The document provides information for startups on fundraising from venture capital investors in Poland. It discusses the stages of startup development and when it is best to seek investment. Sources of capital at different stages are outlined, including typical investment amounts and share percentages. An overview is given of how venture capital funds operate, how they evaluate projects, and the investment process. Advice is provided on preparing investment materials like a teaser, presentation, and financial plan. Golden rules are outlined for finding investors and having successful investment meetings and negotiations.
Everything you need to know about an investment and fundraising for start-ups. The presentation covers all different sources of financing for high growth companies:
- Bootstrapping and the four Fs
- Angel investors
- Startup accelerators
- Venture capital funds
- Investment documentation
- Alternative funding sources (crowdfunding, etc.)
- Grants and incentives
In the presentation you will also find some basics how to prepare your investment documentation and how to pitch to venture capital investors.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Everything you need to know about an investment and fundraising for start-ups. The presentation covers all different sources of financing for high growth companies:
- Bootstrapping and the four Fs
- Angel investors
- Startup accelerators
- Venture capital funds
- Investment documentation
- Alternative funding sources (crowdfunding, etc.)
- Grants and incentives
In the presentation you will also find some basics how to prepare your investment documentation and how to pitch to venture capital investors.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Know how venture capitalists value your deal....understand how they are compensated...see what creates value and how investors assess your "risk factors."
A great slide show presentation that provides solid answers to many of these essential questions Check out mikeklein2010.wordpress.com
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How do you value a pre-revenue startup?
This is an introduction to some of the methods that are typically used to value a startup, detailing what is important to establish before carrying out a valuation and how it relates to the chosen fundraising strategy and your local market.
How To Create The Perfect Start-Up Pitch Deck The right Way for Entrepreneurs || From a VC perspective
Founders who deeply follow those recommendations will have better chance to build a defining pitch deck for VCs.
If you think you have a good pitch, send it through my way at eharfouche@polytechventures.ch
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The Lean Startup Lifecycle can be used as a descriptive tool to comprehensively explain the evolution of scalable startups as well as a prescriptive tool or roadmap for guiding the development of scalable startups or Billion Dollar Companies. The Lean Startup Lifecycle posits that every Billion Dollar $tartup goes through forms in its lifecycle: Adaptive Startup; Shaping Startup; Transition; Visionary Company; Classic Company.
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This presentation will introduce you to the fundamentals of raising capital for venture builders, startup studios. Compared to raising capital for a single startup, the fundraising process is more challenging. Because you are raising money for an organization that will be active participant in building up an entire batch or batches of startups. So you have to show to your investors that you have:
+ A studio leadership team with the power to build an entire portfolio of ventures;
+ The right financial-organizational structure that matches the goals;
+ A coherent vision and venture building thesis;
+ Viability of your approach supported by benchmarks;
+ Strong portfolio of startups and ideas in your pipeline.
This presentation will help you understand the basics of how to build up your fundraising approach.
If you need more help, reach out and I will guide you in:
+ Structuring your venture builder and fundraising strategy;
+ Assess your current material and identify gaps and risks;
+ Preparing for a successful investor meeting;
Attila Szigeti
https://www.attilaszigeti.com/
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• How different reviewers of these projections look at them, and what they look for
• A high level overview of how to construct a set of projections
• How to break down the components of financial projections into actionable blocks
Venture Builder / Start-up Factory Model One-slider Infographic Floyd DCosta
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A structured, experimental, iterative approach to craft value and generate returns
Know how venture capitalists value your deal....understand how they are compensated...see what creates value and how investors assess your "risk factors."
A great slide show presentation that provides solid answers to many of these essential questions Check out mikeklein2010.wordpress.com
Knowledge Session on Startup Valuation: How does a Startup approach valuations? Best Practices, Models, Examples of good and bad valuations, etc. ELEVATE 100, an initiative of the Department of Information Technology and Biotechnology, Government of Karnataka aims to provide a comprehensive entrepreneurship platform for startups. The top 100 technology based startups chosen through a rigorous hunt across Karnataka State will tap into a whopping sum of Rs.400 Cr of Government funds. This is the largest pool of funds ever offered by any State Government to Startups.
How do you value a pre-revenue startup?
This is an introduction to some of the methods that are typically used to value a startup, detailing what is important to establish before carrying out a valuation and how it relates to the chosen fundraising strategy and your local market.
