3 ways to strengthen your pitch in a
        “crunched” climate
      Edward French, 27th January 2009
Contents


• The credit crunch in the VC world


• A picture of how VC’s see the world


• How the credit crunch effects d...
Enterprise Ventures


• Raised ~£40m in technology funds
    – Preference for early-stage
    – Preference for the North
 ...
The current environment


• US VC rounds carnage
                                       US Venture Fundraising
• UK not so...
Someone
just raised
 the bar!
                                                         5
              http://flickr.com/p...
“Lines of equal return”




                          6
How the world looks to VC’s




                              7
Pre-Credit Crunch: VC’s objective




                                    8
Post-Credit Crunch: VC’s objective




                                     9
Pre-Credit Crunch




                    10
Example business: before the crunch




                                      11
Effect on your proposition: sales




                                    12
Effect on your proposition: financing risk




                                             13
Add people


• Better people cost less for good companies


• Look for Non-Exec Directors with venture
  experience


• It...
Effect on your proposition: financing risk




                                             15
Focus


• Cut as much stuff out of your offering
  as possible- focus on the special bit
    – You can add stuff back late...
Effect on your proposition: financing risk




                                             17
Communicate effectively


• Keep your presentation simple and say what the service IS!


• Build the “autheticity”
    – U...
Effect on your proposition: financing risk




                                             19
Summary


• It’s going to be harder than it was to raise capital
         • Grow organically, Business Angels, Lottery, do...
Contact Details




                  Edward French
                      Email       Edward.french@enterprise-
          ...
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Raising Venture Capital in a post credit crunch world

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Background on how the post-crunch world effects the behaviour of VCs with 3 areas that startups can look to improve their propositions. Given by Ed French of Enterprise Ventures at Northern Startup 2.0 in Manchester 28 January 2009

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  • Raising Venture Capital in a post credit crunch world

    1. 1. 3 ways to strengthen your pitch in a “crunched” climate Edward French, 27th January 2009
    2. 2. Contents • The credit crunch in the VC world • A picture of how VC’s see the world • How the credit crunch effects deal selection • How the credit crunch effects deals • 3 ways to address the issues 2 http://flickr.com/photos/jurvetson/338613504/
    3. 3. Enterprise Ventures • Raised ~£40m in technology funds – Preference for early-stage – Preference for the North – Ideally £100k-600k to start, £500k-£2m ultimately • Approximately 40 deals to date • Software, Medtech, Green, Web, Telecoms • Only specialist team in the North 3
    4. 4. The current environment • US VC rounds carnage US Venture Fundraising • UK not so bad $12 $10 $8 • Main issue is managing uncertainty $6 $4 $2 $0 Q4 2007 Q4 2008 4
    5. 5. Someone just raised the bar! 5 http://flickr.com/photos/thatpicturetakr/2461107564/
    6. 6. “Lines of equal return” 6
    7. 7. How the world looks to VC’s 7
    8. 8. Pre-Credit Crunch: VC’s objective 8
    9. 9. Post-Credit Crunch: VC’s objective 9
    10. 10. Pre-Credit Crunch 10
    11. 11. Example business: before the crunch 11
    12. 12. Effect on your proposition: sales 12
    13. 13. Effect on your proposition: financing risk 13
    14. 14. Add people • Better people cost less for good companies • Look for Non-Exec Directors with venture experience • It’s a great time to find people – Listen to them – Good VC’s will help you find them if they’re interested 14 http://flickr.com/photos/batmoo/61938659/
    15. 15. Effect on your proposition: financing risk 15
    16. 16. Focus • Cut as much stuff out of your offering as possible- focus on the special bit – You can add stuff back later • Look for entry sectors and talk to everyone in them – Not 1% of a $1bn market – Replace superlatives with data • Get endorsement from people in that sector – preferably customers 16 http://flickr.com/photos/ihtatho/627226315/
    17. 17. Effect on your proposition: financing risk 17
    18. 18. Communicate effectively • Keep your presentation simple and say what the service IS! • Build the “autheticity” – Use the data lavishly and the projections sparingly – Be really frank about everything • Get endorsement from people in that sector – preferably customers – Try asking for a small order for something – Let the endorsements speak for you 18 http://flickr.com/photos/brianscott/133789806/
    19. 19. Effect on your proposition: financing risk 19
    20. 20. Summary • It’s going to be harder than it was to raise capital • Grow organically, Business Angels, Lottery, do a different business? • Use great people to help you • Focus • Communicate well and authentically! http://flickr.com/photos/ghost592/800142823/ 20
    21. 21. Contact Details Edward French Email Edward.french@enterprise- ventures.co.uk Phone 07966 347407 Yuuguu ID edwardmfrench@gmail.com Website www.rsgf.co.uk Blog techgain.net 21

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