2. Volta Ventures
SEED & EARLY STAGE
VENTURE CAPITAL FOR
INTERNET & SOFTWARE
COMPANIES IN THE BENELUX
frank@voltaventures.eu
@frankmaene
3. About me
› Volta Ventures
› Hummingbird Ventures
Big Bang Ventures
› Helping Silicon Valley cies.
expand into EU
› Enterprise software
› Economics degree
22. (Ad)Venture Capital?
5-6/10
3-4/10
1-2/10
deals will loose ± all the money
deals will return ± 1x the money
deals will work out and return 2-10x
early stage VC’s have to seek deals
with 10x potential
... hopefully resulting in returning the
fund + 10% IRR
23. Do you really
want a VC?
› Growth is the main focus
› It’s not just you anymore
› Team
› Board
› It comes with a contract,
a.k.a. shareholders
agreement
› Exit ultimate goal (3-7 years)
24. › Cash
› Exploit an opportunity fast
› Stay ahead of competition
› Advise, Network, Time
Why choose a VC ?
26. What do we need to know?
› Market and size
› Issues with current products
› Your product
› Competition and benefits
› Revenue and Go To Market model
› Team and execution
› 12-18 month runway
27.
28. How to get to
term sheet
› Focus
› You are selling
› Don’t ‘calculate’ valuation
› Don’t give an agenda
› Solicit competitive offers
› Get a lead investor
› Advisors?
@frankmaene
29. It’s a process
LEAD
BP SENT
INITIAL MEETING
RADAR
FIRST DUE DILIGENCE
NEGOTIATION
LOI
DUE DILIGENCE
LEGAL
CLOSE
30. › No magic formula
› Stage / Team / TAM
› Comparables
› Competition
› Runway
› Other terms
Valuation?
32. › 1 product
› MVP
› Pivoting
› Hiring / firing
› Generation = 3 years
Startups must take
big risks
33. Bigcorps have no
appetite for risk
› Too many stakeholders
› Procedures, structure
› Extrapolation from past
“Our organizations are set up
to withstand change
from the outside”
John Hagel, Deloitte Center for Edge Innovation
34. Startup Job or Cult?
› Higher highs & lower lows
› Individual impact - ownership
› Max 1 step away from CEO
› Generalists ok
36. Percent of VC-Backed Jobs In Major
Industry Sectors
Source: NVCA
48.00%
54.00%
72.00%
74.00%
90.00%
Telecom
Computers
Semiconductors/Electronics
Biotechnology
Software
734,064 VC-BACKED JOBS
427,353 VC-BACKED JOBS
620,773 VC-BACKED JOBS
1,179,287 VC-BACKED JOBS
445,596 VC-BACKED JOBS
Mark Zuckerberg – Bill Gates – Steve Jobs
Dries Buytaert – Snapchat founders Evan Spiegel & Bobby Murphy
Businesses that have been ‘cannibalized’ but a simple smartphone
All these products/services are now inside an iphone
Tis should travel ecosystem 1.0
Traveller -> travel agent -> hotel
2.0.
Traveller –[booking.com l log]-> hotel
The logo should ‘show up’ and be seen to go over ‘travel agent
3.0
Traveller – Airbnb
Logo should go over both’ > travel agent -> hotel
VESNA: pls add logo of Paypal to show that they now do Payments and we don’t need banks
And Lendingclub for Lending
-----
At the core banks connect haves with haves not
2 main functions:
Lending connects people with money (savings) to peple without (loans -> subsumed by a.o. paypal (add logo
Payments: customer paying a supplier -> subsumed by lendingclub [add logo
Amazon - from books to cloud to supermarket - $ 100B 2015E
-> competing with Barnes & Noble -> Sears/Walmart (& data center Google)
Uber - valo $40B - raised $1.6B in TTM - from taxi -> deliveries
Paypal - banks - 11.5M tx/d
net Total Payment Volume**, the total value of transactions in Q4 2014 was $64.3 billion, up 24%
revenues for Q4 2014 were $2.16 billion, growing 18% year over year.
Fedex - DHL - Docusign, local ecomm, parcel kiosks, relay points (Kiala), Google, Uber
Booking.com - Enschede 1996 - 2/3 Priceline - 750,000 bookings per day - travel 2.0 - RIP travel agents
Airbnb - travel 3.0 Valued $ 13 BN - RIP hotels (Hyatt (Valuation $ 9.2 / Property assets on books $ 4.6 BN, Wyndham, (Valuation $ 9.8) Accor)
Temping / HR ???
RIF
Netflix - Blockbuster demise, Time Warner Cable, all broadcasters, especially in Europe
Zynga - Nintendo (Nintendo (home gaming) busted the arcade, now Mobile with Zynga leading the way is crushing home gaming)
Twitter - replacing actuality that used to be monopolized by newspapers/radi
Next to first bullet pls add logo Google and AWS (Amazon cloud service) and a graph representing open source.
