简介：EntrepreneurspitchforinvestmentintheDenfromourDragons,fiveventurecapitalistswillingtoinvesttheirownmoneyinexchangeforequity. RulesoftheDen Likeanygoodinstitution,Dragons'Denreliesonrules.Withoutthese,theDenwouldbeamuchmorechaoticplace.PresenterEvanDavieswilloftenrefertotheserulesduringhiscommentary.Herearethebasics-theeightgoldenrulesthatshapepresentationsandnegotiations. RULE1:THEPITCH Entrepreneursmuststartthemeetingbystatingtheirname,thenameofthebusiness,theamountofmoneytheyarepitchingforandthepercentageofequitytheyarewillingtogiveawayintheircompany. Theymustfollowthiswithapitchofuptothreeminutes.Ifitexceedsthreeminutes,theDragonscanstopentrepreneursatanypointbuttheycannotinterrupttheinitialpitch. RULE2:THEQ&A EntrepreneursDONOThavetoanswerallthequestionsasked,butwhattheydoordonotchoosetoanswermayaffecttheoutcome-forexample,iftheyrefusetorevealnetprofits.TheymayasktheDragonsanyquestionsthathelpthemdeterminewhethertheyaresuitableinvestorsfortheirbusiness. ItisimportanttonotethatanythingthatisdiscussedintheDencanbepotentiallybroadcast. RULE3:OPTING'OUT' Entrepreneurs'timeintheDenisoverafterallfiveDragonshavedeclaredthemselves'out'. Also,onceaDragonhasdeclaredhisorherself'out',theyMUSTNOTre-enternegotiationonthedeal,andunlessthereisacompellingreason,theyshouldremainquietandleavetheotherstopursuethenegotiations. RULE4:INVESTMENTS Theentrepreneurmustsecureatleastthetotalamounttheyhaveaskedforatthebeginningofthepitch. IfaDragonofferslessthanthefullamount,theentrepreneurmusttryandmakeupthetotalbysecuringaninvestmentfromoneormoreoftheremainingDragons. EachentrepreneurmustleavetheDenwithatleastthefullamounttheyaskedforortheyexitempty-handed. Theentrepreneurcannegotiatemoremoneythanwasoriginallyrequested,asthisisusuallytoredressthestickingpointofanentrepreneurgivingupmoreequitythanwasinitiallyoffered. RULE5:MULTI-DRAGONINVESTMENTS EachDragonisworkingasanindividualinvestor.TheDragonscaninvestaslittleorasmuchoftheirownmoneyastheywant.Itisuptotheentrepreneurtopersuadethemtomatchtherequiredinvestmentorpledgetoinvestaportionthereof. Asabove,itisacceptablefortheentrepreneurtoseekinvestmentfrommorethanoneinvestorinordertomakeupthetotalamountrequired.Afullinvestmentmayinvolvebetweenoneandfiveparties. RULE6:REFUSINGINVESTMENT AnentrepreneurcanrefuseinvestmentfromaDragoniftheythinktheyareanunsuitableinvestororthedealonthetableisn'trightforthem. RULE7:THEDEAL Thedealagreedonthedayisanunwrittenagreementthatdependsonduediligencechecks,andreliesontheintergrityofbothinvestorandentrepreneurtofreelyenterthetransactionandbefullycommittedtoseeingitthrough. However,thedealissolelybetweentheDragonandtheentrepreneurandafteradditionalmeetings,ifanagreementcannotbereached,neitherpartyislegallyobligedtocompletethedeal. TheBBCremainsimpartial,astheycannotbeinvolvedinthebusinesscontractbetweenthetwosides. RULE8:THEADVOCATE EntrepreneursarepermittedtohaveanadvocateonstandbyintheDen,tohelpthemanswersomeoftheDragons'questions.Thisadvocatemustusuallybesomeonewhoisdirectlyinvolvedinthebusiness.TheycanasktheDragonstomeettheiradvocateatanypointafterthethree-minutepitch. AnyadvocateattendingtheDenmustbepre-approved,screen-testedandhavegonethroughthesamepersonalchecksastheentrepreneurs.…