Executive Summary Review - WaterWorld - Highlights - A Ready Market

What's good about this company is that it is attacking a ready market. Many companies seeking capital can only really be successful when a new technological breakthrough has been made, government approval has been granted, or an entirely new market has been developed.

This increases the risk for the investor as there is uncertainty if the necessary changes will occur or not. Before making a decision, investors will weigh the opportunity of putting money into a company against the risk of losing it all. Most entrepreneurs do their best to show the opportunity of investing in their company but do not focus any energy on demonstrating how the investor's risk will be minimized and money will be safe.

The markets that WaterWorld is targeting are existing, multi billion dollar industries which are looking for new, innovating products to solve their pain.

Next - Lesson #1 - Does It Work?

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Most Important Lessons from Northern Crown Capital To You

- Michael
- Use an intermediary. The benefits of using one have been discussed throughout this program. Hopefully you will use Northern Crown Capital, but if not there are many good ones out there.

- Remember that in most cases, the deal you end up with is not the deal you thought you would get when you started. You have to be flexible and able to turn on a dime in order to make the deal progress.

- Matthew
- Deal with people of quality. Associate yourself with experienced people who have gone through several cycles and have a proven track record in a wide variety of industries.

- Do not be greedy. In the market the bears can make money, the bulls can make money but pigs go to slaughter. If you are too greedy, you cannot make a deal. Markets will change. Windows open and windows close. To some extent investing is a fashion business. Certain types of deals are in fashion and then they are out. When money is being made available you are better off to take it when it is being offered.

- Always be very open and candid in your discussions. Do not hide. Do not play games. Be totally open. And whatever you do, do not bluff. An investor will find out quickly when you are bluffing and you will lose the deal.

� Bob
o Financing is just one f the tools you need to build a good company. It is like the blood in your body. Financing is not the heart and soul � your business is.

o Good entrepreneurs build great companies because they are good at motivating their employees, excellent at working with suppliers, have an obvious ability to satisfy customers and they also treat the venture capitalist as a supplier, albeit a supplier of money and not a physical product. If you think of investors with a "me against them" attitude or with any degree of hostility you should not enter into the deal. You will need their support when times get tough. A good working relationship with investors will help ensure your long term success.

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Overview

WaterWorld Enhanced Drinking Water (http://www.waterworldedw.com) is a manufacturer of energy drinks and spring water. The company has three functional energy drinks as part of its Peak Performance line of products. The three drinks are:

Amore', a sexual enhancement beverage with a natural aphrodisiac with a cherry/grape flavor that keeps him up and her feeling flush with a gentle warm feeling.

Trucker's Fuel, a tea flavor with a mild lemon twist drink for those who drive for a living or need to stay awake during a long day or need to study all night.

Victory, a lemon tasting beverage that can greatly reduce muscle fatigue, joint soreness, cramping, energy loss, and will speed energy recovery and increase energy reserves.

The company is in the startup phase and is run by Mark Hall, a Minnesota based small business lawyer. It is projecting to break even 6-12 months after funding and is searching for $1-4 million in capital at a $10 million valuation.

Next - Highlights - A Ready Market

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

For more information, visit www.EvanCarmichael.com.

Venture Capital Governance Requirements

- Once a venture capitalist becomes an investor they will want board representation. They will either nominate their own staff members or an outside representative of mutual consent. The last thing a venture capitalist wants to do, however, is run your company. They have enough problems trying to run their own firm and do not want to get involved in the operations of your business.

- Board members want to stay informed, monitor your progress and feel comfortable with the progress that is being made.

- A board of directors is like your own private management consultancy group. Some entrepreneurs are very good at getting the most out of their directors and some are not. Understand that directors are the cheapest consultants working for corporations.

- Board members are elected to represent shareholders. Since the venture capitalists will become significant shareholders, they will usually request at least one seat on your board.

- The board of directors is responsible for broad policies and strategies for your company. Directors will want to know what your budgets will be, who you are hiring and help you develop your ongoing business plan.

- Remember that the board of directors is in a position legally to approve or disapprove your actions.

- The frequency of meetings is usually a direct result of how effective you are at using your board and how well your group works together. The board can provide strategy and policy recommendations but can also help in specific ways such as introducing you to key players in the industry.

- Some of the items that directors care about are law suits, environmental problems, and when you are about to sign a major new contract. Directors are highly allergic to unexpected bad news and unexpected good news. Make sure to keep your board and bankers informed at all times.

- Generally, governance is a great help to you more than it is a hindrance. It will keep you focused on your business and help you grow. This is of particular importance if you have aims of one day going public.

For more information, visit www.EvanCarmichael.com.

How Venture Capitalists Structure Their Investments Continued

� A 30% annual return may sound high to you. The reason why venture capitalists require such a high return is that anyone can purchase shares in the public markets in major companies and get a 15 to 18% return on their equity. Venture capitalists do not have this flexibility because, as a private company, your shares are not very liquid. Investors are locked in for a period of years and face the risk of your company failing. They therefore need a higher rate of return to compensate for this risk.

� Of every 10 investments, no one can predict at the outset which will be successful and which ones will not. On average 1 to 2 will be very successful, 1 to 2 will go bankrupt and the rest will be what are known as the "walking wounded." They will continue to operate but investors will never recover their investments in these companies. Venture capitalists therefore need to average out the good investments against the bad to ensure their 30% annual return.

� An example is a department store that is unsure which items will sell the best over the next season. For that reason store managers will put a high markup at the beginning and at some point have to mark some of the products down. They just do not know which products they will have to mark down at the beginning of the season.

For more information, visit www.EvanCarmichael.com.

Reader Question - Do I Need To Be Charismatic?

Hi Evan,
I have recently discovered your website and browsing the various resources that your site offers. I appreciate them very much. I am a fresh graduate from UBC in Applied Science, Electrical Engineering. I started working at Canada's number 2 telecommunications provider shortly after my graduation from UBC. I have searched within the organization to examine the leadership qualities exhibited by the company's executive leadership team. I have come to realize that leadership is based on very simple ideas.

I feel that I have the ideas and the intelligence (don't we all) to create and grow leading businesses. One quality that I feel I lack is charisma. I am not awkward, but I am not a salesman. In your experience, does someone like myself have the potential to grown that charismatic personality, or should I focus my career on developing my stronger traits, such as my analytical and creative abilities? If I will always be someone who lacks the charisma to charm all my audiences, should I give up the idea of being the CEO of leading edge companies, and focus on other roles, or do you think I could still fill such a role successfully?

