How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
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)
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
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)
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Everything you need to know about an investment and fundraising for start-ups. The presentation covers all different sources of financing for high growth companies:
- Bootstrapping and the four Fs
- Angel investors
- Startup accelerators
- Venture capital funds
- Investment documentation
- Alternative funding sources (crowdfunding, etc.)
- Grants and incentives
In the presentation you will also find some basics how to prepare your investment documentation and how to pitch to venture capital investors.
Gorilla Labs is a Venture builder (startup studio) designed to internalize ideation, rapidly iterate MVPs, and deploy accelerated go-to-market strategies for commercialization using Lean Startup methodology.
Co-founded by 2 INSEAD MBAs (Class of 2015)
Nikhil Jacob
Rubens Nigoghossian
More about venture builders:
http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/
What is a startup studio?
http://upstart.bizjournals.com/multimedia/interactives/2015/04/what-the-heck-is-a-startup-factory.html
Author's blog on experience in the Southeast Asia venture capital ecosystem
http://theventurevault.com/
Ideas are worth very little without a culture to guide the selection of talent and a big, bold vision to attract and unify the team. Human capital is what separates great from good companies – which is why establishing a strong culture to attract and retain the right people, while unifying them behind an inspiring vision and mission is essential to any significant venture.
This presentation will introduce you to the fundamentals of raising capital for venture builders, startup studios. Compared to raising capital for a single startup, the fundraising process is more challenging. Because you are raising money for an organization that will be active participant in building up an entire batch or batches of startups. So you have to show to your investors that you have:
+ A studio leadership team with the power to build an entire portfolio of ventures;
+ The right financial-organizational structure that matches the goals;
+ A coherent vision and venture building thesis;
+ Viability of your approach supported by benchmarks;
+ Strong portfolio of startups and ideas in your pipeline.
This presentation will help you understand the basics of how to build up your fundraising approach.
If you need more help, reach out and I will guide you in:
+ Structuring your venture builder and fundraising strategy;
+ Assess your current material and identify gaps and risks;
+ Preparing for a successful investor meeting;
Attila Szigeti
https://www.attilaszigeti.com/
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major Zero to 100 is a learning program from David Skok. It is a detailed detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Transparency is one of our core values at Seedcamp and we are no strangers to how tough the fundraising process can be. In a continued spirit of openness and to show how - like with startups - our own story and proposition moves on, we're sharing the deck we used to raise our heavily-oversubscribed Seedcamp Fund V.
Read more about our plans to invest in and support the next generation of exceptional European talent on our blog: https://seedcamp.com/news/
Venture Builder / Start-up Factory Model One-slider Infographic Floyd DCosta
Deploying a venture builder / start-up factory model to smartly develop and scale a set of innovative ventures.
A structured, experimental, iterative approach to craft value and generate returns
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
Slash - the Startup Studio Playbook (13 dec2018)Slash
New models for collaboration emerge between corporates, startups and investors.
In his keynote at the Asia Startup Summit, Slash CEO Andries De Vos shares how Slash (www.slash.co) has developed a startup studio model which can be applicable to corporates, investors and entrepreneurs.
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Seed Fundraising and Angels; Entrepreneurs Roundtable Accelerator (ERA)Thomas Wisniewski
This is a presentation from a recent workshop I led at Entrepreneurs Roundtable Accelerator for the current (Summer 2014) class of start-up founders. New format; content from prior presentations of mine.
US Investors: From Early Stage to Series ADavid Shen
I gave this presentation in Oct 2014 at the Silicon Valley Innovation Center to a group of visiting Kazakh entrepreneurs. They wanted to know about US based investors and what they look for, and how to get investment from them.
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Everything you need to know about an investment and fundraising for start-ups. The presentation covers all different sources of financing for high growth companies:
- Bootstrapping and the four Fs
- Angel investors
- Startup accelerators
- Venture capital funds
- Investment documentation
- Alternative funding sources (crowdfunding, etc.)
