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Sirb's contribution to Saudi entrepreneurship's Echo system.
 

Sirb's contribution to Saudi entrepreneurship's Echo system.

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Presentation at Entrepreneurship and innovation Forum 2013, Um Alqura University. May 15, 2013. Khalid Suleimani

Presentation at Entrepreneurship and innovation Forum 2013, Um Alqura University. May 15, 2013. Khalid Suleimani

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  • The term "angel" originally comes from Broadway where it was used to describe wealthy individuals who provided money for theatrical productions. In 1978, William Wetzel,[2] then a professor at the University of New Hampshire and founder of its Center for Venture Research, completed a pioneering study on how entrepreneurs raised seed capital in the USA, and he began using the term "angel" to describe the investors that supported them.

Sirb's contribution to Saudi entrepreneurship's Echo system. Sirb's contribution to Saudi entrepreneurship's Echo system. Presentation Transcript

  • Sirb
  • Agenda• Who are we?• How does SirB fit in theEntrepreneurship’s Echo system?• Evaluation Committee Role• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • Who are we: Emergence of Sirb AngelInvestors Network• Lack of Financial channels forStartups/ SMEs• Lack of Expertise inEntrepreneurs• Lack of effective communicationbetween Entrepreneurs & AngelInvestorsAs a result, KACST-BADIRestablished Sirb Angel InvestorsNetwork
  • Online PortalPitching EventsTraining ProgramsSirb AwardFor Best Investment OpportunitiesSirb Network Activities/ Services
  • MainParticipantsActivities/ServicesProvidedObjectivesto beAchievedConsortium MembersEntrepreneursand AngleInvestorsSupportingEntities forTrainingTrainingProgramsOnline PortalPitching Events Comprehensive data base of angelinvestors and entrepreneurs Opportunity evaluation training to the angelinvestors Presentations training to entrepreneurs Periodic pitching events to bring the angelinvestors and entrepreneurs togetherCommunicationbetween investors andentrepreneursAppropriate fundingchannels to SMEsDeal flow to theinvestorsStrategic partnershipswith universities andgovernmentCompetitions Competition for Best InvestmentOpportunitiesSirb Network - Framework
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship’s Echo system?• Evaluation Committee Role• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • What’s an Angelinvestor?Definition• An angel investor or angel is anaffluent individual who providescapital for a business start-up,usually in exchange forconvertible debt or ownershipequity ^.• More interested in success ofbusiness or individual thanmaximizing profit.^^• Exact Opposite to venturecapitalists^^Business Angel7^ Source: Wikipedia ^^ Investopedia
  • Entrepreneurship Echo system8
  • Entrepreneurship Echo system9
  • Entrepreneurship Echo system10MOL SME Programs1.Unified Portal2.Support for accelerators3.Business Communities4.Restructuring of regulations5.Restructuring SME Finance6.Promote SME entrepreneurshipculture7.Access to Market
  • Where do we fit?
  • 12Funding Gap-Where SirbComes in10Investment (one round) $5MM $10MMF&FVenture CapitalAngelsStage Pre-Seed Seed / Start-UpAngel InvestorsUSD 250,000 toUSD 2,000,000(depending on region)Expansion(Launch)Later(Growth)Source PersonalSourcesFriends &Family Venture CapitalInvestmentUSD 25,000USD 100,000USD 100,000USD 250,000USD 2,000,000 and upEarly StageNumberofInvestors
  • 1313
  • How Much Money?• A study of angel investors sponsored by theKauffman Foundation -– Data from 539 investors– Members of 86 angel groups– Made 3,097 investments– 1,137 “terminal events” (bankruptcy to IPO)14
  • Angel Investment paysoff..Bigtime• If you invested in all 1,137 companies that had aterminal event-– You received 2.6X amount invested in 3.5 years– Achieved a 27% annualized IRR– However, returns were skewed:– Less than half returned capital invested– One third produced expected returns– About 15% of deals drove returns
