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FUNDING- AND ECO-SYSTEMS
FOR START-UPS (ICT)
JAN VORSTERMANS
MANAGING PARTNER
VENTUREWISE
2
BACKGROUND: LIFE SO FAR
 General
o Born 25 March 1960
o M.Sc. Telecom Engineering from Ghent University
 Career
o 1984...
HAVE STARTUP STOP NEED MONEY STOP
PLEASE HELP STOP
THE PROBABILITY OF START-UP SUCCESS IS LOW, WE NEED
PROGRAMS THAT ENHANCE PROBABILITY OF SUCCESS
 Many start-ups, many wi...
SUCCESSFUL ENTREPRENEURS ARE MOST OF THE TIME NOT
UNIVERSITY DROP-OUTS
Choose a job you like, and you will never have to w...
ARE WE SELECTING THE RIGHT START-UPS FOR INCUBATION
AND ACCELERATION?
Choose a problem that
agitates the crap out of you
M...
DO WE ALWAYS NEED TO PUSH FOR EXTERNAL (RISK)
INVESTMENT?
Investors do not grow on trees
Growth & comfort don’t co-exist
P...
8
THE NATURE OF EARLY INVESTMENTS IS CHANGING, THIS
REQUIRES EVEN MORE GUIDANCE
9
WHERE CAN WE FIND CAPITAL IN THE EARLY STAGES OF
DEVELOPMENT
Bootstrapping
FF&F
Government
Business Angels
Incubators
Co...
10
HELP THE START-UPS TO RAISE CAPITAL FROM PROFESSIONAL
INVESTORS: TEACH
1. Be honest (to yourself)
2. Know the business ...
11
BE CAREFUL WHAT YOU TEACH. THERE IS DATA, AND THEN
THERE IS MORE DATA
The Entrepreneur Thinks: The Presentations Says: ...
12
CROWDFUNDING AS ALTERNATIVE?
13
KEY TRENDS IN CROWDFUNDING
Everybody can be an entrepreneur
• European markets are underdeveloped
• Regulation is key t...
14
ENTREPRENEUR.
FLANDERS INNOVATION ECO-SYSTEM
FLANDERS INNOVATION ECOSYSTEM
Micro-electronics CleanTech
ICTBio-tech
5 University Partners
Government
Corporate Partners
iMINDS: FLANDERS’ ICT RESEARCH AND ENTREPRENEURSHIP
HUB
DIGITAL
RESEARCH
BUSINESS
INCUBATION
Strategic
research
Applied
re...
iMINDS SUPPORTING TECH BUSINESSES
iDiscover
Business Opportunities
iBoot
Draft Business Proposition
iStart
Launch Start-up...
19
BELGIUM: START-UP COMMUNITIES
5 years
5 000 start-ups
100 000 jobs
VENTUREWISE: A GROWTH ECO-SYSTEM
FOR ICT START-UPS
21
VENTUREWISE ?
A balanced team strongly embedded in the Tech Eco-system
Jan Vorstermans
Corporate & Management
Tech
B2B
...
22
FINANCING GAP BETWEEN INCUBATION/SEED AND LATER
STAGE FUNDING IN EUROPE
Incubate Seed Later StageScale-up
Limited fundi...
23
VENTUREWISE ?
Fund Zero Fund 1 Studios Enterprise
Digital Media
IoT
Enterprise Software
Market Places
ECO-SYSTEM
Resour...
24
VENTUREWISE AS INVESTOR - KEY DIFFERENTIATORS
Our growth
Ecosystem
• Partnerships with high-quality resource & service ...
25
VENTUREWISE – ANGEL.ME (CROWDFUNDING) PARTNERSHIP
 With VentureWise:
 Advice and hands-on support
 Access to the eco...
TO CONCLUDE
THE FINAL FRONTIER
27
THE VALUE OF LARGER ECO-SYSTEMS HAS BEEN
DEMONSTRATED
HOW?
The Rules from FastCompany
#1 Don't Be a Chihuahua
#2 Don't ...
never
lose
your
cool
or your
sense of
humor
Jan Vorstermans
jan@venturewise.eu
@jvorstermans
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Funding and Ecosystems for Startups

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23/06/2016 Opening Speech by Jan Vorstermans (VentureWise) at Dutch Incubation Forum 2016 #DIF16 in Amsterdam, organised by DIA (Dutch Incubation Association). Jan Vorstermans proposes that just money isn't going to make the difference, if you want your investment to flourish consider co-developing an ecosystem for startups.

