Software Executive Magazine

OCTOBER/NOVEMBER 2017

Software Executive magazine helps software executives grow their businesses by showcasing the business best practices of our readers, executives from established and innovative software companies.

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What Do They Want? Engaging Capital Providers Capital providers give software companies an inside look at the fundraising process. K E N H U B B A R D CEO, CapStack West he engagement process starts with iden- tifying a short list of potential capital pro- viders, which can take weeks with all the debt and equity players available to you both on- and offline. And when you find the right pro- viders, do they have dry powder (available capital)? Is your vertical in their sweet spot or have they moved to another industry? Are they closing other opportunities, putting timing in question? Are they investing as a lead, will they follow an angel round, or do they invest in your specific round? What is their exit philosophy? What ex- cites them about the software industry and why do they invest in software? The list of questions goes on and on. We recommend building a list of key questions to ask capital providers when you start the engagement pro- cess. To shine some light on these challenges we went straight to the capital providers (both debt and equi- ty) throughout the ecosystem of business capital. We asked them what they're keen on in the software indus- try, how to engage them, and how they invest. We hope these answers will help accelerate your fundraising. SOFTWARE EXECUTIVE: What segments within the software industry are intriguing to capital providers? LOPEZ: AI warrants significant attention and respect. Entire industries are at risk. For example, a local mar- keting firm just licensed an AI platform that will track T The business-capital market is more complex today than it has ever been. I know those of you who are raising or about to raise funds know exactly what I'm talking about. Whether you're a startup, a mid-market, or a Fortune CEO, the right capital providers are a challenge to identify, engage, and close. It also takes more time to identify the right match in a financial partner. And that means your burn increases and your C-suite executives will divert more focus from operations and growth to fundraising documents, meetings, and due diligence. I N T H I S A R T I C L E S C O T T L O P E Z Managing Director – Investment Banking at Primary Capital D E N N I S M U R C H I S O N Manager of MT Holdings, a Murchison SFO B I L L C A R P O U CEO of OCTANe B R I A N A N D E R S O N Managing Partner at Harper Partners B E T H C O R S O N Managing Partner of Boardwalk Advisors SCALING & GROWING Framework By K. Hubbard WHAT DO THEY WANT? ENGAGING CAPITAL PROVIDERS SOFTWAREEXECUTIVEMAG.COM OCTOBER/NOVEMBER 2017 28

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