SlideShare a Scribd company logo
Business Angels, Pre- and Seed Rounds
Matthias Hilpert
Berlin
XPRENEURS
UnternehmerTUM
München
April 2020
2MatthiasHilpert.com
want to raise money?
have raised love money?
have raised angel money?
have raised VC money?
Show your hand if you …
3MatthiasHilpert.com
20+ years Operator turned full time Investor
 Worked in telecoms globally, running a EUR1bn P&L
 Generated EUR800mio enterprise value for Private Equity sponsors
 15 years investing in public and private markets & real estate
 Angel investing since 2008 - 19 investments and 4 exits
 One of the top 30 angels backed by the European Investment Fund (EIF)
 Seed stage subscriptions and marketplaces from EUR10K monthly revenue
 175cm, 83kg, 47 years, 1 wife, 3 kids, living in Berlin
4MatthiasHilpert.com
“Angel investors are the most critical”
Paul Graham
Founder Y Combinator
The Hacker´s Guide to Investors
5MatthiasHilpert.com
Segmenting angel investors
Hobby Angels
(90%)
 <30% time allocation
 <3 portfolio companies
 <2 deals in 12 months
 Small network in start-up and
investor ecosystems (<10)
 Average 10-25K tickets
 Dealflow 10 pa
Professional Angels
(10%)
 >50% time allocation
 >10 portfolio companies
 >2 deals in 12 months
 large network in start-up and
investor ecosystems (>100)
 Average 25-100K tickets
 Dealflow 50-500 pa
BAE 2015: 7.500 angels in Germany
Angel.co 2019: 998 angels in Germany
BAND Umfrage: 108 answers
EIF: 30 angels in Germany
European angels: matthiashilpert.com/ressources
6MatthiasHilpert.com
Typical angel profiles…
C-Level Corporate Exec
 2+ deal
 <10% time spent,
 60+ years
 investment only
 focus on industry network
value
Exited Founder
 5+ deals
 <20% time spent
 30-40 years
 strong start-up experience
 relevant start-up community
& investor network
Professional Angel
 10+ deals,
 >50% time spent
 hands-on advice (pull only)
 40-60 years
 strong seniority
 relevant industry/functional
experience
 relevant start-up community
& investor network
First timers
 First deal
 Strong emotional bond (perhaps limited experience)
 Big ticket/valuation (perhaps wrong expectations)
 High involvement (perhaps too much push)
 Last resort money (perhaps with non-standard terms)
7MatthiasHilpert.com
Segmenting institutional investors in Europe
Pre-/Seed funds
 10-50mio fund size
 First time funds
 2 partners + 2 investment
managers
 Minimum ticket 250K-1mio
 5-10 investments pa
 Dealflow 100-1.000 pa
Series A funds
 50-150mio fund size
 2nd or 3rd fund
 2-4 partners + 4 investment
managers
 Minimum ticket 1mio-1.5mio
 5-10 investments pa
 Dealflow 100-1.000 pa
European funds: matthiashilpert.com/ressources
8MatthiasHilpert.com
Segmenting start-ups (by investor demand)
Warm
(15%)
 Good team
 Medium growth
(5-10% mom)
=> Broad investor discussions
(25-50 investors)
Hot
(5%)
 Best-in-class team
(eg successful serial founder)
 Unique technology
 High growth
(20-40% mom)
=> Only selected investor discussions
(5-10)
Cold
(80%)
 Mediocre team
 Low innovation/differentiation
 Low growth
=> Very broad investor discussions
(100+ investors)
Top tier VCs invest in only
0.01% of all startups
Germany:
557.000 new companies
29.000 tech/growth start-ups
141 Series Seed rounds
13 Series A rounds
KfW, KPMG, Dealroom
9MatthiasHilpert.com
Warm Pre-Seed Seed 1 Seed 2** Series A**
Stage Idea, MVP Early PMF Established PMF Strong PMF
Monthly Revenue 0 5-10K 50K 100K
Round size* 50-200K 500K-1mio 1-2mio 4-15mio+
Valuations* 1-2mio 2-4mio 4-10mio 20-100mio
Investors
Grants, F&F
Accelerators & Angels
Angels &
VCs (<25mio)
Angels &
