Venture capital funds raise money from investors like pension funds and wealthy individuals. They invest this money in startups, with the goal of achieving returns through startup growth and exits. The document discusses how to attract venture capital investment, including demonstrating traction through metrics like active users or revenues. It outlines what VCs look for in teams, markets, technology, and traction. The deal structuring process is then summarized, including typical terms like liquidation preferences, anti-dilution, and drag-along rights that VCs negotiate.
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Understanding How Venture Capital Works | Kirsten Leute and John Lee | Lunch ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Understanding How Venture Capital Works | Kirsten Leute and John Lee | Lunch ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
Short presentation on "Software Tools for Venture Capital Process" discussing some of the innovations and developments in tools that support the venture capital process. Presented at ISBE 2012 conference in Dublin.
Quick and dirty guide to venture capital in general with a segmentation on cleantech in venture from a long time venture capitalist and 7x startup founder and executive
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Planning a Start-up? Our private equity investment PowerPoint presentation slide is just what you need. These equity-based crowdfunding PPT templates will fill the gap between the investors and your company. Download from here: https://www.slideteam.net/private-equity-investment-deck-powerpoint-presentation-slides.html
Short presentation on "Software Tools for Venture Capital Process" discussing some of the innovations and developments in tools that support the venture capital process. Presented at ISBE 2012 conference in Dublin.
Quick and dirty guide to venture capital in general with a segmentation on cleantech in venture from a long time venture capitalist and 7x startup founder and executive
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Planning a Start-up? Our private equity investment PowerPoint presentation slide is just what you need. These equity-based crowdfunding PPT templates will fill the gap between the investors and your company. Download from here: https://www.slideteam.net/private-equity-investment-deck-powerpoint-presentation-slides.html
Topics include:
- Different cloud storage services and how to choose the best one
- All about web hosting
- Open-source technologies
- Emarketing integration
- Cybersecurity
Craig Blair is a co-founder and partner at AirTree Ventures which invests in world-class Australian entrepreneurs building the iconic companies of tomorrow. With over 15 years experience running 2 of Australia’s most successful tech investment funds with partner Daniel Petre and backing businesses such as eBay, Beamly and Ninemsn, Craig is keen to share his insights on how to get a VC's attention. This presentation includes:
- The Start Up journey - what you can expect
- The key steps to approaching a VC
- What to do (and what not to do) when pitching to your business
- How to avoid the pre/post money traps
- How to choose your funding partner (remember VCs and investors are an employee you can't fire!)
Management Consulting - Personal Growth & LeadershipHocein
FREE MANAGEMENT CONSULTING COURSE on www.oeconsulting.be
Operational Excellence Consulting
Tips for starting a business :
1. The “Does it matter?”-Test
Trust your emotions.
Know that a problem can suddenly become an opportunity to start from scratch without a legacy to carry on. A project has to meet specific needs or create something compelling, like a feature that sparks an emotion that you want to see.
2. Make a little, Try a Little and Sell a Little
Avoid getting too much money too soon.
3. Selling Your project & Yourself
4. Community organizing
Identifying the people around you with whom you can create a common, passionate cause
5. Executing your project
Think of execution as a series of rapid prototypes. Great projects get instant feedback and do instant adjustment cycles. The more iterations you can rapidly go through, the faster you can execute your project.
Starting your own business with “Lean start-up” :
Lean startup is a methodology for developing businesses and products, which aims to shorten product development cycles and rapidly discover if a proposed business model is viable, because the primary objective is to have a safe cash flow which then can be invested in risky developments.
Central to the lean startup methodology is the assumption that when startup companies invest their time into iteratively building products or services to meet the needs of early customers, the company can reduce market risks like creating a complete product that doesn’t appeal to the customers or like creating a lot of features that are not used or required by the customers. So the advantage is that there is no need for large amounts of initial project funding and expensive product launches and failures. This is done with two techniques :
A minimum viable product “MVP” (similar to a pilot experiment) is the version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort
A split or A/B test is an experiment in which different versions of a product are offered to customers at the same time. The goal of a split test is to observe differences in behavior between the two groups and to measure the impact of each version on an actionable metric.
