Nuvolab - Finding Funding (with or without you, dear investor) - Politecnico di Milano - January 2015

Finding funding
With or without you, dear investor
Francesco Inguscio, Nuvolab
Politecnico di Milano, Milan – January 7 2015
Questo documento è stato prodotto da un team di Nuvolab. Le pagine che seguono costituiscono il supporto per presentazioni orali e quindi non possono essere intrepretate
senza i relativi commenti a voce. Nessuna parte di questo documento può essere duplicata, distribuita o utilizzata senza il permesso del team che ha preparato il documento.

©2015 NUVOLAB
☁  Overview

☁  An
inconvenient
truth

☁  Finding
funding:
diﬀerent
sources

☁  How
to
approach
investors

☁  Pitching
like
a
pro

☁  Conclusions

Agenda

©2015 NUVOLAB
Who
am
I?

B&PButtignon & Partners
Winner 2009
Startcup Veneto
More
info:
h=p://www.slideshare.net/ingu/personal-‐proﬁle-‐8060566

Studying
@
Working
@
Having
fun
@

©2015 NUVOLAB
www.nuvolab.com

Un<l
I’ve
realized
that
“You’ve
got
to
ﬁnd
what

you
love”
(S.
Jobs)

©2015 NUVOLAB
Nuvolab
is
a
business
accelerator
and
a
catalyst
of
change

dedicated
to
all
the
realiJes
in
the
(Italian)
entrepreneurial

ecosystem.

So..
What
is
Nuvolab?

20+ 10+ 10+ 10+ 10+

©2015 NUVOLAB
What
is
a
startup?

©2015 NUVOLAB
An
innovaJve

company

What
is
a
startup?

©2015 NUVOLAB
A
startup
is
temporary
organiza<on
in
search
of
a
repeatable,

scalable
business
model
(Steve
Blank,
The
Startup
Owner’s

Manual)

1.  Temporary
organiza<on

2.  In
search

3.  Of
a
business
model

4.  Repeatable

5.  Scalable

A
good
deﬁni<on

©2015 NUVOLAB
A
startup
has
a
well
deﬁned
lifecycle
that
ends
with
the
validaJon

of
its
(repeatable
and
scalable)
business
model.

Done
that,
it
becomes
a
real
“company”.

It’s
a
journey.

Temporary
organiza<on..

©2015 NUVOLAB
A
startup
is
a
“?”
and
not
a
“!”
(more
appropriate
for
successful

company)
beside
the
word
“business
model”.

Credits:
Steve
Blank,
The
Startup
Owner’s
Manual

Credits:
Eric
Ries,
The
Lean
Startup

?

..in
search..

©2015 NUVOLAB
A
business
model
describes
the
raJonale
of
“how
an
organiza+on

creates,
delivers,
and
captures
value”
(A.
Osterwalder,
2010).

In
other
words
is
about
how
a
ﬁrm
will
make
money
and
sustain
its

proﬁt
stream
over
Jme.

..of
a
business
model…

©2015 NUVOLAB
A
repeatable
business
model,
is
a

business
model,
which
will
generate

cash-‐ﬂow
more
than
once.
This

sounds
very
obvious,
because
as
it

seems
every
business
is
repeatable.

But
this
is
not
true.

When
you
sell
your
house:
this
is

not
a
repeatable
business
model.

But
of
course
it
is
a
repeatable

business
model
to
sell
houses
of

other
people.

Repeatability
of
your
business

model
is
strongly
related
to
a

speciﬁc
quesJon:
if
your
business

will
growth
or
not
in
the
future.

..repeatable..

©2015 NUVOLAB
Scalability
is
the
ability
of
a

system,
network,
or
process
to

handle
a
growing
amount
of

work
in
a
capable
manner
or
its

ability
to
be
enlarged
to

accommodate
that
growth.

Meaning
for
a
business:
when

your
revenues
grow,
your
proﬁts

grow
(more
than)
proporJonally

(economy
of
scale).