Again, I would like to thank you for the resources that you have made available. I have a couple of business opportunities awaiting me, and I am in the due diligence stage of one of them. Because of the generosity of your site and the relationship it has built, I will openly look for ways that I can employ your services. Can you tell that I have been reading some of your Marketing advice from Michael Hepworth?

Sincerely,

Matthew


Hi Matthew,

The key is to know what you're good at and find a way to make money doing it. I've met a lot of entrepreneurs who have built multi-million dollar companies who are not very charismatic at all.

By the same token, I've made many charismatic people who have failed miserably at being an entrepreneur.

What you need to do is pick an industry that you are passionate about and you can be outstanding in.

Every company needs a team of people to be successful. The first step in building this team is recognizing what your individual weaknesses are. Surround yourself with people who complement your skills and can help you build a world class organization.

Good luck!

Evan.

For more information, visit www.EvanCarmichael.com.

Venture-capital report: Entrepreneurs find a new way to cash in

"In the startup world, when companies mature, they go to the public markets to fund growth and allow investors and employees to reap the financial rewards of their work.

WhitePages.com took a different route recently to reach the same goals.

The Seattle company, which provides residential phone listings online, had been profitable since it was formed five years ago. It didn't need capital, but it still made sense to compensate those who had contributed to the company's early days, said Max Bardon, WhitePages.com's president and chief executive.

So it sold stock to private investors eager for a piece of the company. But unlike venture-capital deals, in which investors buy stock in a company, a couple of private-equity companies bought stock directly from WhitePages.com shareholders.

In all, the unidentified investors purchased $31.7 million in stock from the founder, friends and family and employees. About $9.4 million more replaced working capital the company had sent out as dividends.

These so-called "founder sales," or variations of them, have been happening as investment capital becomes more available and companies stay private longer. This pattern is a reversal from the past couple of years when companies could barely attract money for operations, let alone shareholders' pockets.

But now, as more companies weather the rough patch and, in some cases, reach profitability, surviving startups have found it easier to attract cash.

"This is absolutely a positive event," said Matt McIlwain, a managing director at Seattle-based Madrona Venture Group, which does not have a stake in WhitePages.com.

"You have these companies that were able to survive and thrive. Investors are saying, 'Here's some capital, so there can be some realization today for the hard work that you've done.' ""

For more information, visit www.EvanCarmichael.com.

Reader Question - Selling My Invention

Dear Evan,

Claudio and I have been to some of your meetings which we enjoyed, we have developed a new wheelbarrow, it is a sort of self loading, but we are unable to find some manufacturers to take on this project, we had lot of good remarks from industries, we have corrected the negative remarks, and have a new prototype, drawings, but we don't have the necessary finances, it would be an ideal find an industry maybe in China to take over and maybe sell the all thing, we have filed in USA/ Argentina/PCT. And there should be no problems with the patent as we had some actions taken, but not really important, we have addressed them. Can you please give some advice on what next?

I thank you and hope to see you again.

All the best Maria Carosi


Hi Maria,

Moving from being an inventor to being an entrepreneur can often be a very challenging step. For an inventor to be successful he or she must be focused on satisfying a human need, which is to enhance our experience by giving us useful tools.

There are a couple of options that you can take. In terms of financing, your best bet would be to speak with angel investors (wealthy individuals like doctors, dentists, lawyers, etc.). They are usually reached through informal networks - your friends and family would be a good place to start to see if they know anyone who they can introduce you to. I've also written a section on my website dedicated to finding angel investors at http://www.evancarmichael.com/Angel-Investors/index.html.

A second option is to contact the BDC (Business Development Bank of Canada). They are a government run organization with a mandate to help Canadian entrepreneurs. They are not going to automatically approve you but they do take more risks compared to the typical banks.

You should also focus on getting some more traction with potential customers. You said that you've spoken with industries and have received good remarks. Will they purchase your product up front? Will they give you a letter of intent? Will they provide testimonials?

Often customers are great financing options for startup entrepreneurs. If they won't agree to buy up front then at least you can get their support to show potential investors. If you can show an investor or lender that you have clients lined up you've done more than 90% of the other business plans they've seen this month.

A final thought you might consider is to think about if you really want to run a business or not. Many inventors like to create but do not like the work that comes with operating a company. You need to focus on what you're the best at and bring others on who can complement you.

Good luck!

Evan.

For more information, visit www.EvanCarmichael.com.

What Happens After the Due Diligence Process

- If the venture capitalists are interested in your company after completing their due diligence, they will offer a binding term sheet. It will reflect the draft term sheet that has already been agreed to but this one will be a legal contractual agreement. Then the real negotiations start.

- There are different types of financing to consider: debt, equity, and mezzanine.

- Debt financing is the most objective and is therefore the easiest to negotiate. If you have the assets to support the debt and the income to support the interest payments, the negotiation period will be very short.

- Equity financing negotiating is more complicated and revolves around agreeing on valuation and percentage ownership. Discussions usually requires several days.

� Mezzanine financing involves a mix of equity, debt, convertible debentures and preferred shares. Negotiating the technical aspects of each so that an agreement can be reached between the investor and your company can be time consuming.

� Another dictating factor is the number and variety of financing offers that you receive. It is the intermediary's role to help you bring more than one offer to the table and assist you in evaluating and negotiating which one is best suited to your company's needs based on their previous experience.

� Venture capital term sheets are time limited. You have to quickly make up your mind if you want to accept or reject the offer. The short time period is in place to prevent you from using one term sheet to solicit new offers from other venture capitalists.

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Overview

WaterWorld Enhanced Drinking Water (http://www.waterworldedw.com) is a manufacturer of energy drinks and spring water. The company has three functional energy drinks as part of its Peak Performance line of products. The three drinks are:

Amore', a sexual enhancement beverage with a natural aphrodisiac with a cherry/grape flavor that keeps him up and her feeling flush with a gentle warm feeling.

Trucker's Fuel, a tea flavor with a mild lemon twist drink for those who drive for a living or need to stay awake during a long day or need to study all night.

Victory, a lemon tasting beverage that can greatly reduce muscle fatigue, joint soreness, cramping, energy loss, and will speed energy recovery and increase energy reserves.

The company is in the startup phase and is run by Mark Hall, a Minnesota based small business lawyer. It is projecting to break even 6-12 months after funding and is searching for $1-4 million in capital at a $10 million valuation.

