This document provides an overview of issues related to startup investment, valuation, and exit from the perspectives of angel investors and venture capital firms. It discusses key factors that angel investors and VCs consider like the founding team, traction, scalability, and market potential. It also summarizes different valuation approaches and exit strategies. The document then analyzes current venture capital investment trends in Europe, the US, and Asia. It outlines the corporate development process for companies and concludes with an introduction to the services provided by i5invest.
Markus Wagner - i5invest - Austria - Stanford Engineering - Jan 26 2015Burton Lee
Talk by Markus Wagner, CEO & Founder - i5invest, Vienna, at Stanford on Jan 26 2015, as a part of our session on 'Internet-of-Things Startups & Seed Funds :: Poland & Austria'.
Website: http://www.StanfordEuropreneurs.org
YouTube Channel: https://www.youtube.com/user/StanfordEuropreneurs
How to grow an European startup in the USA – Dos and Don’tsi5invest
“How to grow a global startup in the USA - Dos and Don’ts of doing business as an European founder”
We'll try to cover all the basics, like choosing the right time, picking a location, handling bureaucracy, and getting local funding. and many more.
A Frontline Ventures x Point Nine Capital collaboration.
It is no surprise that Germany dominates much of the conversation around European tech — the growth of the startup and venture capital ecosystem has surpassed even the most optimistic of expectations.
As an early-stage software fund in London/Dublin with a pan-European investment view, we are seeing exciting young companies emerging from all over Germany. They are following in the footsteps of already successful global companies like Rocket Internet, Soundcloud, and Auctionata.
Germany’s tech transformation is startling, and seems to only be just beginning. Learn more about:
- funding options for German startups
- notable players in the VC and startup ecosystem
- challenges that lay ahead for German tech
- future opportunities & existing winners
- typical terms offered to startups
- successful exits in Germany so far
Markus Wagner - i5invest - Austria - Stanford Engineering - Jan 26 2015Burton Lee
Talk by Markus Wagner, CEO & Founder - i5invest, Vienna, at Stanford on Jan 26 2015, as a part of our session on 'Internet-of-Things Startups & Seed Funds :: Poland & Austria'.
Website: http://www.StanfordEuropreneurs.org
YouTube Channel: https://www.youtube.com/user/StanfordEuropreneurs
How to grow an European startup in the USA – Dos and Don’tsi5invest
“How to grow a global startup in the USA - Dos and Don’ts of doing business as an European founder”
We'll try to cover all the basics, like choosing the right time, picking a location, handling bureaucracy, and getting local funding. and many more.
A Frontline Ventures x Point Nine Capital collaboration.
It is no surprise that Germany dominates much of the conversation around European tech — the growth of the startup and venture capital ecosystem has surpassed even the most optimistic of expectations.
As an early-stage software fund in London/Dublin with a pan-European investment view, we are seeing exciting young companies emerging from all over Germany. They are following in the footsteps of already successful global companies like Rocket Internet, Soundcloud, and Auctionata.
Germany’s tech transformation is startling, and seems to only be just beginning. Learn more about:
- funding options for German startups
- notable players in the VC and startup ecosystem
- challenges that lay ahead for German tech
- future opportunities & existing winners
- typical terms offered to startups
- successful exits in Germany so far
Industrifonden's Swedish Tech Funding Report Q1-Q2 2017 provides an analysis of the venture investment activity in Swedish private tech companies during the first six months of 2017.
The "Startup Visa" an Innovation in Immigration Policy for the Digital AgeNatalie Novick
States have long courted international entrepreneurs in an effort to attract investment and capital to their countries. However, existing immigration legislation is poorly equipped for evaluating today's digital companies. Startup visa policies were developed in an effort to meet the needs to tech founders who wish to bring their companies to new markets. However, they often remain ill-suited for digital startups, and the impact thus far has been limited. While these visa programs aim to lower the barriers of entry for today’s technical entrepreneurs, new innovations in the evaluation process have created additional hurdles that have impacted success. A growing private role in the evaluation of these visa applications has created a new and unique challenge for prospective entrants, while fundamentally changing the way that immigrant visas are granted.
