1 risikokapital og finansiering uio, 1 februar 2005
TRANSCRIPT
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Risikokapital og finansiering
UIO, 1 februar 2005
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Contents
Introduction
The FSV Group
How VCs think and operate
Creating a successful startup
What to do now?
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FSV is a leading Nordic VC
• Among the oldest and most seasoned VCs in the Nordic– Established in 1985– Currently investing from MNOK 530 FSV III, raised April 2000– Operating FSV IV, MNOK 590, largest secondary direct in the Nordic to date– FSV was a founding member of the NVCA (in 1989 …. and in 2001)
• Experienced Investor in Nordic and international tech companies – Reviewed >3 000 projects and 6-8 portfolios since inception
• Invested in 65+ companies and one major portfolio– Close co-operation with Advent International throughout– Founding member of the Nordic Venture Network
• Proven exit track record– 12 IPOs, 3 on Nasdaq– 46 industrial exits
• Introduced International VC structures to Norway – Preference shares, Anti-dilution, Veto-rights, Drag, Tag etc.
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Our business…
.. Is to identify high potential growth companies
.. Invest in these companies
……work closely with management and other owners to build value in a 3-5 years perspective.
.. Exit (IPO or trade sale), and repeat…
Structured as funds to ensure liquidity focus and to protect ownersStructured as funds to ensure liquidity focus and to protect owners
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FSV currently manages approx. NOK 2 billion invested capital across 100+ portfolio companies
• Established 1985
• NOK 130 mill. fund
• ICT sector focus
• Fund closed
FSV I
• Established 1996
• NOK 300 mill. fund
• Dedicated ICT fund
FSV II
• Established 2000
• NOK 530 mill. fund
• Dedicated ICT fund
• 70+% of committed capital invested
FSV III
• Established 2003
• NOK 590 mill. secondary fund with follow-on capital
• Sectors include: ICT, energy, maritime, services
FSV IV
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FSV has a diversified blue chip investor base
Main shareholders in Four Seasons Venture II
Aksjefondet Skandia Teknologi Bonheur ASA Den Norske Krigsforsikring for Skib Ganger Rolf ASA Gjensidige NOR Forsikring Gjensidige NOR Sparebank
Gjensidige NOR Spareforsikring Møller Investor AS Schibsted Multimedia AS Skaufoss AS Torstein Tvenge Vesta Forsikring AS
Main shareholders in Four Seasons Venture III
Avanse
Bonheur ASA
Control Consult AS
Den Norske Krigsforsikring for Skib
Gjensidige Forsikring
Gjensidige NOR Spareforsikring
Hartog & Co. AS
Orkla ASA
Schibsted Multimedia AS
Skandia Liv AB
Sparebank 1 Livsforsikring AS
Storebrand Livsforsikring AS
Torstein Tvenge
Main shareholders in Four Seasons Venture IV
Brage Invest AS
Dyvi AS
Firmament AS
Foinco AS
Hafslund Offentlige Pensjonskasse
Hamang Papirfabrik AS
Indigo Invest AS
Institusjonen Fritt Ord
Lærdal Finans AS
Natexis Private Equity International
Opplysningsvesenets Fond
Skagen Vekst
Sundt AS
Tredje AP -Fonden
Vital Forsikring ASA
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Contents
Introduction
The FSV Group
How VCs think and operate
Creating a successful startup
What to do now?
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A good VC manages risk
Private Equity Investments
Treasury Bonds
Public Shares
Venture Investments
Return
Risk
Corporate Bonds
Due diligence process and right agreement structures are key risk management toolsDue diligence process and right agreement structures are key risk management tools
Seed Investments
Pre-seed Investments
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..and seeks to optimise the risk-reward ratio
• Build your execution plan
• Estimate capital required
• Consider risk-reward from investor perspective (market risk? - technology risk? - team risk?)
• ....reiterate
Knowing the customer is a pre-requisite for a succesful sale(you want the investor to ’buy’ your story)
Knowing the customer is a pre-requisite for a succesful sale(you want the investor to ’buy’ your story)
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The venture lifecycle is fairly standardised
ScreeningScreening Due DiligenceDue DiligenceVekst /
Internasjonal-isering
Vekst / Internasjonal-
iseringInvesteringInvestering ExitExit
2-5 years
Dea
lsou
rcin
g
ScreeningScreening Due DiligenceDue DiligenceVekst /
Internasjonal-isering
Growth/ International-
isationInvesteringInvestment ExitExit
2-18 weeks -
Screening:
• Ensure broad flow of high quality
• Conduct initial screening
Due Diligence:
• Deep analysis of the company
• Issue Term Sheet
• Complete legal, commercial and technological Due Diligence
Investment:
• Unanimous partner group
• Investment committee approval
• Best practice legal structures
Growth/Intern.:
• Build the company
Exit:
• Exit through:
-Merger
-Trade Sale
-IPO
Pur
pose
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..and most VC’s look for the same basic things
• A great team…….and ideally a good idea and scalable business model
• A large and/or fast growing market
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Building trust early creates the right basis
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..for a productive partnership
VC’S DRIVE THE VALUE AGENDA:
• Strategic & international perspective and experience
• Partnering: customers, channel and technology
• Building the management team
• Coaching (and changing) management
• Financial and strategic control functions
• Assisting in M&A, IPO and other financing activities
• Balancing the technology and market perspectives
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Who controls the company following an investment?
… maintaining sense of shared purpose is essential for success… maintaining sense of shared purpose is essential for success
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Classic entrepeneur pitfalls
• Explaining product/business model is only thing that matters
• VCs consider individual projects solely on their own merits
• Raise money when needed as opposed to when available
• 100% times 1 > 30% times 10
• VCs focus exclusively on maximising upside
• Rational machines, not emotional humans….
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Contents
Introduction
The FSV Group
How VCs think and operate
Creating a successful startup
What to do now?
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Creating a successful startup
• Share – information, ownership, honour
• Sell – to everyone all the time
• Create an ecosystem – people can move mountains
• Get paying customers - the proof of the pudding is in the eating!
… Create a self-fulfilling prophecy!… Create a self-fulfilling prophecy!
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Steinvender ASA
Investors
Advisory Board& Sector Experts
Newco(now FSV IV)
The (FSV) SNDI ecosystem
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Contents
Introduction
The FSV Group
How VCs think and operate
Creating a successful startup
What to do now?
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What now?
• Build credibility and competence
• Work with people you respect (and that know more than you)
• Learn to sell
• Get to know your niche