An alternative way to finance Entrepreneurs
Who is Melcion? 6 partners and over 100 clients Our clients are  entrepreneurs  who run companies in  various   industries...
What do Melcion partners do? <ul><ul><li>Help Entrepreneurs in any possible way
Meet with each client once a month
Be available whenever needed
Help find new ideas
Have a different point of view
Enable the entrepreneur to take the helicopter view </li></ul></ul>We are paid on a yearly basis a flat fee at the entrepr...
How we define an Entrepreneur? Need for challenge Need for autonomy Leaders Entrepreneurs Self employed
Startup financing The Venture Capital Myth <ul><ul><li>1 year of work for free
50k of cost personal expenses </li></ul></ul><ul><ul><li>Venture Capital sifting  1 deal out of a 100 projects received.
If you visit 50 VC </li></ul></ul>that’s  50% chances <ul><ul><li>1 deal out of 10
So that’s 5% compounded  chances </li></ul></ul>Business Plan Raising Capital Executing
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Alternative ways to finance startups

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Présentation essec nov 2011

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  • Alternative ways to finance startups

    1. 1. An alternative way to finance Entrepreneurs
    2. 2. Who is Melcion? 6 partners and over 100 clients Our clients are entrepreneurs who run companies in various industries and several countries. Most of them are private , some are public . Size ranges from 0 € revenue to 1000 M€ revenue with an average of 15 M€ 2 partners in the US 4 partners in Europe
    3. 3. What do Melcion partners do? <ul><ul><li>Help Entrepreneurs in any possible way
    4. 4. Meet with each client once a month
    5. 5. Be available whenever needed
    6. 6. Help find new ideas
    7. 7. Have a different point of view
    8. 8. Enable the entrepreneur to take the helicopter view </li></ul></ul>We are paid on a yearly basis a flat fee at the entrepreneur’s discretion 1 2 3 4 5 6
    9. 9. How we define an Entrepreneur? Need for challenge Need for autonomy Leaders Entrepreneurs Self employed
    10. 10. Startup financing The Venture Capital Myth <ul><ul><li>1 year of work for free
    11. 11. 50k of cost personal expenses </li></ul></ul><ul><ul><li>Venture Capital sifting 1 deal out of a 100 projects received.
    12. 12. If you visit 50 VC </li></ul></ul>that’s 50% chances <ul><ul><li>1 deal out of 10
    13. 13. So that’s 5% compounded  chances </li></ul></ul>Business Plan Raising Capital Executing
    14. 14. Inc Fast 500 <ul><ul><li>Growth measured on a 3y period
    15. 15. First year with a 750k$ minimum
    16. 16. Inc.Com
    17. 17. For 28 years now, that's about 15.000 </li></ul></ul>A yearly selection of 500 US private fast growing companies The demographics <ul><ul><li>Growth : 8000% on 3y
    18. 18. Average funding: 75k$
    19. 19. Venture Capital funded : 2 to 4%
    20. 20. BA funded : 2% </li></ul></ul>
    21. 21. Reality check on Venture Capital Chances for entrepreneurs who raise equity with Venture Capital are < 1% So it can't be… … 1 deal out of 10 that succeeds It has to be… … 1 out 30 to 50 Research from Pr O. Gottschalg and L. Phalippou over 25y, the average private equity industry performance is 3 points under S&P performance Pr O. Gottschalg Pr L. Phalippou
    22. 22. Startup financing The Venture Capital Myth <ul><ul><li>1 year of work for free
    23. 23. 50k of cost personal expenses </li></ul></ul><ul><ul><li>Venture Capital sifting 1 deal out of a 100 projects received
    24. 24. If you visit 50 Venture Capital
    25. 25. That 50% chances </li></ul></ul><ul><ul><li>1 deal out of 10 50
    26. 26. So that’s 5% 1% compounded chances </li></ul></ul>Business Plan Raising Capital Executing
    27. 27. What solutions?
    28. 28. Sales Targeting Pricing <ul><ul><li>Hunt for the wounded elephant?
    29. 29. Not everyone is your ideal first client </li></ul></ul><ul><ul><li>In marketing, optimal price is defined as the highest price your customer can and will afford to pay </li></ul></ul>
    30. 30. Business model re-engineering <ul><ul><li>Lower cash need </li></ul></ul><ul><ul><li>Faster access to client solutions </li></ul></ul><ul><ul><li>Deals with suppliers/distributors </li></ul></ul>
    31. 31. What to do when all the above is not enough ? <ul><ul><li>Convertible notes
    32. 32. Structured notes </li></ul></ul>
    33. 33. Thank you for listening! www.melcion.com

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