- Grants and incentives
In the presentation you will also find some basics how to prepare your investment documentation and how to pitch to venture capital investors.
Gorilla Labs is a Venture builder (startup studio) designed to internalize ideation, rapidly iterate MVPs, and deploy accelerated go-to-market strategies for commercialization using Lean Startup methodology.
Co-founded by 2 INSEAD MBAs (Class of 2015)
Nikhil Jacob
Rubens Nigoghossian
More about venture builders:
http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/
What is a startup studio?
http://upstart.bizjournals.com/multimedia/interactives/2015/04/what-the-heck-is-a-startup-factory.html
Author's blog on experience in the Southeast Asia venture capital ecosystem
http://theventurevault.com/
Ideas are worth very little without a culture to guide the selection of talent and a big, bold vision to attract and unify the team. Human capital is what separates great from good companies – which is why establishing a strong culture to attract and retain the right people, while unifying them behind an inspiring vision and mission is essential to any significant venture.
This presentation will introduce you to the fundamentals of raising capital for venture builders, startup studios. Compared to raising capital for a single startup, the fundraising process is more challenging. Because you are raising money for an organization that will be active participant in building up an entire batch or batches of startups. So you have to show to your investors that you have:
+ A studio leadership team with the power to build an entire portfolio of ventures;
+ The right financial-organizational structure that matches the goals;
+ A coherent vision and venture building thesis;
+ Viability of your approach supported by benchmarks;
+ Strong portfolio of startups and ideas in your pipeline.
This presentation will help you understand the basics of how to build up your fundraising approach.
If you need more help, reach out and I will guide you in:
+ Structuring your venture builder and fundraising strategy;
+ Assess your current material and identify gaps and risks;
+ Preparing for a successful investor meeting;
Attila Szigeti
https://www.attilaszigeti.com/
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major Zero to 100 is a learning program from David Skok. It is a detailed detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Transparency is one of our core values at Seedcamp and we are no strangers to how tough the fundraising process can be. In a continued spirit of openness and to show how - like with startups - our own story and proposition moves on, we're sharing the deck we used to raise our heavily-oversubscribed Seedcamp Fund V.
Read more about our plans to invest in and support the next generation of exceptional European talent on our blog: https://seedcamp.com/news/
Venture Builder / Start-up Factory Model One-slider Infographic Floyd DCosta
Deploying a venture builder / start-up factory model to smartly develop and scale a set of innovative ventures.
A structured, experimental, iterative approach to craft value and generate returns
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
Slash - the Startup Studio Playbook (13 dec2018)Slash
New models for collaboration emerge between corporates, startups and investors.
In his keynote at the Asia Startup Summit, Slash CEO Andries De Vos shares how Slash (www.slash.co) has developed a startup studio model which can be applicable to corporates, investors and entrepreneurs.
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Seed Fundraising and Angels; Entrepreneurs Roundtable Accelerator (ERA)Thomas Wisniewski
This is a presentation from a recent workshop I led at Entrepreneurs Roundtable Accelerator for the current (Summer 2014) class of start-up founders. New format; content from prior presentations of mine.
US Investors: From Early Stage to Series ADavid Shen
I gave this presentation in Oct 2014 at the Silicon Valley Innovation Center to a group of visiting Kazakh entrepreneurs. They wanted to know about US based investors and what they look for, and how to get investment from them.
Have a great idea, but not sure how to get funding to turn it into a business? This presentation highlights the many ways to find funding and focuses on the pros & cons of using venture capital to launch.
Venture Capital 101 - I'm a VC, Who Are You? Paula Marttila
"Venture Capital 101 - I'm a VC, Who Are You?" walks you through the essentials of venture capital, early stage funding alternatives, and the difference between good and bad VC to an audience new to fundraising. I first gave this talk to Interactive Communication students at Berghs School of Communications in Stockholm, Sweden, March 2013.
March 2016: Updated version to reflect the changes and trends in venture capital markets incl. additional pitch advice, recommended reading, and founder resources.
