Financing options

Fredrik LiliegrenFredrik LiliegrenCo-Founder & CEOCo-Founder & CEO

Shameless Plugs

on

on

My Background

• Over 20 years experience running companies

• Raised over 15 Million across all companies

• Bought and sold companies• Raised private, strategic, venture and

public funds

Types of Financing

• Friends / Family• Crowd• Private / Angel• Strategic• Debt (aka Banks!)• Venture Capital• Public

Friends and Family

• Usually first option in early stage

• Pro’s:– Quick pitch (Known entity)

• Con’s:– Emotional attachment to funds– Limited accessibility (one time only)– Limited amounts

Crowd

• New and unknown

• Pro’s:– Endless supply?

• Con’s:– Legal nightmare– Community involvement not always positive– Unproven

Private / Angel

• Known / established early funding option

• Available in Ontario (Angel groups)

• Pro’s:– Experienced investors with patience– Adds more then funds (other funding, support

services)• Con’s:

– Locally not understanding of this space (games)

Strategic

• A partner in your space / proximity• Stepping stone towards acquisition

• Pro’s:– Knows your space very well– Adds more then funds (distribution, marketing, etc)

• Con’s:– Will have STRONG opinions about how to run your

business– Poison pill towards other possible clients

Debt (aka Banks)

• Very well established system• Expensive since they want interest

+ Guarantees

• Pro’s:– Well established system– Almost unlimited access (depending on your growth)

• Con’s:– Makes only ‘safe’ bets– Not for early stage as you need to show positive cash

flow & profit.

Venture Capital

• Mid to late stage funding only• Available in Ontario but look for

global options

• Pro’s:– Experienced investors– Adds more then funds (other funding, support services,

etc)• Con’s:

– Wants a big piece of your pie (sharks are hungry!)– Aggressive in their demands for growth– Wants an exit strategy in place

Public

• Late Stage funding

• Pro’s:– A instant acceleration of your personal wealth/worth– Gives option to grow via acquisition without cash

• Con’s:– Focus on short term becomes instant– Expensive (pr, finance etc cost goes way up)– Adds constant external pressure

Reflections

• Avoid Friends / Family if possible• Angel / Private investor is a great

option IF you can find them• Banks are best option if you want to

keep control• Look for strategic over Venture /

Public if you goal is to exit in the end

Questions & Contact

?E-mail: fredrik@anticentertainment.com

Twitter: @Dancing_swede