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)
Elaine Coughlan, General partner with Atlantic Bridge Capital, presentation to the Women Mean Business Awards Dublin 6th October 2014 on Scaling and Going Global with your Business
Ukrainian Venture Capital and Private Equity Association
(UVCA) was established to spread the word about
Ukraine’s achievements and opportunities and to support
investors in every aspect, from providing reliable
information to establishing international connections at the
industry and government levels.
eGym & HPE Growth Capital - NOAH19 BerlinNOAH Advisors
B2B Software & Services: Fireside Chat with Philipp Roesch-Schlanderer, eGym and Manfred Krikke, HPE Growth Capital at the NOAH Conference Berlin 2019, 13-14 June, STATION.
Consumer Goods - Presentation by Luke Waite, Co-Founder of Titan Black at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 9th of June 2016.
B2B - Presentation by Thomas Bergen, Co-Founder & CEO of getAbstract at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 8th of June 2016.
Industrifonden's Swedish Tech Funding Report Q1-Q2 2017 provides an analysis of the venture investment activity in Swedish private tech companies during the first six months of 2017.
The "Startup Visa" an Innovation in Immigration Policy for the Digital AgeNatalie Novick
States have long courted international entrepreneurs in an effort to attract investment and capital to their countries. However, existing immigration legislation is poorly equipped for evaluating today's digital companies. Startup visa policies were developed in an effort to meet the needs to tech founders who wish to bring their companies to new markets. However, they often remain ill-suited for digital startups, and the impact thus far has been limited. While these visa programs aim to lower the barriers of entry for today’s technical entrepreneurs, new innovations in the evaluation process have created additional hurdles that have impacted success. A growing private role in the evaluation of these visa applications has created a new and unique challenge for prospective entrants, while fundamentally changing the way that immigrant visas are granted.
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)
Elaine Coughlan, General partner with Atlantic Bridge Capital, presentation to the Women Mean Business Awards Dublin 6th October 2014 on Scaling and Going Global with your Business
Ukrainian Venture Capital and Private Equity Association
(UVCA) was established to spread the word about
Ukraine’s achievements and opportunities and to support
investors in every aspect, from providing reliable
information to establishing international connections at the
industry and government levels.
eGym & HPE Growth Capital - NOAH19 BerlinNOAH Advisors
B2B Software & Services: Fireside Chat with Philipp Roesch-Schlanderer, eGym and Manfred Krikke, HPE Growth Capital at the NOAH Conference Berlin 2019, 13-14 June, STATION.
Consumer Goods - Presentation by Luke Waite, Co-Founder of Titan Black at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 9th of June 2016.
B2B - Presentation by Thomas Bergen, Co-Founder & CEO of getAbstract at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 8th of June 2016.
Partner Program Development for Scalable International Growth - Tenego WebinarDonagh Kiernan
Webinar on Partner Program Development.
"A Partner Program defines how partners fit into your business.
It's much more than a few pages on your website!"
An effectively implemented Partner Program can accelerate your international growth, covering many different types of partners in all the terminologies; affiliate, introduction, referral, agent, reseller, value added reseller, Channel Partners, Implementers, OEM, White Label, distributors etc
What should you expect from each partner type?
How does each partner type integrate into your business across each function of your business?
What You Will Learn?
● The key components of a Partner Program
● Key Business Decisions for Partner Programs
● Different partner types; what you want and how they fit into your business
● Partner Tiers; Treat partners differently in line with the potential to your business
● Integrating with each business function: Marketing, Sales, Professional Services, Support, Product, Finance
● How to get started and build your Partner Program; Partner Recruitment, Partner On-boarding, Partner Management
Presented by David Teten - Managing Partner, HOF Capital
The cost of starting a business has trended down to the cost of being unemployed, which means dramatically more startups, and therefore more competition for your startup idea. How do you identify a startup idea that addresses a market others are not serving?
So, you want to partner with SAP. Are you ready?
So, you have a great product and proposition growing globally
and now you are ready to partner with SAP.
What does it take to get your product sold by SAP?
What does it take to become a SAP Partner?
SAP is the third largest software company in the World with over 320,000 customers and more than 17,000 partners.
What Will You Learn?
● What does it take to partner with SAP?
● What does SAP look for in the product partner companies? How do they evaluate partners?
