Presentation on Fundraising

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When is it realistic to raise capital for a brand new company? How should you calculate the amount of money to raise? How should you define the use use of proceeds? What materials are required to fundraise? How do you identify and qualify target angel and seed stage investors? How do you find a lead investor? What do investors expect from the company? What are typical investment structures and deal terms for seed-stage financing? How do you negotiate terms?

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Presentation on Fundraising

  1. 1. Startup FinancingFounder Institute – June 29, 2011This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  2. 2. about.me/FilipTack ► Co-Founder at Nomadesk, a leading provider of cloud storage, file sharing and synchronization software that enables users to access, share, synchronize and safeguard files from any location, whether online or offline. ► Co-Founder at Carambla, a real time Marketplace for parking. ► “Startup executive” with a predilection for disruptive innovation and startup business (SaaS, Cloud Computing); raised over € 7 million in venture capital (seed, series A and B). ► Nomadesk is venture-backed by Gimv, BAMS Angel Fund and BAN Vlaanderen. Received the EBAN Award for “Most Successful Angel-Backed Company” in 2009This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  3. 3. Who We are ► Nomadesk offers the easiest and most secure way to share files for professionals. ► What Customers Say – How We Compete: – “Zero thought, in-the-flow file sharing and data security” – Nomadesk at Kirsten Realty – Nomadesk at CEO Collaborative ForumThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  4. 4. How Nomadesk Works – “5 Magical Things” • Nomadesk creates virtual drives on your computer that are mounted like a hard drive and act like a fileserver • “Drag-and-drop” a file in the Nomadesk drive and it is automatically… 256-bit encryption mobilized andencrypted and synchronized to made accessiblestored locally on your other via anyyour computer; computers smartphone,offline availability tablet backed-up to a secure data shared with other center; people you’ve compliant with invited EU privacy lawsThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  5. 5. Tough Cookie: The Odds… ► …are against us! – Idea to IPO  6 in 1.000.000 – Plan to IPO  6 in 1.000 – Funded to IPO  1 in 10 o (source: Saratoga Venture Finance)This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  6. 6. Tough Cookie: The Financing (Dutch)This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  7. 7. Funding Resources 1. FFFF (“Love Money”) is insufficient 2. Banks offer credit on collateral: – Team risk – Product risk – Market risk 3. VC-funds are only interested in large deals: – Team risk – Product risk – Market risk 4. PE-funds are only interested in super-large deals (leveraged by n 2) – Team risk – Product risk – Market riskThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  8. 8. The Mission… “patience” “guts”This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  9. 9. Staged Financing, a “Bumpy Ride” CF Bank Venture Capitalist Business Angel (syndicate) Entrepreneur Sweat equity Seed money Start-up Expansion time 2004: 2005: 2007: 2010: Founder Funding Angel Funding “Series A” VC Funding “Series B” VC Funding Sales Concept Expansion know how regional Prototype Product time support market Product Marketing research segment proof of introduction engineering helpdesk concept prototype 1st personnel working product dev. maintenance 1st marketing start marketing capital plan business plan product management team production enhancements prototype market studies marketing planThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  10. 10. Founders – Friends – Fools – Family ► FFFF = insufficient € ► FFFF = risk profile? ► FFFF = experience? ► FFFF = expectations? ► FFFF = fragmented capital structure? ►  Founders – Friends – Fools – FamilyThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  11. 11. Business Angels – Venture Capital ► Think “Dilution” – and come to grips with it! ► Think “EXIT”! ► “Do You Want To Be Rich, Or Be the King?” – paradox: when founder-CEOs do well, it increases the chances that they’re going to be replaced.This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  12. 12. BA versus VC ► Business Angels: ► Venture Capital: – Small pockets – Deep pockets – Heterogeneous (“risk”, – Fragmented landscape  “professionalism”, etc.)  “Deal Flow” trap! hard to manage! – Bitingly professional – Deal makers/breakers – Portfolio-driven – Project-driven – More “hands-with”; – More “hands-on” “hands-off”? – Fragmented shareholder – Simple shareholder structures (risk- structures (liability- management) management – To be discovered… – To be discovered...This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  13. 13. Key Considerations – For Entrepreneurs ► The (founder) CEO should acknowledge that: – The “risk-capital supply chain” is what it is – for good reasons; hardly any short cuts (YOU  BA  VC  Banks?!) – Interest of BAs and VCs are not fully aligned: o Project-drive (BA) versus portfolio-drive (VC) o Same trousers YET smaller pockets – Conflicts will arise, so become a referee! – You need help: o Build a balanced board o Independent directors o Peer networks/mentorThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  14. 14. Five for the road for entrepreneurs... 1. Team 2. Commitment (“Skin in the game”) 3. Business idea; i.e., Exit potential 4. So… bootstrap!: – Tests team dynamic – Demonstrates commitment – Validates business idea 5. Be flexible, avoid complex deal structuresThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  15. 15. If the going gets tough, NEVER forget that... ► “One of the greatest pains to human nature is the pain of a new idea. It makes you think that after all, your favourite notions may be wrong, your firmest beliefs ill- founded. Naturally, therefore, common men hate a new idea, and are disposed more or less to ill-treat the original man who brings it.” o Walter Bagehot (1826-1877); a British journalist and early editor of “The Economist” specialised in institutional economic issues.This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.
  16. 16. Contact Filip TACK Founder filip.tack@nomadesk.com twitter.com/nomadesk about.me/FilipTack DOWNLOAD A TWO-WEEK FREE TRIALThis document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author.© 2012 Nomadesk, Inc.

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