Session on Start-up funding alternatives, venture capital and pitching to VC's

1. Sociedade de Capital de Risco, SA
KIC Innoenergy Master School
UCP Lisbon/ IST
Lisbon, 20 October 2014
Sociedade de Capital de Risco, SA

2. Financing
Needs
FFF / Microcredit
TTA
Business Angels
Venture Capital
Bank Debt
Public Funding Programs (ex. H2020)
Customers
Sources of Funding
+
+
-
-
Stage of Development
( + Risk - )

3. Pre-seed/ Accelleration
Seed
Series B
•Idea phase
•IP development
•“Alpha”/MVP launch
…
•“Beta” release
•Product/market fit
•Initial traction
•Incorporation
•Monetization
•Formalization
•Internationalization
•Traction “ramp-up”
•Growth / scaling
•Globalization
•Consolidadation
Characterisitics
The Early Stage Investment Funding Process
Risk / Mortality Rate
Extreme / >95%
Very high (70%-90%)
Very High (50%-70%)
High (30%-50%)
Start-up (Series A)
Investors
•TTA / Incubator’s
•Government/University funding
•Idea/BP competition
•Personal funds
•Angel investors
•FFF
•Micro VC’s
•Personal funds
•Super Angels
•VCs
•VC’s
•Hedge Funds

4. Essential Characteristics
•Sizeable
•Proprietary
•Scalable
•Traction
•Team
•Skin

5. 10 things to keep in mind

6. Sociedade de Capital de Risco, SA
1. VC’s invest in businesses…
…not ideas

7. Sociedade de Capital de Risco, SA
2. K.I.S.S.

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3. Focus

9. Sociedade de Capital de Risco, SA
4. There is no such thing as a perfect pitch

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5. You are only as good as
your last milestone

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6. Prospective financials make for
great story telling…
…but not much else
“In a startup, no business plan survives first contact
with customers.”
Steve Blank

12. Sociedade de Capital de Risco, SA
7. Traditional valuation metrics (NPV, IRR…)
are of little value

13. Sociedade de Capital de Risco, SA
8.
PRICE VALUE

14. Sociedade de Capital de Risco, SA
9. Smart Money =
SMARTS + MONEY

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10. Credibility is EVERYTHING!