● How is SAP structured? Can it truly be a global partner for your business?
● How do you manage a giant partner such as SAP?
● How do you evaluate if SAP is the right path for your business?
About Tenego
Tenego provides international sales execution services for growing and established Technology Companies. Tenego's proven approach and expertise take responsibility for driving the company's sales revenues across multiple markets with direct sales outsourcing, channel development, channel management, lead generation services and sales management services.
Do the Math: The Smart Analysis your CEO and CFO Expect (even if they haven’t...Actuate Corporation
For the first time, Marketers have the ability to collect and measure almost any data imaginable. As a result, too many of us find ourselves violating Robert McNamara’s maxim – we try to make what’s measurable important, vs. making the important measurable. How do we reach that elusive Goldilocks state of measuring not too much, not too little, but just the right things? Start with the executive management team. What metrics are they using to run the business, and how can you help?
This session will review real dashboards and reports you can use to communicate to stakeholders in sales and finance, inform long-term plans, and continually optimize execution. The result? Marketing’s credibility increases, your forecasts become more accurate even than those of Sales, and you assume your rightful place as indispensable consigliore to your C-levels.
Role of the business accelerators in smart startup development. Results of MB...Riga High Tech University
10:00, 14 July 2015, Altum conference room, 4 Doma laukums, Riga
Half-day conference
Venture Capital for tech startups in Latvia 2015. Demand vs supply
Details:
http://www.labsoflatvia.com/events/venture-capital-for-tech-startups-in-latvia-2015-demand-vs-supply-2
B2B & Software - Company Presentation by Chris Farinacci, Head of Business at Asana at the Axel Springer NOAH Conference 2018 in Berlin, Tempodrom 6-7 June 2018.
Software partner recruitment for grown upsDonagh Kiernan
Slides for the webinar: Software partner recruitment for grown ups
In this webinar we share insights from the hard lessons we've learned that have shaped our approach to Partner Recruitment.
Tenego developed this webinar to help companies seeking to understand the main points on using partner recruitment to support growth and expansion. We will share 5 main points in our methodology to successfully implement a partner recruitment program.
Interested in learning more about Partner Recruitment and the Tenego methodology?
Want to understand the big blocks of Partner Recruitment to help setup your program?
Michael Franz Harris - Potential Candidate for Software Solution SalesMichael Harris
Proven track record of successfully selling software solutions to clients of all sizes. Regardless of the software, it's about addressing a company's goals & objectives by thoroughly understanding their needs and aligning to them to transform data into a strategic asset for the company
“are your happy with your sales partner channel or tolerating it?”
What should you expect from your Sales Channel Partners?
From identifying existing problems to fixing them and accelerating your company’s growth.
How do you identify/diagnose channel problems? How do you avoid the common mistakes?
How do you align your objectives and set the pace for your channel partners?
How do you make your channels more efficient, improve activity and grow revenues in your channel strategy?
Hear, ask your questions and learn from Tenego on how to: identify problems and underperforming channel strategies, navigate channel conflict and improve management for both direct and indirect channels.
What You Will Learn?
• Identifying the common mistakes in Sales Channel Development and Management, and how to avoid/fix them
• Do you have the right Partners: How to achieve a good Sales Partner Fit and typical challenges?
• Do you have the right partner management / supports alignment into your partner organisations?
• Setting the pace: Improved forecasting when dealing with Channel Partners
• Partner Planning and Objective Alignment with Channel Partners
• Restructuring your Partner Network: Drop, Drip Feed or Drive on
• Reinvestment: How to increase revenues from Partner Channels
- Why benchmark - and why can it be useful?
- What can we benchmark against, and who can help with the process?
- Benchmarking processes and techniques
- Pros and cons of different benchmarking options
- A suggested model for benchmarking the procurement function
- Developing improvement plans
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
2. 2 | 28/04/2015
Experience of the
founder team Product with a
Unique Selling
Proposition
Traction /
Momentum
Consistence /
completeness of
business model
Scalability of
business model
Market potential
and competition
Business Plan
and capital
required
External proof
of concept
What can Angel
contribute in
addition to
capital?
