Partnering with a Venture Capitalist:
An entrepreneur’s manual




          Alex Brabers, Executive Vice-President Gimv
Why ?
        2
The VC: a rich business partner
                                  3
Aim for Sequoia’s, not Bonzais   4
5
Exit
                           committe                                                    Multiple
                     ...
Management
                                    team


                                                             Industr...
Who ?
        8
Diversity of partners




                        9
Diversity of VC’s
 •   International           •   Local
 •   Deep pockets            •   Drip feeding
 •   Team player   ...
Choosing among the VC’s




                          11
Matching profiles




                    12
How ?
        13
Matching process
Real life      VC life
• Dating       • Initial contact
• Engaging     • Due diligence
• Wedding      • C...
Indicative investment process
  Business       Initial    Follow-on      Multiple information      Presentation to
plan se...
Due diligence




                16
Due diligence
Product                           Management team
  – Technology                      – Complete & coherent
...
Parties involved
             Sponsor: project manager and deal champion
                  Supported by Co-sponsor

Due di...
The entrepreneur and VC
  as business partners




 A strong combination     19
Questions ?


Alex Brabers
EVP Gimv
alex.brabers@gimv.com
T: +32-3-290.21.65
M: +32-495-21.21.64
www.gimv.com

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I Minds2009 Alex Brabers (Gimv) Partnering With A Venture Capitalist An Entrepreneur’S Manual

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I Minds2009 Alex Brabers (Gimv) Partnering With A Venture Capitalist An Entrepreneur’S Manual

  1. 1. Partnering with a Venture Capitalist: An entrepreneur’s manual Alex Brabers, Executive Vice-President Gimv
  2. 2. Why ? 2
  3. 3. The VC: a rich business partner 3
  4. 4. Aim for Sequoia’s, not Bonzais 4
  5. 5. 5
  6. 6. Exit committe Multiple e revenues Strategic BoD Remunerat Developme Value Bus model Bus model fun committee ion nt chain 2 committee VAR founders Developm scaling energy Audit ent committe Technolog Partners VP sales team persisten e y ce influencer Channel Special Beta Patents CEO Incentives VC B- flexibility Financial partner interest customer VP R&D round plan group Research Alpha Auditor Co- Co-lead company customer investor VC Role customer customer VP S&M Lead VC Communi model cation exit acquisition reporting customer PR agency Headhunte lawyer Product VC C- infrastruct IT s r marketing round ure scorecard minutes consultant Partner Channel Internatio ambition strategy 6 Investmen sales nal sales meetings t banks premises
  7. 7. Management team Industry Financial Network Support Supporting Business Building Enabling Governance Partnerships Legal Support We only offer our added value to the CEO. We do not impose. He/she decides. 7
  8. 8. Who ? 8
  9. 9. Diversity of partners 9
  10. 10. Diversity of VC’s • International • Local • Deep pockets • Drip feeding • Team player • Individualist • Strategist • Financial • Hands-on/hands-with • Hands-off • Business building • Shareholder • Structured processses • Ad hoc • Connected • Isolated • Industry insight • Generalist • Long term perspective • Short term perspective • Tough guys • Nice guys • Track record • Inexperienced • Successful • Unsuccessful 10
  11. 11. Choosing among the VC’s 11
  12. 12. Matching profiles 12
  13. 13. How ? 13
  14. 14. Matching process Real life VC life • Dating • Initial contact • Engaging • Due diligence • Wedding • Closing • Marriage • Business building • Exit 14
  15. 15. Indicative investment process Business Initial Follow-on Multiple information Presentation to plan sent out meeting meeting requests full VC team Term sheet Contract drafting Signing Closing w0 w2 w4 w6 w8 w12 w15 w16 KO criteria Investment memo passed Initial due Main due diligence prepared diligence positive ongoing 15
  16. 16. Due diligence 16
  17. 17. Due diligence Product Management team – Technology – Complete & coherent – Intellectual Property – Experience – Unique Selling Proposition – Skills & Potential versus Competition – Ethics Financials Market – Past financials – Existing & target customers – Forecasts – Channels & Partners – Business model – Market potential Exit potential 17
  18. 18. Parties involved Sponsor: project manager and deal champion Supported by Co-sponsor Due diligence (internal) Due diligence (external) • Sponsor & Co-sponsor • Technical consultant • Market analyst • Financial auditor • Financial analyst • HR auditor • Legal counsel • (IP) lawyer • Market analyst Decision making • The full VC team Decision • The advisory board Sounding board • Investment committee Quality control Deal execution • Sponsor / co-sponsor Legal counsel / lawyer 18
  19. 19. The entrepreneur and VC as business partners A strong combination 19
  20. 20. Questions ? Alex Brabers EVP Gimv alex.brabers@gimv.com T: +32-3-290.21.65 M: +32-495-21.21.64 www.gimv.com 20

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