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Startnowhow - Opportunity Recognition and Evaluation
- 1. 08.12.2014 BIC Angels Investments
- 2. 8/12/2014 BICANGELINVESTMENTS Profile of an Investor... • Male (%70-%95) • Aged between 35-60 • University graduate • Proven track record as an Entrepeneur or Professional • Can dedicate 1 day minimum for the startup • Can invest 100K –1M TL into a startup (%20 of PA) • Willing to open his/her network for the startup • Knows the industry he/she is investing in • Geographically close Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar 13.Nov.2014
- 3. Why be an Investor … *? • Monetary gain • Personal Gratification • Diversification of portfolio • Contibution to the economic development of the society • To keep oneself busy *Not necessarily in this order Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar 13.Nov.2014 8/12/2014 BICANGELINVESTMENTS
- 4. An Investor invests in … • Projects they easily understand • Projects that excites them… • Projects they can contribute to .. • The team .. interity , dedication , focus .. • Founders they can communicate with ..’coachable’ • Projects of reasonable size • Startups with not too many shareholders Source : Prof. Erhan Erkut MEF Universitesi; BIC Angel Investor Seminar 13.Nov.2014 8/12/2014 BICANGELINVESTMENTS
- 5. 08.12.2014 5BIC Angels Investments
- 6. CO-INVESTıNGWıTHBIC Selection Committee and Lead Investor • Selection Committee • Consists of 4-8 members of BIC Angel Investments, efforts 1-2 hrs/week • Evaluates 1st round candidates, if interested participates in 1st round meetings, public and partner pitching events Istanbul / Izmir / Ankara • Selects 2nd round candidates • Supports continuous improvement of startup selection process • Lead Investor • Elected from BIC Angel Investors of respective startups • Takes lead in mentoring, coaching and supporting founders • Initially weekly, later at least monthly meetings • Represents BIC Angel Investors in startup, coordinates cooperation • Becomes nonexecutive member of BoD, protected by BoD insurance • Invites to, and runs monthly founder-investor business development meetings 6BIC Angels Investments08.12.2014
- 7. Out of 100 Startups seeking investment • The ones which are elected after a 2-3 minute presentation • 30 minutes evaluation 60 red 40 • 3 hours evaluation 25 red 15 • Fullday evaluation 10 red 5 • Terms-conditions 3 red 2 • GO AHEAD ……..........................2 Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar 13.Nov.2014 8/12/2014 BICANGELINVESTMENTS
- 8. OURINVESTMENTAPPROACH Investment Criteria….of Projects Main consideration: Founder‘s capabilities - Capable, skilled and, if possible, experienced team (preferred 2-3 founders) - Willing to listen and share no ego, open minded , transparent - Full commitment and low salary expectations necessary, 8/12/2014 8BIC Angels Investments Markets Business Model Life Cycle Financing Acceptable Valuation Capable Founder &Team Added Value Sustainable and scalable business model targeted - Supporting lean startup approach, start with minimum viable product (MVP) - Proven and tested business model before spending for marketing & sales Startup financing - Startup / early growth (first round) financing preferred - Seed financing in exceptional cases Valuation in line with current Turkish market conditions - Target post-money valuation start up financing: 1-2 Mio TL - Deviations for seed financing (-) / Early growth financing (+) Investments into Turkish Internet / ecommerce /other markets - Criteria: Market size, market growth, entry barriers, global reach Cooperation with BIC Angel Investments adds value to the venture - Cash injection can push business - Mentorship and support services can add significant value to the business BICANGELINVESTMENTS
- 9. PRE-INVESTMENT:HOWWESELECT Stage 1: Sourcing and Initial Screening 9BIC Angels Investments8/12/2014 BICANGELINVESTMENTS
- 10. PRE-INVESTMENT:HOWWESELECT Stage 2: First Pitch and First Analysis 10BIC Angels Investments8/12/2014 BICANGELINVESTMENTS
- 11. PRE-INVESTMENT:HOWWESELECT Stage 3: Second Meeting / Full Analysis 11BIC Angels Investments8/12/2014 BICANGELINVESTMENTS
- 12. OURINVESTMENTAPPROACH Main Reasons for Failure 12BIC Angels Investments Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.2 68 8/12/2014 BICANGELINVESTMENTS
- 13. CASE 1 13BIC Angels Investments8/12/2014 BICANGELINVESTMENTS
- 22. CASE 2 22BIC Angels Investments8/12/2014 BICANGELINVESTMENTS
- 34. CASE 3 34BIC Angels Investments8/12/2014 BICANGELINVESTMENTS