Fair valuation (for
the region) with
reasonable stake
Ability to work
together over the
investment period
Exit / liquidation
event
Issues from an Angel Investor’s perspective
28/04/2015
Traffic
Engagement
Registered users
Active users
Revenues
Profitability
Pre-seed & seed
investment
3. 3 | 28/04/2015
Issues from a VC’s perspective
28/04/2015
Venture Capital Firm
Portfolio (based on risk / return profile)
FailureIPOTrade Sale
What is the best exit
option for the
company?
What price can be
realized?
“Invest, Hold and Exit”
What stage is the
company currently at?
Does the company fit
into existing portfolio?
How much is the
company worth now?
How much will the
company be worth at
exit?
Main value drivers for VCs are Entry Value, Exit Value and Investment Horizon
Investment
(Series A, B, … )
Company 1 Company 2 Company ... Company n
4. 4 | 28/04/2015
An overview of valuation approaches
VC Method Asset based Valuation Scoring Method
Entry / Exit Value and
investment horizon
Bottom up valuation of
assets → sum of the parts
Benchmarking target vs.
regional market average
Entry
Exit
IRR
Investment Horizon
Tangible
Assets
NWC
Intangible
Assets
GW
TotalValue
Scoring
Categories
Weighting
Factor
Bench-
mark
Total
Value
x =
Weighting
…and of course there are the traditional approaches such as Discounted Cash Flow
Valuation and Multiple Valuation
5. 5 | 28/04/2015
Venture Capital Method
The VC approach reflects the business model of
invest, hold and exit
Pre-money
value
Post-money
value
Capital
raised
Exit Value
Discount Rate
= Expected IRR
Exit Value drivers
Revenue potential
Profitability: e.g.
EBITDA
Multiple based on
revenues / EBITDA
Competitive
bidding process
Investment horizon: 5 – 8 years
Terminal Value (EUR in m) 20,0
IRR 65%
Investment Horizon (yrs) 6
Post-money value 1,0
Capital raised 0,3
Pre-money value 0,7
Share in the Company 30%
Cash on Cash Multiple 20
Efficient exit process
6. 6 | 28/04/2015
All approaches provide a great framework…
…in the end supply and demand for investment opportunities
drive the valuation
(Startup)investment
opportunities
Investors(AngelsandVCs)
(Deals) experience and
points of reference for
valuation
Industry knowledge
Investor network
Supply Demand
7. 7 | 28/04/2015
What is happening in venture markets?
4/28/2015
Equity investment in venture-backed
companies – Europe vs US
Source: VentureSource, Capital IQ & i5invest Analysis
Development of average investment in
Internet Software
0
1
2
3
4
5
6
7
8
Europe and USA USA Europe
Private Placements per region - Internet
Software (money raised)
Q3 2014 Q4 2014
+20%
+38%
-30%
($m)
• Investments in venture-backed
companies much higher in the US than in
Europe
• Investments in venture-backed
companies in the US is up 77% compared
to 1Q12, in Europe only 57%
• 3Q14 vs 4Q14: USA → 23% increase;
Europe → 29% decrease
• The number of investment in internet
software companies decreased, whereas
the average money raised increased to
almost $8m
• Average money raised through private
placements decreased 30% in Europe,
whereas in the US it increased by 38% in
4Q14
8. 8 | 28/04/2015
+18%
+13%
+15%
+11%
+33% +12%
What is going on in the financial markets?
Development of trading multiples in
Application Software
Development of trading multiples in Data
Processing / Outsourced Services
Source: Capital IQ & i5invest Analysis
Enterprise Value / Sales
• In 2014, companies in APAC showed a
higher valuation than Europe for the
first time in the last three years
• Data Processing companies in APAC
trade at a much lower level than their
peers in Europe and North America
• Companies in North America significantly higher valued than in Europe and APAC
• EV/Sales Multiples in all three areas increased over the last three years
Enterprise Value / Sales
9. 9 | 28/04/2015
What is happening in transaction markets?
