gs seminar approaching vc basics 20130327

Approaching VCs: Basics, DO’s and DON’Ts

Berlin, 27.3.2013

Early-stage Venture Capital firm based in Berlininvesting internationally (focus Europe)

SaaS

Network effects

Commerce

Current key investment themes and examples:

Currently investing Point Nine Capital Fund II (40m Euro)

PNC I - 6m Euro (launched 2009/10)

PNC II - 40m Euro (launched 2012)

Investment size: 100k - 1m Euro + follow-on

Stage: seed / series-A

Early stage investment landscape (largely simplified)

Angels / Accellerators / Incubators

VCs

Other investor types / financing sources

BANKS (need collaterals / cash flow / history)

CORPORATES (can make sense, issues with exit)

STATE SUPPORT (varies over time / by region)

VC investment landscape looking from Berlin(super simplified, based on perception and not exhaustive :-)

Stage

Investment size

Seed Series A Series B

€100k

Business Angels

€500k

€1-5M

€5M+

F&F

Accel-erators

Grants

How VCs work and make money....

Look for potential for fast growth:- market (opportunity / competition)

- team

VCs develop theses and patterns and spend a lot of time looking for companies that match them

Point Nine Capital in 2012:- 2500 business plans

- 10 investments=> we invested in 0.4% of business we have seen in 2012. other

investors will have a similar rate

VCs tend to specialise, but in general they look for:

Amazing teams

Great products

Huge / fast growing / not very competitive market opportunities

Great unit economics

Traction

Exit

Approach - network!

Do your research

Try not to cold approach

Networking wins, info@ is weakest channel

Approach - have a Deck!

+/- 10 slides - be visual + numbers

english only

no paper

no 50 page business plan

no NDAs

=> the initial info needs to grab attention and explain basics, not everything!

To be included in the basic info pack:

Simple/simplified concept description + vision

Product screenshots / links

Market definition and size (not always easy, but give it a go)

Competition / comparables

Traction / KPIs / unit economics

Team

Next 12 months budget / capital required

Get prepared!

Read (blogs > books):

Good luck!

@pawell

www.pawel.ch

pawel@pointninecap.com