an introduction to entrepreneurship. from startup ...ecoxs02.eco.unipmn.it › eventi › 2010 ›...
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Università degli Studi Piemonte OrientaleNovara, 11 Maggio
AN INTRODUCTION TO ENTREPRENEURSHIP.
FROM STARTUP COMPANIES TO FUND RAISING
With the support of:
Mind the Bridge ItalyTour 2010Mind the Bridge ItalyTour 2010
Agenda
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Agenda
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STARTUP’S LIFE
Team
Passion
AdrenalineCaution
Speed
INGREDIENTS FOR A STARTUP
5
WHAT IS AN ENTREPRENEUR
6
WHY ?
MANAGER VS ENTREPRENEUR
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Agenda
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THE HISTORY OF THE VALLEY
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THE (REAL) HISTORY OF THE VALLEY
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THE (REAL) HISTORY OF THE VALLEY
1930 1940 1950 1960 1970 1980 1990 2000
WAVES OF
INNOVATION
INNOVATION NETWO
RKS
INTERNET
PERSONAL COMPUTERS
INTEGRATED CIRCUITS
DEFENSE
Today:25 of Fortune 100
Adobe SystemsAMDAgilent TechnologiesApple Inc.Applied MaterialsBusiness ObjectsCisco SystemseBayElectronic ArtsGoogleHewlett-PackardIntelIntuitLSI LogicMaxtorNational SemiconductorNetwork ApplianceNvidiaOracle CorporationSanDiskSeagate TechnologySolectronSymantecSun MicrosystemsYahoo!…
◊ NASA◊ Lockheed
◊ HP (47)
◊ Intel (68)
◊ Kleiner Perkins (72)
◊ Apple (80)
◊ 3Com, Adobe, Cisco
◊ Yahoo, ebay, Google (90s)
?
THE MAIN PILLARS
◊Is that replicable / portable?
◊Is it sustainable long-term?
◊What is the impact of the changing international outlook?
KEY QUESTIONS
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SOFT FACTORS
◊The importance of Dynamism, speed: continuous evolving world
◊ Approach to Risk
◊ Value of Failure (not just a downside but a must-have)
◊ Importance of the Hub: a world of opportunities
◊Think Big
KEY TO SUCCESS
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(5) LESSONS FROM GOOGLE
1. the team is all (almost)
2. healthy disregard for the impossible
3. big problems are better than small ones
4. users first
5. don’t pay attention to the VC bandwagon
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DO YOU KNOW ?
SQUARE UP
The world’s largest cross-platform mobile open source project
750 employees in 3 years
21-year-old
>400 ml users today
15 bl $ valuation
Agenda
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The Big Idea!!!
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… But after the Idea, It’s All About Execution …
RESOURCES($, supply chain, …)
ENTREPRENEURIAL
TEAM
OPPORTUNITY(How big is ....)
BUSINESS MODEL(Long term sustenability)
STRATEGY(mktg, sales, ...)
THE BUSINESS PLAN
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WHO READS A BUSINESS PLAN?
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hLooks to see who sent it15 sec
hAnalyzes key aspectssectorlocationinvestment required60 sec
hReads the plan15 min
hDecides whether or notto request a formal presentation
10min
Total: 26 min 15 sec
WHAT DOES AN INVESTOR DO WITH A BUSINESS PLAN?
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What investors want to see
� They have to see:
� Realistic forecasts based, as far as possible, in fact
� Monthly / quarterly projections for at least 1 year
� They do not wish to see:
� Plans full of glowing references to a prosperous, but ill-defined future
� Unsupported projections or unrealistically inflated figures
BUSINESS PLAN? OK VS KO
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GOOD AND BAD BUSINESS PLANS
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THE QUESTIONS EVERY ENTREPRENEUR MUST ANSWER
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THE BP OUTLINE
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TALKING $$$
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Agenda
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INVESTMENT TYPES
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Business Angels
Venture capital
THE ANGEL INVESTOR
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ANGEL TYPOLOGIES
RELEVANT
ENTREPRENEURIAL
EXPERIENCE
RELEVANT INDUSTRY
EXPERIENCE
High
High
Low
Low
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THE VENTURE CAPITALIST
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WHY VENTURE CAPITAL ?