4/28/2015
Development of transaction multiples in
Application Software*
Development of transaction multiples in
Data Processing & Systems Software*
Enterprise Value / Sales Enterprise Value / Sales
* Adjusted for outliers
Source: Capital IQ & i5invest Analysis
• Transaction multiples in North America
and Europe increased (slightly)
• The EV/Sales multiple in APAC increased
significantly in 2014
• This was driven by the 1.5bn USD
acquisition of AutoNavi Holdings by
Alibaba (EV/Sales 8.2x)
• Transaction multiples in Europe moved
sideways
• The EV/Sales multiples in North America
and APAC increased significantly
(especially in 2014)
• One of the highest valued US transactions
in 2014 was the acquisition of Mandiant
by FireEye (EV/Sales 8.1x)
10. 10 | 28/04/2015
COMPANY
Partners
Customers
Competitors
Suppliers
Outside current
product focus
Outside current
industry focus
Outside current
geography
New business?
Business and Corporate Development – an integrated process
Strategic Preparation
Strategic Business /
Corporate Development
Corporate Development /
M&A
COMPANY
Potential
Leads
Long list
Short list
3 months 3 - 6 months 6 months
Define current
positioning
Establish right
first point of contact
Assure efficient and
competitive process
Phase 1
Preparation
Phase 3
Due Diligence
Phase 2
Reach Out
Phase 4
Negotiation Exit
11. 11 | 28/04/2015
Exit Process is the final stage
Deepen company and
market analysis
Financial model and
business plan
Preparation of
transaction
documents
Indicative valuation
Long- and shortlisting
of potential buyers
Contacting short list with
teaser and NDA
Distribution of
transaction documents
after receipt of signed
NDAs
Preparation of
management
presentation
Setup of data room
Selection of bidders
SPA negotiation with
preferred buyer(s)
Development of final
transaction structure
(share/asset deal)
Signing of SPA
Receipt of approvals
Closing
Management
presentations and site
visits
Coordinating due
diligence, expert
meetings and Q&A
session
Assessment of binding
offers / term sheets
Selection of preferred
buyer(s)
Phase 1
Preparation
Phase 2
Reach Out
Phase 3
Due Diligence
Phase 4
Negotiation
Key steps
Key success factors
Understanding the
dynamics of
transaction
environment
Business development
to assure Fit for Exit
Establishing the right
first point of contact (be
it business or corporate
development)
Creating competitive
process with several
potential bidders
Negotiation tactics and
mitigating reps &
warranties
Leverage different
stakeholders
Bridging the value gap
Comprehensive
preparation of company
documents and data
Fast, streamlined and
efficient due diligence
with several bidders
Efficient sell side process to maximize returns
12. Thank you!
OUR EUROPE OFFICE
i5invest Beratungs GmbH
(CEO Herwig Springer)
Spengergasse 37-39
A-1050 Vienna
Austria/Europe
OUR US OFFICE
i5growth Inc.
(CEO Markus Wagner)
460 S California Ave, #304
Palo Alto, California 94306
United States
Herwig Springer
CEO Corp. Dev.,
M&A
h.springer@i5invest.com
+43 650 530 8976
13. 13 | 28/04/2015
What we do – Our Services
WE ARE LONG TERM PARTNERS (through all stages)
START-UP MENTORING
SEED FUNDING
CORPORATE DEVELOPMENT / M&A ADVISORY
We focus on max 2 new companies per year – we aren’t
spray & pray investors. We focus on sector expertise, mostly
strong IP/technology, international/US markets, rarely
copycat business models
14. 14 | 28/04/2015
Who we are – Our Team
Founded 2007, Vienna - partner i5growth Inc. in Palo Alto
28/04/2015
- PARTNERS & FRIENDS – OUR ECOSYSTEM-
Herwig Springer
CEO Corp. Dev.,
M&A
h.springer@i5invest.com
+43 650 530 8976
Patrick Prokesch
Director Corp. Dev.,
M&A
p.prokesch@i5invest.com
+43 676 303 4854
Paul
Weinberger
Partner
Markus Wagner
Chairman of
Advisory Board,
CEO - i5growth
Inc./ USA
Alexander
Igelsboeck
Partner
Martin
Brunthaler
Partner
Bernhard
Lehner
Partner
Vlad
Gozman
Partner
AdvisoryBoard/
Partner
Partner
Johannes Raidl
Director Corp. Dev.,
M&A
j.raidl@i5invest.com
+43 664 167 7577
Georg Novak
Executive
Assistant
g.novak@i5invest.com
+43 676 841 282 150