Scalability
of
your
business

model
is
strongly
related
to
a

speciﬁc
quesJon:
how
your

business
will
growth
in
the

future.

..and
scalable!

©2015 NUVOLAB
•  Not
every
(new)
company
is
a
(scalable)
startup.

•  A
startup
is
not
a
younger/smaller
version
of
an

“old”
tradiJonal
company.

•  Startup
(=“?”):
a
temporary
organizaJon
in
search
of

a
repeatable,
scalable
business
model
.

•  Company
(=“!”):
a
permanent
organizaJon
designed

to
execute
a
repeatable
and
scalable
business
model

•  So
startups
have
(some)
different
needs
compared
to

tradiJonal
companies
à
i.e.
financial
needs
and

funding
sources:

–  Since
they
need
Jme
(and
money)
in
order
to
find
an
answer

about
their
business
model
(“?”)
à
specific
funding
needs

(especially
when
their
business
is
capital
intensive)

–  Since
they
are
high-‐potenJal
(scalable)
companies
(“!”)
à
specific

(some<me
exclusive)
sources
of
finding
/
investors

So
what?

©2015 NUVOLAB
The
startup
journey:
a
lifecycle
perspec<ve

©2015 NUVOLAB
STAGE 1 STAGE 2 STAGE 3
CONSERVATION
SUSTAIN
SCALE
EFFICIENCY
VALIDATION
DISCOVERY
IDEA

STAGE 4 STAGE 5 STAGE 6 STAGE 7
REVENUES

TIME

Start
Launch

Build

Chasm

Scale

Maturity

Source:
Four
Step
To
Epiphany
(S.
Blank),
Startup
Compass
(Stanford)
e
Startup
Lifecycle
(F.
DesJn)

The
startup
journey:
a
lifecycle
perspec<ve

(product
PoV)

©2015 NUVOLAB
STAGE 1 STAGE 2 STAGE 3
CONSERVATION
SUSTAIN
SCALE
EFFICIENCY
VALIDATION
DISCOVERY
IDEA

STAGE 4 STAGE 5 STAGE 6 STAGE 7
REVENUES

TIME

Start
Launch

Build

Chasm

Scale

Maturity

Source:
Four
Step
To
Epiphany
(S.
Blank),
Startup
Compass
(Stanford)
e
Startup
Lifecycle
(F.
DesJn)

The
startup
lifecycle:
take
the
product
PoV…

©2015 NUVOLAB
FINANCIAL

NEEDS

7
STAGES

CASH
FLOW

EXPANSION MATURITY
Financial needs
Revenues
Cumulative
cash flow
..and
combine
it
with
the
ﬁnancial
PoV..

©2015 NUVOLAB
FINANCIAL

NEEDS

7
STAGES

CASH
FLOW

EXPANSION MATURITY
Financial needs
Revenues
Cumulative
cash flow
..where
the
ﬁnancial
need
is
evident!

©2015 NUVOLAB
FASE 1 FASE 2 FASE 3
CONSERVATION
SUSTAIN
SCALE
EFFICIENCY
VALIDATION
DISCOVERY
IDEA

FASE 4 FASE 5 FASE 6 FASE 7
Note:
overlapping
product
and
ﬁnancial
perspecJve
has
only
didacJc
purpose

FINANCIAL

NEEDS

7
STAGES

CASH
FLOW

EXPANSION MATURITY
Financial needs
Revenues
Cumulative
cash flow
Start

Launch

Build

Chasm

Scale

Maturity

It
will
persist
un<l
your
business
model
is

validated
or..

©2015 NUVOLAB
FINANCIAL

NEEDS

7
STAGES

CASH
FLOW

EXPANSION MATURITY
Financial needs
Revenues
Cumulative
cash flow
“The
valley
of
death”

..un<l
you
will
exit
from
the
market
prematurely

©2015 NUVOLAB
Source:
The
Illusions
of
Entrepreneurship:
The
Costly
Myths
that

Entrepreneurs,
Investors,
and
Policy
Makers
Live
By

HBS
(2011):

•  Failure
=
liquidaJng
all

assets,
with
investors
losing

most
or
all
the
money
they

put
into
the
company
à
the

failure
rate
for
start-‐ups
is

30-‐40%.