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Funding and Ecosystems for Startups

  1. 1. FUNDING- AND ECO-SYSTEMS FOR START-UPS (ICT) JAN VORSTERMANS MANAGING PARTNER VENTUREWISE
  2. 2. 2 BACKGROUND: LIFE SO FAR  General o Born 25 March 1960 o M.Sc. Telecom Engineering from Ghent University  Career o 1984 – 1989: R&D at Ghent University at Siemens (Nokia) o 1988 – 1994: Business unit management and business development at Telindus (Proximus) and Nynex (Verizon) o 1994 – 2002: Operational, commercial and general management at BT Global o 2003 – 2013: COO Telenet  Founder Qunova and Qunova Projects  Co-founder VentureWise  Founding Partner Volta  Investor in Limecraft, Kinetura, Viloc, Moovly, Steampunk Wizards, Rabt, Skelia, Valle Verde  Non-Executive Director Invitel and Option, ex-board member iMinds
  3. 3. HAVE STARTUP STOP NEED MONEY STOP PLEASE HELP STOP
  4. 4. THE PROBABILITY OF START-UP SUCCESS IS LOW, WE NEED PROGRAMS THAT ENHANCE PROBABILITY OF SUCCESS  Many start-ups, many with similar ideas and great teams  Starting up is hard, 60 % of tech start-ups don’t survive (4 year horizon)  It is OK to fail (early)  Success = having a growing profitable business  1 / 40 000 become unicorn 40% 29% 23% 19% 18% No market need Out of cash Team Outcompeted Pricing/cost Top reasons for failure: 77% product/market fit 29% burn rate
  5. 5. SUCCESSFUL ENTREPRENEURS ARE MOST OF THE TIME NOT UNIVERSITY DROP-OUTS Choose a job you like, and you will never have to work a day in your life (Confucius) 40 Average age when they started their business 1%Come from rich or poor backgrounds 75% 75% Worked as employees in other companies for more than 6 years Ranked in top 30% at school and university 60% Started own business because standard work environments did not appeal to them
  6. 6. ARE WE SELECTING THE RIGHT START-UPS FOR INCUBATION AND ACCELERATION? Choose a problem that agitates the crap out of you Make sure you are the right person to solve the problem Find the team with which you want to go to war Define your strategy and funding requirements Bootstrap the business as long as possible
  7. 7. DO WE ALWAYS NEED TO PUSH FOR EXTERNAL (RISK) INVESTMENT? Investors do not grow on trees Growth & comfort don’t co-exist People matter External funding means validation and valuation … and risk/reward sharing AmbitionBusiness Market Risk
  8. 8. 8 THE NATURE OF EARLY INVESTMENTS IS CHANGING, THIS REQUIRES EVEN MORE GUIDANCE
  9. 9. 9 WHERE CAN WE FIND CAPITAL IN THE EARLY STAGES OF DEVELOPMENT Bootstrapping FF&F Government Business Angels Incubators Corporate Funds VC Inception +++ +++ +++ +++ --- --- Product/Market Fit + + + +++ ++ - --- Scale-up - - - +/- +/- +/- Crowdfunding ++ ++ - +/-+/-
  10. 10. 10 HELP THE START-UPS TO RAISE CAPITAL FROM PROFESSIONAL INVESTORS: TEACH 1. Be honest (to yourself) 2. Know the business and … 3. … the market (data, competition, business models, benchmarks) 4. Have a plan, no window dressing 5. Identify/know potential investors 6. Get an introduction, find allies 7. Investors are extremely busy 8. This is a sales job, 9. No does not mean out 10. First pitch to investors who are likely to be negative Ensure VCs (that invest early) are part of your eco-system
  11. 11. 11 BE CAREFUL WHAT YOU TEACH. THERE IS DATA, AND THEN THERE IS MORE DATA The Entrepreneur Thinks: The Presentations Says: The Investor Thinks: Everybody will want to buy our product Our projections are conservative We will have to take significant haircuts This product version is really good The product is ready This product will have to be reworked The market is really big Our market will be 50 billion in 2017 They don’t know where the market is I hope nobody knows the competition There is no competition in this space They don’t know the competition Our technology is complex Our solution cannot be copied (Almost) Everything can be copied A few investors expressed an interest We have many investors lined up We are the first investor they speak to I like our team We have a proven management team I see limited experience This person at the Fortune 50 company said they would sign We will soon sign-up a Fortune 50 company In your dreams We are just to clever and agile compared to large companies The large companies are too slow/dumb Ever been eye to eye with an elephant?
  12. 12. 12 CROWDFUNDING AS ALTERNATIVE?
  13. 13. 13 KEY TRENDS IN CROWDFUNDING Everybody can be an entrepreneur • European markets are underdeveloped • Regulation is key to success • Crowdfunding is mainly a local activity • Crowdfunding is hard: 70-80% of campaigns fail (US) • Global crowdfunding is growing 100% yoy BELGIUM Rewards Equity Amounts Raised 10-25 k€ 150-250 k€ Average Investment 85 € 700 € Average Duration 30-45 days 45-60 days
  14. 14. 14 ENTREPRENEUR.
