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Silicon Valley Law firms do it. VCs do it. Management Consulting firms do it. Why not us? OTP prides itself on its 10+ year dedication to flexibility, entrepreneurship, and innovation. We are interested in partnering in new business ventures with e-companies, startups, brick and mortar enterprises, and professional associations both in the U.S. and abroad. By providing IT and Business consulting, assisting in the development of new technologies, and offering numerous other services from our stable of 120+ consultants, OTP Software can sometimes be the difference between getting or not getting funding and will certainly limit the amount of the company that has to be given away. For example, an early seed stage company can expect to save 10%-20% through a strategic partnership with OTP Software. Click here to find out more how OTP Software can affect the mechanics of venture financing to retain more equity for the founders.
Here are a number of services and benefits we can offer:
Our services are distinct from, and complimentary to, those provided by law firms, VCs and Management Consulting firms. We can offer increased market share, attractive ROI and the execution of your ideas and dreams. Please read our services sections to identify possible ways we can establish a mutually beneficial relationship.
You may contact us at firstname.lastname@example.org for more details.
Venture Equity Investors and Lendors typically like to invest large amounts at lower risk than small amounts at higher risk - (as investment evaluation and transaction costs are about the same for large and small deals). Investments made in the later stages of business development are typically less risky than earlier stage financing.
Therefore, by having OTP participate in the "enablement of the new business" we can sometimes be the difference between getting or not getting funding and we can certainly limit the amount of the Company that has to be given away. This last point is illustrated with the below chart that shows a summary of what percentage of a Company's value is typically given away during the first round of venture financing by the stage the Company is in at the time they ask for first round funding.
Companies that require VC financing in the Early Seed Stage often require 3-4 additional VC fundings, diluting the original founders position down to 5-10% of the stock, before completing the mezzanine IPO or Acquisition phase. These figures already assume VC, lawyer and accountant involvement. If OTP adds incremental execution value to push a startup into later stages of business development before requiring additional funding, the total number of funding rounds is reduced and lower-cost funding alternatives unavailable to early seed-stage companies become possible. OTP Software can save the founders 10-20% of total stock.
The following example is not unreasonable: Let's assume that by IPO-time, the founders of <yourcompanyhere.com> own 10% of total stock coming to them without our involvement and another 15% of total stock that we saved them. Before going public, there exists 3,000,000 shares that are owned 25% by founders and 75% by various VC investors. The Company offers an additional 3,000,000 shares in their first public offering and they get $10 per share or $30 million in equity capital that is injected into the firm. In this case our participation contributed 60% of the total value going to the founders or 450,000 shares. And the Company is assumed to have raised enough capital to fund its next stage of growth. A successful on-time beginning.
Unlike many players in the Valley, we are not greedy. Though opportunities are considered case by case, in general we accept flexible payments and terms. Software purchases can be matched to anticipated growth and a portion of our service fees can be discounted/traded for stock.