•  Failure
=
failing
to
see
the

projected
return
on

investment
à
failure
rate
is

70-‐80%.

•  Failure
=
declaring
a

projec<on
and
then
falling

short
of
meeJng
it
à
failure

rate
is
a
whopping
90-‐95%.

Classic
company

Tech
Startup

The
Valley
of
Death

©2015 NUVOLAB
Failure
rate
by
industry

©2015 NUVOLAB
6 Copyright © 2011 Nuvolab - All Rights Reserved
Fonte: http://www.chubbybrain.com/blog/top-reasons-
startups-fail-analyzing-startup-failure-post-mortem/
Le 20 principali cause di “morte prematura” per una
startup (secondo ChubbyBrain, database VC e BA)
Source:
h=p://www.chubbybrain.com/blog/top-‐reasons-‐
startups-‐fail-‐analyzing-‐startup-‐failure-‐post-‐mortem/

The
top
20
Reasons
Startups
Fail

©2015 NUVOLAB
1.

Being
inﬂexible
and
not
acJvely
seeking

or
using
customer
feedback
à
45%

2.

Building
a
soluJon
looking
for
a

problem,
i.e.,
not
targeJng
a
“market

need”
à
30%

3.

Not
the
right
team
à
30%

4.

Poor
MarkeJng
à
28%

5.

Ran
out
of
cash
à
25%

6.

I
got
this
product.
Now
I
just
need
a

business
model
à
25%

7.

Release
product
at
the
wrong
Jme
à

20%

8.

Lack
Passion
and
ExperJse
à
19%

9.

Do
not
cut
your
losses
a
la
Pivot
at
the

right
Jme
à
19%

10.

A
“User
Un-‐Friendly”
Product
à16%

11.

Pricing
Issues
à
16%

12.

Do
not
use
your
connecJons
à

16%

13.

Disharmony
with
Investors/Co-‐
founders
à
12%

14.

Lose
Focus
–
Distracted
by
Shiny

Objects
à
12%

15.

Burn
Out
à
12%

16.

Get
outcompeted
à
10%

17.

Be
unable
to
A=ract
Investors
à

6%

18.

LocaJon,
LocaJon,
LocaJon
à
6%

19.

Not
working
on
it
full
Jme
à
6%

20.

Start
the
company
at
the
wrong

Jme
à
6%

The
top
20
Reasons
Startups
Fail

©2015 NUVOLAB
So..
Startup
life
is
a
very
hard
thing!

©2015 NUVOLAB
SMART
MONEY

Competences
Funding

What
is
missing?

©2015 NUVOLAB
Verve
Capital
Partners
(2011):
what
is
the
VC

spent
per
capita
in
European
countries
(USA
$

67
pc)
à
5
groups

•  Group
1
($70-‐60):
Switzerland
($69
pc),
the

Netherlands
($
62
pc)

•  Group
2
($60-‐50):
Sweden,
Finland
($
59

pc),
Denmark
($
53
pc)…
over
European

average
($
35
pc).

•  Group
3
($40-‐30):
UK,
Ireland
($39
pc),

Belgium
($33
pc),
France
($31
pc)

•  Group
4
($30-‐20):
Norway
($27
pc)
Spain

($24
pc),
Germany
($21
pc)

•  Group
5
($10-‐0):
Austria
($10
pc),
Portugal

($
7
pc),
Greece
($
3
pc)
and…last…
Italy
($

1
pc)

An
inconvenient
truth

©2015 NUVOLAB
http://www.youtube.com/watch?v=U470xXKfDyE
Let’s
start
with
a
brief
overview

©2015 NUVOLAB
“3 F” BA VC/CV IPO
FINANCIAL
NEEDS
7 STAGES
CASH FLOW
EXPANSION MATURITY
Financial needs
Revenues
Cumulative
cash flow
GrantCustomers CrowdfundingPrizes
Funding
your
startup:
(un)
conven<onal
sources

