how vcs select investments
DESCRIPTION
The process of selecting a startup by the VCs is usually a black box for most entrepreneurs. Its very important for them to understand how all this variables play for or against their idea.TRANSCRIPT
• Early stage VC fund.
• Aims to transform local startups into
regional/global players.
• Based in Santiago, office in BA.
• All limited partners are entrepreneurs.
• All 5 general partners are
entrepreneurs. 2@VANESAK [email protected]
• Invests in early stage tech startups, $250k to $750k.
• Focus in mobile.
• 2MM fund size.
• In operation. 1 legacy investment, 5 new investments.
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• Invests in early stage tech startups, $250k to $750k.
• 21MM fund size.
• Operative March 2013.
MANAGING PARTNERStrategy
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PARTNER Expansion
PARTNERPublic Affairs
PARTNER Corporate Affairs
PARTNER Dealflow
@VANESAK [email protected]
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• Founded 7 companies, exited 3.• Did 2 LatAm roll-outs. • Participated in 1 IPO.• Invested in10 as angels, exited 2.• Founded the first LatAm accelerator,
Octantis, Santiago, 2005. • Created 1 entrepreneur program.• Directed 2 entrepreneur NGO.
@VANESAK [email protected]
• Huge markets or profitable niches.
• Competitive advantage.
• Business + Sales + Tech.
• Recurrent revenues.
• Economy of scale, extrapolation.
• No capital expenditure.
7@VANESAK [email protected]
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• Management team: experience, vertical, complete team, urgency, values.
• Equity: % by entrepreneurs, % not in the company
• Sales (if any), traction (if relevant).
• Revenue model, diversification.
• Copy cat, tropicalization, original.
• Growth potential.
• Expansion strategy.
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• Market size.• Market growth.• Market “hotness.”• Time to market.• Number of competitors.• Own portfolio, other funds portfolio.• Exits: time, value and buyer.
@VANESAK [email protected]
• Fund Philosophy.
• What are the General Partners experience.
• Which level rounds they do.
• What companies in their actual portfolio.
• Where in their investment cycle they are.
• How many partners they have, how many
investments they’ve made.10
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• How much money the company needs.
• How much money they will need next.
• Who are the previous investors.
• Who are are the current co-investors.
• Who can fund it in the next round.
• % owned by previous investors.
• % wanted by new investors.
@VANESAK [email protected]
@VANESAK [email protected]