BENEFIT FOR ENTREPRENEURS

Some of the benefits for entrepreneurs in engaging the Keiretsu Forum network are:

 

1. Road Show

An opportunity to present in front of a captive member audience in all four Southern California chapters (San Diego, Ventura Country, Los Angeles, San Diego) and therefore expand your reach.

 

2. Syndication

Leverage the 3000+ angel investors and raise larger capital

Establish new distribution and sales channels

Build new partnerships

Global reach is the power of the Keiretsu network. Ask us how Southern California can facilitate your entry into other global Keiretsu Forum chapters.

 

3. Keiretsu Connect

In addition to local live presentations, your company information is entered into our proprietary global deal tracking platform (Keiretsu Connect) where members can explore deals across the Keiretsu global network. Searching active deals for a specific area of interest is simple, fast and informative for our members and provides additional exposure for your company. Each month our chapter presidents distribute a hard copy version of the previous month’s global deal flow (Green Sheets). Your company will be profiled there the month following your presentation in Southern California.

 

4. Due Diligence Kick Starter

Diligence can slow a deal down. For those companies that receive adequate member interest, Keiretsu supplies a seasoned research resource (PhD graduate) to gather data and begin the fact checking exercise for an easier transition from pitch to member due diligence.

 

5. Due Diligence Platform

The DD platform is a set of online tools that standardizes the DD process and accelerates deal review.

 

6. Support from our Sponsors

Our sponsors understand the challenges that early stage businesses face and they are here to help. At Keiretsu we want to help entrepreneurs succeed in all aspects of their business. Starting a business is about much more than simply raising capital. We have many support services offered free of charge by our sponsors to companies that present at Keiretsu including the creation of your term sheet.

ENTREPRENEUR

RESOURCES

Everything you should know about participating with Keiretsu Forum

INVESTMENT CRITERIA

Company Stage

Companies that apply to Keiretsu Forum are typically in their A or B rounds. They usually have accomplished a meaningful funding round (anywhere between $500,000 to $2.5 million) from their own funds, government grants and/or family and friends before they reach us. Member investments vary in response to the requesting company’s genuine needs, but are typically in the range of $500k $6 million.

 

Industry Target

Members invest in high-quality diverse investment opportunities in automation & instrumentation, consumer products, energy, financing, food & beverage, health care/life sciences, internet related, real estate, services, social ventures, software, telecommunications, and any other segment with high growth opportunity.

Entrepreneurs who are able to raise capital from one chapter can apply to present and potentially raise additional capital from other national and/or international chapter members.

The criteria listed below are frequently asked questions by the Keiretsu Forum Screening Committee:

Market Opportunity

  • Market definition

  • Market size

  • Market growth rate

  • Significant competitors

  • Domestic or international

     

What the Company needs

  • Resources beyond capital

  • Introduction to customers

  • Distribution partners

  • Key team members

  • How else can we help you

     

Company Strategy

  • Does the company address a significant problem?

  • Competitive advantages (price, patent, lead time, skilled team, etc.)

 

Capital Structure

  • Amount and type of investment

  • Has the management invested? (Skin in the game)

  • Date and price of last round

  • Are previous investors coming in this round?

  • Loans outstanding

     

Proposed Deal

  • Amount requested

  • Pre-investment valuation

  • Post-investment valuation

  • Terms

 

Liquidity Event

  • When and how

Company Financial Status

  • Current burn rate

  • How much in the bank

  • Cash horizon

  • Quarters to break even

Intellectual Property

  • Number of patents granted

  • Number of patents applied for

  • Scope and strength of patents

  • Licenses owned

Technology

  • Level of technology risk

  • Time to prototypes

  • Time to first ship

Marketing

  • Does the company effectively communicate its message?

  • Can the company distinguish itself from the competition?