  15. 15. FLANDERS INNOVATION ECO-SYSTEM
  16. 16. FLANDERS INNOVATION ECOSYSTEM Micro-electronics CleanTech ICTBio-tech 5 University Partners Government Corporate Partners
  17. 17. iMINDS: FLANDERS’ ICT RESEARCH AND ENTREPRENEURSHIP HUB DIGITAL RESEARCH BUSINESS INCUBATION Strategic research Applied research Spin-offs Global expansion for tech businesses Start-up support for entrepreneurs Living lab research European research projects
  18. 18. iMINDS SUPPORTING TECH BUSINESSES iDiscover Business Opportunities iBoot Draft Business Proposition iStart Launch Start-up Company Go Global Grow Company INCUBATION START-UPS from incubation program 120+ PROJECTS Wit the industry PROJECT PARTNERS 380+ 1100+ PUBLICATIONS Yearly RESEARCHERS 1000+ 850+ R&D PROJECTS
  19. 19. 19 BELGIUM: START-UP COMMUNITIES 5 years 5 000 start-ups 100 000 jobs
  20. 20. VENTUREWISE: A GROWTH ECO-SYSTEM FOR ICT START-UPS
  21. 21. 21 VENTUREWISE ? A balanced team strongly embedded in the Tech Eco-system Jan Vorstermans Corporate & Management Tech B2B International Investor Brendon Grunewald Entrepreneur & Start-up M&A B2C International Fund Management Bart Becks Corporate & Management Entrepreneur & Start-up International marketing B2C Tech Kenny Willems Incubation/Acceleration Organization/Process CFO B2B Innovation Digital Media IoT Enterprise Software Market Places The most connected “Godfathers”
  22. 22. 22 FINANCING GAP BETWEEN INCUBATION/SEED AND LATER STAGE FUNDING IN EUROPE Incubate Seed Later StageScale-up Limited funding options in the scale-up phase Start-ups need more than money Incubators Accelerators Government Angels Crowd PE VC Corporates (50-100k€) (100k-500k€) (500-2mio€) (+1mio€) Consequences:  Startups move very early to US  Promising startups fold or are overrun due to insufficient funding  Startups pivot to service-orientated companies
  23. 23. 23 VENTUREWISE ? Fund Zero Fund 1 Studios Enterprise Digital Media IoT Enterprise Software Market Places ECO-SYSTEM Resources Skeila InThePocket Dreams & Creation GrowthGurus Incubators iMinds BetaCoWork RocketInternet Atelier Special Services Cresco Angel.me BootstrapLabs Corporates
  24. 24. 24 VENTUREWISE AS INVESTOR - KEY DIFFERENTIATORS Our growth Ecosystem • Partnerships with high-quality resource & service providers, working at favorable fees • Equity for resources Our investment strategy • Early Stage: both Seed (100-500k €) and Scale-up (up to 1,5mio€) • “Spray, not Pray” • Capital efficient deals • Data-driven decision-making for investments Our team • Entrepreneurs for Entrepreneurs • Extensive expertise & network in the selected focus areas “Hot” focus areas • Correspond with current breakthrough trends in Tech • Significant follow-up investment opportunities • Good exit potential (M&A) Geographical reach • Know-how of and access to various EU-countries (beyond BeNeLux) • Scaling partners in USA & South-East Asia Fund kickstart • Integration of existing portfolio of investments (“fund 0”)
  25. 25. 25 VENTUREWISE – ANGEL.ME (CROWDFUNDING) PARTNERSHIP  With VentureWise:  Advice and hands-on support  Access to the eco-system  Direct Investment from 100K – 2 Mio  Too early? Crowdfunding via Angel,me  Combines rewards + equity  Proprietary technology  International partner network  Guidance and networking (angel.me sessions and summit)  Supporting platform partners: lower fees, more support
  26. 26. TO CONCLUDE THE FINAL FRONTIER
  27. 27. 27 THE VALUE OF LARGER ECO-SYSTEMS HAS BEEN DEMONSTRATED HOW? The Rules from FastCompany #1 Don't Be a Chihuahua #2 Don't try to take more than your fair share of the pie #3 If you're invited to a wedding, don't outshine the bride or groom #4 Don't Be a Two-Timer #5 Give to Get #6 Be like Fonzie #7 Don't be a douche bag My 5 rules for (tech) eco-systems: 1. The power of the ecosystem = N! 2. An eco-system requires energy to survive 3. Successful business models get copied 4. Cooperation, win/win, open data 5. From R&D to customer involvement
  28. 28. never lose your cool or your sense of humor Jan Vorstermans jan@venturewise.eu @jvorstermans

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