Ingenia

The presentation was well structured complete with an agenda, swot analysis and summary.  The content brought the audience into the business, who is on the team, what do they do, how do they do it… quite personable in feel.  The President provided credibility to the presentation through her own intimate involvement with the product, customers, and business operations.  Credibility was further increased through referencing a 10 year track record and clients. 

The pitch was based on a SWOT analysis and candidly presented their strategy.  The strategy can be interpreted as being unable to make it in the home market thus heading out to a foreign market.  Intuitively, I would consider the home team to have an advantage, especially when ties to the government are identified as important in the presentation.  

The pitch requests $100,000, that is not a lot of money to raise in the form of love money ($10,000 each if 10 employees and thus available as a line of credit).  I am uncomfortable with the fact that they were able to self finance for the preceding 10 years and now require an outside source for $100,000.  The 20% return is less than the 20% EBITDA or 20 times return on investment in 5 years as per Angel’s selection criteria.  The numbers presented suggest no go.

Interesting side note, the www.ingenia-training.com  domain has expired.

5 comments


1 Gillian Gunderson { 09.11.08 at 11:51 am }

I’m glad you brought up the money issue. I was uncomfortable with the issue, but wasn’t able to articulate it the way you have.


2 Marc Kampschuur { 09.11.08 at 12:27 pm }

Gillian:

Dont worry, if you need somebody to be tactless or direct, can count on me 🙂

I spoke with a lawyer friend last year on the subject of raising money and he enunciated “blood money” (I like the term “love money” from the Business Bootcamp a little better) as a key consideration – if your family and friends dont trust you enough to put money into it…

Of course the challenge is that some families simply dont have money and a person may want to keep friends as friends and not involve them in personal business. Suppose it then comes down to own equity (house, RRSPs, first borne…).


3 davidp { 09.11.08 at 2:07 pm }

And that’s where angel investors and venture companies come in.

They have investor money to “risk,” but will want a significant piece of the company to offset that risk, should they select it for investment based on a promising pitch coupled with their own vigorous analysis of the opportunity.

Typical questions include:

* What’s your play?
* What’s your differentiator in the market?
* What are the barriers to entry for others (e.g. patent)?
* How much money will you need and how would plan to use it?
* Who’s on the team?

This is likely the context in which your friend referenced the “blood money.”

d.


4 Joey Dabell { 09.11.08 at 7:22 pm }

Hi Marc,

Like Gillian, I too appreciated your insights about the financials. I’m a neophyte in this and am still trying to get a grasp on the actual dollars part of the pitch.

I also noticed your interesting side note. To add to that, I see that Ingenia’s new URL is http://www.ingenia-consulting.com. So the “training” has been replaced by “consulting”.

I paid a quick visit to the Ingenia website and found a paper on project for the Vietnamese Ministry of Fisheries. But I didn’t seem much about their work in SE Asia. Perhaps that could be because the pitch is very a recent one (was there a date on this pitch?). Or, were they simply unable to proceed into this new market? If not able to proceed, is it because they were unable to secure venture capital? And if that is the case, what lesson might they have taken away from the experience? Or did they regroup and decide to transition in a new direction?


5 Carolann Fraenkel { 09.11.08 at 8:09 pm }

Hi Marc,

Having been one of those friends who “trusted” twice now to the tune of lots of money, (more than 10K) and lost, I do actually understand the desire to get Venture Capital. Better someone who has the money to lose than feeling like you let your friends/family down.

Carolann

You must log in to post a comment.