Customer feedback during the development of products or services is integral to the lean startup process, and ensures that the company does not invest time designing features or services that consumers do not want. Customer feedback is measured through two processes, using key performance indicators and a continuous deployment process.
Similar to Ldb IMPRESapp Sharing Ideas_Dettori 01 (20)
188 Laboratori e Testimonianze realizzate, più di 1.000 docenti invitati da tutto il mondo, per oltre 7.000 ore di lezione. Sono questi i numeri dei bandi Laboratori dal Basso e Testimonianze, realizzati da ARTI – Regione Puglia tra il 2012 e il 2015.
Attraverso attività formative basate sulla domanda, per cui giovani imprenditori pugliesi tra i 18 e i 35 anni sono stati chiamati a scegliere temi, sedi, metodi didattici e docenti, ARTI ha realizzato percorsi formativi pubblici e aperti a tutti , con lezioni trasmesse anche in streaming e disponibili in remoto su una piattaforma dedicata, www.laboratoridalbasso.it
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
3. Introducing Myself
MSc in ICT Engineering PoliMi
MSc in Computer Science UIC@Chicago
MBA Oxford University
Associate & dealflow manager dPixel
ICT Consulting/Corporate finance experience
Geek &Tech Passionate
4. Introducing dPixel
x x
SelectedInvestments
Exits
Advisor to:
- Digital Investments SCA SICAR – Seed compartment
- Working Capital Accelerator
Promoter of the Barcamper Acceleration Program
Promoter of TechGarage – Grassroot Innovation
6. Setting the Perspective
VCs manage Someone Else’s
money, in order to make more
money for him and for themselves
True story
7. Venture Capital in the Enterprise Lifecycle
cashflow
time
early stage expansion stage
late stage later stageseed start-up
stage stage
first second third
stage stage stage
Venture Capital
Buyouts
Growth Capital
Turnaround Financing
debt
involvement
early insolvency
early ending
of growth
ongoing growth continuing growth
ongoing maturity
turnaround
corporate lifecycle
types of
Private Equity
+
-
8. How does aVC fund work?
5-years investment period 5-years exit period 2y extra
VCs fundraise!
Pension funds, banks, wealthy individuals, private companies, funds of funds…
50%: go bust 40%: break even 10%:Win
1
2
3
VC funds expire!
Companies gettingVC capital remain a risky bet!
4 VCs make money in two ways
Management fees: 1%-3% (yearly) Carried interest: 20% after hurdle rate
9. WhyVCs, Anyhow?
Active Investor
- Leverage theVC partner’s experience
- Strong focus on product, customer and go-to-market
- Help in planning&recruiting (CxO, bizdev, etc..)
Collaboration
- Support & coaching to the management team
- High standards for performance, management & integrity
- Great attention to execution
Relationships
- Access to strong network when required
- Access to international markets
- Co-investments with otherVC funds, support in fundraising & exit
Efficiency
- Efficient use of cash
- Holistic approach to resources
- Create value for all stakeholders
10. When NOT to look forVCs
VCs are not there to fund any idea. Do not look
forVC if:
1. Your market is extremely niche.
2. You want to create a lifestyle business.
3. You are not ready to commit 3+ years in an
enterprise.
4. You are not ready to view your company overgrow
you as a founder.
5. You are extremely scared of failure.
13. Team
1. Founding team of 2/3
people
2. With complementary
skills
3. Previous experience
working together?
Chemistry?
4. Track record counts Anyone investing in these guys?
14. Market
1. Size DOES count
2. Barriers to entry?
3. Complexity /
fragmentation?
4. Do you have
previous experience
in this market?
TAM:Total Available Market
The total reference market
e.g. Accounting Software
SAM: Served/ Serviceable Available
Market
Focus on your technology
e.g. Saas-based accounting sw for SMB
SOM: Serviceable Obtainable
Market
Realistic expectation of what market
share you target to obtain
e.g. 5% of Italian market in 5years
17. Tricks forTelling yourTraction Story
http://www.quora.com/Brendan-
Baker/Posts/Startups-How-to-Communicate-
Traction-to-Investors
Yeah, I know, lazy, but that post is powerful.
