IRTRI INVESTOR READINESS PROJECT

INVESTOR READINESS TRAINING FOR REGIONAL IDEAS

WHAT IT IS?

Since 2009 Latvian Venture Capital and Private Equity Association is member in project “Investor Readiness Training For Regional Ideas”.

Investment readiness is a methodology aiming at reducing the information asymmetry between entrepreneurs and investors. This asymmetry often explains why business proposals do not find the expected sources of finance mainly if they operate in high tech fields where, due to the intensive innovative contents of the product, the strong presence of intangible assets and the high technological risks, the information asymmetry is higher.

 

The Investor Readiness Programme developed by META Group within the framework of its operational activity in the early stage financing is based on a novel approach which integrates training, coaching and self assessment exercise in order to develop skills of trainees of the programme on how to raise venture capital in the initial stage of company development by:

1) guiding entrepreneurs in identifying the weaknesses of their business proposition and how to improve it

2) supporting entrepreneurs in fine-tuning their business plan adding all the relevant information requested by investors

3) introducing entrepreneurs to all the available sources of start up financing including equity and support them in choosing the most proper one in accordance to their specific needs

4) supporting entrepreneurs in effectively present their business proposition to  potential investors

 

IRTRI has been tailored on the specific needs arisen from the analysis completed in Latvia and Estonian showing that in both countries:

·         Access to finance is the first request for support expressed by would be/young entrepreneurs, mainly if knowledge based;

·         There is a low level of awareness on early stage financing;

·         There is the need for improving business planning in terms of:

o        Business modelling

o        Strategic planning

o        Internationalisation strategies

o        Marketing

o        Financial forecasts

·         The need to understand the importance of identifying the international market potentials of the products

·         There is a lack of capacity to present effectively business propositions to investors. 

 

A distinguishing feature of IRTRI is that the programme is designed to comply with different levels of “investor readiness” of the trainees, proposing customisable paths which vary in relation to the maturity level assessed, targeting the training delivery on the very specific needs of trainees.

The programme gives in the support according to a very handy and interactive teaching approach which includes exercises and simulations (i.e. identify the competitive advantages of the products, reviewing the level of maturity of the business plan, the business idea presentation to a panel of Early stage investors -Business Angels, seed funds- and communication experts, giving the participants the opportunity to point out weakness and strengths of their presentation).