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In what areas does Smith
Capital invest?
We focus on new ventures with
"change-the-world" growth potential in the following
industry sectors:
·
Information Technology
o
E-commerce
o
Web-based tools and services
o
Infrastructure
o
Content
o
·
Health / Healthcare
o
Software Solutions
o
Medical Devices
o
Outsource Services
·
Consumer Products & Services
How do I submit my business plan to
Smith Capital?
Simply send us a brief introductory document with an
executive summary. Include your current revenues, profits
(if any), and efforts to raise
capital up to this point.
What makes Smith Capital different
from other VC firms?
Being based in Atlanta, gives us access to and contact with
all types of investors throughout the southeast. We know
what investors like to
see and how they evaluate your
business for a potential investment. Unlike most funding
sources, we are company builders: We have a great
pool of
financial, technical, and operating experience that allows
us to help you successfully build your company, and not
spend unnecessary
time being distracted by presenting your
business opportunity. We make decisions quickly, deal in
facts, not fiction, and maintain constant
lines of
communication.
What criteria does Smith Capital use
in selecting companies in which to invest?
Although there is no set formula for a decision, Smith
Capital does take into account the following criteria when
considering a relationship:
Quality of management team,
value proposition, existing revenues, market potential,
business model, use of technology, product
differentiation,
and valuation.
What is Smith Capital's process like?
Like most business relationships, the best way to gain our
attention is through a referral from an existing
relationship. (Note: unsolicited
requests are welcome, but
will be handled on a “time available” basis.) We meet as a
management team weekly to review existing client
progress
and discuss new client opportunities.
Should mutual interest continue a
partner will be assigned to you and quickly becomes a
champion for your company.
An introductory meeting is held to answer any questions
either side has and to confirm a successful “chemistry”
between both parties. Within
a few days of this meeting,
you will receive a clear answer from us in regard to our
interest level and next steps. We know that time is always
of the essence and that you have a business to manage.
What is Smith Capital's average
investment size?
Our usual initial investment size is $500,000–$4 million
with a cumulative funding average of $6–8 million per
company.
Does Smith Capital always lead the round?
Not always, but frequently. We lead or co-lead more than
two-thirds of our investments.
Does Smith Capital always take a board
seat?
We require a board seat in any early-stage investment in
which we are playing a lead or co-lead role.
Who are your investors?
Our investors are a mixture of mostly financial institutions
and individuals.
Do you sign NDAs?
No. Since we receive so many plans and proposals our policy
is to not sign NDAs (non-disclosure agreements), but simply
practice the
highest respect and care for the
confidentiality of your business plan. In this way, as in
all ways, we seek to treat you as we ourselves would
like to
be treated.
What should my business plan contain?
Your plan can exist in written form or in slides with
appropriate detailed backup. We always like to start with
detailed executive summaries.
Your plan should answer these
key questions:
- What is your target market and your company's future
position within this market?
- What products or services will you develop to obtain this
position?
- Who is your customer and how will you sell to them?
- What is your current burn rate?
- Who is your competition?
- What will your company look like when it “grows up”?
- What is your unique value proposition?
- What are your major milestones to the next round of
funding?
- Who is your team? Why are
they ideal for this venture?
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