how can start-ups raise funding under the current ...files.meetup.com/13430702/nicholas duggan -...
TRANSCRIPT
Nicholas Duggan
Partner
Viadynamics
14th May 2014
How can start-ups raise funding under
the current investment challenges?
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11© 2011 Viadynamics\Presentation title here
FormFormForm
New… technology, business, product and channels
FFF launched Sugru, a revolutionary new consumer product, in 2010 selling out their first months stock in just 6 hours and almost half of it in the USA.
Funding rounds:
1. Grant funding from NESTA
2. Venture Capital
3. High net worth individuals who shared the interest (before launch)
4. High net worth individuals (post launch)
12© 2014 Viadynamics\Credentials
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Snap Fashion
New… technology, business, service and experience
Snap Fashion the first ‘soft object’ visual search technology to successfully meet the needs of the online and mobile fashion shopper
Funding rounds
1. TSB grant funding, matched by Venture Capital
2. Won an award from CISCO of $200k
3. Licensing agreement with telco.
4. Technology customisation for retail customer.
14© 2014 Viadynamics\Credentials
Cellesce
New… technology, business, service and experience
Cellesce is a start-up company build on the know-how and IP of the Centre for Regenerative Medicine at University of Bath
Planned funding rounds:
1. Seed funding
2. TSB, H2020, UK Regions + matched funding
3. Further ‘soft’ funding + revenue from lead customers / JDAs
4. Venture and EIS funding for scale-up and to realise revenues
15© 2014 Viadynamics\Credentials
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How can start-ups raise funding under the current investment challenges?
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How can start-ups raise funding under the current investment challenges?
1. Find problems worth solving….. by us
2. Maximise value creation from ‘soft’ funding
3. Leverage mainstream funding for scale-up
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How can start-ups raise funding under the current investment challenges?
1. Find problems worth solving….. by us
2. Maximise value creation from ‘soft’ funding
3. Leverage mainstream funding for scale-up
22Find problems worth solving…….. by us
23Find problems worth solving…….. by us
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Need challenge solution slide
Finding a problem worth solving ... by us
meaningfulchallenge
differentiatingsolution
compellingneed
significantopportunity
1. Needs/problems –that are important, urgent and pervasive
2. The challenges to meeting these needs – why the need is not currently met
3. The way that our (ownable & defendable) research/technology meets the need (& overcomes the challenge)
4. The market (societal) opportunity –and our plan for creating value (impact)
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How can start-ups raise funding under the current investment challenges?
1. Find problems worth solving….. by us
2. Maximise value creation from ‘soft’ funding
3. Leverage mainstream funding for scale-up
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Sources of ‘soft’ funding
• Seed funding
• TSB and Horizon 2020
• Regional Government
• Incubators
• Lead customers / problem owners
• Relevant charities
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Relief is available at 50% of the cost of the shares, on a maximum
annual investment of £100,000.
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text
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Lead customers
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Relevant charities
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Define meaningful milestones
Reduce risk + establish evidence + build capability = value x 10
© 2014 Viadynamics\UNICEF
Meaningful milestones – 10 x rule
Focus the whole team on milestones that drive up value
Reduce risk
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100%
0%
20%
40%
60%
80%
RISK
UNICEF\innovation
© 2014 Viadynamics\UNICEF
Meaningful milestones – 10 x rule
Focus the whole team on milestones that drive up value
Reduce risk + build evidence
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100%
0%
20%
40%
60%
80%
RISK
EVIDENCE
UNICEF\innovation
© 2014 Viadynamics\UNICEF
Meaningful milestones – 10 x rule
Focus the whole team on milestones that drive up value
Reduce risk + establish evidence + build capability
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100%
0%
20%
40%
60%
80%
RISK
EVIDENCE
CAPABILITY
UNICEF\innovation
© 2014 Viadynamics\UNICEF
Meaningful milestones – 10 x rule
Focus the whole team on milestones that drive up value
Reduce risk + establish evidence + build capability = value x 10
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100%
0%
20%
40%
60%
80%
RISK
EVIDENCE
CAPABILITY
VALUE
£0.1m
£1m
£10m
£100m
UNICEF\innovation
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© 2011 Viadynamics\ Credentials 4141
Rafael Tudela
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How can start-ups raise funding under the current investment challenges?
1. Find problems worth solving….. by us
2. Maximise value creation from ‘soft’ funding
3. Leverage mainstream funding for scale-up
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“Investors have no prior connection to the company”
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