How To Create The Perfect Start-Up Pitch Deck The right Way for Entrepreneurs || From a VC perspective
Founders who deeply follow those recommendations will have better chance to build a defining pitch deck for VCs.
If you think you have a good pitch, send it through my way at eharfouche@polytechventures.ch
A presentation on The Art of Pitching by Kashyap Pandya - Founder & Director of Syncoro Ventures Pvt Ltd. The presentation covers the key points to be included in your pitch deck while presenting it to the prospective investors.
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartupsRod King, Ph.D.
This presentation builds on Steve Blank's three stage model for the evolution of scalable startups. Steve Blank's three stages are Startup, Transition, and Company. The above "Lean Startup Lifecycle" includes these three stages as well as illustrates other ideas such as Problem-Solution Fit, Product-Market Fit, and Business Model Fit/Scaling. Unlike in Steve Blank's approach, the Lean Startup Lifecycle presents the OTHER Loop as tool for solving novel (emergent) and routine (deliberate) problems when building a scalable startup.
The Lean Startup Lifecycle can be used as a descriptive tool to comprehensively explain the evolution of scalable startups as well as a prescriptive tool or roadmap for guiding the development of scalable startups or Billion Dollar Companies. The Lean Startup Lifecycle posits that every Billion Dollar $tartup goes through forms in its lifecycle: Adaptive Startup; Shaping Startup; Transition; Visionary Company; Classic Company.
Business Model Generation - Part1: Canvas
Presentation of key concept of Business Model Generation Canvas presented in the www.businessmodelgeneration.com/book. With addition of Startup types and lifecycle from Startup Genome Report (http://startupgenome.cc/).
Guest lecture corporate venture capital (herman kienhuis)Herman Kienhuis
Guest Lecture about Corporate Venture Capital by Herman Kienhuis for Corporate Venturing course, MSc Business Administration, Amsterdam Business School (University of Amsterdam - UvA)
This presentation will introduce you to the fundamentals of raising capital for venture builders, startup studios. Compared to raising capital for a single startup, the fundraising process is more challenging. Because you are raising money for an organization that will be active participant in building up an entire batch or batches of startups. So you have to show to your investors that you have:
+ A studio leadership team with the power to build an entire portfolio of ventures;
+ The right financial-organizational structure that matches the goals;
+ A coherent vision and venture building thesis;
+ Viability of your approach supported by benchmarks;
+ Strong portfolio of startups and ideas in your pipeline.
This presentation will help you understand the basics of how to build up your fundraising approach.
If you need more help, reach out and I will guide you in:
+ Structuring your venture builder and fundraising strategy;
+ Assess your current material and identify gaps and risks;
+ Preparing for a successful investor meeting;
Attila Szigeti
https://www.attilaszigeti.com/
What goes into a useful set of financial projections for a startup? How do you go about building a set of projections that meet your needs and best position you for success?
Tom Schryver, Visiting Lecturer of Management at Cornell University, provides an overview of financial modeling and planning principles for startups. This session includes:
• How different reviewers of these projections look at them, and what they look for
• A high level overview of how to construct a set of projections
• How to break down the components of financial projections into actionable blocks
Venture Builder / Start-up Factory Model One-slider Infographic Floyd DCosta
Deploying a venture builder / start-up factory model to smartly develop and scale a set of innovative ventures.
A structured, experimental, iterative approach to craft value and generate returns
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What has been missing is a common language to communicate objectives and data that investors and entrepreneurs can use to communicate startup readiness.
Fortunately, the principles developed in the Lean Startup movement can be utilized to help entrepreneurs assess their Investor Readiness Level in a way that allows them to demonstrate “evidence” of their readiness. In this session, Max Green and Heath Naquin, both of the IC2 Institute, will share this new method for entrepreneurs to gauge their own investor readiness using the principles of Steve Blank's Investment Readiness Level and LeanLaunchpad.
Entrepreneurs attending this session will learn a valuable approach helping their start-up team prove their competence and validate their ideas by showing investors “evidence” that there’s a repeatable and scalable business model.
Heath Naquin serves as Executive Director for the SW I-Corps Node at The University of Texas at Austin. He also serves as the Managing Director for a multi-university NSF Industry University Cooperative Research Center (I/UCRC) the Center for Next Generation Photovoltaics. Heath was a founding member of three different start-up business initiatives across sectors. He has helped companies raise more than $30 Million in funding from private and government sources.