VCs (<50mio)
VCs
(>150mio)
Tickets*
Angels 10K
Accelerators 50K
Angels 10-50K
VCs 200-500K
Angels 25-100K
VCs 500K-1mio
VCs 2-5mio
Reason to invest Love & Play 30x potential 20x potential 10x potential
Instrument Convertible Notes
CN &
Equity
Equity Equity
When do angels and pre-/seed funds play?
* Numbers are indications from Berlin, they may be smaller in other European countries and larger in London
** Seed 2 are more common in the last years and Series A rounds have been growing significantly in size
10MatthiasHilpert.com
Hot Pre-Seed Seed
Stage Idea, MVP Established PMF
Monthly Revenue 0 50K
Round size 1-2mio 3-5mio+
Valuations 4-10mio 8-30mio
Investors
Angels &
VCs (<50mio)
VCs
(>150mio)
Tickets
Angels 25-100K
VCs 500K-1mio
VCs 2-5mio
Reason to invest 20x potential 10x potential
Instrument Equity Equity
What happens if a start-up is hot (0.01% or 3 x pa)?
11MatthiasHilpert.com
Potential compositions for pre-/seed rounds
200K
 Friend & family + angels
 4x50K or 8x25K
 Convertible Note
 1 lead angel or founders
documentation
 Potentially several closings
 No notary and transaction
cost
700K
 Seed VC + angels
 500K + 4x50K
 Equity
 VC as lead to set terms
 Single closing day
 Notary and 5-10K
transaction cost
1.5mio
 Series A VC + angels
 1mio + 1x300K + 4x50K
 Equity
 VC as lead to set terms
 Single closing day
 Notary and 5-10K
transaction cost
12MatthiasHilpert.com
What can angels offer (vs institutional investors)?
 Operating and investment expertise
 Investing own money
 Capability to tolerate high risk
 Personal and emotional bond
 Likely to take “entrepreneur´s perspective”
13MatthiasHilpert.com
What to look for in angels vs institutional
investors?
Angels
 personal chemistry
 # of deals in the last 12 months
 % time spent on angel investing
 operator & investor experience
 industry, seniority & years of
experience (network type & size)
Funds
 fund size and strategy
 key individuals
 personal chemistry
 lead or follow
 portfolio experience
 industry experience
 follow on investors
14MatthiasHilpert.com
“…in God we trust, all others bring references!”
15MatthiasHilpert.com
Where to find an angel or pre-/seed investor…
 Start locally in DACH
 Other start-up teams (comes with immediate reference)
 Start-up management teams with successful exits are likely to become
angels themselves
 Local first tier Accelerators, eg Xpreneurs, Techstars
 Angel networks, eg EIF, btov etc.
 Early stage Angels and VC regularly refer each other
 Directories: Angel.co, LinkedIn, Dealroom …
 Investor lists: matthiashilpert.com/resources
16MatthiasHilpert.com
…and what questions should they be able to help
you answer?
 Is my product a pain killer or a nice to
have?
 How would you segment my customers?
Should I focus on 1, 2 or 3 segments?
 What is my initial target market, city A or
country B or region C?
 Can you help me to get a meeting with a
decision maker at Customer A?
 How would you build the organisation?
What´s the best split of work?
 Would you hire first a senior role or a
junior role?
 What do you think of candidate X?
 Which marketing channels should I focus
on: SEO, PR, SEM, Print, Radio or TV?
 How should I structure my sales funnel?
 What should my tech stack & architecture
look like?
 How much money should I raise from
whom?
 Can you make an intro to investor X?
 Do I need more than 1 term sheet?
 What are good and bad terms?
 I hate my co-founder, what should I do?
 Is this ever going to work?
 …and more!
17MatthiasHilpert.com
What are your questions?
Come and visit Berlin!
matthiashilpert.com