Next - Highlights - A Ready Market

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

For more information, visit www.EvanCarmichael.com.

What the Venture Capitalist Due Diligence Process Looks Like

- The venture capitalist due diligence process is intense and can take weeks or months depending on the complexity of your company. It will be the most intensive look at your company that you have ever experienced.

- The venture capitalists will want to know everything from your standard articles of incorporation, directors, and shareholder agreements up to the details of how your business processes are run.

- The purpose of the initial meeting and draft term sheet is to get an approval in principle. From there the venture capitalist will carefully examine the details of your company before making an official offer.

- An intermediary can be helpful in speeding up the process, especially when dealing with the lawyers on both sides. The intermediary is responsible for "cracking the whip" and ensuring the process is progressing. The faster you can make lawyers work, the lower your bill will be. Generally, if you give lawyers enough time, they will make sure to use it and bill you accordingly.

For more information, visit www.EvanCarmichael.com.

Venture Financing Up 9.4%

"VCs dole out $5.49 billion during the third quarter, but invest less money in each company.

Venture capitalists invested 9.4 percent more in high-tech startups during the third quarter than they did a year earlier, according to a study released Monday, but the typical deal was smaller.

The total investment rose to $5.49 billion from $5.02 billion in Q3 2004, according to the study by VentureOne. The median amount invested in each startup that received financing during the quarter fell 4.6 percent to $6.7 million from $7 million during the same period last year.

Investment in information technology startups increased 10.6 percent to $3.11 billion, up from $2.81 billion in the third quarter of 2004.

Venture capital interest in healthcare cooled as VCs put 2.8 percent less money into biotechnology, pharmaceuticals, and medical devices. Investment fell to $1.66 billion, down from $1.71 billion during last year’s third quarter.

Consumer product startups saw the biggest uptick in venture backing. Investment increased 443.3 percent, closing the quarter at $36.4 million, up from $6.7 million.

Biopharmaceuticals posted the biggest loss, losing 19.7 percent of their funding to close the third quarter at $907 million, down from $1.13 billion.

Early-Stage Anxiety
Seed and first-round investment fell 7.3 percent to $1.18 billion during the third quarter, down from $1.28 billion during the same period last year.

Yet the deal flow edged up slightly. Early-stage deals accounted for 35 percent of all VC investments, up from 34 percent in 2004. “This is a clear sign that investors still support early-stage innovative growth companies,” said John Gabbert, vice president of VentureOne.

But many deals may not be counted, say investors. “For early-stage investing, the numbers may not accurately reflect what’s going on,” said Wes Raffel, a venture capitalist with Advanced Technology Ventures. “We’re seeing more early-stage opportunities. Our calendars are fuller now.”

But along with better deal opportunities comes less disclosure about investment activity, especially in the early stages. When one VC hears about an interesting company, he or she may bid up the company’s valuation.

“It’s getting very competitive and expensive,” said early-stage investor Venky Ganesan, managing director of Globespan Capital Partners.

Increased competition is keeping some VCs from saying anything about their investments, even to reporting agencies such as VentureOne.

“Ten percent of our portfolio has not given any information about what they are doing,” said Mr. Raffel.

Mr. Ganesan said his firm keeps all of its seed and first-round investments secret.

Although early-stage venture firms may be keeping their cards close to their chests, angel investors have been more active. Innovators who meet with angels are twice as likely to receive funding this year compared to two years ago, according to one study.

In 2005, angel investors backed 21.8 percent of the companies they investigated, up from 10.3 percent in 2003, according to a study by the Center for Venture Research (see Angels Fund More Deals in ’05)."

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Lesson #3 - The Business Model

The business model section of a plan is important because it outlines how your company will make money. The business model has to make sense, be a win for all parties involved, and be realistic.

WaterWorld's business model is to "sell directly to media executives and wholesale buyers in exchange for advertising and publicity. We give up a percentage of the sales garnered from the particular media. They in turn will distribute our products to their customers at the retail level. In many instances WaterWorld will get the orders directly and ship straight to the end user and then remit earnings to the media that generated the sale."

The typical business model for a media company such as a television station is to sell advertising � not products. They get paid based on the amount of air time you want and during which time as supposed to how successful your advertising is.

This strategy may work with smaller outlets who are having a hard time attracting enough companies to fill their advertising spots but does not lend itself well to the larger players.

Just as you need provide proof that your product works, you need to demonstrate to investors that your business model works and makes sense � especially when you're assumptions are based on activities that are outside the norm. Have media companies already agreed to this method of cooperation? Who are they? What have they said? How many more can you get and is this enough to push the product?

Reduce the risk for the investor by showing them that the business model works and is well thought out.

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

For more information, visit www.EvanCarmichael.com.

How Intermediaries Can Help

- Preparing for the meeting is a key role of intermediaries. They will go through a number of rehearsals with you and sit down for several sessions that could last for a couple of hours each to go over the likely questions you will be asked. They will also make sure you have the right answers committed to memory and can back up your assumptions properly.

- A successful meeting with venture capitalists will result in good chemistry having been developed early on and at the end of the meeting. The venture capitalists will have openly expressed an interest in moving on and there will be a general level of enthusiasm at the end as supposed to the objective analysis of the business plan which occurs at the beginning of the meeting.

- The intermediary knows the venture capitalists and their different accounts. Intermediaries know the sensitive points and help tailor each presentation to the particular venture capitalist. Every venture capitalist will have a different approach and the intermediaries will help you prepare for their potentially hostile questions.

- Preparing for the meeting is much like preparing for a case in court. You only have one chance at it and you better do it right!

For more information, visit www.EvanCarmichael.com.

UK venture capital investment nose-dives in Q3

"UK high-tech venture capital investment in the third quarter painted a bleak picture.

“September had the lowest number of completions on Ascendant’s records,” said Stuart McKnight, managing director of Ascendant, the technology-focused corporate finance advisers.

In Q3 2005, over £76m was invested in 23 deals (each worth over £500,000) by 42 investors. The aggregate value was down 30 per cent compared to Q3 2004, and the aggregate volume of deals was down by 21 per cent, said Ascendant.

The biggest deals were Midasplayer at £23m; Cognima at £7m; Global Silicon at £5.4m; Pelikon at £5m and Nujira at £4.4m."

For more information, visit www.EvanCarmichael.com.