Presentation by Steve Carkner, Head of Innovation at Revision Military as part of the Business of IoT Workshop at IoT613 on Thursday, September 29, 2016.
Venture capital equity funding explained - Paula Mariwala, Seed Fundtiemumbai
Know more about fund raising and the key parameters that an investors takes into consideration while investing his money and time into a business or entrepreneur as explained by Paula Mariwala - Partner Seed Fund
How do I Raise Capital? - Lecture at University of OxfordSia Houchangnia
Dr Ricardo Schäfer and Sia Houchangnia from the Seedcamp investment team, were invited to give a lecture at the Oxford University Saïd Business School, as part of its flagship lecture series Building a Business. The lecture was given to 200 students interested in learning more about starting a business and the key principles of how to do so. The topic of this lecture is on How to Raise Capital.
The lecture was filmed and you can watch the video here:
https://youtu.be/KWjtRikKDLE?list=PLtXf43N26ZiefSYP5o2GmMnN6V_WYkUe3
2. Why this topic matters to me
As an ex-entrepreneur, I wish I had known that!
As a VC, I want entrepreneurs to understand us.
As a person, I believe it can help entrepreneurs.
Understanding VCs – @Boris_Golden – Partech Ventures
3. Preliminaries
Don’t take all this for granted!
Focused on seed & early stage only,
Based on European (esp. French) experience,
Only my opinion (but probably mostly shared),
Content is work in progress, always evolving.
Understanding VCs – @Boris_Golden – Partech Ventures
4. Preliminaries
My story: been on both sides of the table.
I’m an ex-entrepreneur & mentor,
now early-stage VC @ Partech Ventures.
Same ecosystem but different perspectives!
Understanding VCs – @Boris_Golden – Partech Ventures
5. Preliminaries
Many founders don’t understand VCs: what
they do, how they think, what they want...
I experienced it myself as an entrepreneur
& can now see it on a daily basis as a VC.
And guides on Fundraising / Pitching / VC funds don’t really help.
Understanding VCs – @Boris_Golden – Partech Ventures
6. Preliminaries
But you need to understand VCs before fundraising!
This presentation intends to help you do so.
Providing accessible & “no bullshit” insights to
understand VCs & the implicit rules of the game.
Understanding VCs – @Boris_Golden – Partech Ventures
7. Summary
1. An introduction to VCs
2. How VCs typically think
3. Entrepreneurs’ disappointments
4. Why (not) go with a VC
5. What VCs are looking for
6. Building a relationship with a VC
7. Pitching to VCs
8. Fundraising with a VC
Understanding VCs – @Boris_Golden – Partech Ventures
8. An introduction to VCs
Understanding VCs – @Boris_Golden – Partech Ventures
9. An introduction to VCs
Venture Capitalists (VCs) spot, fund & support
very specific companies: high potential startups
= [innovative & unproven]1
[“young” ~tech]2
companies,
needing money for [ambitious but credible growth plans]3
Thus, only a small % of companies can potentially get funded by VCs.
BAs are different: not their job (but their money!) & often less ROI-driven.
Understanding VCs – @Boris_Golden – Partech Ventures
10. An introduction to VCs
Business model of VCs = raise money, get fees on it,
invest the rest, sell with a ROI, get a % of the returns:
Share of returns
LPs’ money* Investments (equity)
ROI (power law)
1
4
2
3
* LP = Limited Partner (the ones investing money in VC funds) Understanding VCs – @Boris_Golden – Partech Ventures
Fees1’
€
11. An introduction to VCs
But early-stage VC is not really a finance job...
• Raise & manage funds, on behalf of LPs (a VC firm often has several funds)
• Take an active role & build a network in the startup ecosystem
• Source great startups & build relationships with entrepreneurs
• Assess startups & strive to invest in the most promising ones
• Bring value to entrepreneurs & help build global success stories
• Facilitate the sale of companies at the right time / right price
• Learn, build & share knowledge, vision, insights, expertise...
