Venture Capital

Venture Capital

VENTURE CAPITAL CLINIC

…for a diversified, entrepreneurial economy

INTRODUCTION:
The Clinic is a meeting place of investors, venture capitalists and entrepreneurs, start-ups who are in need of investment funds to turn their dreams, inventions and business ideas into sellable products or services. Venture Capitalists aka ‘Angel Investors’ have the investable funds and would consider taking a stake in the Start-ups if the Entrepreneur is able to convince them of the viability of the project. Venture Capitalism while still a novelty of sort in this part of the world is the bedrock of some of the World’s most popular brands like Google, Microsoft , Uber and Facebook.
Venture Capital often called the “Trojan Horse”, the “Dark Force” or the “White Knight” is the driving force behind the world famous Silicon Valley in California, USA. The concept has been successfully entrenched in other advanced economies of the world. However because it is already a culture, an American culture so to say, in the US, it is difficult to imagine the continuing economic growth in that part of the world without it.

Basically, Venture Capital is about the person with an idea using the funds from the venture capitalist to turn an idea into a product, a service that could grow to become market beater. Think of Apple, Microsoft, Intel, Google and more recently Uber. All of them were once upon a time a mere idea in some individual’s mind but have become global behemoths today.

According to the US National Venture Capital Association, 11% of private sector jobs in the USA come from Venture-backed companies and venture-backed revenue accounts for 21% of US $18 Trillion GDP (2015).

The distinction between venture capital and conventional sources of finance is that there is no need for collateral; the investor takes a risk in the startup believing in the success of the venture down the line.
The Clinic is a platform that allows aspiring entrepreneurs to meet face to face with potential Angel Investors that are looking into start-ups they could invest in. It’s also an open forum for invited participants to make presentations, ask questions, and educate policy makers about the workings of the Venture capital concept.

METHODOLOGY
The Clinic will bring investors and aspiring entrepreneurs together face to face in an enabling and conducive environment.
Aspiring entrepreneurs will have a chance to present their business ideas to a number of investors.
Aspiring entrepreneurs will be taught how to prepare and present proposals, cash flow projections and other investment requirements.
There will be case study presentations of successful startups.

PARTIES TO THE CLINIC AND ROLES
State Government
Alfe City Institution
Investors
Start-ups Entrepreneurs
State Government’s Roles
Accept to undertake the hosting of the Clinic in the state as a way of being pro active about the diversification of the economy of the state.
Decide on the venue of the Clinic
Decide on the date of the Clinic
Compile the list of startups, entrepreneurs to be invited to benefit from the Clinic.
Compile the list of major business enterprise in the state that could benefit from venture capital.
Provide the resources and logistics to Alfe City Institution for a successful event.

ALFE CITY INSTITUTION’s ROLES
Provide the State Government with details and information about the Clinic
Work with the State government on preparation for the Clinic
Prepare and provide the resource for the technical element of the Clinic
Coordinate with the state government on the appropriate venue and the chosen date.
Coordinate and execute the Clinic to the benefit of the economy of the state.
Create a Register for all startup entrepreneurs in the state with the assistance of the Government.
Alfe City Institution will partner with the state into the future to support and monitor the progress and development of venture capital culture in the state.

INVESTORS’ ROLES
Attend and participate fully in the Clinic
Provide as much information as possible about their investment portfolios to the participating startups and the host government.

STARTUP ENTREPRENEURS’ ROLES
Attend and participate fully in the Clinic at the invitation of the state government
Be prepared and provide all relevant information about their venture/start-ups

VENUE: The venue must be an enclosed space with multimedia facilities for power point presentation. The venue choice is to be communicated by the State Government to Alfe City Institution at the appropriate time.

DATE: A suitable date in the year to be decided by the government and communicated to Alfe City Institution at the appropriate time. There is a need for a clear 45 days before the designated date for adequate preparation.

CLINIC DURATION: TWO DAYS: 9.30 – 4.00 PM
AUDIENCE SIZE: For effective audience participation by all, a maximum of 200 participants is ideal. It is important that everyone in attendance is able to have a meaningful experience of the Clinic.

COST PROFILE/MANAGEMENT FEE
The cost profile for the Clinic will include but not limited to the following items: Venue cost, Refreshments cost (to be determined by the host) and the management cost N6,900,000.00 (Six million, Nine Hundred Thousand Naira only) covering the Clinic materials, resource, travel , logistics and management fees.

COMMUNICATION
Upon receipt of this introductory proposal/letter, the state government will signify its willingness to undertake the Venture Capital Clinic promptly by communicating this to Alfe City Institution. This response will include an invitation for a meeting during which all matters relating to the Clinic will be discussed and agreed upon.