Investment community failing start-ups says report

"The venture capital industry has been criticized in a joint US/European report that says it is ignoring early-stage start-ups and is instead investing in more mature companies. The report asks governments on both sides of the Atlantic to do more to increase the flow of investment to early-stage firms.

According to the report, produced by a joint working group set up between the US Department of Commerce and the European Commission, this lack of investment in early-stage start-ups represents a "fundamental market failure." The findings call for more public sector and policy maker involvement in the VC process. The working group is made up of representatives of venture capital funds, industry advisers, academics, and specialists.

The report warned that the failure of the VC market on both sides of the Atlantic is so significant that public intervention is desirable. It also suggested that public money should go to large, well-established funds that can command economies of scale, rather than creating a proliferation of small funds.

"Small firms need investment capital but the market has failed to provide it - public sector support is needed," the report stated. "The work of the group confirmed that there is a fundamental market failure in the provision of early-stage financing in both the US and the EU. Venture capital funds are concentrating on larger and larger deals, leaving the small and risky early-stage deals aside.""

For more information, visit www.EvanCarmichael.com.

Mature Companies Attract Bulk of Venture Capital

"U.S. and European officials warn the trend robs new entrepreneurial ideas of needed investment.

U.S. and European trade officials fear that mature companies are soaking up venture capital, leaving little for start-ups that provide a critical resource for growing economies.

Based on meetings with members of the venture capital industry, a working group of officials from the Department of Commerce and the European Commission concluded that early-stage companies and entrepreneurs are not receiving the investment capital needed to launch. The group published a report last week calling for government investment in established venture funds to correct what they perceive as a "fundamental market failure in early stage financing."

The Department of Commerce commissioned a study by analysts at VentureOne, which found that between 1992 and 2004, early stage companies received only $1 million on average versus $3 million to $5 million for later stage ventures. The data is based on 11,600 companies that received venture investments during this time period. Of those, almost half are still in business and have received additional rounds of funding worth $8 million on average."

For more information, visit www.EvanCarmichael.com.

Other Information the Venture Capitalist Will Ask For

- Venture capitalists will not go into too much detail in the first meeting.

- They essentially want to meet your team and assess them. They will then decide if they want to move forward with you or not and begin their due diligence procedure, a process which continues right up until closing day.

- Ultimately the potential investors wants to make sure that they clearly understand how your business operates and how your team can work together to fulfill the objectives of the company.

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Lesson #2 - Have You Done It Before?

One of the most important factors that investors look at is the management team. Has the president done it before and does he or she have the team to make the company successful or not?

Investors would rather put their money behind an average business plan with an outstanding president than an outstanding business plan with an average president.

In the WaterWorld summary the reader learns that president Mark Hall has various university degrees and is a small business lawyer from Minnesota. It also states that he "has helped start several small businesses for other entrepreneurs." What are these businesses? How was he involved? Did they turn into successful businesses? These are much more important areas to focus on than the university degrees.

The plan also states "We have several trusted and reliable persons who will assume positions in the company, after funding, that will significantly enhance our ability to serve the public, media executives and wholesale buyers through their years of industry experience." Who are these individuals? Why are they interested and what will their roles be?

Again, the investor is looking to maximize opportunity and minimize risk. This is done by betting on someone who has done it before. Whatever experience you do have running a business and being successful, leverage it in your plan. Investors care much more about your previous experience than your educational background.

If you don't have all the experience yourself, bring in a team and make sure to mention who they are and what their backgrounds are. Even having a reputable and experienced board of advisors can sometimes make the difference between getting funded or not.

Next - Lesson #3 - The Business Model

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For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Lesson #1 - Does It Work?

The summary provides the reader with information on what the benefits of the drinks are. For example, the company claims that the Victory drink can restore energy lost through exercise, training, and game time exertion, allow the heart muscles to withstand vigorous and strenuous exercise, fight and prevents lactic acid build-up, reduce and eliminate cramping, and boost energy reserves and accelerates muscle recovery time.

What is missing is the proof that it works. You need to demonstrate to potential investors that what you have is real. Show test studies, include testimonials, provide lab reports, have supporting quotes from respected individuals in your market. In other words "Show me the money!"

The problem is, while your product is probably excellent and can deliver on all the promises you are making, you need to remember that most of the other companies seeking capital out there are not marketing such reliable products. Unless you demonstrate that the product actually works then you are immediately lumped in with all the other "junk" business plans.

Investors see so many business plans every day that they are looking for reasons to say no. Don't make it easy for them to turn you down by not having supporting evidence for your claims.

Next - Lesson #2 - Have You Done It Before?

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What Happens in the Meeting

- Meetings with venture capitalists are also referred to as "the dog & pony show." It provides the first opportunity for investors to meet the management of your company face to face and assess the people behind the business. You could have a brilliant business plan backed by poor management. This will only become apparent to the venture capitalist in the meeting.

- There is an old British banking expression that asks: "Is someone the horse for the course?" In other words, do you have the right management team for the task at hand. It then follows that different horses are needed for different courses.

- The point of this initial meeting is to test the management face to face. The venture capitalist wants to build confidence with the management team.

- The intermediary�s prime role is to get a "dog & pony show" together with a number of venture capitalists.

- The venture capitalist may question your business plan to test you. Make sure to have someone with you who understands the finances and who knows the product or technology.

- The meeting will usually start off with a 5 minute update as to what has happened since you submitted your business plan. The rest of the meeting will be a question and answer session.

- People like to do business with people who they have an affinity for. The development of trust between yourself and the investor is paramount. They must get a feeling that they can work with you and that there is positive chemistry.

- As an example, an entrepreneur who walks into a meeting dripping in gold, diamonds and flamboyant suits will have a hard time raising capital because the venture capitalists will not feel comfortable with this person.

For more information, visit www.EvanCarmichael.com.

If You Build It...

"Money Matters

Financing is a major ongoing concern for an inventor looking to build a company. You'll have to fund the beginning stages of the company yourself or with the help of investors, friends or a contract manufacturer. Then you usually need to cover operating costs as well as initial marketing and manufacturing costs. Basically, you'll have to fund these four stages of development:

1. Concept stage: This includes developing the idea and its market potential, and building models or prototypes. Funding sources for this and the next stage include yourself, family and friends, a contract manufacturer, or a person in the industry.

2. Verification stage: This includes selling preproduction or pilot production runs to actual customers in a small market. If that's too expensive, this stage should at least include either trade-show attendance or interviews with 10 to 15 potential customers in the distribution network.