©2015 NUVOLAB
•  Founders
(and
their
bank
accounts)

•  Customers

•  Friends
&
Family
(&
Fools)

•  Business
angels

•  Venture
Capital

•  Corporate
Venture

•  Crowdfunding

•  Seed
accelerator
programmes

•  Business
incubators

•  Public
grants

•  Prizes

Funding
sources:
short
list

©2015 NUVOLAB
•  Where
to
spend

–  Team!
Engineers,
Product

Management

–  Product
&
usability

–  Good
lawyers

•  Where
NOT
to
spend:

–  Big
management
teams

–  MarkeJng
&
adverJsing

–  Big
outsourcing
projects

–  Bonuses
(with
some

excepJons…)

–  Travel
(again,
with
some

excepJons…)

–  Outside
sales
forces

•  Common
spending
pisalls

–  Hiring
too
many
people

–  Hiring
the
wrong
people

–  Doing
too
many
things

–  GoldplaJng

–  Not
getng
short-‐term,
hard

returns

Especially
when
is
your
money:
cash
is
king!

©2015 NUVOLAB
•  Financing
growth
from
previous
cashflow
and
personal
fund

(obviously
need
to
have
cashflows
J)

•  Most
good
bootstrapped
companies
emerge
from
a
service
or

consulJng
companies
that
are
“producJsing”
their
offering

•  Pros

–  Bootstrapped
companies
almost
always
spend
cash
more
effecJvely
than

equity
financed
companies

–  Already
being
close
to
exisJng
customers,
give
excellent
ability
to

understand
problems
and
define
good
soluJons

•  Cons

–  Resources
for
product
and
market
dev
constrained
by
cashflows

–  May
miss
a
big
opportunity
if
other
players
raise
finance
and
invest
heavily

Self
financing
/
bootstrapping

©2015 NUVOLAB
•  RelaJvely
limited
funds
will
be
available
for
startup;
likely

to
want
collaterals
anyway

•  Banks
only
lend
to
predictable
businesses
they
can

understand
(be=er
being
a
“!”
rather
than
a
“?”)

•  If
your
capital
requirements
are
limited
and
your
business
is

following
a
well
trodden
path,
can
be
a
useful
source
of

ﬁnance

•  Not
parJcularly
useful
web
or
high
growth
tech
industries

•  Some
(public)
facilitaJon
for
startups
in
some
Countries
à

i.e.
in
Italy
Fondo
di
Garanzia
will
provide
(innovaJve)

startups
with
a
(public)
collateral
on
80%
of
your
debt
up
to

€2,5M
(100+
startups
already
asked
for
it)

Debt
/
bank
ﬁnance

©2015 NUVOLAB
•  Not
all
startups
require
external
funding

•  Cash
ﬂow
comes
ulJmately
and
most
importantly
from

customers,
NOT
from
investors

•  Bootstrapping
in
business
means
starJng
a
business
without

external
help
or
capital.
Such
startups
fund
the
development
of

their
company
through
internal
cash
ﬂow
and
are
cauJous
with

their
expenses.
Generally
at
the
start
of
a
venture,
a
small

amount
of
money
will
be
set
aside
for
the
bootstrap
process

Customers
/
bootstrapping

©2015 NUVOLAB
http://bit.ly/bootstrapbible
Focus:
bootstrapping

©2015 NUVOLAB
3F
(aka
“Love
Capital”)

©2015 NUVOLAB
•  An
angel
investor
or
angel
(also
known
as
a
business
angel
or
informal

investor
or
angel
funder)
is
an
aﬄuent
individual
who
provides
capital
for
a

business
start-‐up,
usually
in
exchange
for
equity.

•  A
small
but
increasing
number
of
angel
investors
organize
themselves
into

angel
groups
or
angel
networks
to
share
research
and
pool
their
investment

capital,
as
well
as
to
provide
advice
to
their
porsolio
companies.