Management

  • Specific experience

  • Overall experience

  • Complete team

 

FUNDING PROCESS

 

PRESENTATION TIPS

In preparation for your presentation, we recommend that you:

1. Read the article “How Software Entrepreneurs Can be Successful Presenters to Investors” by Ed Harley, Chair Emeritus of the Keiretsu Forum Software Committee

2. View the video to the right from Nathan Gold, The Demo Coach, on “How To Pitch To Investors With 13 Slides In Under 10-Minutes”

3. Review the Keiretsu Forum Due Diligence Handbook

4. Read the article “Top Ten Tips of the Keiretsu-Funded Entrepreneur

5. Read the white paper “Company Value Drives the Value of Founders’ Stock” co-authored by Tom Bondi, Principal with Berger Lewis Accountancy Corporation and Keiretsu Forum Silicon Valley Forum Resource Member since 2004

 

ENTREPRENEUR FAQ

 

How many companies that presented to the Forum have achieved funding directly from Keiretsu activities?


We have a list of portfolio companies on our website. The investment interest that the companies receive depends on the specific company, industry, management, stage and other factors. What we’ve been able to see from past presentation is that there are 7-10 companies that present at the deal screening, 4-5 of them are selected to come to the Keiretsu Forum meeting and 2 of them receive investment traction from the Keiretsu Forum members. Again, investment traction depends on a number of factors and is different for each meeting for different chapters.




How large are the investment rounds?


Keiretsu Forum does not invest as a fund. Members make individual investment decisions. The rounds have been from $250K to $3M. The smallest investment an individual member has made was $25K. The largest investment an individual member has made was $5M. If you receive financial traction from the Keiretsu Forum, you will be receiving individual checks from members.




Does Keiretsu Forum take commissions from Keiretsu investments?


Keiretsu Forum does not take warrants or commissions for capital raised through the Forum.




Is there a presentation fee to the Keiretsu Forum?


There is no fee to apply, be pre-screened, and present at the Deal Screening meeting. However, if on the Screening meeting your company is selected to present to the full Forum, there is a presentation fee to defer management and organization cost. The fee is $5,500 in Keiretsu Forum Southern California.




What is the stage of companies presenting?


Companies that apply to us are typically in their A or B rounds. They usually have accomplished a $500K to $1.5M friends and family round before they reach us.




What is the industry of companies presenting?


Forum members invest in high-quality, diverse investment opportunities in hi-tech, low-tech and no-tech.




How long are the presentations?


Screening: 20-minute presentation on Power Point slides (10-minute core presentation followed by 10-minute Q&A) Forum: 20-minute presentation on Power Point Slides (10-minute core presentation followed by 10-minute Q&A)




What are the investment criteria?


Some of the investment criteria used to evaluate investment opportunities that come to the Keiretsu Forum are:

  • Revenue is sustainable and recurring;
  • Sustainable margin expansion;
  • There is pain: a need with customers clamoring to pay for a solution. Existing paying customers;
  • Market opportunity – initial vertical market has to be large and compelling; Sustainable competitive advantage with no foreseeable threats from disruptive technologies or other players;
  • Experienced and driven management team with mix of technology skills for proper execution.
  • Clear successes and failures we can see and discuss;
  • Pre-Money Valuations have to be negotiable;
  • Proprietary products or channels of distribution with no foreseeable threats from competing methodologies, technology or channels;
  • The company has to be profitable within 2 years and more importantly this is the last round to profitability;
  • Long-term cash generation capability. Within 3 – 4 years from inception, the company should be able to have the capability to fund itself from internal cash flow in the absence of continued funding;
  • Flexible exit strategy including merger and acquisition by strategic corporate investors;
  • IP - Clearly defensive and protected;
  • Knowledgeable Board of Directors with proper mix of strategy, technology and operational skills to support the management team.





Forum Locations

San Diego Forum

Wilson Sonsini Goodrich & Rosati

12235 El Camino Real

San Diego, CA 92130

Ventura County Forum

Hub 101

Operated by

California Lutheran University

31416 Agoura Rd  #105 

Westlake Village, CA 91361

Los Angeles Forum

Sheppard, Mullin, Richter & Hampton LLP

333 South Hope Street

Los Angeles, CA 90071

Orange County Forum

The Cove - University of California, Irvine

5270 California Avenue

Venture Cove A

Irvine, CA  92617

Contact info:


2901 W Coast Hwy., Suite 350 Newport Beach, CA  92663

United States

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