3. Initial production runs: Typically, new entrepreneurs are more worried about losing a lot of money on their product than they are about having a low profit margin on their initial production run. Frequently, inventors will use low-cost, temporary tooling for their initial run. Temporary tooling costs only 15 percent to 20 percent as much as permanent tooling. It might only last one or two runs, but it allows the company to determine if the product will definitely sell. Funding sources include outside or industry investors, contract manufacturers, or possible distributors of your product. You might also get investments from family and friends, although they'll need significant financial resources to back this stage of growth.

4. Full-scale production: Once you have proved through several trials that the product will sell, you can get more traditional funding for full-scale production.

Inventors divide their growth into these four stages for two reasons: It's easier to get investments in small chunks while you prove how your product will sell, and it allows you to keep a controlling interest in your company. Your business becomes much more valuable to investors as you complete each step. Investors are going to demand a substantial portion of the company if you ask for money before you've made any discernible progress in the market. Funding sources include banks and SBA loans, venture capitalists, larger investors, and contract manufacturers."

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Overview

WaterWorld Enhanced Drinking Water (http://www.waterworldedw.com) is a manufacturer of energy drinks and spring water. The company has three functional energy drinks as part of its Peak Performance line of products. The three drinks are:

Amore', a sexual enhancement beverage with a natural aphrodisiac with a cherry/grape flavor that keeps him up and her feeling flush with a gentle warm feeling.

Trucker's Fuel, a tea flavor with a mild lemon twist drink for those who drive for a living or need to stay awake during a long day or need to study all night.

Victory, a lemon tasting beverage that can greatly reduce muscle fatigue, joint soreness, cramping, energy loss, and will speed energy recovery and increase energy reserves.

The company is in the startup phase and is run by Mark Hall, a Minnesota based small business lawyer. It is projecting to break even 6-12 months after funding and is searching for $1-4 million in capital at a $10 million valuation.

Next - Highlights - A Ready Market

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For more information, visit www.EvanCarmichael.com.

Northern Crown Capitals Non Disclosure Agreement

CONFIDENTIALITY AGREEMENT



BETWEEN: Northern Crown Capital Inc.
Suite 1705
8 King Street East
Toronto, Ontario M5C 1B5



AND: ABC Company
Street Address
City, Province / State
Postal / Zip Code

Attention:
Contact Name
Tel: (xxx) xxx-xxxx


RE: ABC Company
(the "Company")



Northern Crown Capital Inc. ("NCCI") has requested certain information (the "Information") concerning the Company, which the Company considers valuable and confidential. As a condition of the Company furnishing NCCI with such information, NCCI hereby acknowledges and agrees that any and all written or oral information now or hereafter furnished to them concerning the Company, is confidential and that the Company's business and operations could be damaged if any of the Information is disclosed to third parties.

NCCI agrees that such Information:

shall be kept confidential by NCCI and will not be disclosed, divulged or provided to any person without the Company's prior written consent; provided however, that such Information may be disclosed:

(i) to the smallest practicable number of NCCI's directors, officers, and employees, if any, who need to know such Information;

(ii) if such disclosure is required by law;

shall not be used by NCCI, and NCCI shall not permit the use of such Information, in a manner or for a purpose detrimental to the Company;

shall not be deemed to include information which:

(a) is public knowledge or becomes generally available to the public other than as a result of disclosure by the Company;

(b) becomes available to NCCI on a non-confidential basis, from a source who is not bound by a Confidentiality Agreement with the Company, and is in NCCI's possession prior to disclosure by the Company.

In the event that discussions relating to this evaluation cease for any reason whatsoever, NCCI shall, within three (3) days of receipt of written notice by the Company promptly deliver to the Company and shall not retain, or permit its directors, officers, or employees to retain, any and all originals, copies, or extracts from the documents containing the Information.

It is understood and agreed that, in the event of any breach or threatened breach of the terms hereof, the Company shall be entitled to equitable relief, in addition to any other remedies which may be available to it, in any court of competent jurisdiction.

NCCI hereby acknowledges and agrees that the Company makes no representation or warranty, express or implied, as to the accuracy or completeness of the Information, and that the Company shall have no liability as a result of NCCI's use of, or reliance upon the Information.

Acceptance of this Agreement by NCCI and the Company, and the terms set forth above shall be evidenced by the countersigning of this letter, and returning a copy of same to the parties.

Dated at City, Province / State this day of , 2005.


Northern Crown Capital Inc. ABC Company



_________________________ _________________________
Partner Contact Name

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Angels Fund More Deals in '05

"Earliest of early-stage investors increasingly fund startups while venture capitalists look toward later-stage deals.

Angel investors are funding more early-stage startups this year than at any point since the Internet boom, a sign this informal breed of venture capitalists may be stepping in to fill a role traditionally played by venture capital firms.

Innovators who meet with angels are twice as likely to get funding this year than two years ago, a study shows. In 2005, angel investors backed 21.8 percent of the companies they investigated, up from 10.3 percent in 2003, according to a study by the Center for Venture Research.

This is the highest rate of funding per investigation since 2000, when 23.3 percent of companies that sat down in front of angel investors got money.

“There’s been definitely an increase in the quality of deals,” said M.R. Rangaswami, CEO of angel investing firm Sand Hill Group. “I’m seeing a lot of better deals today than I have seen in the last couple years.”

The upswing in angel support comes as VC firms are shunning early-stage “seed” investments in favor of later-stage deals. Venture financing for seed-stage investments, as a portion of total venture investment, has fallen to its lowest level since 1999. Less than 2.9 percent of all VC investments in the first half of 2005 went to seed startups, down from 8.1 percent in 1999."

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Executive Summary Review - WaterWorld - Lesson #3 - The Business Model

The business model section of a plan is important because it outlines how your company will make money. The business model has to make sense, be a win for all parties involved, and be realistic.

WaterWorld's business model is to "sell directly to media executives and wholesale buyers in exchange for advertising and publicity. We give up a percentage of the sales garnered from the particular media. They in turn will distribute our products to their customers at the retail level. In many instances WaterWorld will get the orders directly and ship straight to the end user and then remit earnings to the media that generated the sale."

The typical business model for a media company such as a television station is to sell advertising � not products. They get paid based on the amount of air time you want and during which time as supposed to how successful your advertising is.

