20160414 kvk ih_workshop_investor_startgreencapital
TRANSCRIPT
Start-up Investment criteriaA VC’s perspective
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Agenda
Question? [email protected]
Content
Short introduction to StartGreen Capital
Start-up Investment Criteria
StartGreen Capital
Venture Capital&
Project finance
Crowdfunding
Venture CapitalTechnostarters in energy, materials & sustainable ICT. Equity & loans.StartGreen Sustainable Innovation Fund StartGreen Consumer Products Fund
Regional fundsaimed at renewable energy & energy saving
PDENH: full-equity EFO I & II: equity & loans
StartGreen Capital is lead investor of the 1st sustainable crowdfundin platform in the Netherlands (since 2012)
Anthony Viellevoije | Investment Manager | EFO (€50m) & PDENH (€85m)
StartGreen CapitalAnthony Viellevoije | Investment Manager | EFO (€50m) & PDENH (€85m)
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150m
€ Assetsunder
Management
20
PortfolioCompanies
7m
OnePlanetCrowd100+
Companies
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Early StageTypical VC investments
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Bootstrapped
Friends & FamilySubsidy
Angels Seed VC
VC rounds
VC roundsPE Round
BankenIPO
Time
Profi
t
I. Deal assessment
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The rules for success…...VC’s are still figuring them out.
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I. Deal assessment
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renting air beds
Question:Who of you would invest?
Raise your hand if you would
Problem Solution
Hotels are fully booked in cities where large events/ conferences take place
When available, hotels are very expensive
No easy way exists to book a room with a local or become a host
We invest in more than just “good ideas”…Simply put we invest in solid business cases
8Question? [email protected]
Everything has to be rightEntrepreneurs should showcase deep understanding of their business case
9Question? [email protected]
The Business Model Canvas
Evaluating the business case
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Profitability•Returns (IRR)…•…in relation to risk profile•Asset heaviness (lean start-up)•Deal structure
Technology•IP-position / “Moat”•Reliability•Development stage/Time-to-market•Applicability to other PCM’s
Team• Team (complementarity)•Passion/ drive of the entrepreneurs• Commitment (time & money)•Co-investors•Partners / suppliers
Investment Ready Concept
Product/ service•Unique Selling Points•Functionality•Scalability
Market•Trends•Size/ growth opportunities•Segmentation (logical PMC choices?)•Competition•Planning / go-to-market strategy•Exit opportunities
Which pillar is most important?
Question? [email protected]
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The business plan / pitch(deck)I. Deal assessment
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Capture attentionHighlight what is amazing about your company: e.g. Spectacular growth, A+ team, technological break-through
Investment summaryPresent the name of the company, the round, how much you are raising and where you are located (“fit”)
Problem > SolutionWhat pain-point you are solving, or what opportunity you are enabling
Market: 1. Size & CompetitionSize up the opportunity, explain who are you competing with and why are you better, get to total addressable market
Go-to market strategyShow that you have cracked the way to capture your market
Product and product roadmapBe creative: Video, screen-shots, customer interviews
Business modelExplain how you are making money
Financials (and exit strategy)KPI’s, IRR, Cash-on-cash multiples
Common practice inside VC’sTypes of business plans.
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All financial projections are wrong. A business plan is not everything. Entrepreneurs should live up to it.
The J-curve?What do we look for in financial projections?
Whats wrong with projections?
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The financial modelShow us you know your business
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II. (Start-up) financing
Profitability
• Revenues (bottom-up instead of “we just need 1% market share”)
• Costs (history)• As much as possible,
show facts instead of assumptions (improve risk profile)
Question? [email protected]
Thank you.
StartGreen CapitalMauritskade 63 1092 AD Amsterdam
31 (0)20 568 20 60
www.startgreen.nl
Question? [email protected]