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Uploaded byAlain Rodermann
UJF master 2 14/10/2015
The document discusses venture capital (VC) processes, emphasizing the typical business model, funding strategies, and the importance of managing investor expectations. It outlines the criteria for selecting investment opportunities and provides examples of top European biotech VCs. Additionally, it addresses challenges such as balancing board dynamics and operational efficiency while navigating international market complexities.
UJF master 2 14/10/2015
- 1. Master 2 Ingénieriepour la Santé et le Médicament Université Joseph Fourier, Grenoble 14/10/2015 Alain Rodermann, Managing Partner Raising VC Money and More
- 2. 1. VC$ 2. FUNDRAI$ING 3.TERM$ 4. WHERE
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- 4. Georges Doriot Someone, somewhere, is makinga product that will make your product obsolete
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- 11. What is theAmerican Way of VC ? 20 companies in a fund $1b companies candidates (unicorns) 2-4 blockbusters (x 10-50) § IPOs (big) § Trade sales (fast) 4-6 write-offs (x 0) 3-4 deals a year/ partner
- 12. VC Business Model Lifetime10y + Management fees 2%/y - Hurdle rate 7%/y - Losses 50% => average multiple for 0 carry = 5 X Min Target Multiple = 10 X
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- 19. Do VCs readbusiness plans ?
- 20. How many scenarios? Bottom up monthly financial plan Don’t underestimate salaries and staff size Net income higher than 25% is suspect Include international business if any Can you make 10M€, 100M€ or more in sales ? § Money availability drives financial strategy Conservative post money keeps options open Try hiring a good fundraiser VCs don’t sign NDAs
- 21. -‐4 -‐2 0 2 4 6 8 10 12 14 16 1 2 34 5 6 7 8 9 in out in -‐ out cash position Phasing 21 0,1 0,7 2+ Break-‐even
- 22. Should you acceptmore money than you need ?
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- 31. European Market Source dowjonesVenturewire ; nb of deals 2Q2014
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- 35. Healthcare : 30%of EU VC Investments 35
- 36. 15 Top EuropeanBiotech VCs 1. Woodford 2. Sofinnova Partners 3. TVM 4. Abingworth 5. Wellington 6. HBM 7. Sunstone 8. Seventure 9. Dievini 10. Forbion 11. Truffle 12. Malin 13. Syncona 14. Edmond de Rothschild 15. Ysios 36
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- 38. 38 Guillaume Bodinier,Contrat de mariage en Italie, 1831
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- 41. A bubble inthe USA
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- 44. Is there aValuation Magic Formula ? R)(1 FV R)(1 Ci NPV n 1 0 i + + + = ∑ −n Rodermann Magic System ⎪⎩ ⎪ ⎨ ⎧ ∏ −×+−≤ ≤ + ≤ n DiCpremoney Cpremoney C 010 0 0 0 )1( FV %50%15
- 46. Liquidation Preference Adjustments 1X Double dip, participating 1X Single dip invested shares % nominal premium founders 100 000,00 € 100000 67% 1,00 € -‐ € VC 500 000,00 € 50000 33% 1,00 € 9,00 € 600 000,00 € 150000
- 47. Full Ratchet &Washout
- 48. Example Ratchet § investor 2wants to get 20% for 1M€ 48 Series shareholder Pre Money k€ k€ invested € per share New shares total shares Post money k€ Options seed Inception 0 100 1 100000 100000 100 A Investor 1 10000 3000 100 30000 130000 13000 ESOP 3000 B investor 2 1300 1000 10,00 100000 500000 5000 0 ratchet shares for Investor 1 0 270000
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- 51. How not tobe fired in 6 months ? Build a balanced board of brilliant directors Hire an experienced chairman Pay an experiencedspecialized coach Disclose problems as they arrive Never Lie Write minutes just after board meetings Do what you promised to do
- 52. Becoming Global – ShouldI stay or Should I go ? WHERE
- 53. Operational efficiency CLIENTS PARTNERSTALENTSTAX SUBSIDIES SALES & MKT OPERATIONS R&D HEADQUARTERS
- 54. EU’s Four Freedoms Free movement Goods Capital Services People within EU's 28 member states
- 55. Transatlantic Trade andInvestment Partnership (in progress)
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- 57. Corporate Tax Optimisation SUBSTANCE=PEOPLE+DECISION BRPS : OECD Base Erosion and Profit Shifting Project Double Irish Dutch Sandwich
- 58. Where will youlive ? : Fame
- 59. Where will youlive ? : Lifestyle
- 60. Where will youlive ? : Tax
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