Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Understanding differences in startup financing stages

102,755 views

Published on

Understanding differences in startup financing stages

Published in: Technology

Understanding differences in startup financing stages

  1. 1. get found. get funded.
  2. 2. Financing options for European startups Investment landscape has changed significantly over the past few years, especially at the early stage, where new investment vehicles and platforms have been created
  3. 3. Pre-seed An idea, a working prototype and funding that will allow the entrepreneurs to focus full time on the project. FFF: Friends, family & fools Accelerators Mentorship, office space and capital in exchange for 5 to 10 per cent equity Successful entrepreneurs Previous startup founders who have had exits and decide to invest their money in their new venture
  4. 4. • Get the company running and find product-market fit. • Seed rounds in Europe range from €250K to €750K/€1M Traditionally: Angels, super angels & Venture Capital firms Alternatives: Crowdfunding Two types: • Reward-based crowdfunding: users provide capital and get goods/services in return • Equity crowdfunding: investors provide capital and get equity in return Angel syndicates • Lead angel investors allow other angels to co-invest in deals. • Online platforms connect angels & startups Seed
  5. 5. Series A • Established product and capital to scale and set business model • Series A rounds in Europe range from €2M to €5M Venture Capital firms lead Series A investments Challenges in Europe: • Series A crunch: only 6% of European companies managed to secure an A round (2009- 2014) • Big gap compared to Series A in the US Data from Christian Hernandez & Stephen Piron
  6. 6. Series B • Scaling and growing • Series B in Europe: €6M to €10M Often led (or participated) by US-based VC firms Challenges in Europe: • Very few companies reach this stage, and a fewer % compared to the US • Only certain European VC firms have the capacity to lead Series B rounds • The number of Series B deals in Europe remained flat over the period while it grew 37 percent in the U.S. - Christian Hernandez & Stephen Piron
  7. 7. Series C/D • Mature companies and revenue in the millions • Series C/D in Europe: tens to hundreds of millions Private Equity firms and investment banks join the game End of the road? Three main ways to ‘exit’: • Acquisition of other startups to grow • Get acquired by bigger companies, providing exit to investors and founders • IPO: NASDAQ, LSE
  8. 8. Thanks for your attention! If you want to get in touch drop us a line at info@startupxplore.com

×