BCS/BEN Event: Core 5: Funding, Monday 22nd November

1. BCS/BEN Tech Startup School
core 5: Funding
Matt Hatch
22 Sep 2010

2. Example 1: Late stage
Frontier Silicon
• From low risk consumer electronics system integrator -
other peoples IP
• To high risk fab-less semi for mobile phones-
capital/staff reqts
• VC expectation already set - IPO• VC expectation already set - IPO
• Part of team that raised Series D
• Ripped up the business plan for mobile TV
• Major lessons learnt
– Understand the market and stick to what you know!
– Don’t jump on the bandwagon
– Beware of the trophy customer

3. Example 2: Mid stage
ProVision Communications
• University spin out (Profs Nix and Bull)
• Consultancy to VC backed start-up
• World leader in wireless video
• Major VC investor: SWV/YFM
• Large number of small (HNW) investors
• Many rounds of funding – short runways
• Time to revenue and market readiness
• Runway : running the company v raising finance

4. Example 3: Early stage
Gnodal
• World class team, ground breaking technology, huge
market
• Raised significant capital during ‘nuclear winter’ of
‘08/’09‘08/’09
• Lessons learnt
– Tenacity, faith, consistency, patience…
– Pursue all avenues for funding
– Manage cash carefully and extend the runway
– Get customers on board early

5. Example 4: Mubaloo
Maximising your likelihood of success
• Stick to the business model you know
• Don’t try and change the world: paddle downstream
• Market timing is key• Market timing is key
• Fast organic growth with low capital requirement
• Team: Ready supply of smart and keen graduates
• Take external funding as a last resort
• Have fun!