre-Seed Venture Capital Funds — typical investments of $100K – $1M
- Early Stage Venture Capital Funds — typical investments of $1M – $4M
- Broad Stage Venture Capital Funds — typical investments of $1M and larger
- Growth / Late Stage Venture Capital Funds — typical investments of $5M and larger
- Corporate Venture Capital Funds — investments vary widely.
Because we understand all of these institutions, we can help you find the right source for your funding needs.
THE LEGACY INNOVATION PITCH TANK PROGRAM ™
For those just starting out, or early-on in their journey, we offer a private virtual incubator in which we help founders get their business off the ground and on its way to funding. We call it the Legacy Innovation Pitch Tank Program. This "packaged" program is a cross between Design School, Business School, and a traditional Business Incubator. Participants leave a lot street smarter and pitch–ready (and hopefully funded) than when they came in.
In the Pitch Tank Program, we provide the following services:
- We teach founders what the fund–raising and startup experience is going to be like, and all the things they must do in order to navigate the process along the way, including well into the long run.
- We work with founders to help them develop and hone their unique value proposition, their overall business model, and their detailed business plan, including all the preliminary steps listed above.
- We stress–test the business plan against possible what-if scenarios and coach founders on how they can pivot in those situations.
- We develop investor–targeted pitch materials that allow founders to tell their stories in ways that will resonate with certain investors.
- We coach founders on exactly how to pitch so that they can be convincing and (eventually) win a vote of confidence in the form of a check.
- We help founders connect with potential investors and try to secure an audience with them in order to pitch the business.
- We otherwise support founders in whatever ways are needed to make them successful.
Because this program is private, there are no cohorts, no set dates, and founders must pay for the services up front. That's the business school part of it. (We do offer certain payment arrangements — contact us for more details.) In all cases, our aim is to produce founders who are fully prepared to pitch and win, so that they can maximize their chances of securing funding, and so that they can match their funding levels to the operating and market–learning needs of the phase they are in.
Due to the amount of bandwidth we are able to allocate to this program, we are selective in which startups we work with, so at times there can be competition for a place in the program.
Also, we like to keep startups around as clients for as long as makes sense, and hope to see them all scale up and live out to a healthy exit. After the program, we continue to support alumni for as long as they care to engage us.
SALE & LICENSURE OF INTELLECTUAL PROPERTY RIGHTS
For those holding valuable, fully-issued, intellectual properties (IP) such as Utility and Design Patents, and who wish to find an acquirer or licensor for the rights to this IP, they basically have two options:
Work with an established IP Broker to sell the IP in its "raw" form. This often secures only a fraction of its full value – especially since Brokers tend to work in whole portfolios of patents (but they may be able to move it quickly).
Market the IP directly in a "fully-baked" form. This tends to secure the maximum price for the IP, though it can take longer to execute.
For those inclined to go with Option 2, we offer a turnkey service designed to attract top dollar for your IP. It involves packaging the IP into a compelling business plan, complete with an actionable go-to-market strategy and a well-researched set of P&L forecasts — just as though you were going to launch a new business venture around it. Because this helps prospective buyers and licensees see, understand, and fully appreciate its usage and potential power as the basis for a compelling new market opportunity, it gives you the tool to actively market the IP at top price.
So ultimately it comes down to your choice… sell the IP "raw" at bottom dollar, or market the IP "fully baked" at top dollar. The difference can often be substantial in terms of the price secured, making the latter option a potentially smart investment.
The following are the seven steps we undertake in this turnkey service process:
We begin by studying the IP ourselves, in order to make our own assessment of how valuable we believe it to be in the context of certain commercial applications. We only move forward if we personally believe the IP has a sound, high–value business application. If we cannot establish this application ourselves, then we do not proceed. This may require some indoctrination on our part into certain niche markets.
Once we've established the high–value business application, we next outline a sound business model around it, defining how the IP produces a unique, protectable value proposition with enough differentiating value as to be clearly monetizable and scalable in the marketplace.
From the preceding business model, we next flesh out all the pertinent details of the business plan, including a fully-detailed operational strategy explaining how the business is to be brought to life, and a fully-detailed marketing strategy explaining how markets are to be engaged in order to generate revenue. We then estimate the development and operating costs and construct a market–adoption model in order to build out representative P&L forecasts for the business. We document all this in full detail in the final business plan.
Using the details of the business plan, we develop a well–designed pitch deck for selling the IP + Business Plan Package.
We then conduct research to identify appropriate corporate buyers / licensors for the IP, including the contact information for specific point–of–contact individuals in those businesses.
We provide the IP Holder with all of the above work products, so that they can actively solicit these prospective buyers / licensors using the IP + Business Plan Package, with the aim of finding a wide selection of interested buyers / licensors.
As desired, we can help the IP Holder present (pitch) the IP + Business Plan Package to these prospective buyers / licensees.
(We leave the negotiation and sale to the IP Holder and their legal representatives).
We follow up by helping the IP Holder close out any loose ends they may encounter in the process of selling or licensing the IP. Once this process has run its course, the IP Holder will have ideally found the right buyer / licensor and will have negotiated and closed the deal they desired, which in most cases will be a much better deal than they would have gotten had they sold the IP in raw form.
Legacy Innovation Group is not a legal or financial advisor, and does not offer or provide either legal or financial advising services.
If desired, we can assist you with securing those services.
The Capital Introduction Engagement typically follows these steps:
- We begin by seeking to understand and profile your business… your history, your current equity structure, your business model, your offerings, your current revenues, and of particular interest, the business needs that are driving you to seek additional capital investment, as well as how much investment you are looking to secure and the equity terms you propose to offer.
- As needed, we help you develop your business plan in full detail, including all of the preliminary steps that go into defining it.
- As needed, we help you prepare the rest of your pitch materials — primarily the investor prospectus and pitch decks.
- As needed, we coach you on how to pitch and what to expect, so as to prepare you for the process and optimize your chances of success.
- As needed, we engage in custom research in order to identify and qualify an optimal set of investors for your business.
- As needed, we engage in due diligence on specific investors who you are interested in leaning more about.
- As needed, we (in some cases) engage in active solicitation of the identified investors on your behalf.
- As needed, we travel with you to support you in presenting your business to interested investors and in answering their questions.
To learn more about engaging us for Capital Introduction services, refer to our Management Engagement page.
The Legacy Innovation Pitch Tank Program ™ and LIG Pitch Tank ™ are trademarks of Legacy Innovation Group, LLC.