Heath actively works on international commercialization initiatives and efforts focusing on industry collaboration, new project development and deployment along with building linkages between industry, government, academia and the venture capital community. Heath has worked in more than 20 countries on international commercialization and entrepreneurship initiatives in countries such as Colombia, Jordan, Iraq, Korea, Mexico, Portugal, Armenia, and Turkey. Heath has extensive experience with the NSF, EPA and NIH SBIR programs as an active commercial reviewer for many years. Heath also currently serves as Faculty for the Concordia University Executive MBA program.
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1.Wireless Communication System_Wireless communication is a broad term that i...JeyaPerumal1
Wireless communication involves the transmission of information over a distance without the help of wires, cables or any other forms of electrical conductors.
Wireless communication is a broad term that incorporates all procedures and forms of connecting and communicating between two or more devices using a wireless signal through wireless communication technologies and devices.
Features of Wireless Communication
The evolution of wireless technology has brought many advancements with its effective features.
The transmitted distance can be anywhere between a few meters (for example, a television's remote control) and thousands of kilometers (for example, radio communication).
Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
3. Startup stages of development
Beta
Alfa
Scaling
Idea
Feedback
from customers
MVP
Time
4. When asking for investment?
• AS LATE AS POSSIBLE BUT…
• FFFF
• Idea
• BA
• Idea
• Prototype
• Seed funds
• Idea
• Prototype / MVP
• First Client(s)
6. Investments (PL perspective)
FFFF ~ 100 k PLN *
BAs
~ 100–500 k PLN *
Seed funding
~ 500 k – 2 M PLN *
Crowdfunding
~ 1 M PLN
Early Stage
Round A
~ 3–8 M PLN *
Time
Later Stage
Round B, C+…
~ >15 M PLN *
VCs
* Flexible
7. Shares
FFFF ~ 0–10%
BAs
~ 5–20% *
Seed funding
~ 5–30% **
Equity crowdfunding
~ 5–30%
Early Stage
Round A
~ 20–35% **
Time
Later Stage
Round B, C+…
~ 30–70%
* Flexible
** The higher initial % of shares taken by BA/VC the bigger issue for later rounds
VCs
9. Sources of projects for VC
Referrals /
Hunters
Conferences
/ Meetups
Incubators /
accelerators
Inbound /
www
applications
Open Hours
10. Valuations
• Different industries / business models = different valuations
• Market potential is important, but…
• Valuations based on i.e.:
– Current value of the team / technology / IP
– To recreate the project from scratch
– Benchmarking to other transactions („apple to apple”)
– Financial indicators (i.e. Net Rev., EBITA)
– Metrics Multiples (i.e. MRR, TTM)
– DCF
– Demand of the crowd
• IMHO Valuation is a metrics driven game. More you know about
your (and your competitors) metrics - the better.
11. How a VC works?
• Time limit (5-10 years; usually 7-10 years)
• 2 and 20 rule
– Approx. 2% of management fee (yearly)
– Approx. 20% of management carry (success fee)
• In Poland the financial efficiency of funds starts from approx. min.
30 mln PLN
• Usually investors expect 3x CoC (Cash on Cash) return from the
fund (all portfolio)
– IRR approx. 25%
• Example of fund’s portfolio return:
– 15 projects:
• 9 projects = 0 return
• 3 projects = 2-3x CoC
• 2 projects = 5-7x CoC
• 1 project = 10-50x CoC
12. How the process works?
Application / Teaser
Project evaluation
Investment
Committee
Term Sheet /
Invest. agreement
SHA
1-2w.2-8w.1-2w.4-8w.
13. OUTSIDE / IMPACT…
OUTSIDE / IMPACTS
O OPPORTUNITY Is this a positive present value opportunity?
I Idea How clear is the idea?
How unique is the idea?
How easy to reproduce is the idea?
M Market
Is the target market large enough to support substantial
growth / valuation?
Are there adittional growth opportunities?
P Present Value What "special sauce" gives this present value?
A
Acceptance from
customer
Will customers in that market accept / buy this product /
service?
C Competition Why won't the value be competed away?
T Time to enter Why is this a good time to enter?
S Speed What speed is required?
U UNCERTAINTY What are major uncertainties?
How strong is the uncertainity regarding market size?
How strong is the uncertainity regarding customer
acceptance?
How strong is the uncertainity regarding overall strategy of
the project?
How strong is the uncertainity regarding the management
team?
How do the answers affect opportunity?
T TEAM
Is management team reliable (base on past record /
reputation)?