•  Unlike
the
VC
the
Angel
invests
their
own
money

•  Hands
on
approach:
geographical
or
industrial
“proximity”

•  The
Angel
approach
is
to
invest
small
amounts
at
a
very
early
stage
/
low

valuaJon

–  €50-‐€250k
at
valuaJons
of
€500k-‐€4m

•  Two
“exits”
for
angel

–  Firm
might
be
sold
quickly
for
€5-‐10m
or
less
where
the
Angel
can
make
2-‐5x
money

–  Firm
raises
VC
money,
axer
which
Angel
typically
becomes
more
passive
but
has
built
up
exposure
very

cheaply
to
a
venture
backed
enterprise

•  The
key
thing
when
selecJng
an
Angel
therefore
is
whether
they
can
help
you

raise
VC
ﬁnance

–  See
which
Angel
investors
have
invested
with
which
VCs

Business
angels

©2015 NUVOLAB
Digital
BAN
Business
Angels

Lone
Business

Angels

Regional

mul<sectoral
BAN

Na<onalwide
BAN

sectoral
focus

Business
angels
(examples)

General
BAN

©2015 NUVOLAB
Example: BAN
in Italy
www.iban.it
www.eban.org
Business
angels
(maps)

©2015 NUVOLAB
•  A
venture
capital
fund
refers
to
a
pooled
investment
vehicle
that
primarily

invests
the
ﬁnancial
capital
of
third-‐party
investors
in
startup,
that
are
too

risky
for
the
standard
capital
markets
or
bank
loans.

•  These
funds
are
typically
managed
by
a
venture
capital
ﬁrm,
which
oxen

employs
individuals
with
technology
backgrounds
(scienJsts,
researchers),

business
training
and/or
deep
industry
experience.

•  Receive
1000s
of
business
plans
each
year

•  Read
100s
of
plans

•  Meet
with
dozens
of
companies

•  Fund
a
handful
(1-‐2%)

•  Porsolio
expectaJons:

–  60%
die
or
go
nowhere
(living
dead)

–  30%
yield
2-‐4x
in
4-‐7
years

–  10%
(hopefully
20%)
are
tremendous
successes
(e.g.,
10x,
100x,
1000x!)

Venture
Capital

©2015 NUVOLAB
The
Venture
Capital
investment
process

©2015 NUVOLAB
Structure
of
a
(generic)
VC
fund

©2015 NUVOLAB
Example:
VCs
in
Italy

(Who
is
Who
map)

www.italiastartup.itwww.evca.eu
Venture
capital
(map)

©2015 NUVOLAB
DefiniJon:
a
Venture
Capital
firm,

independent
or
capJve,
which
manages
at

least
on
VC
Fund
with
the
following

characterisJcs:

•  A
Corporate
is
a
cornerstone
investor
in
the

VC
Fund

•  The
firm
is
following
the
PE
model
(exit

strategy
and
mid
to
long
term
investment

horizon)

•  The
VC
Fund
invests
mainly
in
companies

operaJng
in
the
core
business
area
of
the

Corporate

•  The
Venture
Capital
Firm
uses
extensively

the
experience,
technologies
and/or

market
contacts
of
the
Corporate
to

manage
the
porsolio
of
the
VC
Fund

Source:
EVCA
(2013)

Corporate
Venture
Capital

©2015 NUVOLAB
Source:
Boston
ConsulJng
Group
(2012)

Corporate
VC
Investments

©2015 NUVOLAB
Corporate
Venture
Capital:
map
by
deals

©2015 NUVOLAB
REWARD-‐BASED

DONATION-‐BASED

LENDING-‐BASED

EQUITY-‐BASED

CROWDFUNDING
MODELS

Logic:
Proponent
à
Idea
à
Crowd
à
Reward

Target:
creaJve
projects
(music,
cinema,
design,
hardware,
etc.).

