Entrepreneurs




“The longer you’re not taking action the more money you’re losing.”

      – Carrie Wilkerson

Funding Application

Funding requests are invited from companies that meet many, if not all of our criteria. Please read the content on this page before submitting your business plan or executive summary.

The funding process starts with submitting your Executive Summary or Business Plan to us by via our Contact form (Link below). Generally, by the next business day we will acknowledge receipt and you will hear again from us after our initial review, usually within 5 business days.

We understand that for many early-stage companies, the Business Plan/Executive Strategy is a "work in progress", and often given a lower priority compared to product and service development.  In many cases, completion of the Business Plan requires some of the funding being sought.  This is another area in which our hands-on approach can assist.  If you believe you have a compelling business, we encourage you to submit your Business Plan and/or Executive Summary for review, even if you consider them a "work in progress".

Executive Summary & Business Plan

The objective of the Executive Summary is to highlight the most important details about your business, enabling Xaphan Group to determine if it is of potential interest to our investors.  It should be no more than five pages and address many of the criteria we use to evaluate investment opportunities.   The Executive Summary generally follows the outline of your investor PowerPoint presentation but in a narrative form and with appropriate charts and tables.  The Business Plan is essentially a more in-depth version of your Executive Summary.

Ideally, the following topics, to various depths, should be included in the Executive Summary and Business Plan and arranged in the order to best fit your business.  Avoid falling into the trap of focusing predominantly on your technology/product/service at the expense of discussing the business.  Xaphan Group investors want to understand the business ecosystem and investment opportunity as well as the actual offering.

Company Overview
  • Mission
  • History, including key accomplishments to date
  • Investment being sought
  • Key milestones next six months and two years
Problem
  • What is it and why is it a major pain point for the customer? 
Solution/Value Proposition
  • Description of product(s)/services (include pictures/diagrams if appropriate), functions & features
  • Why is it a "must have" for your customers
  • Development stage
  • Timing of, and process to, commercialization; key hurdles
  • Unique attributes and opportunities
Technology/Barriers
  • What is your core technology?
  • What barriers to entry can you erect against competitors?
  • Intellectual property
  • Costs of switching
Market
  • Definition and size
  • Expected share and timeline
  • Industry trends
  • Need for product(s)/services
  • Necessary/beneficial partnerships and status
Business Model
  • How will you make money?, how much, what timeline?
  • What does a customer pay for your product/services? What is your cost of delivery?
Customers
  • What segments are you targeting?
  • Who makes the buying decisions?
  • Early adopters/Current customers-how are they reacting?
  • What is your expected sales cycle and customer acquisition costs?
  • Sales & marketing strategy; progress to date
Competition
  • Who, what, where  are current/anticipated key competitors
  • Comparative analysis, including key features and benefits
  • Competitive advantage/market differentiators
  • Barriers to entry for competitors and company
Who
  • Founders, key management, advisors, Board of Directors
  • Prior relevant experience individually and working together
  • Current needs/key vacancies
Funding
  • Founders' investments(s)
  • Other sources of funds to date
  • Current ownership structure
  • Current raise - amount, security type (e.g. convertible note, preferred shares, or common shares)
  • Details of how the funds will be used, milestones that will be accomplished
  • Total funds needed to reach (1) positive cash flow and (2) exit
  • Estimated pre-money valuation, how did you arrive at this number?
Financials
  • Financials to date, cash-flow situation, current burn rate
  • Summary projected financials (3-5 yrs.).  Include revenue, units (customers or number of products), COGs, sales & marketing, net income, gross margin, and cash balance
  • Use of funds
  • Financial milestones/inflection points next six months and two years
Exit
  • Exit options; if acquisition, who are potential acquirers
  • Exit trigger(s)
  • What is history in this space
  • Timing
Risks
  • What keeps you awake at night?
  • Product/service risks
  • Market risks
  • Company risks

 

Please be aware that while trust and integrity are among our core values, like most investment groups, Xaphan Group does not accept confidential information and does not sign Non-Disclosure Agreements in the early stages of discussions and due diligence.  It is up to each company to determine what investor material they provide as part of the evaluation process.

Click here to be directed to the contact form and submit your inquiry.