Understanding VCs – @Boris_Golden – Partech Ventures
12. An introduction to VCs
A “paradox” in the VC lifecycle: a very long time horizon & overall feedback loop (~10 years!),
but at the same time a fast-paced, rich daily work with continuous experiencing & learning.
Understanding VCs – @Boris_Golden – Partech Ventures
Support portfolio
Raise a VC fund Source startups
Assess them
1 2
36
45 Win & make deals
Exit with a ROI
Reputation,
Brand, Network
+
Experience, Skills,
Knowledge
13. An introduction to VCs
Sourcing is key to identify & meet promising startups.
It relies on network, brand/reputation & hunting:
• Referrals (entrepreneurs, accelerators, VCs, schools, ecosystem, friends, etc)
• Cold inbound (entrepreneurs reaching out directly to VCs without an intro)
• On the ground (talks, jurys, events, networking, media presence, gossip, etc)
• Proactive (market analysis, press/social networks monitoring, startups lists, etc)
• Entrepreneurs “pool” (that VCs already know, follow & ping regularly)
• Fundraisers (but not usual & rather not too positive at very early stage)
Understanding VCs – @Boris_Golden – Partech Ventures
14. An introduction to VCs
VCs strive to understand & assess which innovative
“idea”/vision/project/team could succeed (no hard truth).
Takes insights & judgement on: market & trends / people /
product / business model / traction. Network. Luck. Time...
And then, VCs must also convince their colleagues internally.
Early-stage VCs hardly agree with each other, this is quite subjective!
Understanding VCs – @Boris_Golden – Partech Ventures
15. An introduction to VCs
VCs often also strive to win the opportunity to invest
in the “best” startups, at a “reasonable” price.
It typically relies on personal fit, reputation,
brand, value-add, and negotiation & sales skills.
VCs too often have to “beat” the competition to succeed!
Understanding VCs – @Boris_Golden – Partech Ventures
16. Understanding VCs – @Boris_Golden – Partech Ventures
Beyond $$: VCs support & enable!
• Advisor (inform, guide, share experience/intuition/opinion/feedback/advice/ideas...)
• Facilitator & challenger (discuss, elicit, reformulate, reframe, ask questions...)
• Supporter & coach (support, listen, empower, educate & help you grow)
• Methodologist (provide & help to implement methods, tools, best practices...)
• Curator (share relevant content, stories, patterns, comparables, news, info...)
• Investment banker (help define, prepare & execute next fundraisings, M&A, exit)
• Network (connect you with the right people for: bizdev, hiring, advice, networking...)
• Platform (provide in-house/external hands-on expertise, e.g. HR, PR, tech, sales...)
• Board member (direct, validate, monitor... but entrepreneurs mostly decide & do)
17. How VCs typically think
Understanding VCs – @Boris_Golden – Partech Ventures
18. How VCs typically think
VCs bet on companies
with high risk / high reward.
Ok to lose money on a deal,
but wins should be really “big”.
→ Indeed: returns follow ~ a “power law” (i.e. most come from few),
+ 1 win is expected to have a significant impact on the overall fund.
Understanding VCs – @Boris_Golden – Partech Ventures
19. How VCs typically think
VCs know they will often be “wrong”.
They must deal with uncertainty & risks.
E.g. miss the winner in a space,
dismiss ultimately great startups,
bet on ultimately bad startups...
VCs are never 100% confident, esp. when saying “no”!
Understanding VCs – @Boris_Golden – Partech Ventures
20. How VCs typically think
Scarcest resource of VCs is time, not money!
They are thus very careful on how they spend it.
VCs typically receive dozens of requests a week
(or even a day) and sadly can’t engage with everyone.
→ VCs prioritize & filter requests, and make decisions,
often based on limited information (like recruiters!).