INVESTMENT STRATEGY
IDEA DEVELOPMENT BETA CUSTOMERS EXPANSION MARKET SHARE
12-24 months 3 months 3-6 months 12-18 months 12-24 months
Vision/ Product Focus Customer / Market Share Focus
M&A
M&A Valuation
Cumulative Investment
Management Focus
IPO
Medium Risk High Risk Medium Risk Low Risk
Investment
Focus
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VENTURE CAPITAL INVESTMENTS SLOWED DOWN, BUT US STILLS LEADS THE WAY
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WHERE IS ITALY ?
[*Source: Ernest Young Global VC report – 2007]
Annual VC Investment (B US$)Annual VC Investment (B US$) Number of DealsNumber of Deals
0.02862
Italy
• Globalization• Moving to extremes
Agenda
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� bridging opportunities of the Silicon Valley with Italian talent
� associating mentors and role models
� professionalizing the business planning skills
� using and building the network
� “give back” to build a bigger pie
Mission:
to promote a new Italian entrepreneurial ecosystem that is:
ETHICAL, HIGHLY PROFESSIONAL, INTERNATIONALLY FOCUSED,
EXCELLENCE DRIVEN
CO
NN
EC
TIN
G T
ALE
NT
MIND THE BRIDGE FOUNDATION
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MIND THE BRIDGE FOUNDATION
� Nurturing the future Italian Googles (MtB Roadshows)
� Selecting the best of breed (Annual MtB Business Plan
Competition & MtB Venture Camp)
� Providing training & education to the new generation of
entrepreneurs (MtB Start-up School)
� Hosting&mentoring the most promising startups in the Silicon
Valley (MtB Gym)
� Pitching Silicon Valley investors / partners (MtB Gran Finale
event)
Model:funded by foundations/companies/private sector/donors
not government
partnering with the most relevant actors
INDEPENDENT
CO
NN
EC
TIN
G T
ALE
NT
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MTB BUSINESS PLAN COMPETITION
� Selection of most promising BP by a top notch Selection
Committee
� Association of Mentors and training modules
� 2 days Venture Camp event (fall)
� Hosting in the earth of Silicon Valley (GYM)
� Road Show week in Silicon Valley
� Gran Finale event –pitching Silicon Valley investors/partners
BU
SIN
ES
S P
LAN
CO
MP
ET
ITIO
N
2010: Applications are open until JULY
2009 SELECTED START-UPS
Revolutionary antenna system (Milano)
Wi-Fi-derived solutions (Milano and Boston)
Comprehensive non-invasive solution for both vertebral
fractures and bone strenght assessment (Lecce)
Solution to update any digital information (Sassari)
Social-network which allow users to create music through the
web (Treviso)
Social marketplace for travel, where experts can provide users
with information and personalized offers (Milano)
Virtual and Augmented Reality technology (Pisa) 40
THE OPPORTUNITY FROM CARIPLO FOUNDATION
� Project: “Educazione all’imprenditorialità internazionale: dalla
creazione di impresa alla raccolta di capitali”
� Goal: spread international entrepreneurship in Lombardy
� Lead: CrESIT, Insubria University
� Partners:
�Cibie, University of Pavia
�Fondazione Politecnico
�Mind the Bridge Foundation
With the support of:
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HOW DOES IT WORK? 2 SEPARATE FUNNELS
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HOW DOES IT WORK? THE TIMELINE
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THANK YOU FOR YOUR
ATTENTION
Questions & Answers
Contacts
Giuseppe De Giorgi [email protected]
Alberto Onetti [email protected]
www.mindthebridge.org
www.ai.polimi.it
www.cresit.it
USEFUL LINKS:
www.mindthebridge.org
http://siliconvalley.corriere.it/
BLOGS:
Facebook: Mind the Bridge - Connecting Talent
Twitter: aonetti
SOCIAL MEDIA:
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APPENDIX
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RAISING MONEY TODAY (@#$!) IN SV
are you not local
how many exits again?
