Startup galore the best way of financing ramp up for founders ... a view from a venture capitalist

1,907 views
2,009 views

Published on

I gave a speech to young founders and entrepreneurs about the best way to ramp up financing for their startups. What are the pitfalls from early financing. How to get best return on taking on investors. Why consider thinking about exits throughout the whole process for a Startup founders. A lot of do's and don'ts to be considered.

Published in: Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,907
On SlideShare
0
From Embeds
0
Number of Embeds
1,134
Actions
Shares
0
Downloads
5
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Startup galore the best way of financing ramp up for founders ... a view from a venture capitalist

  1. 1.  Startup  Galore  …    …  -­‐  the  best  way  for  founders  to  ramp  up  financing.    Thomas  Grota,  Investment  Director  T-­‐Venture  (Deutsche  Telekom)                                                                                                  @thomasgr          Blog:  thomasgr.tumblr.com        
  2. 2. Thomas  Grota,  Investment  Director  T-­‐Venture   Venture  Capital  Firm  of  Deutsche  Telekom  AG   § CTO  of  Pironet  AG  for  7  years    (IPO  2000)   § Dynamic  CMS  &  Digital  Asset  Management     § Deutsche  Telekom  2003  -­‐  today:     § VP  MarkeSng  &  Strategy  (Paris,  London)     § IPTV  Expert  at  Detecon  (Asia,  MENA)     § Investment  Director  at  T-­‐Venture   §  Exited  apprupt  to  Opera     §  Exited  Swoodoo  to  Kayak   §  Exited  6Wunderkinder  to  Sequoia   §  Raised  +$250m  for  his  por`olios   Thomas Grota – Investment Director T-Venture Holding GmbH – @thomasgr
  3. 3. My  current  por`olio  and  areas  of  VC  experSse:   Mobile  Internet,  Big  Data  &  Cloud  based  Pla`orms     Thomas Grota – Investment Director T-Venture Holding GmbH – @thomasgr E  X  I  T  S  
  4. 4. Selected  successful  exits  of  T-­‐Venture   E-Commerce solution 1998: IPO @motion Wireless internet access 2000: trade sale to Openwave (formerly: phone.com) Web conference provider 2000: IPO Internet payment services 2010: trade sale to Deutsche Telekom Online Flight Search and Bookings 2010: trade sale to KAYAK Optical Networking Applications 2010: trade sale to Cisco Fabless Semiconductors 2010: trade sale to Broadcom Real-Time Collaboration Software 2011: trade sale to Citrix Search Portal for Discount Offers of Local Retailers 2011: trade sale to Axel Springer Wireless Access Technology 2012: trade sale to Ericsson "On-Demand" E-Commerce 2012: IPO Wireless Systems for Home Networks 2012: IPO Security Solution for Mobile Enterprise Devices 2012: trade sale to Rapid7 Mass calling service 2002: trade sale to Deutsche Telekom Femtocell Technology 2013: trade sale to Cisco Customer experience management solution. 2009: trade sale to Tektronix Communications Mobile messaging solutions 2008: trade sale to Nokia Web based calling company 2010: trade sale to Telefonica End-to-end wireless internet solution 2008: trade sale to Microsoft E-Commerce 2006: shares sold to Holtzbrinck + Weltbild Multimedia core solutions 2007: IPO Core networking infrastructure provider. 2008: trade sale to Nokia Siemens Networks Social P2P media networking platform 2006: trade sale to Sony Pictures Entertainment M-commerce infrastructure solution 2006: trade sale to Amdocs Mobile broadband 2005: trade sale to QUALCOMM Transit application 2013: trade sale to Apple Multi-platform productivity solution 2013: trade sale to Sequoia Mobile advertising 2014: trade sale to Opera Software
  5. 5. 5      1st  Stage:      Equity  is  the  most  valuable  asset  you  have.    
  6. 6. Don't  run  for  the  big  check  -­‐  at  least  in  the  begining.    
  7. 7. 7    Keep  your  costs  low:  office,  travel,  opex,  etc.   a  lot  is  for  free  out  there  or  share  from  friends    
  8. 8. 8    Always  ask  for  advise  -­‐  not  for  money.     (money  will  come  if  advisor  is  interested)  
  9. 9. 9    When  taking  investors  on  Board,  let  them  pay  with   connecSon,  operaSons,  biz  dev,  sales,  markeSng...    
  10. 10. 10    2nd  Stage:    Be  carefull  …   when  taking  on  financial  investors  
  11. 11. 11 Prefer  more  parSes,  at  least  two  parSes  from  start.   (Google  took  SeqCap  &  KPCB)  
  12. 12. 12  Aeer  first  round  always  seek  new  investors.      Don't  get  depended  on  your  current  investors.  
  13. 13. 13    You  will  be  in  fundraising  mode  allways  &  at  all  Smes   Never  stop,  Never  give  up.    
  14. 14. 14 Consider  secondaries  whenever  possible.     Exit  for  early  investors  to  protect  your  own  equity.    
  15. 15. 15 3rd  Stage:      Think  about  Exit  as  a  precausion      
  16. 16. 16 Opportunity  for  Exit  can  come  every  day,  be  prepared   Have  made  up  your  mind  -­‐  'No'    is  always  an  opSon.  
  17. 17. 17      Consider:  Early  Exit:  lower  price,  big  stake                                    vs.  Late  Exit:    higher  price,  small  stake     Opportunity  for  New  Venture  is  in  Early  Exit.    
  18. 18. 18    Stay  in  driver  seat  during  Exit  process  –        it  will  consume  ressources  but  is  worth  while.    
  19. 19. 19 Breakup  could  happen  –  so  be  prepared.  
  20. 20. 20 Have  enough  runSme  for  your  exit  road.    
  21. 21. T-­‐Venture  Por`olio  contains  currently  100  companies.   Two  Funds  managed  for  Deutsche  Telekom  AG   Thomas Grota – Investment Director T-Venture Holding GmbH – @thomasgr

×