funding the entrepreneurial business...19 capital allocation seed a round b round max investment...

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Funding the entrepreneurial business

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1. Venture Capital - a catalyst2. Crowberry Capital3. What are VCs looking for in startups?

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1. Bootstrap 2. Loans3. Consulting 4. Early Revenue 5. Grants 6. Crowdfunding 7. ICO (Initial coin offering)8. Angels 9. VC

SOURCES OF FUNDING

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VENTURE CAPITAL

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VCs are Tech Nerds

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1. Index Ventures 2. HV Holtzbrinck 3. Northzone 4. Lakestar

5. Sequoia Capital 6. Accel Partners 7. Insight Venture 8. Rocket Internet SE

9. Balderton Capital 10. Oleg Tscheltzoff 11. Intel Capital 12. 83North

uk.businessinsider.com/biggest-most-prominent-venture-capital-investors-europe-dealroom-2017

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GARTNER HYPE CURVE 2017

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GARTNER

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2018 GAME CHANGERS

NORDIC VC PERFORMANCE 8 GPs / 29 Funds / 559 Companies

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Gross excess profit compared to best performing PME (MEUR)

● The NVPI (NordicVenturePerformanceIndex) has accumulated excess value compared to the PMEs (Public Market Equivalent) during nearly all periods from 2000-2015.

● The NVPI has between 2000-2015 created an excess value in comparison to the NordicSmallCap Index amounting to 915MEUR.

● In 2015 the excess value increased by 273MEUR, 43%.

http://www.nordicventure.net/PerformanceIndex.asp

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EUROPE - TECH INVESTMENTS

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VC LANDSCAPE IN ICELAND

3F, Rannís, Accelerators

Angels

Frumtak II

Brunnur

Eyrir Sprotar

International VC Funds

Growth

Am

oun

ts

NSA Ventures

Investa

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LEAP OF FAITH 2017

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TEAM CROWBERRY CAPITAL

WE INVEST IN BOLD, CREATIVE &

HARDWORKING ENTREPRENEURS

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CAPITAL ALLOCATION

SEED

A round

B round

Max investment into a single company is 15% of the fund or €6.75m

10-12 companiesTicket range €200k-1m

6-8 companiesTicket range €1-2.5mCo-investor participation

1-3 companiesTicket range €2.5-4mCo-investor participation

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ACTIVE COMPANY SUPPORT

• Help with board composition • Access to strong advisory network • Mentoring • Funding • Corporate governance • Exit • Reporting

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• Enterprise Software ⇨ Fintech, Edtech, AI & Emerging

technology

• Health Tech ⇨ Digital Health, Databases, Med Devices, VR/AR

• Games ⇨ Experienced teams  VR/AR focus

• Food Tech ⇨ Emerging from the Blue Economy

• Clean Tech ⇨ Geothermal focus, Hydro & Marine

TARGET SECTORS & INVESTMENT THEMES

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SCREENING PROCESS TEAM

• Execution skills• Drive• Experience• Composition

PRODUCT

• USP• Competition• Freedom to

operate• Product pipeline• Regulatory•

MARKET

• Access• Size• Maturity

EXIT

• Strategy• Potential buyers• Shareholder

agreement

VALUATION

• Comparables• NPV • Exit valuation

GROWTH

• Scalability• Funding need• Funding strategy

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INVESTMENT PROCESS

DOCUMENTS

Ask for a meeting

Pitch meeting Deep dive - market and business model

Legal DD Investment and Board participation

Tech and Marketing DD

Brief outline Pitch deck and budget

Letter of Intent Term Sheet SPA/SHA/Articles

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INTERNATIONAL CO-INVESTORS

Seed: Growth: Exit:

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CROWBERRY´S GROWING PORTFOLIO

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What are VCs looking for in Entrepreneurs?

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Entrepreneurial capability E-CAP

Innovation capabilityI-CAP

IDE

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Startup stages

BusinessTechnology Product

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FUNDING RULES

Never run out of funds Type of funding for your type of Start-up If you run out of

funds - play nice

1. 2. 3.

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• Drive and Persistence

• Clear vision and Communication

• Charm

• Strategic thinking and Common sense

• Empathy

• Curiosity and ability to ask questions

• Mastery in execution

Important skills and characteristics

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