Seed Capital in Practice - A Guide for You to Start-up

Seed capital in practice a guide for you to start-up* with the help of the Openfund or other seed funding structures George Tziralis & Miro Solanka Fri Sep 24, WebExpo 2010, Prague, CZ

toc / in short •who we are / what we do •tips for you to apply •a case study

The story starts in June 07, with the ﬁrst tiny Open Coffee Athens meeting June 07

February 08 Since then, the network has grown really strong

& the interest on entrepreneurship has skyrocketed November 08 5

January 10 ok, but what’s next? 6

we came a long way y-w ise unit c omm

still, the ecosystem is broken

how can we get there?

to start-up, you need •brainpower •community •funding •advisory

here’s what we had ✓ brainpower ✓ community - funding - advisory

funding, worldwide availability seed VC rounds public

funding, in cse europe availability seed VC rounds public

0 high-tech, early stage investments in GR, 2007 (in €, EVCA)

we wanted to offer ✓ brainpower ✓ community ✓ funding ✓ advisory

making start-ups happen

who we are •7 executive members - bringing knowledge, experience & passion to the table •57technology, management, - on advisors & counting sales, marketing, everything you need to start-up

looking for •stellar teams •globally innovative ideas, still at seed level •disruptive biz models •in and around software and the web

call for proposals •open to everyone (teams of 2-4) •online submission, •in person interview & •presentation day

“incubate” •pick up to 7 start-ups •extensively support in all things start-up •for a 4-month period •iterate

offer •hands-on mentoring, day-to-day, no interfering •networking, globally •30-50k€ for 15% of shares •smooth start & grow

all you need to •quit everything else •focus on your skills, team & idea •don’t waste time on unproductive activities •make it happen

within our ﬁrst year •collected 100s of apps, from 30 countries • selected 5 start-ups, based on 5 countries • just opened new CFP!

how to apply, let’s •share some insights •break some myths •provide some advice *some: subjective views due to limited experience

WYS vs WYG •WYS (What You See): What entrepreneurs write •WYG (What You Get): What investors read & understand

description short yet remarkable

WYS vs WYG - description •complex is good, lengthy is great • complex is not easily sellable, lengthy may remain unread • both by investors and clients

WYS vs WYG - description •fantastic idea! (yet not relevant) • find a fit structure to apply, do your homework first • eg in OF, only software/ web/ mobile ideas get accepted

description •simple & concise •to the extent you get clear •also provide a one- sentence pitch

team all things tech guy chief jack of all trades domain & marketing star your core asset, treat is as such

WYS vs WYG - team •“we are truly great, we can do that part time” •are you truly fully committed? •anything but a clear yes simply won't ﬂy

WYS vs WYG - team •we have 'strong technical background' • share your past work - what makes you great • ideally - have tech & biz & domain knowledge on board

team •introduce yourselves, tell us more about you •how members bond & complement each other •trade-off between skills & commitment, pick wisely

product start small be laser-focused innovate globally

WYS vs WYG - product •“we’ll build the next Google” (or equivalently huge project) •mission impossible, or •they have no idea

WYS vs WYG - product •“we’ll build the local X” •shallow market, no opportunity •hard to beat a well- positioned global product

product •be reasonable, beyond sharing your excitement •showcase that you know what you are up to •also that you have a plan & focus on a speciﬁc idea

competition you are not alone, nor should you want to be so

WYS vs WYG - competition •“we are one of a kind” •no market research performed, or •a questionable need

WYS vs WYG - competition •are there competitors? “Yes” (one word) •who are they / product weaknesses? •is it reasonable to build a new product & compete?

competition •provide a list of your closest competitors •showcase that you differ •educate your reader, pitch your expertise

funding is fuel for your business, take proper advantage of it

WYS vs WYG - funding •“we’re superb! thus, we ask for lots of money” •study what is offered ﬁrst •no homework done suggests you're not a serious partner

WYS vs WYG - funding •“we’re modest, we ask for less money” •the targets are set low, or •not experienced on building a business

funding •make a request within the range offered •provide a rough cost breakdown •next to a product, try to set up a scalable business

WYS vs WYG - goals •“we’ll have millions of users, within 4 months” •unrealistic targets, or •very inexperienced team

WYS vs WYG - goals •“we’ll be ready to start building a product” • very slow, or the product too big to ﬁt • focus on a feasible one within the timeframe

goals •pave the way to a working product, quantify •bringing you close to a next round of funding, or • organic sustainability/ growth

to sum up •be honest •build trust •you are looking for a partner

to sum up • highlight what makes you a great ﬁt for that product/ market • show that you are aware of your weaknesses and you have a plan to address them • plans are wrong, yet needed as a compass

apply till Nov 30 http://theopenfund.com | info@theopenfund.com

Get Organised. Meet. Play.

the story starts here...

can’t keep up with email This REALLY bothers me!

can’t ﬁnd other players!

That’s HOW I like it!

how to get there ✓ vision & plan ✓ committed team - $$$ - experience & advice

get the fuel •value proposition •team that delivers •2-way relationship •how you will deliver

selection process 1. online submission of the application 2. remote interview 3. in-person presentation

#1: initial application •deﬁne the core idea •write less & more concisely •revisions based on feedback from the Openfund

#2: interview •extensive feedback in preparation from the OF board •5’ presentation & 5’ demo •Q&A section •be yourself

#3: presentation •collaborate with the OF •20’ pitch to the executive board, investors and advisors •meet in-person

#4: incubation •4-month period to deliver the v1.0 •worked together with the advisors •20% preparation & 80% perspiration

The launch day!

Come play with us! http://sportmeets.com | miro@sportmeets.com

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Seed Capital in Practice - A Guide for You to Start-up

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