Can management team implement opportunity?
Can you find / hire team with skills you need?
How replaceable individual members are?
Is it hard to retain them longterm?
S STRATEGY Does the strategy help manage the uncertainties?
Is the current strategy consistent with the product
development?
Is the current strategy consistent with the strenghts of
the team?
Is the current strategy consistent with the financing
needs?
Is the current strategy consistent with the possible exit
strategy?
I INVESTMENT What are the working capital needs of the business?
What are the CAPEX needs of the business?
How much money can be recovered in case of
liquidation?
What is the current, monthly burning rate?
Could investor has the control rights to stop / reduce
burning rate?
Is the investment stageable?
D
DEA
L Is the deal priced attractively?
How much money was raised externally(co-
investment)?
Do key individuals have incentives to make deal work?
Does the deal structure ensure appropriate
governance?
E
EXI
T How do we exit from the deal?
Can we reach the size of IPO in next 5 years?
How does the segment / market look like for IPO?
Is there possibility of sell or merge within private sale /
private merger?
Who are potential buyers / mergers?
Is there possibility of management / leverage buyout
(can the business support the debt)?
14. For an investor you’d need…
• Teaser
• Business plan
• Presentation (short / long)
• Financial plan / budget
…but do not forget about i.e.:
• Team members’ more detailed CVs
• References from existing customers („investors love testimonials”)
• Results of market research
• Benchmarks
• More detailed competitive analysis
• Product / site documentation
• Access to statistics
• Legal docs (shareholders agreement, GIODO, other IP docs, patents)
15. Presentation for an
Investment Committee
• Pitching:
– 20-30 min. = 10-12 slides
– 3 min = do not bother with this VC
• Content (examples of slides)
1. What we do? (1 sentence; problem we solve)
2. Who we are? (team and experiences)
3. How we would like to make money?
4. Demo
5. What is our „Secret Sauce” / unfair advantage?
6. What is market potential?
7. What is our competition / does such a business works anywhere?
(„think widely”)
8. Go To Market Strategy / KPIs to be achieved
9. What we need and what we offer? (money, know-how, contacts,
shares, valuation)
16. Golden Rules (1)
• Prepare yourself - „You’ll never have a second chance to make the
first impression”
• Materials are important
– Teaser
– Presentation
– Budget
• Make your research - chose right investor
– What is the funds size?
– How much do they invest?
– What kind of projects do they invest in / specialization
– Know VC Partners and their experiences (prior investments, portfolio)
– Ask for opinions
– Decide on what kind of investor you need (money only, money+specific
knowledge, money+contacts)?
17. Golden Rules (2)
• You can easily find Investors
– „Google is your best friend”
– PSIK
– Lists / Google Docs
– Meetings and conferences
– LI / FB
• Chose 10 investors and prioritize them (i.e. money, know-how,
„chemistry”, bureaucracy), and:
– Chose 5 investors from the bottom and talk to them
• The best way is to be presented / referred by someone
• Send your materials… and monitor if it was read
– Get feedback and correct your materials
– Present corrected pitch to 5 most desired investors
• Investors are busy! There are approx. 30 projects per VC Partner
per month which is more than 1 daily to be evaluated. To be
successful you have to be determined. Call, write and ask about
current status. If you cannot do this at this stage, what can
investor expect from you later on?
18. Golden Rules (3)
• At the meeting
– Show your passion
– Show your knowledge (market, product, competition)
– Be flexible
– Talk and Listen
– Ask the investor Qs !!!
• What the % has already been spent? How many projects are in current portfolio?
What are the av. Rounds (money, % shares)?
• Do they co-invest? With whom? Are they taking a role of lead investor? How
often?
• What are the rules for follow-ons (next round investments)? Do they have budget
reserved for it?
• The only goal from the Initial Meeting is to set up next one
• After getting positive, initial decision try to fix legal issues
– Ask for an example of term sheet with all clauses
– Do not fight for not important paragraphs
– Take good lawyer
• Listen to investors / mentors…
– …but act independently
19. What can investor ask for?
• Shares
• Vesting terms for founders and employees
• Non-resign for key people
• Places in Supervisory Board / Management Board
• Fines
• Clauses
– Tag-Along (Przyłączenie)
– Drag-Along (Pociągnięcie)
– Liquidation Preference
– Participation Preference
– Anti-dilution Protection
– Clawback
• Full control of the Shareholder’s Agreement’s changes