In this episode, Hall is joined by Manuk Hergnyan co-founder and managing partner of Granatus Ventures. Granatus Ventures is the first Venture Capital firm in Armenia to provide funding, expertise, and networks to promising technology-driven startups based in or having core value-add activities in Armenia. Granatus Ventures is backed by an experienced team of investment professionals with a passion for building great companies. Granatus was established in 2013 and has offices in Yerevan, London, and Singapore. Manuk is the founder and managing partner at EV Consulting, a leading management advisory and corporate finance firm, with offices in Yerevan and Moscow.

In this episode, Manuk shares his thoughts on what he is most excited about in the industry as well as advice to new investors and startups. He says that being in the venture-capital industry, it provides you with new opportunities every day. The startup ecosystem in Armenia is in very dynamic evolution. There are new and exciting opportunities in deep tech and companies that apply scientific knowledge and discoveries for commercial opportunities. Some of the applications help address the most fundamental problems that humanity and societies are facing. There is a lot of power of technology to solve those issues.

The terms sheet sets out the Information Rights for the investors.
 
The Information Rights section defines what information and reports are required and the reporting schedule, and sometimes which investors are entitled to receive the information.

The standard set of financial reports that investors require include profit and loss (P& L) statements, balance sheets, and cash flow statements. For early stage companies these are typically unaudited financials. For a startup that is up and running, founders should recast the business plan as an operating plan that clearly outlines the key milestones the team intends to achieve.

Typical milestones for a growing startup include sales goals, new product introductions, new customer segment plans, and team expansion. In most cases, reports are provided quarterly.  
 
It’s a benefit to founders to limit the number of investors who will receive reports and financials. Many startups have sensitive or proprietary information, so it makes sense to keep the distribution list small.
 
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today!