Understanding VCs – @Boris_Golden – Partech Ventures
22. Entrepreneurs’ disappointments
VCs decline to invest 99% of the time, and
often do so quickly & without digging a lot:
Not convinced Too early Out of scope
Don’t believe Too intricate No team-fit
Don’t get it Too risky No project-fit
Understanding VCs – @Boris_Golden – Partech Ventures
23. Entrepreneurs’ disappointments
Most VCs invest when you have already ~proven
“something”, and can “grow” quickly from there!
Because: they take “reasonable” risks / other startups
have done so / it proves you’re resourceful & can execute.
So probably later than you think (and hardly at ‘idea’ stage!).
Understanding VCs – @Boris_Golden – Partech Ventures
24. Entrepreneurs’ disappointments
VCs see a lot of startups & have very high standards.
For instance, many achievements that are huge for
a startup are just "Ok" (or “What’s next?”) for a VC.
Also, VCs assess the past but invest on the future.
Understanding VCs – @Boris_Golden – Partech Ventures
25. Entrepreneurs’ disappointments
VCs benchmark similar startups
& try to pick the “best” one!
Choosing you = “No” to others! Probably dozens of
startups similar to yours. Most VCs will only bet on 1!
A VC thus needs to be really convinced to bet on you! Also,
VCs won’t steal your idea (but beware of existing portfolio)
Understanding VCs – @Boris_Golden – Partech Ventures
26. Why (not) go with a VC
Understanding VCs – @Boris_Golden – Partech Ventures
27. Why (not) go with a VC
A relevant VC is an “unfair advantage”
to grow fast & outsmart competition.
Brings: value add, credibility, more $$ next...
But: don’t need it to stay in business,
don’t consider it as a key milestone.
Understanding VCs – @Boris_Golden – Partech Ventures
28. Why (not) go with a VC
However, VC money has a “cost”:
Give away a minority stake
Growth, ROI & liquidity expectations
A bit less freedom
Time spent on fundraising
Understanding VCs – @Boris_Golden – Partech Ventures
29. Why (not) go with a VC
Most companies shouldn’t & can’t raise with a VC.
But it’s OK & there are other ways to find the money:
Public grants BA / Family office Customers
Debts / Banks Love money Crowdfunding
→ before fundraising, assess if “VC” makes sense for you
Understanding VCs – @Boris_Golden – Partech Ventures
30. What VCs are looking for
Understanding VCs – @Boris_Golden – Partech Ventures
31. What VCs are looking for
Future market leaders, bringing big financial returns .
Thus “big” exits. E.g. in seed: > 100M€ (not “only” 10).
Is it really your ambition & potential?
Considering the risks, very good VC funds will target e.g. ~3x in < 10y.
But most of the returns come from e.g. top 15% startups (power law).
Multiple required thus 3x/15% = 20x. If 5M€ seed valuation, exit ~100M€.
Understanding VCs – @Boris_Golden – Partech Ventures
32. What VCs are looking for
To potentially achieve such a performance,
startups must meet very selective criteria:
1. Large market (taking a small pie will still make a big business)
2. Disruption (disrupting the rules & incumbents of this market)
3. Unique strengths (making it credible that you will scale & win)
4. Capital-efficient model (reasonable capital needs to grow fast)
5. Strong exit potential (multiple, credible & attractive exit paths)
Understanding VCs – @Boris_Golden – Partech Ventures
33. MARKET = big market opportunity
1. Specific people with real needs
2. Clear competitive positioning
3. Large & attractive market
4. Favorable trends & timing
4Ms: a framework for early-stage startups
MANAGEMENT = best team to execute
1. Smart, skilled & cohesive team
2. Strong ability to deliver & learn quickly
3. Ready to go big whatever it takes
4. Unique insights, vision & project-fit
Check also a more visual 4Ms infography here
MODEL = disruptive & virtuous model
1. Valuable & Differentiated Product
2. Efficient Go-to-Market / Growth channels
3. Profitable Monetization
4. Scalability / Defensibility
MOMENTUM = ability to grow very fast
1. Cracked something / Traction
2. Ambitious but credible growth plan
3. Capital-efficient growth model
4. Clear strategy to scale & win
Understanding VCs – @Boris_Golden – Partech Ventures
34. MARKET = big market opportunity
1. Specific people with real needs
2. Clear competitive positioning
3. Large & attractive market
4. Favorable trends & timing
A depiction of the startups VCs look for
MANAGEMENT = best team to execute
1. Smart, skilled & cohesive team
2. Strong ability to deliver & learn quickly
3. Ready to go big whatever it takes
4. Unique insights, vision & project-fit
MODEL = disruptive & virtuous model
1. Valuable & Differentiated Product
2. Efficient Go-to-Market / Growth channels
3. Profitable Monetization
4. Scalability / Defensibility
MOMENTUM = ability to grow very fast
1. Cracked something / Traction
2. Ambitious but credible growth plan
3. Capital-efficient growth model
4. Clear strategy to scale & win
Understanding VCs – @Boris_Golden – Partech Ventures
Exit
Traction
TimeCurrent fundraising
Next fundraising
1. Vision that could turn
into a valuable company
2. Credible & efficient
way to achieve it
3. Unique reasons to
bet on you, today
35. What VCs are looking for
There must be a real fit between
the VC and {you + your startup}.
