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