This strategy may work with smaller outlets who are having a hard time attracting enough companies to fill their advertising spots but does not lend itself well to the larger players.

Just as you need provide proof that your product works, you need to demonstrate to investors that your business model works and makes sense � especially when you're assumptions are based on activities that are outside the norm. Have media companies already agreed to this method of cooperation? Who are they? What have they said? How many more can you get and is this enough to push the product?

Reduce the risk for the investor by showing them that the business model works and is well thought out.

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

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Why the Venture Capitalist is Interested in You

Venture capitalists want to make money. They will either see you as an entry point into a new industry that that has potential or one where they are already invested in but you provide an exceptional case.

The venture capitalist makes their decision on two variables: greed and the probability of failure or success. If your company presents a great deal but is accompanied by extraordinarily high risks, the venture capitalist will not invest.

For more information, visit www.EvanCarmichael.com.

How to Introduce Yourself to a Venture Capitalist

- The first option is to approach venture capitalists yourself. This is a very time consuming process and you risk taking your mind and attention away from your business.

- The best way to find a venture capitalist is through an intermediary. They know the important players on the street and what they are looking for and investing in. The venture capitalist relies on recommendations of the people they trust. If the intermediary has established friendly relationships with them, it will boost your chances of getting in.

- Going after a venture capitalist without an intermediary is like going to court and trying to represent yourself instead of having a lawyer.

For more information, visit www.EvanCarmichael.com.

Executive Summary Review - WaterWorld - Lesson #2 - Have You Done It Before?

One of the most important factors that investors look at is the management team. Has the president done it before and does he or she have the team to make the company successful or not?

Investors would rather put their money behind an average business plan with an outstanding president than an outstanding business plan with an average president.

In the WaterWorld summary the reader learns that president Mark Hall has various university degrees and is a small business lawyer from Minnesota. It also states that he "has helped start several small businesses for other entrepreneurs." What are these businesses? How was he involved? Did they turn into successful businesses? These are much more important areas to focus on than the university degrees.

The plan also states "We have several trusted and reliable persons who will assume positions in the company, after funding, that will significantly enhance our ability to serve the public, media executives and wholesale buyers through their years of industry experience." Who are these individuals? Why are they interested and what will their roles be?

Again, the investor is looking to maximize opportunity and minimize risk. This is done by betting on someone who has done it before. Whatever experience you do have running a business and being successful, leverage it in your plan. Investors care much more about your previous experience than your educational background.

If you don't have all the experience yourself, bring in a team and make sure to mention who they are and what their backgrounds are. Even having a reputable and experienced board of advisors can sometimes make the difference between getting funded or not.

Next - Lesson #3 - The Business Model

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Venture Capital Is Not for Girlie Men

"A hack? How about the hottest VC on the planet right now.

There are all sorts of approaches to the venture capital game. Some investors study one area so deeply they become experts. Others simply back the best entrepreneurs. A third type invests only in companies that aim for giant markets. Then there’s the Tim Draper method, which is a bit like using a machine gun to shoot a fleeing duck: Fire enough bullets at the darn thing, and something will hit the target.

Because of his scattershot approach, it has long been fashionable with a certain crowd on Sand Hill Road, the VC power corridor in Menlo Park, Calif., to dismiss Draper as something of a hack. Back in 2001—when it was popular to mock the silly dot-com investments of venture capitalists—Draper was even singled out as one of Silicon Valley’s “dumbest” VCs by the magazine eCompany Now (owned, like FORTUNE, by Time Warner). But nobody’s laughing at him today. At the moment, Draper, 47, is the hottest venture capitalist on the planet.

Most of his peers would kill for even one investment in their careers as successful as his two coups this year alone. The hottest IPO of the summer was that of Chinese search engine Baidu, the shares of which soared 354% in their first day of trading. Draper’s firm, Draper Fisher Jurvetson, invested $14 million in Baidu, a stake that is worth more than $500 million today. eBay’s $2.6 billion deal to buy Skype gave Draper his second big hit of 2005. Together, Draper’s Skype investments and that of his father produced returns of more than $250 million from a stake similar in size to what he invested in Baidu.
One advantage of Draper’s flood-the-zone mentality is that it is virtually impossible for a promising opportunity to fly below his radar.

The firm now has a network of affiliated funds in 28 cities around the world. All told, its 75 partners are managing $3.4 billion and currently are invested in about 500 companies. While Draper sits on only about five boards, he has a piece of every deal. “Tim is a bread-on-the-water kind of investor,” says VC Bob Kagle of Benchmark Capital, a Draper admirer and eBay director. “He has the perspective that there’s a lot of luck involved in venture capital.”
He is certainly not afraid to act impetuously. Pankaj Shah, CEO of mobile-phone search company 4INFO, recently pitched his company to Draper’s firm but was rejected. Days later, on a flight home from Los Angeles, Shah sat near Draper, who agreed on the spot to overturn the partnership’s decision. “He thinks superfast,” says Shah. “By the time most people come up with an answer, Tim’s already five questions ahead.”"

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Executive Summary Review - WaterWorld - Lesson #1 - Does It Work?

The summary provides the reader with information on what the benefits of the drinks are. For example, the company claims that the Victory drink can restore energy lost through exercise, training, and game time exertion, allow the heart muscles to withstand vigorous and strenuous exercise, fight and prevents lactic acid build-up, reduce and eliminate cramping, and boost energy reserves and accelerates muscle recovery time.

What is missing is the proof that it works. You need to demonstrate to potential investors that what you have is real. Show test studies, include testimonials, provide lab reports, have supporting quotes from respected individuals in your market. In other words "Show me the money!"

The problem is, while your product is probably excellent and can deliver on all the promises you are making, you need to remember that most of the other companies seeking capital out there are not marketing such reliable products. Unless you demonstrate that the product actually works then you are immediately lumped in with all the other "junk" business plans.

Investors see so many business plans every day that they are looking for reasons to say no. Don't make it easy for them to turn you down by not having supporting evidence for your claims.

Next - Lesson #2 - Have You Done It Before?

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

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Valuating a Business Examples

- Over the past 3 to 4 years, venture capitalists have been very conservative with their investments. This is because they have had so many problems within their current portfolios that they cannot afford to take the same risks on new companies.

- The method of valuation will also depend on your industry. In a traditional, or smokestack, industry there are typically many comparative examples. Here you can work from the earnings before interest, tax and depreciation (EBITDA) of similar companies and apply a ratio to your own business.