It’s a mutual choice! You’ll be together
for years, for the best and the worst…
It’s like in recruiting: cultural & personal fit, shared vision
and trust are key to build a great story together!
Understanding VCs – @Boris_Golden – Partech Ventures
37. Building a relationship with a VC
VCs are human above all.
Demystify them: they’re just people.
They’re often wrong & have their moods.
You deal with a person, not a VC firm.
VCs can be vastly different from each other.
Understanding VCs – @Boris_Golden – Partech Ventures
38. Building a relationship with a VC
STAND OUT and impress VCs!
You need to win their attention &
make them spend time with you.
E.g. catchy referral/approach, very well articulated teaser,
easy/pleasant to deal with, impressive/passionate...
Understanding VCs – @Boris_Golden – Partech Ventures
39. Building a relationship with a VC
Build a personal, valuable, trustful relationship.
Ask them for advice first, before fundraising.
If you’re good but too early, they’ll say “later”,
not "no". It’s relational, not transactional!
But VCs’ answers can be fuzzy & hard to interpret, ~ on purpose…
(allegedly preserve entrepreneurs & VC optionality → wrong imho)
Understanding VCs – @Boris_Golden – Partech Ventures
41. Pitching to VCs
VCs like when it is easy & fast to:
understand + feel excited + believe.
Keep in mind that VCs usually form an
opinion quickly, with limited data.
Outcome depends as much on the pitch as on the startup!
Understanding VCs – @Boris_Golden – Partech Ventures
42. Pitching to VCs
VCs want both relevant storytelling
& a clear demonstration (of 4Ms).
A data-driven business plan story,
with clear logic & assumptions.
(true at very early stage, more financial at later stage)
