Recipe for technology wealth???

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Talk originally titled "Enterprise Beyond the University Gates" given to researchers on the Sheffield Univesity Enterprise course

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Recipe for technology wealth???

  1. 1. Enterprise beyond the university gates Ed French, Enterprise Ventures
  2. 2. Agenda <ul><li>Background to Enterprise Ventures </li></ul><ul><li>Assumptions about why you might be here </li></ul><ul><li>How to make money from technology start-ups </li></ul>
  3. 3. EV Background <ul><li>£50m under management and growing </li></ul><ul><li>All types of funding £50k-£2m </li></ul><ul><li>>40 Early-Stage Technology deals in the North of England </li></ul><ul><li>Specialist technology investment team= RisingStars </li></ul>RisingStars Technology Team
  4. 4. Technology Portfolio Spread
  5. 5. Starting Assumptions?
  6. 6. Starting assumptions <ul><li>You’re bright, hardworking, and knowledgeable </li></ul><ul><li>You have the best great idea </li></ul><ul><li>You want to be rich </li></ul><ul><li>Tomorrow would be fine </li></ul>
  7. 7. Recipe for vast wealth <ul><li>Take one huge market opportunity </li></ul><ul><li>Apply a brilliant new idea </li></ul><ul><li>Pour in one or more bright, hardworking founders to taste </li></ul><ul><li>Apply large dollops of venture capital </li></ul><ul><li>Bake in an oven of perfect serendipity for a few months </li></ul><ul><li>Serve the cake in generous slices </li></ul>
  8. 8. Market Opportunity
  9. 9. The idea <ul><li>The idea is important </li></ul><ul><li>Rarely unique (1500 to date) </li></ul><ul><li>Some barriers to competitors are necessary </li></ul><ul><li>Differential advantage of >20% </li></ul><ul><li>IP from a University- look at licensing as well as spin-out </li></ul>Take one huge market opportunity Apply a brilliant new idea Pour in one or more bright, hardworking founders to taste Apply large dollops of venture capital Bake in an oven of perfect serendipity for a few months Serve the cake in generous slices
  10. 10. People <ul><li>Choose your co-founders with care </li></ul><ul><li>Hire slowly </li></ul><ul><li>Fire quickly </li></ul><ul><li>Keep it simple </li></ul>Take one huge market opportunity Apply a brilliant new idea Pour in one or more bright, hardworking founders to taste Apply large dollops of venture capital Bake in an oven of perfect serendipity for a few months Serve the cake in generous slices
  11. 11. Venture Capital <ul><li>Share of company in return for high-risk capital </li></ul><ul><li>Expect multiple rounds, founders typically end up with 7% at exit </li></ul><ul><li>Good VC’s add lots of value: </li></ul><ul><ul><li>Hiring </li></ul></ul><ul><ul><li>Non-Execs </li></ul></ul><ul><ul><li>Market introductions </li></ul></ul><ul><ul><li>Strategy & Understanding </li></ul></ul><ul><li>Check the VC really really understands your vision </li></ul>Take one huge market opportunity Apply a brilliant new idea Pour in one or more bright, hardworking founders to taste Apply large dollops of venture capital Bake in an oven of perfect serendipity for a few months Serve the cake in generous slices
  12. 12. Serendipity! <ul><li>Timing can be really hard to judge </li></ul><ul><li>Large customers can be erratic </li></ul><ul><li>Investors can be sheep </li></ul><ul><li>Resilience is key </li></ul>Take one huge market opportunity Apply a brilliant new idea Pour in one or more bright, hardworking founders to taste Apply large dollops of venture capital Bake in an oven of perfect serendipity for a few months Serve the cake in generous slices
  13. 13. Probable Outcome <ul><li>Worked hard </li></ul><ul><li>Made fantastic contacts </li></ul><ul><li>Built experience </li></ul><ul><li>Little cash first time! </li></ul>
  14. 14. Contact Details <ul><li>Edward French </li></ul><ul><ul><li>Email [email_address] </li></ul></ul><ul><ul><li>Phone 07966 347407 </li></ul></ul><ul><ul><li>Yuuguu ID [email_address] </li></ul></ul><ul><ul><li>Website www.rsgf.co.uk </li></ul></ul><ul><ul><li>Blog techgain.net </li></ul></ul>

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