Best failures of startup investor STARTsummit_march 2013

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Best failures of startup investor STARTsummit_march 2013

  1. 1. early stage investments by entrepreneursBUSINESS ANGEL / MICRO VCLearning from my best failuresNicolas Berg, Serial Entrepreneur, Redalpine VenturePartnersSTART Summit – St. Gallen – March 23, 2013
  2. 2. Speaker & panelist: Nicolas Berg Serial entrepreneur with 10 startups (1984-2013) e.g. founder of Borsalino 1998, sold 2000 at 20x multiple to Ringier e.g. CEO Questli since July 2012 Full time angel investor in 16 startups (2000-2006) e.g. Investor & Country Manager XING 2004-2010 IPO at 30x multiple 2006 Redalpine Venture financed 20 startups (since 2007) Built portfolio of 20 European high innovation startups with Redalpine I & II 5 portfolio companies ranked among 20 Swiss top start-ups in 2012 Lecturer, jury member and journalist venturelab; Venturekick, SVC, Heuberger, Suvorov Award Die Zeit, Bilanz, NZZ, Bilanz, HandelsZeitung, Sonntag etc. Entrepreneur, angel investor, VC, supporterCopyright Redalpine Venture Partners AG, Switzerland 2
  3. 3. Redalpine in a nutshell Manages Redalpine I CHF 20M micro VC fund (2007-2015) Manages Redalpine II CHF 60M micro VC fund (2012-2020) Seed/early stage in continental Europe Most innovative sectors in Europe Technology/New Media and Life Science Fund thesis European seed/early stage offers potential for superior exit multiples Best choice in Switzerland – strong links to Germany and Russia Convincing track-record Institutional approach to seed/early stage investingCopyright Redalpine Venture Partners AG, Switzerland 3
  4. 4. Why learning from failures? Failures easier to analyze than success Sometimes you win and don„t know why – just luck or in a good flow? You need to fail to get closer to the edgeCopyright Redalpine Venture Partners AG, Switzerland 4
  5. 5. What investors are looking for Team, team, team At least 2 extraordinary personalities that can IMPLEMENT milestones of next 2 years Disruptive idea, technology or business model Attractive marketCopyright Redalpine Venture Partners AG, Switzerland 5
  6. 6. Motivation of investor Profit opportunity (e.g. exit multiple of 30x feasible) Adrenaline Being active & useful Network KnowledgeCopyright Redalpine Venture Partners AG, Switzerland 6
  7. 7. Close to reality distortion, psychoCopyright Redalpine Venture Partners AG, Switzerland 7
  8. 8. Selectively focused, autisticCopyright Redalpine Venture Partners AG, Switzerland 8
  9. 9. 1. Stubborn and autistic Resistant to advice – or asking mom, dad and grandma till she gets the answer she wants Says “smart investor” but thinks “just give me the money for MY company, sugar daddy!”Copyright Redalpine Venture Partners AG, Switzerland 9
  10. 10. 2. Naïve model pupil Reacts and obeys to any advice naïve, model pupil or weather vane Definitely not an entrepreneur!Copyright Redalpine Venture Partners AG, Switzerland 10
  11. 11. 3. Selectively honest, dishonest Communicates only good news instantly Not honest Secret agendaCopyright Redalpine Venture Partners AG, Switzerland 11
  12. 12. 4. Con artist, scammer, manic Communicates only good news instantly Not honest Dubious geniusCopyright Redalpine Venture Partners AG, Switzerland 12
  13. 13. 5. Egotist, no team player Poor alpha animal, can‟t delegate Never recruits strong team member Non empathic, poor motivatorCopyright Redalpine Venture Partners AG, Switzerland 13
  14. 14. 5. Money driven, not by results Exit, salary, participation and bonus in focus Vision, cause and results only second priority Self marketerCopyright Redalpine Venture Partners AG, Switzerland 14
  15. 15. Grow big stars, scout many talentsSwiss football teams have 2 options: invest $40m to buy Messi or Ronaldo  try to earn $45m extra with him or invest $5m to scout & train 20 young talents  sell the best one for $20mCopyright Redalpine Venture Partners AG, Switzerland 15
  16. 16. Act pro-active, don‟t follow crowdAnd ice hockey player can either: skate to the spot where the puck is now as most players or to the place where the puck is going to be (Wayne Gretzky) Invest as pro-active as a hockey star is playingCopyright Redalpine Venture Partners AG, Switzerland 16Source: http://www.brainyquote.com/quotes/authors/w/wayne_gretzky.html
  17. 17. www.redalpine.com www.facebook.com/redalpine www.twitter.com/redalpine«You miss 100%of the shots you Redalpine Venture Partners AGdont take.» Pfingstweidstrasse 60 CH-8005 Zürich, SwitzerlandWayne Gretzky,Hockey legend phone +41 44 271 15 30

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