confidential. investments opportunities under uncertain market conditions aaron mankovski managing...
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Confidential
Confidential
Investments opportunities under uncertain market conditions
Aaron Mankovski
Managing Director
February 4, 2001
Confidential
Crisis
=
Opportunity
Confidential
Back to the basics
Management Market Business model Competition Technology Valuation Financing IPO, Mergers and Acquisitions
Confidential
Management Team
Business experience Technology background International experience Management experience Customer orientation Team working together openness
Confidential
The Market
The need Market size Potential market for the company (real) Location
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The Business Model
The need and the value proposition The customer profile REAL revenue model Price/performance – Price/”pain” Potential revenue forecast – reality The sales model (direct, OEM etc.) Sales Cycle Implementation and cost After sales support
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Competition
Who else is in the field (crowded market!?) The competitive edge Time and money to market
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Technology and Intellectual Property
Barrier to entry Time and money to market The team skills Development plan Patents Capital equipment Suppliers and long lead items
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Financing
Money should be raised when it is possible NOT only when it is needed
Financing amount should provide 18-24 month of operations (minimal revenues)
Budget planning – “lean and Mean”
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Valuation
The markets conditions have changes the valuations in the private market
Trying to maximize valuations is distractive
Do not price yourself out of the market The market will set the company value High value in private round is not a real
achievement
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The public markets – Back to reality
No IPO market in the short run Qualifications for IPO – back to the basics IPO values will go back to the mid 90’s M&A “Currency” will effect transactions
Build to last not for sale!!
Confidential