- New products and technologies pose a valuation problem due to the lack of comparative companies. It is much more difficult to valuate these businesses.

For more information, visit www.EvanCarmichael.com.

Angel Funding Dollars Rise, Deals Decline

Report finds angel funding still top source for start-ups, but market muddied by "tire-kickers."

A study released Wednesday showed that the angel investment market for the first half of 2005 was steady and robust, but signs of instability loom.

According to a report from the Center for Venture Research, total angel investments for the first two quarters of the year came to $11 billion, slightly less than the $12.4 billion invested during the same time last year, but on target to match last year's $22.4 billion total.

"The market is strong and steady," said Jeffery Sohl, the director of the CVR at the University of New Hampshire.

Some 26,000 entrepreneurial endeavors received angel funds in the first two quarters of 2005. Angel financing is still the largest source of seed and start-up funds, with 48% of the first-half angel investments going to the start-up and seed companies. However, it is shrinking, dropping 11% from the first two quarters of 2004.

"Seed funding is where angel investors are at their best. Both for themselves and the economy," Sohl said. "The more they get into later phases, the more they get away from where they're needed."

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Executive Summary Review - WaterWorld - Highlights - A Ready Market

What's good about this company is that it is attacking a ready market. Many companies seeking capital can only really be successful when a new technological breakthrough has been made, government approval has been granted, or an entirely new market has been developed.

This increases the risk for the investor as there is uncertainty if the necessary changes will occur or not. Before making a decision, investors will weigh the opportunity of putting money into a company against the risk of losing it all. Most entrepreneurs do their best to show the opportunity of investing in their company but do not focus any energy on demonstrating how the investor's risk will be minimized and money will be safe.

The markets that WaterWorld is targeting are existing, multi billion dollar industries which are looking for new, innovating products to solve their pain.

Next - Lesson #1 - Does It Work?

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

For more information, visit www.EvanCarmichael.com.

How to Valuate Your Business

- The venture capitalists will usually look at your projected, or pro forma, earnings 3 to 5 years from the point of their investment. From there they will deduct a 30% annual return that they expect to receive and will subtract a further percentage for the fact that you are a private and therefore non liquid company. This is known as the pre-money valuation.

- Right now, investment money is scarce and the venture capitalists are dramatically lowering business valuations.

For more information, visit www.EvanCarmichael.com.

Venture funds return to Net

"After the success of Google, investors are back in hunt for start-ups

For the first time since the dot-com bust, venture capital investments in Internet companies are surging.

Call it the Google effect.

With investment in Internet companies climbing again after several years of decline, the quest is on to find, and fund, the next Google -- or companies with cutting-edge technology that could be acquired by Google Inc. or rivals like Yahoo Inc. or Microsoft Corp.'s MSN as they expand their footprints in Internet search arenas.
Venture firms funded 219 Internet deals in the first half of 2005, putting them on pace to exceed last year's 413 deals, according to figures from the Thompson Financial Venture Economics research firm. That would mark the first annual increase in Internet deals since 2000. And the average size of Internet deals is also on the upswing, climbing to $7.1 million in the first half of this year from $6.6 million last year.

''People in the venture business are now looking at companies they might not have looked at a couple of years ago because of Google," suggested Axel Bichara, a senior partner at Atlas Venture in Waltham.

But when entrepreneurs come calling at venture firms these days, foraging for money to bankroll Internet start-ups, they can expect to be grilled about their approach to the fast-growing Google, which boasts a market value of about $90 billion and more than $7 billion in cash.

''They are now a formidable presence that needs to be considered when making any kind of investment, whether it's on the enterprise side or the consumer side," said Scott Tobin, general partner at Battery Ventures in Wellesley. Tobin said the Google effect often figures into which Internet companies can line up backers.
There are two sides to the Google effect. Even as some investors are casting a skeptical eye on start-ups thought vulnerable to Google, others are aggressively funding start-ups seeking to carve out niches in the expanding Internet business model Google has pioneered.

Every start-up in the Internet field needs a strategy for fending off, partnering with, or differentiating itself from Google. And it's not only potential investors who are demanding to see the strategy. Google is also part of the conversation with job prospects and would-be customers."

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Executive Summary Review - WaterWorld - Overview

WaterWorld Enhanced Drinking Water (http://www.waterworldedw.com) is a manufacturer of energy drinks and spring water. The company has three functional energy drinks as part of its Peak Performance line of products. The three drinks are:

Amore', a sexual enhancement beverage with a natural aphrodisiac with a cherry/grape flavor that keeps him up and her feeling flush with a gentle warm feeling.

Trucker's Fuel, a tea flavor with a mild lemon twist drink for those who drive for a living or need to stay awake during a long day or need to study all night.

Victory, a lemon tasting beverage that can greatly reduce muscle fatigue, joint soreness, cramping, energy loss, and will speed energy recovery and increase energy reserves.

The company is in the startup phase and is run by Mark Hall, a Minnesota based small business lawyer. It is projecting to break even 6-12 months after funding and is searching for $1-4 million in capital at a $10 million valuation.

Next - Highlights - A Ready Market

Would you like your Executive Summary reviewed? Click on the "Get Your Plan Reviewed" button at the top of the page.

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The Types of Businesses Venture Capitalists Prefer

- Venture capitalists will not invest in anything illegal or immoral. Anything that involves laundered, dirty, or offshore money will not attract venture capital investment.

- Otherwise, a venture capitalist will look at any business providing that it meets their criteria of providing a return on investment, having good management, supplying a sound business plan, and demonstrating a developed product or service with revenues.

- Some venture capitalists as a matter of policy will restrict themselves to investing in a specific industry. It is the role of the intermediary to know which firms would be willing to invest in your company.

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Angel Investors - Where To Find Angels

Informal networks (Accountants, lawyers, business associates etc.)

6 degrees of separation

$100-250k income individuals

Retired professionals / entrepreneurs

Angel groups

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What to Consider Before Raising Venture Capital

- Venture capitalists want to see more than an idea. They want to see that you have a client list, a finished product that is beyond the beta stage, a clearly defined need in the market place, and sales. They want to see that you have significant traction in place.

- Although during some periods, venture capitalists were willing to take a long-term perspective; this is a very rare phenomenon. Most venture capitalists want to see a return in a very short period of time.

- An essential characteristic of a successful entrepreneur is the ability to raise capital.