More Related Content

Similar to Business Angels, Pre- and Seed Rounds

The Best Way to Fund your Startup
The Best Way to Fund your StartupThe Best Way to Fund your Startup
Start Up Finance
Start Up FinanceStart Up Finance
Start Up Finance
Gina Evans
 
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
Nicolas Berg
 
Andrea Di Anselmo - Prospects for the development of capital investments in E...
Andrea Di Anselmo - Prospects for the development of capital investments in E...Andrea Di Anselmo - Prospects for the development of capital investments in E...
Andrea Di Anselmo - Prospects for the development of capital investments in E...
siecinwestorowkpt
 
Daniel Waterhouse FOWA Oct07
Daniel Waterhouse FOWA Oct07Daniel Waterhouse FOWA Oct07
Daniel Waterhouse FOWA Oct07
Carsonified Team
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101
Eventbrite
 
Alex Osadzinski at New Connect Club - www.ncclub.pl
Alex Osadzinski at New Connect Club - www.ncclub.plAlex Osadzinski at New Connect Club - www.ncclub.pl
Alex Osadzinski at New Connect Club - www.ncclub.pl
Michal Faber
 
170215 tech tourgrowth502017
170215 tech tourgrowth502017170215 tech tourgrowth502017
170215 tech tourgrowth502017
Gaudefroy Ariane
 
Be ready to be bought! Your company is your product. - Randy Smerik
Be ready to be bought! Your company is your product. - Randy SmerikBe ready to be bought! Your company is your product. - Randy Smerik
Be ready to be bought! Your company is your product. - Randy Smerik
Startupfest
 
MassChallenge Bootcamp Day 5: Finance
MassChallenge Bootcamp Day 5: FinanceMassChallenge Bootcamp Day 5: Finance
MassChallenge Bootcamp Day 5: Finance
Brendan O'Neil
 
MassChallenge Bootcamp
MassChallenge Bootcamp MassChallenge Bootcamp
MassChallenge Bootcamp
Brendan O'Neil
 
MassChallenge 2011 Bootcamp Day 5: Finance
MassChallenge 2011 Bootcamp Day 5: FinanceMassChallenge 2011 Bootcamp Day 5: Finance
MassChallenge 2011 Bootcamp Day 5: Finance
Brendan O'Neil
 
London for startups - Francisco Van Zeller
London for startups - Francisco Van ZellerLondon for startups - Francisco Van Zeller
London for startups - Francisco Van Zeller
Startup Braga
 
Ied fellows lecture 5
Ied fellows lecture 5Ied fellows lecture 5
Ied fellows lecture 5
Paul Keisch
 
#ISVwebinars n°2: IBAN - Paolo Anselmo
#ISVwebinars n°2: IBAN - Paolo Anselmo#ISVwebinars n°2: IBAN - Paolo Anselmo
#ISVwebinars n°2: IBAN - Paolo Anselmo
italiastartupvisa
 
Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015
Launcher / Startup studio
 
Business angels networks
Business angels networksBusiness angels networks
Business angels networks
Markku Sjöstedt
 
Seedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising DeckSeedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising Deck
Seedcamp
 
Funding and Ecosystems for Startups
Funding and Ecosystems for StartupsFunding and Ecosystems for Startups
Funding and Ecosystems for Startups
DIA - Dutch Incubation Association
 
Cass Business School Lecture Nov 2009
Cass Business School Lecture Nov 2009Cass Business School Lecture Nov 2009
Cass Business School Lecture Nov 2009
Nic Brisbourne
 

Similar to Business Angels, Pre- and Seed Rounds (20)

The Best Way to Fund your Startup
The Best Way to Fund your StartupThe Best Way to Fund your Startup
The Best Way to Fund your Startup
 
Start Up Finance
Start Up FinanceStart Up Finance
Start Up Finance
 
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
Deal with investors_StartupBus @Google Switzerland_Nicolas Berg_oct2013
 
Andrea Di Anselmo - Prospects for the development of capital investments in E...
Andrea Di Anselmo - Prospects for the development of capital investments in E...Andrea Di Anselmo - Prospects for the development of capital investments in E...
Andrea Di Anselmo - Prospects for the development of capital investments in E...
 
Daniel Waterhouse FOWA Oct07
Daniel Waterhouse FOWA Oct07Daniel Waterhouse FOWA Oct07
Daniel Waterhouse FOWA Oct07
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101
 
Alex Osadzinski at New Connect Club - www.ncclub.pl
Alex Osadzinski at New Connect Club - www.ncclub.plAlex Osadzinski at New Connect Club - www.ncclub.pl
Alex Osadzinski at New Connect Club - www.ncclub.pl
 
170215 tech tourgrowth502017
170215 tech tourgrowth502017170215 tech tourgrowth502017
170215 tech tourgrowth502017
 
Be ready to be bought! Your company is your product. - Randy Smerik
Be ready to be bought! Your company is your product. - Randy SmerikBe ready to be bought! Your company is your product. - Randy Smerik
Be ready to be bought! Your company is your product. - Randy Smerik
 
MassChallenge Bootcamp Day 5: Finance
MassChallenge Bootcamp Day 5: FinanceMassChallenge Bootcamp Day 5: Finance
MassChallenge Bootcamp Day 5: Finance
 
MassChallenge Bootcamp
MassChallenge Bootcamp MassChallenge Bootcamp
MassChallenge Bootcamp
 
MassChallenge 2011 Bootcamp Day 5: Finance
MassChallenge 2011 Bootcamp Day 5: FinanceMassChallenge 2011 Bootcamp Day 5: Finance
MassChallenge 2011 Bootcamp Day 5: Finance
 
London for startups - Francisco Van Zeller
London for startups - Francisco Van ZellerLondon for startups - Francisco Van Zeller
London for startups - Francisco Van Zeller
 
