presnetación ie lisbon june 2013

7/29/2019 Presnetación IE Lisbon June 2013

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June 2013

The new era of the lean VC

The Cabiedes & Partners view of investing



WE ARE GOLD SEEKERS

We act as a “superangel fund”

• We invest our own money, which makes us more of an angel

• We also do follow-on rounds, series A and B, and sometime end up investing up

to 3 million in a single company, which leads us into a VC.

Focused & Proven Strategy: Only Internet, only seed, only Spain

Nothing new: we’re around since ‘98

It’s about Process !

• Rational /Analytical Selection Process, not intuitive

• Phased Investments (1/3 – 2/3 & 25% Rule)

We are financial investors (hands-off approach)

• We are not entrepreneurs, we do not manage companies;

• We are not Mentors, Coaches, Therapists… Our entrepreneurs are much better

than we are! … and know much more about their business!

• We don’t participate in M&A or Fin-Engineering: independent assets.



WE BELIEVE IN LEAN START-UPs



…SO WE NEED TO BE A LEAN VC

INVESTMENT MODEL:

We all live under extreme uncertainty…

Invest in “many” startups,

a kind of “experiment farm”

Let them test > iterate > scale

using incremental investment:

o “controlled” initial investment

We are going to do 32-40 seed investment of around 200K,

o + expand investment ONLY in successes… It’s about Investment Process

Hopefully 8-10 of these, that is one out of four, will be a winner, and we will invest an

additional 1 or 2 million

o We’ll depart whenever we cannot keep our “key minority” shareholder status

To us, the Shareholders’ Agreement is a key tool to guarantee engagement, maintain value

creation and ensure a fair deal among stakeholders



WHEN IT WORKS… WE SUPPORT!



6

WHAT WE LOOK FOR

PRODUCT (A must!): We do not invest in I+D

TESTED MARKET-GROWTH HYPOTESIS:

A HUGE Market Opportunity => SCALABILITY

… that is capable of being MONETIZED!

PROFITABLE Economics (LTV >> CAC)

TEAM

Well KNIT & COMPLETE Team

MANAGERIAL Capabilities & Market EXPERIENCE

LUCK with Timing & Uncertainty

PROFITABLE INVESTMENT

• RETENTION Cash Flow / A Biz FOR the Investor

• FAIRNESS in valuing the financing role

THIS IS NOT ABOUT IDEAS… IT’S ABOUT EXECUTION

Feasible

• Team

• timing

Investable

• Scale

• Exit

Viable

• Market

• CompetitiveAdvantage



K.I.S.S.: ONLY 6, NOT 35

¿ 200% COMMITTED ?

¿ CAN YOU MAKE €15mio REVS IN

YEARS?

¿Return ON-EQUITY?

“I do not invest in web pages or products;

I bet on P&Ls”

¿ DO YOU REALLY NEED AN

INVESTOR, or just some clients?

¿ CAN YOU HAND BACK 10X the

solicited amount?

¿ ARE CONDITIONS

(SHAREHOLDERS AGREMENT)ACCEPTABLE ?

“You should not be playing rugby with a softball”



• A GREAT (small !) TEAM in a garage-office

• PRE-SALES STATUS

NO ASSET Base … this is internet!

LOSS (Not profit!) MARGIN aprox. 50% of Sales

UNPROVEN DISTRIBUTION Channel

… IT’s an OPTION … into a promising (?) future

… under EXTREME UNCERTAINTY

All you may have learned DOES NOT WORKOUT here… Sorry!

VALUATION:



PORTFOLIO COMPANIES (so far)



WHO WE ARE:

j o s e @ m a r t i n c a b i e

d e s . c o m

presnetación ie lisbon june 2013

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