Examples:
KickStarter
(USA/UK)
/
Eppela
(ITA)

Logic:
Proponent
à
Cause
à
Crowd
à
Altruism

Target
:
social
/
cultural
iniJaJves
(not
for
proﬁt)

Examples:
Causes
(USA)
/
Rete
del
Dono
(ITA)

Logic:
Proponent
à
Financial
need
à
Crowd
à
Interests

Target:
consumer
ﬁnance
needs

Examples:
Zopa
(UK)
/
PresJamoci
(ITA)

Logic:
Proponent
à
Financial
need
à
Crowd
à
Equity

Target:
startups

Examples:
AngeList
(USA)
/
GrowVC
(UK)
/
SiamoSoci
(ITA)

Crowdfunding
is
the
pracJce
of
funding
a
project
or
venture
by
raising

monetary
contribu<ons
from
a
large
number
of
people,
typically
via
the

Internet.

Crowdfunding

©2015 NUVOLAB
•  453
acJve
plasorms
(2012)

•  1
Million
project
funded

•  $
0,89
Billion
raised
in
2010

•  $1,47
Billion
raised
in
2011

•  $2,66
Billion
raised
in
2012

•  $5,1
Billion
raised
in
2013
(esJmate)

Source: Google Trends - Search Volume Index: “crowdfunding”
http://bit.ly/thecrowdfundingbible
Crowdfunding
numbers

©2015 NUVOLAB
•  Seed
accelerators
are
fixed-‐term,
cohort-‐based

programs
aimed
at
developing
new
startups.

•  The
accelerator
programmes
key
elements
are:

- Funding,
typically
to
the
seed
level
(<€40k)
vs
equity

(5-‐10%)

- Company
founders
are
small
teams
(2-‐3
people)
with

technical
backgrounds

- Each
cohort
is
supported
for
a
defined
period
of
<me

(3-‐6
month)

- Educa<on
programme
focusing
on
business
advice

and
product
advice

- Networking
programme
to
meet
and/or
contact
other

investors
and
advisors

•  Programmes
may
or
may
not
include:

–  Office
space,
whether
free
or
subsidized

–  A
Demo
Day
for
funded
companies

Source:
ChrisJansen,
Jed
D.
Copying
Y
Combinator:
a
framework
for
developing
seed
accelerator
programmes.

Pre
L’accelerazione agisce quando
un’ idea, apportando in un pe
L’esperienza estera di acce
aumentare la crescita e le
Seed
accelerator
programmes

©2015 NUVOLAB
www.startupfactories.eu http://www.seed-db.com/accelerators
Seed
accelerator
programmes
maps

©2015 NUVOLAB
•  Business
incubators
are
private
or
public

organiza<on
specialized
in
crea<ng
and

suppor<ng
other
companies.

•  According
to
NBIA
(USA
NaJonal
Business

IncubaJon
AssociaJon)
there
are
10.000+

incubators
worldwide.

•  Incubators
nurture
young
(startup)
firms

during
their
early
months
or
years,
by

usually
providing
them
with:

-  affordable/shared
offices
and
G&A

services

-  mentoring/hands-‐on
management

training
/
networking

-  Oxen
markeJng
support,
access
to

some
form
of
financing

Business
Incubators

©2015 NUVOLAB
•  Grants
are
non-‐repayable
funds
disbursed
by
one
party

(grant
makers),
oxen
a
government
department,

corpora<on,
founda<on
or
trust,
to
a
recipient,
oxen

(but
not
always)
a
nonprofit
enJty,
educaJonal

insJtuJon,
business
or
an
individual.

•  For
example,
the
European
Commission
provides

financing
through
numerous
specific
calls
for
project

proposals.
These
may
be
within
Framework
Programmes.

FP8
à
Horizon
2020:
the
programme
runs
from
2014
–
2020
and
provides
an
esJmated
€80
billion
of
funding.

•  Although
there
are
many
7
year
programmes
that
are

renewed
that
provide
money
for
various
purposes.

•  There
are
also
occasional
one
off
grants
to
deal
with

unforeseen
aspects
or
special
projects
and
themes.
Most

of
these
are
administered
through
what
are
called

NaJonal
Agencies,
but
some
are
administered
directly

through
the
EU
Commission
in
Brussels.

