founder institute vfinal-2

7/29/2019 Founder Institute vFinal-2

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AVDA. DIAGONAL 593 7ª PLANTA08014 BARCELONA (ESPAÑA)

ADDING VALUE BEYOND THE INVESTMENT



8 FANEUIL HALL MARKETPLACE 3RD FLOORBOSTON MA 02109 (USA)

March 2013

The Founder Institute



2March 2013

Agenda

Nauta Capital

Venture Capital process

Fundraising in practice

Final message



3March 2013

Nauta Capital: a leading venture capital fund based in Barcelona and in Boston

Internet, Mobile,Software

>$200m AUM

Investing inEurope and in the

US65% outside Spain

Focus: Round ASeed and Round B

opportunistically1st ticket: €0.75m to

€3.5m

Helping entrepreneurs building greatcompanies



4March 2013

Agenda

Nauta Capital

Venture Capital


Final message



5March 2013

VC industry size in Europe



6March 2013

Financing Life Cycle

Disposal / IPO



7March 2013

The VC process

Sourcing andscreening

Duediligence

Investment

ValueCreation

Exit

Ideally: fast decisionmaking

Reality: lots of meetingsand longer decisions



8March 2013

What do VCs look for?

Large and growing market

Product / solution with sustainablecompetitive advantage

Clear customer need

Early high growth

A strong team and execution planScalability with global ambitions

METRICS: CLTV + CONVERSION

Proven revenue model, i.e.revenues in place (and growing)

Low technology risk

Clear path to profitability

Solid monetisation and market

tractionExperienced management teamwith prior exits

Limited competition

Low capital consumption

Minimum Wish list



9March 2013

Agenda

Nauta Capital

Venture Capital in context


Final message



10March 2013

When to raise capital?

Idea -> FFF (€10K to €100K)

MVP -> Angels / Seed (€100K - €1M)

Developed product and market traction -> Round A (€1M - €5M)

Significant revenue level and growth -> Round B (€5M - €10M)

Profitable or almost profitable -> Growth equity (>€10M)



11March 2013

How do you identify and qualify target investors?

Relevant sector experience

Relevant investment experience

Agreement on the key drivers of the business plan and key elements ofthe execution plan

Value added: contacts with clients and potential investors, marketingand finance expertise,...

Location: the earlier the start up, the closer the VC needs to be

Responsiveness to the entrepreneur



12March 2013

How much capital to raise?

Business plan cash consumption estimates

Historical cash burn

Expected timing until next round

Margin of safety



13March 2013

Use of proceeds

Product

Marketing

People

IT

Minimum cash balance

Cash out (not advisable)



14March 2013

What are typical investment structures and deal terms?

Investment amount

Pre-money valuationLiquidation preference

Founder vesting

Board seatsConsent matters

Drag and tag along

Information rights

Antidilution

Minority shareholding

Angels / Seed funds: 1% to10% / 20%

VCs:

20% to 35% - earlier

rounds 10% to 20% - later

rounds

Syndication amongst different

investorsESOP pool

Ratchets

Capital structure Deal terms



15March 2013

Agenda

Nauta Capital

Venture Capital in context


Final message



16March 2013

There is no better time to start up a company than NOW!

Low start upcosts Low opportunitycosts

Significantangel/ seed

funds available

Fast newtechnology

development

and adoption

Large talentpool available

…and crisis willnot last for ever



17March 2013

Your turn

Q & A

founder institute vfinal-2

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