  • 16Comparing Angels and VCs• Invest their own money• Often along with others• May invest in anything and/oreverything• Don’t collect fees• (Hopefully) get a return on investedcapital• Are actively engaged with theentrepreneurs• Wait patiently for returns(up to a point)Individual Angels• Invest other peoples’ moneyAnd perhaps a bit of their own• Focus on markets where they haveexpertise• Earn management fees• Collect a percentage of the returnon invested capital (if any!)• Are actively engaged with theentrepreneurs• Try to return capital within thefund’s life (10-12 years)Venture Capitalists
  • 17Angel Funded Companies5
  • PERSONAL STARTUP TRACK RECORD1994 25K to30M in 14yearsV60M1994 25K to30M in 14yearsV60M2011 1 M to4.7 M in 2years2011 1 M to4.7 M in 2years2011 200K to1.4 M in 1year2011 200K to1.4 M in 1year
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship’s Echo system??• Evaluation Committee Role• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • OUR ROLE• Help Angels Doa morecalculatedInvestment, andreduce the Risk• Helpentrepreneurstalk “Money.”
  • EntrepreneursInvestmentopportunitiesDue DiligenceTechnologyAssessment of alternativeTechnologyMarket positioningValue propositionBusiness ModelFinancial Structure………Angel InvestorsVenture CapitalistsGovernment FundEvaluation Committee Helps toBridge the Gap
  • How good are the materials entrepreneursprovide?2222
  • Angel’s Response2323
  • 2424Angel’s Response
  • Evaluation Committee Helps toBridge the Gap
  • Evaluation Process26
  • Evaluation Committeemembers• Khalid Suleimani:Technology-Entrepreneur• Yasser Baharith: Jeddahmerchant-Traditional-Family business• Hani Baothman: Bigmoney• Soraqa Alkhateeb: Newmedia-Marketing-entrepreneur27
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship’s Echo system??• Evaluation Committee role.• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • Verify Product Viability or real prototypeMake sure all Basic Information in the business canvas is completeFace to face meeting with Entrepreneurial teamPick the right Angels for the pitching eventInvite Groups of Angel that are likely to invest together.Pitching Events
  • WE FOCUS ON “STRUCTURE” ANDBASIC “DUE DILIGENCE” AND LEAVETHE REST TO THE ANGEL.
  •  5 entrepreneurial projects Average Required capital: SAR500k to 5MM 25 Angel Investors 10 signed letters of interest toinvest in 4 projects out of 5.First Pitching EventMarch 10, 2013
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship Echo system?• Evaluation Committee Role• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • “No Passes” get support untilthey get it right33CoachingMentorshipPrototypeDevelopmentIncubationaccelerationBoot Camptraining
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship’s Echo system??• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • ENWANI• Founded by Dr.Abdullah Elias, PHD.• Innovative solution foraddressing problem.• Incubated by BADIRProgram35
  • ENWANI• Received intensive Sirb Coaching & Mentoring• Received 2 letters of interest by Sirb Investors in the pitching event• Winner of Taif International Venture Academy – Best• Winner of Nice,France International Venture Academy – Most InvestableCompany• Received International investment opportunities by Sophia Business Angels36
  • Team Members37
  • Element Plan• Innovative and cost effectivesolution for addressing Cathodeprotection• Received intensive Coaching &Mentoring from Sirb Network• Received 4 letters of interest fromSirb Investors during the firstpitching event• Currently negotiating closinginvestment deals with investors38
  • • Developed a method fordrilling based on specialfitting of machines• CathodeProtection/AnodeSurface/Deep Anode• Excelled in neutralizingstatic electricity of oilpipes for Aramco fasterthan any of thecompetitors39Element Plan
  • shat6er40
  • Sirb Competition41
  • Sirb CompetitionTraining42• Entrepreneurship Essentials• Business Model Generation/Strategy/ Financial Modeling/Corporate Governance• Pitching Skills/Investorsnegotiations/ How to raiseangel capitalB Partnerships
  • Sirb CompetitionFinalists – May 26th43
  • Agenda• Who are we?• How does SiRB fit in theEntrepreneurship’s Echo system??• Pitching events• Entrepreneurship services• SiRB Aces• SiRB Partnerships
  • Partnerships45Potential universitiesPotential internationalpartnersCurrent partners
  • Thank you