Public
Grants

©2015 NUVOLAB
•  There
are
a
lot
of
diﬀerent

iniJaJves
worldwide
aimed
at

supporJng
/
celebraJng
/
funding

brilliant
business
ideas
and
high-‐
potenJal
startups.

•  There
are
hundreds
startup/
business
plan
compeJJons
running

in
Europe,
promoted
by
public

organizaJons,
corporaJons,

foundaJons
and
so
on.

•  They
can
provide
you
with

network,
coaching,
visibility,
“in

kind”
prizes
and..
someJme

money!

Prizes

©2015 NUVOLAB
☁  Overview

☁  An
inconvenient
truth

☁  Finding
funding:
diﬀerent
sources

☁  How
to
approach
investors

☁  Conclusions

Agenda

©2015 NUVOLAB
•  Network
to
gains
access
to
VCs

•  Don’t
get
hung-‐up
on
conﬁdenJality

•  Be
persistent

•  Be
humble
yet
conﬁdent,
and
always
courteous
and

professional

•  Embrace
and
learn
from
rejecJon

•  Be
greedy
in
the
long-‐run
(any
%
of
something
>
100%
of

nothing!)

How
to
approach
investors

©2015 NUVOLAB
Large Potential
Market
Opportunity
Unique Product
Or Concept
Passionate
Founding Team
Pre-requisites
Intense
competition
likely
Need to move
rapidly
Implications…
Hiring
Infrastructure
VC funding supports
Rapid Product
Development
Internationalisation
Partnerships
Commercialisation
Good
reasons
to
raise
equity
ﬁnance

©2015 NUVOLAB
Application
is a feature
not a product
Market size is
too small
Motivation is
not financial
•  Risk
is
not
that
you
waste
Jme
unsuccessfully
trying
to

raise
ﬁnance
…

•  …
real
danger
is
that
you
do
succeed
in
raising
VC

funds

–  Lose
opportunity
for
small
exit
which
could
be
personally

lucraJve

–  Lose
opportunity
to
run
lifestyle
business

–  Get
bound
in
to
3+
yrs
work
you
may
not
enjoy

When
NOT
to
raise
VC

©2015 NUVOLAB
Technology Traction
•  Can
evaluate
each
as

–  ExcepJonal

–  Good
/
credible

–  Mediocre
/
incomplete

•  MisconcepJon
that
being
good
/
credible
across
the
board
is
what
VCs
look
for

–  Can
always
add
credible
a=ributes
to
the
mix
later

•  VCs
focus
on
ﬁnding
opportuniJes
which
rate
as
excepJonal
in
one
a=ribute

Team
What
does
an
investor
look
for

©2015 NUVOLAB
Has
funds

to
invest

Match
of

Size/Stage/

Geography

Relevant

Porsolio

No
directly

compe<<ve

investments

Excellent

track
record

Shortlist
•  Do
create
a
shortlist

•  Riﬂe
is
a
be=er
weapon

than
a
shotgun

•  Similar
process
for

idenJfying
angels,
look

at
VC
funding
press

releases
to
idenJfy
prior

Angel
investors

Iden<fy
relevant
VC
partners

©2015 NUVOLAB
•  Out
of
the
blue
email
is
a
long
shot

•  Try
to
build
context

–  Analyse
porsolio
companies
–
are
there
any
links
there?

–  Analyse
contact
network
and
advisors

–  Analyse
press
coverage

–  ParJcipate
in
blog
conversaJons

–  A=end
events
and
conferences

–  Relevant
PR
around
product
also
helps

•  VCs
spend
their
Jme
looking
for
businesses
with
momentum

Getng
on
radar
screens

©2015 NUVOLAB
http://fundersandfounders.com https://www.techcrunch.comhttp://startupdigest.com/
Useful
sources
of
informa<on
and
inspira<on

©2015 NUVOLAB
•  Pitch:
What?

•  Pitch:
Why?

