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| How our Program Works: Companies entering our program in have start in our office or use it as a base during their early existence. OrangeShark and Herb Fusion are both examples of this. We also house entrepreneurs who are nursing great ideas or who can be of help to our program. What can you expect: Collabo invests in your operational need. We focus on fundamental business operational needs of a company. We help erase your weaknesses by using our expertise to strengthen all week ends. We do not want ownership or control of a company. Post Investment Participation: Our post investment role can range from intensive involvement to a far more detached role once the company is mature. In an early stage company we tend to be involved with key hiring decisions, technology decisions, major changes of strategic direction, company positioning and financings. We hold a board seat with most of our companies, but not all. When the company's management asks us to stay involved, we do. We provide assistance when requested or needed. The Basics: Critical to the growth of any start-up, we provide provision of management guidance, technical assistance and various consulting services tailored to young growing companies. We follow guidelines for approval of clients to be accepted into our program. Details on our client expectations and our other services are listed below. What we expect: Collabo seeks candidates operating in the electronic segments and internet Direct marketing. We like to invest our resources in new, rapidly growing markets where customers have enthusiasm for the company's products. Collabo evaluate a new investment with the criteria outlined below. We consider these critical to the success and sustainability of all companies, young and old. Clarity: One test we often apply to a new business is the ease with which it can be explained. If someone is able to summarize his company's plan on the back of a business card, it usually means that he will be able to describe its purpose to employees, customers and shareholders. It suggests they truly understand their business. Market: One test we often apply to a new business is the ease with which it can be explained. If someone is able to summarize his company's plan on the back of a business card, it usually means that he will be able to describe its purpose to employees, customers and shareholders. It suggests they truly understand their business. Customers: We sometimes ask: "Who cares?" If an entrepreneur cannot describe who really needs his product, it presages trouble. We prefer an entrepreneur with a simple product and lots of prospective customers over one with a patent-protected device and a very limited number of customers. Need: We also sometimes ask: "So what?" To succeed, companies need to pick the one thing that is of burning importance to their customers. Developing a product or service that a customer absolutely needs - rather than wants - is a good way to build the foundation of a long-term business. Zero in on the one area that causes your customers the most anguish and address that pain. Differentiation: Dare to be different. Flaunting conventional wisdom can be a great thing if you know exactly what you want, and have a burning desire to achieve it. Ready to Talk to Us? Few things to have ready... Business Plan: How To Format A Business Plan: We like business plans that present a lot of information in as few words as possible. The topics that interest us most are a description of the market the company plans to attack, an overview of the company's initial product and planned products, a description of distribution channels, a summary of the backgrounds of the management team, a five year summary of financial projections, and a capitalization table. We are very skeptical about detailed financial projections beyond the first 12-18 months of a company's operations and have a jaundiced view of reams of financial data. We have found that the following format provides a good overview of a prospective investment. It usually works best when limited to around 15-20 slides, either in overhead foils or driven from a PC. Other Material Recommended: Company's business (description short enough to fit on a business card), Mission statement, Products, Product description, Development schedule, Differentiation, Price points, Market Trends, Historic and projected sizes in rupees/dollars, Product match to market definition, Distribution Sales channels, Partnerships, Customers, Competition, Competitors, Competitive advantages, Team, Background of management, Board composition, Financials, Historic and projected P&L (first two years by quarters), Projected cash flow (first two years by quarters), Current balance sheet, Projected head count by functional area (R&D, sales, marketing, G&A), and Capitalization schedule. |