Understanding VCs – @Boris_Golden – Partech Ventures
43. It’s hard to craft a great pitch!
1. Make your pitch really clear, smooth & obvious
2. Provide only specific & easy-to-digest content
3. One clear, relevant, impactful message per slide
4. Explain the market & context, before what you do
5. Show unique insights & a clear differentiation
6. Make it understandable to “non experts”
7. Help assess how good your achievements are
8. Be ambitious, and give reasons to believe in you
9. Put yourself in VCs’ shoes & use their language
Understanding VCs – @Boris_Golden – Partech Ventures
44. An example of what to pitch (1/2)
1. Teaser (vision & what you do in a clear/impactful way, key achievements, ambition/goals)
2. Team (who you are, your story: how you met/got the idea, why you are the best at it)
3. Company (birth date, location, history, cap table, money spent, # of employees...)
4. Problem (people & situations, the way it works today, key problems/needs they have)
5. Market (the market you’re in, key things to know about it, current & future trends)
6. Opportunity (where existing alternatives fail, why solve it now, how big it could be)
7. Approach (strategic & market positioning, place in the value chain, value proposition)
Understanding VCs – @Boris_Golden – Partech Ventures
45. An example of what to pitch (2/2)
8. Product (key principles & features, use cases + demo, user love & engagement metrics)
9. Secret sauce (how it works & scales, what is unique/hard, potential virtuous effects)
10. Growth-to-market (your GTM strategy, how you target & acquire users, how it scales)
11. Monetization (who pays, for what & how much, the unit economics & profitability)
12. Competition (who is in the space, who is a competitor, how you differentiate & win)
13. Status (where you stand now, significant achievements so far, traction & momentum)
14. What’s next (goals & plan for next years, money needed, structured financial plan)
Understanding VCs – @Boris_Golden – Partech Ventures
46. Pitching to VCs
It's a conversation, not a speech.
VCs ask questions on key points of your startup
to find answers & understand how you think.
So don’t expect to talk for 30 minutes without interruptions.
Understanding VCs – @Boris_Golden – Partech Ventures
47. Pitching to VCs
VCs assess both form & content:
The heart of your project
+ the way you convey it
+ all weak signals!
Understanding VCs – @Boris_Golden – Partech Ventures
48. Fundraising with a VC
Understanding VCs – @Boris_Golden – Partech Ventures
49. Fundraising with a VC
It is usually demanding to raise VC money:
it takes time & success rate is very low.
Many VCs will reject you. A “yes” from a VC firm takes
several meetings & requires to convince several people.
E.g. of VC funnel: 200 startups > 40 meetings > 5 digs > 1 invest.
But if you're "hot", you have the power to filter & choose your VC!
Understanding VCs – @Boris_Golden – Partech Ventures
50. Fundraising with a VC
Momentum is a key psychological factor.
It can make or break a deal with VCs.
E.g.: VCs can lose interest if it takes too long.
They are often more excited when others are.
They usually don’t like to invest if you struggle.
Understanding VCs – @Boris_Golden – Partech Ventures
51. Fundraising with a VC
An interested, excited or even “in” VC
≠ actually closing the deal.
A deal can fail at any stage of the process.
Until money is actually wired, it’s not over!
Understanding VCs – @Boris_Golden – Partech Ventures
52. Fundraising with a VC
At early stage, valuation is not “what you’re worth”.
It just means: you give X% in exchange for Y€.
Balance between founders’ dilution & VC ownership.
Valuation is ~ an “art” & depends on: round size, market standards,
business’ potential & risks, VC competition, fundraising momentum.
Understanding VCs – @Boris_Golden – Partech Ventures
53. Thank You!
I’d love to hear your feedback
(and about your startup too )
bgolden@partechventures.com
@Boris_Golden
54. PS: How do I spend my days?
• Supporting portfolio (updates, discussions, workshops, boards, biz dev...)
• Sourcing & ecosystem networking (events, jurys, talks, hunting...)
• Managing emails & dealflow (filter & answer to everyone! [except ‘spam’])
• Meeting entrepreneurs (pitchs, updates, open discussions...)
• Analysing & closing deals (deepdive & memo, negotiations, due dill, legal...)
• Reading & curating (articles, news & co about startups/tech/VC...)
• Learning & growing (formalizing ideas, learnings, analysis, best practices...)
• Firm work (others’ deals, biz dev, team mngt, fundraising, LPs, reporting, events...)
Understanding VCs – @Boris_Golden – Partech Ventures
55. Pictures Credits
Reinventing Your Exit
by Will Foster
Tragedy
by Johnathan Nightingale
Brainy vs. Brain
by JD Hancock
Brains!
by Hey Paul Studios
Synchronized climbing
by Ruth Hartnup
Dice
by Daniel Dionne
Lego Men 5
by Sprout_labs
Lost in Translation
by Focus Features
Suessian megaphone
by Michael
Between fog and tress
by Robert Couse-Baker
SpaceX CRS-1 Blastoff
by Steve Jurvetson
Design by Benoît Laurent
benoit@worders.net
Understanding VCs – @Boris_Golden – Partech Ventures