•  Pitch:
For
whom?

•  Pitch:
How?

•  Pitch:
some
examples
à
h=p://www.pitchenvy.com

Introduc<on

©2015 NUVOLAB
Overview

•  Problem

•  SoluJon

•  Team

•  Achievements

•  Market

•  CompeJJon

•  Business
model

•  Economics

•  Investment
proposiJon

©2015 NUVOLAB
Problem

•  Analysis
of
exis<ng
and
emergent
customer
needs;

•  Analysis
of
exis<ng
solu<ons
and
their
weaknesses.

©2015 NUVOLAB
Solu<on
/
Value
Proposi<on

•  DescripJon
of
the
oﬀering
(product
features/
value

proposiJon)

•  DescripJon
of
beneﬁts
provided
and
problems
solved

•  DescripJon
of
sustainable
compeJJve
advantages
(in
terms
of

technology,
product
features
and
market
needs)

•  If
it
is
possible,
show
a
product
image
or
provide
examples

©2015 NUVOLAB
Team

•  Name,
posiJon

•  Relevant
experience
(max
2
raws)

•  Name,
posiJon

•  Relevant
experience
(max
2
raws)

•  OrganisaJonal
chart

•  Cap
Table
(%
equity
stake)

©2015 NUVOLAB
Achievements

•  Product
development
milestones

•  IncorporaJon
date

•  Personnel

•  Revenues

•  Metrics
(web/mobile)

•  Main
customers

•  Partnerships

•  Funding
from
founders
and
funders

•  Patents
and
trademarks

•  Compe<<ve
advantages
achieved

©2015 NUVOLAB
Market

•  IdenJﬁcaJon
of
target
market
and
of
relevant
segments

•  Size
(in
terms
of
€/$
and
number
of
potenJal
customers)

•  Growth
rate
(%)

©2015 NUVOLAB
Compe<<on

•  Main
compe<tors;

•  Main
market
dynamics;

•  Main
bases
of
compe<<on;

•  Compe<<ve
benchmarking.

©2015 NUVOLAB
•  What
is
your
business
model?
(How
do
you
make
money?)

•  Highlights
on
sourcing,
producJon
and
go-‐to-‐market
strategy

•  Posi<oning
vis-‐à-‐vis
compeJJon
(in
terms
of
product
features,

price,
clients,
channels)

Business
Model

©2015 NUVOLAB
Economics

€
(Euro)
2012
2013
(E)
2014
(E)
2015
(E)
2016
(E)
2017
(E)

Revenues

Personnel
cost

MarkeJng

Other
OPEX

EBITDA

EBIT

©2015 NUVOLAB
Investment
proposi<on

•  What
is
your
ﬁnancial
need?
What
do
you
exactly
want
from

your
investor?
Is
there
any
chance
for
a
co-‐investment?
With

whom?

•  Use
of
Proceeds
(how
are
you
going
to
allocate
new
funds?)

•  AcJvity
1
(%)

•  AcJvity
2
(%)

•  AcJvity
3
(%)

•  Possible
Exit
(op+onal)

92
Crisis:
risk
or
opportunity?

93
…half
empty,
half
full..

It’s
just
a
maver
of
point
of
view
(and
awareness).

(At
least)
now
you
know
where
is
the
liquid(ity)!

Conclusions

Thanks
for
your
<me
&
aven<on

@francingu
@nuvolab
francesco.inguscio@nuvolab.com
www.nuvolab.com ivysoul2000

Nuvolab - Finding Funding (with or without you, dear investor) - Politecnico di Milano - January 2015

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (8)

Destacado

Destacado (20)

Similar a Nuvolab - Finding Funding (with or without you, dear investor) - Politecnico di Milano - January 2015

Similar a Nuvolab - Finding Funding (with or without you, dear investor) - Politecnico di Milano - January 2015 (20)

Más de Nuvolab

Más de Nuvolab (13)

Último

Último (11)

Nuvolab - Finding Funding (with or without you, dear investor) - Politecnico di Milano - January 2015