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Seed and Early Stage Venture Capital in the Globalised High Technology Market Place

Dimitris KontarinisDimitris Kontarinis

Draper Fisher Jurvetson, Investment ConsultantDraper Fisher Jurvetson, Investment Consultant

Draper Fisher Jurvetson 2

Venture Capital Stages

Value € € € € € €Exit

Operations OperationsWorking Model Working Model Working Model

Team Team Team TeamBusiness Plan Business Plan Business Plan Business Plan Business Plan

Idea Idea Idea Idea Idea Idea

Funding Angel Seed Seed Early Follow on Public OfferingEarly Follow on Mezzanine Acquisition

Start up maturity

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It is a tough job … ….It is a job that requires special skills when

compared to other types of financial investments

….It is a job that requires a lot of hands on work

…. It works when fund is effectively managed

…. It works when backed up by strong network

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International NetworkGlobal Localization

Fund / team in formation

Existing fund / team

DFJ ePlanet Singapore

DFJ ePlanet Beijing

DFJ ePlanet LondonTimberline

VenturesSeattle, WA

DFJ Frontier Sacramento &

Santa Barbara, CA

Draper Fisher JurvetsonMenlo Park, CA

Zone VenturesLos Angeles, CA

Wasatch VenturesSalt Lake City, UT,

Phoenix, AZ & Albuquerque, NM

Access VenturesWestminister, CO &

Austin, TX

DFJ Portage Chicago, IL

DFJ New EnglandCambridge, MA

DFJ GothamNew York, NY

DFJ Primaxis Toronto, ONT

Draper TrianglePittsburgh, PA

DFJ MercuryHouston, TX

DFJ SI VenturesRaleigh, NC &

Fort Meyers, FL

Draper AtlanticReston, VA

DFJAustralia

DFJ Faros

Greece

DFJ NexusRussia

DFJ India

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Early Stage Venture Capital in Globalized Markets

•Focus on the Quality of Managers/Entrepreneurs and Back Extraordinary PeopleFocus on the Quality of Managers/Entrepreneurs and Back Extraordinary People

•Invest in Business Models with Low Capital Requirements & High Gross MarginInvest in Business Models with Low Capital Requirements & High Gross Margin

•Identify World Class TechnologyIdentify World Class Technology

•Tolerate RiskTolerate Risk

•Business Models with Viable, Long-Term EconomicsBusiness Models with Viable, Long-Term Economics

•Diversify Portfolio (many deals) to Mitigate RiskDiversify Portfolio (many deals) to Mitigate Risk

•Target Markets with Explosive Growth PotentialTarget Markets with Explosive Growth Potential

•Companies serving real needs of business customersCompanies serving real needs of business customers

•Large global market opportunitiesLarge global market opportunities

Global Network Added Value

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Internet: Information has migrated globally

 Populatio

n

InternetUsers

(million)

Internet Penetratio

n

Growth (2000-

2005)Mobile Users

(million)

Mobile Penetration

(%)

UK 60 38 63 146% 62 103.0

France 61 26 43 208% 46 76.0

Germany 82 48 59 103% 76 90.0

Italy 29 29 49 119% 65 111.0

Spain 44 17 39 218% 40 94.0

Netherlands 16.5 10.8 66 177% 15 94.0

Finland 5.2 3.2 63 70% 5 98.0

Greece 11.2 3.8 34 280% 10 89.0

5.3 39%Greek Diaspora

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Perception of High Tech Entrepreneur

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eEmployment=unEmployment

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Hard Entrepreneurial High Tech work

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What happened in Estonia ?

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Change Culture

D

D

FamilyCompanyGreater Social

Environment

Nation

DIndividual

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Corporate Targets for better living

Creativity Uniqueness Innovation Weird Ideas That Work (Robert Sutton)

EBIT driven business Earnings Based on Innovation & Talent

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Corporate Venture and Venture CapitalCorporate VC examples France Telecom - Innovacom VC :

HarbourVest and GIC (Singapore), Access Capital Partners, AGF Private Equity, CIC Finance, European Investment Fund, the FPCR (Caisse des Dιpots Group).

Sonera-Magnum Deutsche Telekom-T-Ventures VC. Telenor-Telenor Venture Telefonica-Telefonica Ventures Italia Telecom-Saturn Venture Capital :

Olivetti; Telecom Italia Lab, Telecom Italia Mobile,VC Ramius Capital Group)

Bell Atlantic (Verizon) - Index Ventures (syndication with Skype and Google).

ΑΤ&Τ - Kappa IT και AT&T Venture

Corporate Venture Intel Capital Microsoft Blue Ventures Nokia Vodafone Ventures Samsung

VC Limited Partners Samsung (DFJ) Intel Microsoft Nokia

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Fixed Mobile Convergence: The Business Decathlon

Phone TV & entertainment Money and Credit Card

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Local Market DynamicsGlobal Potential

Government

IntellectualCapital

Infratsructure

Culture

Global Work Function

Family Corporate GovernmentIndividualFamily

Corporate Government

Individual

Family

Corporate

Individual

Global Business Landscape

Global BusinessLandscape

Global BusinessLandscape