The Access Team works with Silicon Valley Nano Ventures and a network of angels, venture capitalists, and private equity firms to provide start-up and early stage funding. We work on a cash or stock retainer plus a success fee.

The sales documents required to close funding are the executive summary, the powerpoint presentation, and pro-forma financials. Back up documents include product/market and technology validation, intellectual property

We work with the company to prepare the documentation and to deliver the right message to the right people at the right time. The normal process includes identifying a pool of potential investors, qualifying the lead investor, and working with the lead investor to assemble a syndicate.

Depending on the size of a funding anywhere from two to five investor groups may participate. Closing the lead investor is the absolute requirement for a funding, which is our major focus.

Investment banking services - negotiating the terms and conditions to close a funding - are provided by Ken Epstein, a SEC licensed investment banker.

Contact us for a complimentary evaluation of your project needs.

Funding Overview:

The initial funding for most new companies is provided by family, friends, and the team. That is, the new venture usually leverages the network of the founders, including corporate and intellectual property (IP) attorneys, marketing and technical consultants, etc. This funding can be in the form of cash, credit (e.g. pay IP attorneys from the professional funding round), or "work for stock".

Seed round funding can be provided by "angel investors", by seed round venture capitalists, or in the form of development contracts from large companies interested in the new venture's technology and product development path.

Seed round funding is usually in the $500,000 to $1 million range.

Often the seed round is in the form of a convertible note with interest or equity kickers in the form of warrants, with the note converting once a pre-determined first round of funding is closed.

For example, a $500,000 note, convertible to stock upon close of A round funding in total amount of $3,000,000, including the convertible note. Interest accrues, also convertible to stock, of one percent (1%) per month. Warrant coverage (rights to purchase stock) of 20% for a term of 3 years at the A round price, which must be exercised upon closing of a B round of $9 million or more.

Seed round investors may receive a board of directors seat but often do not.

The A round is the first round of funding from professional, institutional investors, most likely venture capital funds. While the company's founders and team have Common Stock or options on common stock, the A round investors usually received Preferred A Stock, that is stock which has certain preferences such as liquidation (the investors have to be paid back their investment upon sale or liquidation of the company before the Common Stock receives any payment).

Typical A rounds for start-up ventures in Silicon Valley are in the $3 - $5 million range, in part because entrepreneurs and founding teams want to retain majority ownership in their venture, while investors usually value new ventures in the $3 - $6 million range.

A round investors always receive a board seat and if there is a lead and a co-lead then they may receive two board seats.

Typical B rounds for early stage ventures are in the $9-$15 million range, assuming that the company has met the goals of the A round funding.

Valuations can be flat (no increase in stock price) or stepped up (increase in stock price based on company achievements) or crammed down (initial investors are wiped out, all or part, in case the company failed badly to meet A round objectives).

The B round investors usually receive Preferred B stock, which can have a different set of Preferences from the Preferred A stock.

B round investors usually receive one or two board seats.

The purpose to have multiple investors in each round is (i) to have a larger pool of capital to draw on than with one investor and (ii) to have more extensive professional networks to draw on than with one investor.