- Develop a relationship with your banker before you need the money. The final decision of whether to give you a loan or not rests with the loan officer. If she knows you and understands your business, your chances of receiving the money increase dramatically.

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Optimism in the air at VC summit

Optimism in the air at VC summit

"Ottawa is the tech industry's best-kept secret, but events like last week's Venture and Technology Summit at the Hilton Lac Leamy and Casino in Gatineau will change all that, says a leading analyst.

Keynote speaker Tim Miller of The 451 Group was among many who were meeting and greeting at the event sponsored by the Ottawa Centre for Research and Innovation (OCRI).

"The depth of talent in this city is tremendous," he said. Based in San Francisco, Mr. Miller had nothing but positive reviews for both the city and the event itself.

Meanwhile, Canadian and American venture capital investors mingled with local entrepreneurs hoping to catch their eye.

One such tech head was Martin Sendyk, CEO of AmberCore Software, a local company that has developed a way to find minerals beneath the earth before drilling even begins.

"We help our clients find deep buried diamond deposits, deep buried gold deposits and untapped petroleum reserves," he said. "It's computerized mapping software focused on finding natural resources under the ground. So picture a three-dimensional view of what's under the ground, and where are the diamonds and the gold and the oil?"

Mr. Sendyk was one of 12 presenters given 12 minutes each to state their case to investors. While it's very rare for any deals to get done on the spot at such a conference, most of the people in attendance agreed that it was a good way to get to know who's who in the technology business."

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Angel Investors - The Who Matters

Getting the right funder raises the value of the company and lends credibility. Angels can bring a lot more than just money to your business.

Classic example: Harvey Firestone - "Above all, Firestone wanted the backing of Will Christy, president of the Central Savings & Trust Company of Akron and "the biggest man in Akron." Christy's support, Firestone recognized, would be not only valuable financially but invaluable in lending the business the prestige to attract other investors."

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Angel Investors - An Example - The Toronto Venture Group

Investment Size: $100,000 - $2,000,000


Valuation: $200,000 - $5,000,000 pre-money

Structure:
* Series A Preferred Stock
* Typical venture capital terms and conditions
* Representation on company board of directors

Local: Strong preference to Canadian companies: 2 hour Toronto radius

Large Potential Growth: $50 M sales globally

High Anticipated Growth Rate: > 25% / year.

Experienced Management Team: proven ability to start, grow a company

Sustainable Competitive Advantage: over existing / emerging competition

Barriers To Entry: Have the means to discourage / beat competition (proprietary technology /
business method, patent, trade secret, years ahead of competition)

Commercialization Strategy: Realistic go to market plan

Proof Of Concept: Product / service that fulfills a need, has some sales, strategic partners or solid sales commitments

Business Model Anchored In Reality: Thoroughly assessed market, product development costs, operating expenses, funding requirements

For more information, visit www.EvanCarmichael.com.

Angel Investors - Due Diligence - Financials

Do I understand the assumptions behind the projections and do they make sense?

Is the infrastructure in place for growth?

Is the company valuation reasonable?

What is the sales pipline and cycle?

What are the use of proceeds?

Will I make 30-40% ROI per year?

Will I be able to exit is 5 to 8 years?

For more information, visit www.EvanCarmichael.com.

Angel Investors - Due Diligence - Product

Product - Questions Angels Will Ask

Is there a proven demand for your product?

Does the product actually work or is it just a theory? Is there a case study example?

How does the product differentiate from its competitors?

Is there any proprietary protection on the product?

Do I understand how this product works?

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Angel Investors - Due Diligence

Due diligence is the process of researching an opportunity to come to a decision whether an investment should be made or not. There are typically 5 key areas that angel investors will look at in their due diligence: People, Product, Sales, Financials, Legal.

For more information, visit www.EvanCarmichael.com.

Angel Investors - Investment Amounts

Averages between $50,000 and $250,000.

Below $50,000 is usually "love money" - friends and family.

Above $250,000 is usually groups of angel investors or venture capitalists.

They typically see themselves as a stepping stone to further financing.

Their due diligence is usually between 6 and 8 weeks.

Angels see an average of 8 to 10 potential investments per year.

They will make between 2 and 3 investments per year.

The Rule of 10 is that for every 10 investments an angel makes, 2 or 3 will be successful, 3 or 4 will fail, and the rest will struggle along.

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Most Important Lessons from Northern Crown Capital To You

- Michael
- Use an intermediary. The benefits of using one have been discussed throughout this program. Hopefully you will use Northern Crown Capital, but if not there are many good ones out there.

- Remember that in most cases, the deal you end up with is not the deal you thought you would get when you started. You have to be flexible and able to turn on a dime in order to make the deal progress.

- Matthew
- Deal with people of quality. Associate yourself with experienced people who have gone through several cycles and have a proven track record in a wide variety of industries.

- Do not be greedy. In the market the bears can make money, the bulls can make money but pigs go to slaughter. If you are too greedy, you cannot make a deal. Markets will change. Windows open and windows close. To some extent investing is a fashion business. Certain types of deals are in fashion and then they are out. When money is being made available you are better off to take it when it is being offered.

- Always be very open and candid in your discussions. Do not hide. Do not play games. Be totally open. And whatever you do, do not bluff. An investor will find out quickly when you are bluffing and you will lose the deal.

� Bob
o Financing is just one f the tools you need to build a good company. It is like the blood in your body. Financing is not the heart and soul � your business is.

o Good entrepreneurs build great companies because they are good at motivating their employees, excellent at working with suppliers, have an obvious ability to satisfy customers and they also treat the venture capitalist as a supplier, albeit a supplier of money and not a physical product. If you think of investors with a "me against them" attitude or with any degree of hostility you should not enter into the deal. You will need their support when times get tough. A good working relationship with investors will help ensure your long term success.

For more information, visit www.EvanCarmichael.com.

How to Get in Contact with Northern Crown Capital

There are 2 ways that Matthew, Robert, and Michael can help your business raise capital:

1) Become your intermediary
� If you are based in Ontario and are looking for an intermediary to help introduce you to venture capitalists, present your case, and negotiate and close the deal on your behalf, visit www.evancarmichael.com for how to get in contact with Northern Crown Capital.

2) Review your business plan
� If you are looking to raise capital for your company and would like to know what investors would think about your business plan, you can get it professionally critiqued by Northern Crown Capital. Visit www.evancarmichael.com for more information.

For more information, visit www.EvanCarmichael.com.