Ied fellows lecture 5
Ied fellows lecture 5Ied fellows lecture 5
Ied fellows lecture 5
 
#ISVwebinars n°2: IBAN - Paolo Anselmo
#ISVwebinars n°2: IBAN - Paolo Anselmo#ISVwebinars n°2: IBAN - Paolo Anselmo
#ISVwebinars n°2: IBAN - Paolo Anselmo
 
Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015
 
Business angels networks
Business angels networksBusiness angels networks
Business angels networks
 
Seedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising DeckSeedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising Deck
 
Funding and Ecosystems for Startups
Funding and Ecosystems for StartupsFunding and Ecosystems for Startups
Funding and Ecosystems for Startups
 
Cass Business School Lecture Nov 2009
Cass Business School Lecture Nov 2009Cass Business School Lecture Nov 2009
Cass Business School Lecture Nov 2009
 

Recently uploaded

Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for EntrepreneursComplete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Kopa Global Technologies
 
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
ch775c0l
 
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
es4hjcss
 
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
pv4uhplv
 
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
es4hjcss
 
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
ch775c0l
 
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptxExploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Elastostar Rubber Corporation
 

Recently uploaded (7)

Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for EntrepreneursComplete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
 
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
在线办理(加拿大Concordia毕业证书)康考迪亚大学毕业证学历证书一模一样
 
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
 
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
在线办理(uofc毕业证书)芝加哥大学毕业证学历学位证书原版一模一样
 
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
 
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
快速办理(McGill毕业证书)麦吉尔大学毕业证Offer一模一样
 
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptxExploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
 

