Re: [kFW] Kendra Foundation funding strategy...

[Paul Evans <paul.evans@xxxxxxxxxxxxxxxxxxxxxxx>]

Hi Daniel

If you're looking at obtaining funding you need to create a business plan,
which normally contains:

1) Clear objectives and overview of the opportunity
2) (Preferably) a design for the software - if possible
3) Timescales for design, implementation, testing, deployment
4) Management team details e.g. who will manage the project. If you're
looking at obtaining significant money you really need somebody who is
experienced in these matters
5) A clear proposition to third parties as to why they should contribute the
money i.e. What commercial / other benefit they would get out of it. The
'good publicity' angle simply isn't enough
6) What equipment would be needed for development and testing
7) An exploitation (marketing) plan
8) Product road map
9) How you will work with standards institutes
10) Cashflow forecasts for at least 2 years
11) Competitor analysis

Until you've answered these questions you'll probably find it difficult to
attract significant funding. Investors normally release funds in stages,
subject to milestones being achieved so you'll need to think carefully about
how you can segment the project in 6 to 9 monthly stages.

IMHO 5 years sounds like a really long timescale. Few companies take such a
long term view and so it might be worth looking at how you can compress the
project into 2 years so that it can deliver maximum benefit quickly.
Remember, the longer the project takes (i) the greater the risk of it
wandering aimlessly (ii) somebody else beats you to it (iii) people losing
interest

Hope this helps!

Cheers,


Paul.
--
Paul Evans, CEO, Off The Shelf Software
The Technology Centre, Station Road, Framlingham, Suffolk IP13 9EZ
t: 01728 726599 f: 01728 726533 e: paul.evans@xxxxxxxxxxxxxxxxxxxxxxx

On 2/11/03 11:04 am, "Daniel Harris" <daniel@xxxxxxxxxxxxx> wrote:

> Hi there All,
> 
> It's been a few months since there was any traffic on this list but,
> alas, all good things must come to an end! ;-)
> 
> So, we're making very good headway with Neil Harris on the KendraBase
> prototype. I hope to launch it at Milia 2004 - waiting for confirmation
> from the organisers. Then I want to go out for funding. 5 million quid
> seems to be a nice figure. 5 to 10 people (no more) for up to 5 years.
> Mostly developers but big marketing spend too.
> 
> Last week I attended the Broadband Stakeholder Group Broadband Britain
> Conference. I hinted that we'd be looking for funding and was surprised
> by the interest shown. I mean they weren't saying go away. They started
> coming back with ideas. There seems to be cash out there. I need to
> send off a few emails to the DTI to start off with. Need to look at
> corporate sponsorship as well as government and NGOs.
> 
> Is 5M too small? Should we call it seed money so we don't box ourselves
> in? What's the best way to get the cash in the bank? Any ideas to start
> off the bidding?
> 
> Cheers Daniel
> 
>