don’t show me the buyer (don’t IPO me…)
haven’t jumped yet
DON’T TALK TO ME IF YOU…
THE FUNDING DECISION
Founders’ capital
Savings
Credit cards
Founders’ capital
Savings
Credit cards
Loans
Acconts receivable
Strategic Partners
Retained earnings
Loans
Acconts receivable
Strategic Partners
Retained earnings
VC firms
Corporate VC
Private placement
Investment banking
Public markets
VC firms
Corporate VC
Private placement
Investment banking
Public markets
Capital from:
Family/friends
Angels
Early stage VC
Capital from:
Family/friends
Angels
Early stage VC
Bootstrapping Equity Financing
Early sources
Later sources
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THE VENTURE CAPITALIST
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Limited PartnersLimited Partners
VC Firm (General Partners)VC Firm (General Partners)
Startup CompaniesStartup Companies
IPO/M&AIPO/M&A
FundFund FundFund FundFund
Exit
Distributions Fundraising Commitments
Investment DisbursementsProceeds
VENTURE CAPITAL GENERAL INVESTMENT PROCESS
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AGREEMENT VARIABLES AND CONTROL MECHANISMS
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VENTURE CAPITAL COMPENSATION STRUCTURE
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SILICON VALLEY: DOES IT REALLY KICK ASS?
[*Source: PwC– 2009]
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WHAT’S HOT?
Top Industry Segments - Silicon Valley 2006
Rank Segment Amount
(US$ M)
Rounds
1 Software 2,300 261
2 Communications 1,176 79
3 Biopharmaceuticals 1,031 54
4 Semiconductors 1,018 71
5 Information Services 993 128
6 Medical Devices 923 77
7 Electronics 540 40
8 Cons/Bus Services 383 42
9 Energy 233 18
10 Cons/Bus Products 75 9
Top Industry Segments - Silicon Valley 2006
Rank Segment Amount
(US$ M)
Rounds
1 Software 2,300 261
2 Communications 1,176 79
3 Biopharmaceuticals 1,031 54
4 Semiconductors 1,018 71
5 Information Services 993 128
6 Medical Devices 923 77
7 Electronics 540 40
8 Cons/Bus Services 383 42
9 Energy 233 18
10 Cons/Bus Products 75 9
Amount
(M $)
Oak Investment Partners 2,560
New Enterprise Associates 2,500
Polaris Venture Partners 1,000
US - Top VC funds Raised 2006 Amount
(M $)
Oak Investment Partners 2,560
New Enterprise Associates 2,500
Polaris Venture Partners 1,000
US - Top VC funds Raised 2006
Amount
(M EU)
Scottish Equity Partners 235
Northzone Ventures 175
Life Sciences Partners BV 150
EU - Top VC funds Raised
2006
Amount
(M EU)
Scottish Equity Partners 235
Northzone Ventures 175
Life Sciences Partners BV 150
EU - Top VC funds Raised
2006
[*Source: Ernest Young Global VC report – 2007]
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WHY NOW?
talent abounds
from scarcity comes clarity
innovation comes from hunger
startup cost ~0
IT’S THE BEST OPPORTUNITY
DOCUMENT:DOCUMENT:
••IDENTIFICATIONIDENTIFICATION••DESCRIPTIONDESCRIPTION OF A BUSINESS OPPORTUNITYOF A BUSINESS OPPORTUNITY••ANALYSISANALYSIS
DEVELOPMENT:DEVELOPMENT:
hhSTRATEGIES + PROCEDURES TO CONVERT A BUSINESS STRATEGIES + PROCEDURES TO CONVERT A BUSINESS
OPPORTUNITY INTO OPPORTUNITY INTO A SPECIFIC BUSINESS PROJECTA SPECIFIC BUSINESS PROJECT
FOR ESTABLISHED COMPANIES:FOR ESTABLISHED COMPANIES:
GROWTHGROWTH
DIVERSIFICATIONDIVERSIFICATIONFROM THE CORE ACTIVITYFROM THE CORE ACTIVITY
WHAT IS A BUSINESS PLAN?
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