18. Do your own due diligence
When looking for aVC, do
your homework!
Active Fund?
Aligned to
investment
strategy?
No
competitors in
portfolio?
Track Record?
Size / stage /
geography?
• Take a deep look at portfolio
companies and try to meet the
CEOs
• Participate to events / meetups.
Be visible
• Find great advisors
Hints:
• Do NOT send unsolicited e-mails
to info@fund.com
• Find good referral channels
19. The anatomy of a seed
Brendan Baker, Anatomy of a seed, http://www.slideshare.net/brendanbaker/anatomy-of-seed-7753824
20. KeyTakeaways on Fundraising
• It will take longer than you expect
• Investors are not always active (i.e. summer, winter holidays)
• Too many introductions will take you nowhere (beware of time
wasters)
• Investors include leaders and followers – you’ll be much more
interesting with a committed investor or two
• FollowTechcrunch, AngeList,Venture Hacks, HackerNews,
CheFuturo!, etc…
• Fundraising. Is. Hard.
22. Process
Deal Flow Management Investment process
Pipeline
management
Learn &
Adapt
- Find new
prospects
- Analyze
progress,
actions and
opportunities
- Metrics & KPI
from prospects
- Forensic
analysis from
lost deals
New prospects
Internal Staff
Meeting
Market &
company
potential, equity
story, team &
documentation
Investment
Memo
Due
Diligence
Term
Sheet
Investment
Agreement
Due diligence of:
- Management
team
- Technology
- Market
- Product
- Strategy
- Legal/compan
y
Final documentCo-investment?
Well-known
protection
clauses forVC:
- Drag Along
- Tag Along
- Liquidation
Preference
Investment
contract
Final Closing
Investment!
weekly
quarterly
23. What to Expect*
* Ben Holmes - Venture Capital – An entrepreneur’s manual
Pre- First Meeting Pre-Termsheet Post-Termsheet
Investor Pitch
Financial Plan
Biz Model Canvas
Expect meeting several
people from the fund
Calls with current /
prospect customers
Meeting the team
Strategy & market
discussion
Personal reference calls
Legal / accounting audit
Technology audit
Drafting legal docs
~1 month 1-3 months
24. Termsheet clauses / 1
Tag Along - If the founders receive a proposal to purchase their quotas, they must tell the
Investor about the proposal, and the investor has the right to participate in the sale
Liquidation
Preference
- In case of liquidation, the fund will get 100% or more of its investment before the
other shareholders.The remaining will be distributed following one of many
possible rules
Anti-Dilution - In case of down-round, the investors in the previous round do not get diluted in
the new one
Drag Along - If the fund receives a proposal for acquiring at least 50.01% of the company, and it
wants to sell, can force other shareholders to sell their quotas
Investment/ExitProtection
25. Termsheet clauses / 2
Key Men Clause
- Founders are forced to remain with the company for at least 24 / 36 months.
This is regulated with an option on their quotas, held by the fund.
- Non-compete
Veto Rights
- Board of Directors rights:
- Selection and dismissal of CEO
- Control of extraordinary expenses & remunation of key people
- …
FavourableVotes
- Favourable votes inShareholders’ Assembly
- New capital increases
- Liquidation / Sale decisions
- …
Governance
Founders’
Undertaking
No - Shop
- After signing the termsheet, the company cannot enter any negotiations with
other investors for an agreed period of time (usually enough to perform proper
due diligence)
No-Shop
BINDING
26. Valuation
Pre-Money
valuation
- Value of the company before the investment
- To be estimated following objective and subjective parameters
- Several valuations methods exist (please check a finance book!)
Money
(Investment)
- Total investment
- Usually through a Capital Increase (no share purchase!)
- Equity or Convertible Loan
Post-Money
Valuation
- Post-Money = Pre-Money + Investment
- > Pre-Money
- Founders are diluted, but the value of the company may increase significantly
- Usually the lowest pre-money valuation for the next round
- Beware the down-round!
Post-Money = Pre-Money + Investment
29. Final remarks
1. VCs are not your friends.
2. Nor your enemies.
3. Fundraising is a long and painful job. Prepare
yourself.
4. Get acquainted with the vocabulary.
5. Execute
