The document discusses the Polish startup ecosystem and outlines plans for a venture capital fund called Startup Gates that will provide funding and acceleration support to startups in Poland and serve as a bridge for investment between China and Eastern Europe. Startup Gates aims to identify promising early-stage startups, provide hands-on assistance to help them develop products, connect them with customers and investors, and generate profits through exits.

1. Startup Gates VC
Detailed project for a startup bridge between China
and Eastern Europe

2. Polish Startup Ecosystem
source: angel.co
9800
Number of startups registered
in CEE in 2016.
27,3%
CEE startups located
in Poland.

3. Startup branches in Poland
14,2%
Mobile
(software
&services)
13,8%
E-commerce
13,8%
Software
11,4%
Edu-Tech
10,4%
Internet
of things
10,1%
Big Data
9,3%
Marketing
Technology
8,9%
Web service
8,9%
Analytics/
Research/
Business
Inteligence
7,8%
Life Science/
Healthcare/
Biotechnology
7,6%
Games
7,6%
Robotics

4. Startup development stages:
12% Problem-Solution Fit
39% Solution-Product Fit
34% Product-Market Fit
15% Scaling
Startup lifespan:
14% Unregistered
38% < 2 years
28% 2-3 years
21% 3 < years
Startup incomes per year:
10% $ 0
50% < $ 30 000
15% $ 30 000-$ 150 000
10% $ 150 000-$ 600 000
5% $ 600 000-$ 1 500 000
5% $ 1 500 000-$ 3 000 000
5% $ 3 000 000 <
Startup innovation:
14% Has its own patent
22% Cooperates with university
24% Cooperates with academic
13% Cooperates with research centre
11% Has its own laboratory
Startup products:
53% Develops new products
43% Improves competitors products
4% Copies competitors products
Startup customers:
51% B2B only
26% B2B and B2C
18% B2C only
5% others
Polish Startup Ecosystem

5. VC market in Poland
20 investments in 2016 till July
56 investments in 2015
$34 000 000 of investments in 2015
35 VC’s and Business Angels Associations
10
7
17
22
12
8
0
5
10
15
20
25
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
Number of investments
75% of VC’s planning to increase investments value
25% of VC’s planning to maintain investments value
0% of VC’s planning to decrease investments value
6 5
13
10
19
37
0
5
10
15
20
25
30
35
40
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
Value of investments [M$]
source: Polish VC market report by Inovo.vc

6. Startup Investments Exits in Europe
180 Exits in Europe in 2015
$14 840 000 000 Value of divestments
38% Y2Y growth of VC market value in Europe
48%
of +2nd rounds
involved US capital
215
248
210
168
259
293
347
366
506 494
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Numberof exits closed
5,74
8,56
3,14
1,41
3,68
5,74
4,01
10,40
21,55
14,84
0,00
5,00
10,00
15,00
20,00
25,00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital Exited [$B]

7. Startup Gates
„where startups generate profits”

8. How we do it
Through our competence we will be finding startups that can become profitable and
innovative companies on a global scale. We are looking only for hard working and goal
oriented people who are ready to sacrified their time to entirely focus on their project.Then
we will grant them acceleration program, sufficient funding, comprehensive support and
constantbusinessadvise.
1.
Fully flexible approach will ensure that as a Venture Capital Fund we will focus on
maximising profits and efficiency. Which means that we will adjust our acceleration
program in a real time and grand funds depending on the projects. Every chosen startup
will receive help according to the needs and our calculations. We want to avoid situation
whereallstartupsrecivethesameamountoffundingregardlessoftheirneeds.
2.
At Startup Gates the acceleration process will be constantly adjusted according to the
changing environment.We want to react instantly to market changes and all other aspects
thatcaninfluencetheoutcomeoftheproject.
3.

9. How we do it
Sales is the key to success therefore startups in our accelerator will be receiving
comprehensivesupportfromdedicatedsalesandmarketingexpert'steam.Wedonotfund
dreams,wefundprojectsthatwillgenerateprofit.
4.
Time is money so the acceleration program will last precise period of time, so startups will
need to work hard to complete their projects keeping in mind a deadline. To ensure them
themostefficientworkingconditionswewillprovidestartupteamswithsufficientfundsto
cover their costs of living. We want to avoid a very common situation where startup teams
are working elswhere instead of working on the project because they need money for the
living.
5.

10. #Gate -1 Working space

11. #Gate -1 Working space
Common working space for all our startups where we can monitor their progress and
supportthemonadailybasis.Accordingtoourexperienceitisasavitalelementofsuccess.
Startup founders need guidance and support to make sure they are on the right path.
Workinginanaccelerator’senvironmentwillprovidethemwithhelpfromourspecialistson
everystageofstartuplife.
Theywillreceiveallkindsofsupportinaccountancy,managing,salesandmarketing.
Commonworkingspacewillgivestartupsuniqueopportunitytoexchangeknowledgeand
experienceandeventocooperatewitheachother.
Asacceleratorwewillfocusnotonlyonbusinessesbutalsoonpeoplewhocreatethem.Our
goal is mutual success that can be achieved if we work together with our startup founders
1.
2.
3.
4.
5.