Business Angels, Pre- and Seed Rounds

  • 1. Business Angels, Pre- and Seed Rounds Matthias Hilpert Berlin XPRENEURS UnternehmerTUM München April 2020
  • 2. 2MatthiasHilpert.com want to raise money? have raised love money? have raised angel money? have raised VC money? Show your hand if you …
  • 3. 3MatthiasHilpert.com 20+ years Operator turned full time Investor  Worked in telecoms globally, running a EUR1bn P&L  Generated EUR800mio enterprise value for Private Equity sponsors  15 years investing in public and private markets & real estate  Angel investing since 2008 - 19 investments and 4 exits  One of the top 30 angels backed by the European Investment Fund (EIF)  Seed stage subscriptions and marketplaces from EUR10K monthly revenue  175cm, 83kg, 47 years, 1 wife, 3 kids, living in Berlin
  • 4. 4MatthiasHilpert.com “Angel investors are the most critical” Paul Graham Founder Y Combinator The Hacker´s Guide to Investors
  • 5. 5MatthiasHilpert.com Segmenting angel investors Hobby Angels (90%)  <30% time allocation  <3 portfolio companies  <2 deals in 12 months  Small network in start-up and investor ecosystems (<10)  Average 10-25K tickets  Dealflow 10 pa Professional Angels (10%)  >50% time allocation  >10 portfolio companies  >2 deals in 12 months  large network in start-up and investor ecosystems (>100)  Average 25-100K tickets  Dealflow 50-500 pa BAE 2015: 7.500 angels in Germany Angel.co 2019: 998 angels in Germany BAND Umfrage: 108 answers EIF: 30 angels in Germany European angels: matthiashilpert.com/ressources
  • 6. 6MatthiasHilpert.com Typical angel profiles… C-Level Corporate Exec  2+ deal  <10% time spent,  60+ years  investment only  focus on industry network value Exited Founder  5+ deals  <20% time spent  30-40 years  strong start-up experience  relevant start-up community & investor network Professional Angel  10+ deals,  >50% time spent  hands-on advice (pull only)  40-60 years  strong seniority  relevant industry/functional experience  relevant start-up community & investor network First timers  First deal  Strong emotional bond (perhaps limited experience)  Big ticket/valuation (perhaps wrong expectations)  High involvement (perhaps too much push)  Last resort money (perhaps with non-standard terms)
  • 7. 7MatthiasHilpert.com Segmenting institutional investors in Europe Pre-/Seed funds  10-50mio fund size  First time funds  2 partners + 2 investment managers  Minimum ticket 250K-1mio  5-10 investments pa  Dealflow 100-1.000 pa Series A funds  50-150mio fund size  2nd or 3rd fund  2-4 partners + 4 investment managers  Minimum ticket 1mio-1.5mio  5-10 investments pa  Dealflow 100-1.000 pa European funds: matthiashilpert.com/ressources
  • 8. 8MatthiasHilpert.com Segmenting start-ups (by investor demand) Warm (15%)  Good team  Medium growth (5-10% mom) => Broad investor discussions (25-50 investors) Hot (5%)  Best-in-class team (eg successful serial founder)  Unique technology  High growth (20-40% mom) => Only selected investor discussions (5-10) Cold (80%)  Mediocre team  Low innovation/differentiation  Low growth => Very broad investor discussions (100+ investors) Top tier VCs invest in only 0.01% of all startups Germany: 557.000 new companies 29.000 tech/growth start-ups 141 Series Seed rounds 13 Series A rounds KfW, KPMG, Dealroom
  • 9. 9MatthiasHilpert.com Warm Pre-Seed Seed 1 Seed 2** Series A** Stage Idea, MVP Early PMF Established PMF Strong PMF Monthly Revenue 0 5-10K 50K 100K Round size* 50-200K 500K-1mio 1-2mio 4-15mio+ Valuations* 1-2mio 2-4mio 4-10mio 20-100mio Investors Grants, F&F Accelerators & Angels Angels & VCs (<25mio) Angels & VCs (<50mio) VCs (>150mio) Tickets* Angels 10K Accelerators 50K Angels 10-50K VCs 200-500K Angels 25-100K VCs 500K-1mio VCs 2-5mio Reason to invest Love & Play 30x potential 20x potential 10x potential Instrument Convertible Notes CN & Equity Equity Equity When do angels and pre-/seed funds play? * Numbers are indications from Berlin, they may be smaller in other European countries and larger in London ** Seed 2 are more common in the last years and Series A rounds have been growing significantly in size
  • 10. 10MatthiasHilpert.com Hot Pre-Seed Seed Stage Idea, MVP Established PMF Monthly Revenue 0 50K Round size 1-2mio 3-5mio+ Valuations 4-10mio 8-30mio Investors Angels & VCs (<50mio) VCs (>150mio) Tickets Angels 25-100K VCs 500K-1mio VCs 2-5mio Reason to invest 20x potential 10x potential Instrument Equity Equity What happens if a start-up is hot (0.01% or 3 x pa)?
  • 11. 11MatthiasHilpert.com Potential compositions for pre-/seed rounds 200K  Friend & family + angels  4x50K or 8x25K  Convertible Note  1 lead angel or founders documentation  Potentially several closings  No notary and transaction cost 700K  Seed VC + angels  500K + 4x50K  Equity  VC as lead to set terms  Single closing day  Notary and 5-10K transaction cost 1.5mio  Series A VC + angels  1mio + 1x300K + 4x50K  Equity  VC as lead to set terms  Single closing day  Notary and 5-10K transaction cost
  • 12. 12MatthiasHilpert.com What can angels offer (vs institutional investors)?  Operating and investment expertise  Investing own money  Capability to tolerate high risk  Personal and emotional bond  Likely to take “entrepreneur´s perspective”
  • 13. 13MatthiasHilpert.com What to look for in angels vs institutional investors? Angels  personal chemistry  # of deals in the last 12 months  % time spent on angel investing  operator & investor experience  industry, seniority & years of experience (network type & size) Funds  fund size and strategy  key individuals  personal chemistry  lead or follow  portfolio experience  industry experience  follow on investors
  • 14. 14MatthiasHilpert.com “…in God we trust, all others bring references!”
  • 15. 15MatthiasHilpert.com Where to find an angel or pre-/seed investor…  Start locally in DACH  Other start-up teams (comes with immediate reference)  Start-up management teams with successful exits are likely to become angels themselves  Local first tier Accelerators, eg Xpreneurs, Techstars  Angel networks, eg EIF, btov etc.  Early stage Angels and VC regularly refer each other  Directories: Angel.co, LinkedIn, Dealroom …  Investor lists: matthiashilpert.com/resources
  • 16. 16MatthiasHilpert.com …and what questions should they be able to help you answer?  Is my product a pain killer or a nice to have?  How would you segment my customers? Should I focus on 1, 2 or 3 segments?  What is my initial target market, city A or country B or region C?  Can you help me to get a meeting with a decision maker at Customer A?  How would you build the organisation? What´s the best split of work?  Would you hire first a senior role or a junior role?  What do you think of candidate X?  Which marketing channels should I focus on: SEO, PR, SEM, Print, Radio or TV?  How should I structure my sales funnel?  What should my tech stack & architecture look like?  How much money should I raise from whom?  Can you make an intro to investor X?  Do I need more than 1 term sheet?  What are good and bad terms?  I hate my co-founder, what should I do?  Is this ever going to work?  …and more!
  • 18. Come and visit Berlin! matthiashilpert.com