12. #Gate -2 Accelerator
Every 6 months Startup Gates will organize a competition where 20 startups from Europe
willbegrantedfullaccelerationprogram.InexchangeforfundingStartupGateswillacquire
partofstartupshares.
In order to take part in the competition startups will need to apply online. From all the
applications we will choose the most promising startups and invite them for a pitch and an
interview.Thenwewillgrantaccelerationprogramtothebest20projects.
These 20 startups will receive funding, common working space in Accelerator and
comprehensivesupport.
1.
2.
3.

13. Each project will be evaluated monthly and supported by expert teams to ensure project
completion. Depending on the complexity of the project but on average after 6 months
each startup will present their prototype according to the idea that was presented during
the competition. Prototype will be evaluated and improved. In the worst case scenarios
poorlypromisingprojectswillbeterminatedatthatpointtopreventwastingoffunds.
Main objective is implementation of sales therefore Startup Gates will have inhouse sales
and marketing experts to support startups. After the prototype is ready our experts will
help startups to set up all necessary marketing and sales processes and they will navigate
them through out the whole project.Thanks to this startups will be ready to operate on an
openmarketafteraccelerationprogramisfinished.
5.
#Gate -2 Accelerator
4.

14. #Gate 3 – What do startups get from the program?
Starting a business is very challenging and often confusing. Working with
otherpeoplegoingthroughthesamechallengesmakesahugedifference.
Community
We’ve built startups before. We’ll make sure startups don’t make the same
mistakeswedid.
Advice
Startups live (some too literally) in our office for 6 - 12 months. We’ll work
together on the business and product strategy, growth and metrics, and
investorpitches.
Hands-on support

15. #Gate 3 – What do startups get from the program?
Intro to a customer, early access to a new platform feature, press releases,
exhibitions and conferences - we have the contact base and we will help our
startupstomarketandselltheirproducts.
Connections
Being a Startup Gates VC we will validate business projects, and our network
willhelpstartupsgrowtogenerateprofit.
Funding

16. #Gate 4„The Great China Bridge”

17. #Gate 4„The Great China Bridge”
Startup Gates will provide Chinese Investors in China with a comprehensive e-platform
which allow them to invest in startups from our portfolio. The e-platform will give Chinese
Investors unique opportunity to expand and invest in European startups without building
their own VC infrastructure here. They will be able to browse through our startups, get to
knowthemandinvestinthem.
We also want to bridge technology between China and Europe using our startups. For
example Chinese companies will be able to sell their technology to Europe by transfering
thattechnologytostartupstheyinvestedin.
Moreover startups funded by Startup Gates will be able to manufacture in China building
thesynergywithknowhowandtechnologyforChineseinvestors.
The e-Platform will be a bridge allowing permanent transfer of knowledge and technology
betweenChinaandEurope.
1.
2.
3.
4.

18. VC deinvestment options
Company Value
Time
1st investment round
2nd investment round
3rd investment round
Management buyout
Trade sale
Secondary buyout
Initial Public Offering
Deinvestment possibilities:
VC equity
Company value

19. Startup Gates focus zone
It is impossible to be great in everything therefore Startup Gates will focus on projects from
areas where our team's competencies are strong: Mobile applications, E-commerce,
Internet of things, Big Data, analitics, Web service, games, AR and VR solutions and
applications.
1.
To ensure maximum profit we are focused on startups in early stages: Problem-Solution Fit
andSolution-ProductFit.
2.

20. Why Poland?
PolandisthefastestgrowingstartupregioninEurope
LeaderinnewtechnologiesandITspecialists
3rdcountryforcomputerprogramming
GooglechosePolandtobuildtheirEuropeanCampusinCEEregion
LocalizedinthemiddleofEurope
Lowoperatingcostsofrunningabusiness
Thereisalmost3000startupsoperatinginPoland
ThereareplentyofforeigninvestmentsmainlyfromWesternEuropeandUSA.
1.
2.
3.
4.
5.
6.
7.
8.

21. Startup growth model
Assumptions
10% of investments will generate 2x in revenue - in 3 years
20% of investments will generate 8x in revenue - in 4,5 years
20% of investments will generate 25x in revenue - in 6,7 years
50% of investments will go bankrupt - in 7 years
Accelerator investment assumptions
bankruptcyx8
x2
x25

22. Business plan for Startup Gates
Total investment: USD 10.000.000
Project timeline: 12 years investment horizon
Number of startups: 120 High-Tech ventures
Minimum ROI projections: USD 31.300.000 +
Minimum avarage Y2Y ROI: 30% (combined profit + value of investments)
Minimum avarage profit Y2Y: 18%
ROI projections breakdown:
Income from deinvestment: USD 41.000.000 + (based on 34 exits in 12 years calculation)
Operating profit USD 21.300.000 + ( excluding 52 Startups generating revenue in the future)
For detailed calculations please check our excel spreadsheet
Profit in cash [USD}
Y1Y0 Y2 Y3 Y4 Y6 Y7 Y8 Y9 Y10 Y11 Y12Y5
-10.000.000
-5.000.000
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000

23. Startup Gates Venture Capital Project
Architected by:
Piotr Piątek
Bartosz Janowicz
Mateusz Szczepaniak
Michał Krzywiak
Coordinated by:
EnterChina