seed capital in practice - a guide for you to start-up
DESCRIPTION
A short intro to the Openfund, next to some tips for aspiring entrepreneurs on how to apply, and Sportmeets as a case. Presented at the WebExpo Prague, Friday September 24.TRANSCRIPT
Seed capital in practicea guide for you to start-up*
with the help of the Openfund or other seed funding structures
George Tziralis & Miro SolankaFri Sep 24, WebExpo 2010, Prague, CZ
•who we are / what we do•tips for you to apply•a case study
toc / in short
June 07
The story starts in June 07, with the first tiny
Open Coffee Athens meeting
February 08
Since then, the network has grown
really strong
5
November 08
& the interest on entrepreneurship has
skyrocketed
6
January 10ok, but what’s next?
we came a long way
community-wise
still, the ecosystem is broken
how can we get there?
•brainpower
•community
•funding
•advisory
to start-up, you need
✓ brainpower✓ community
- funding
- advisory
here’s what we had
funding, worldwideav
aila
bilit
y
seed VC rounds public
funding, in cse europeav
aila
bilit
y
seed VC rounds public
0high-tech, early stage
investments in GR, 2007 (in €, EVCA)
✓ brainpower✓ community✓ funding✓ advisory
we wanted to offer
making start-ups happen
•7 executive members- bringing knowledge, experience
& passion to the table
•57 advisors & counting- on technology, management,
sales, marketing, everything you need to start-up
who we are
•stellar teams
•globally innovative ideas, still at seed level
•disruptive biz models
•in and around software and the web
looking for
•open to everyone (teams of 2-4)
•online submission,
•in person interview &
•presentation day
call for proposals
•pick up to 7 start-ups
•extensively support in all things start-up
•for a 4-month period
•iterate
“incubate”
•hands-on mentoring, day-to-day, no interfering
•networking, globally
•30-50k€ for 15% of shares
•smooth start & grow
offer
•quit everything else
•focus on your skills, team & idea
•don’t waste time on unproductive activities
•make it happen
all you need to
•collected 100s of apps, from 30 countries
•selected 5 start-ups, based on 5 countries
•just opened new CFP!
within our first year
•share some insights•break some myths•provide some advice
how to apply, let’s
*some: subjective views due to limited experience
•WYS (What You See): What entrepreneurs write
•WYG (What You Get): What investors read & understand
WYS vs WYG
descriptionshort yet remarkable
WYS vs WYG - description
•complex is good, lengthy is great
•complex is not easily sellable, lengthy may remain unread
•both by investors and clients
•fantastic idea! (yet not relevant)
•find a fit structure to apply, do your homework first
•eg in OF, only software/ web/ mobile ideas get accepted
WYS vs WYG - description
•simple & concise
•to the extent you get clear
•also provide a one-sentence pitch
description
team
chief jack of all trades
all things tech guy
domain & marketing
staryour core asset, treat is as such
WYS vs WYG - team
•“we are truly great, we can do that part time”
•are you truly fully committed?
•anything but a clear yes simply won't fly
WYS vs WYG - team
•we have 'strong technical background'
•share your past work - what makes you great
•ideally - have tech & biz & domain knowledge on board
•introduce yourselves, tell us more about you
•how members bond & complement each other
•trade-off between skills & commitment, pick wisely
team
product
start smallbe laser-focused
innovate globally
•“we’ll build the next Google” (or equivalently huge project)
•mission impossible, or
•they have no idea
WYS vs WYG - product
•“we’ll build the local X”
•shallow market, no opportunity
•hard to beat a well-positioned global product
WYS vs WYG - product
•be reasonable, beyond sharing your excitement
•showcase that you know what you are up to
•also that you have a plan & focus on a specific idea
product
competition
you are not alone, nor should you want to be so
•“we are one of a kind”
•no market research performed, or
•a questionable need
WYS vs WYG - competition
•are there competitors? “Yes” (one word)
•who are they / product weaknesses?
•is it reasonable to build a new product & compete?
WYS vs WYG - competition
•provide a list of your closest competitors
•showcase that you differ
•educate your reader, pitch your expertise
competition
funding
is fuel for your business,take proper advantage of it
WYS vs WYG - funding
•“we’re superb! thus, we ask for lots of money”
•study what is offered first•no homework done
suggests you're not a serious partner
•“we’re modest, we ask for less money”
•the targets are set low, or
•not experienced on building a business
WYS vs WYG - funding
•make a request within the range offered
•provide a rough cost breakdown
•next to a product, try to set up a scalable business
funding
goals
•“we’ll have millions of users, within 4 months”
•unrealistic targets, or
•very inexperienced team
WYS vs WYG - goals
WYS vs WYG - goals
•“we’ll be ready to start building a product”
•very slow, or the product too big to fit
•focus on a feasible one within the timeframe
•pave the way to a working product, quantify
•bringing you close to a next round of funding, or
• organic sustainability/growth
goals
•be honest•build trust•you are looking for a
partner
to sum up
•highlight what makes you a great fit for that product/market
•show that you are aware of your weaknesses and you have a plan to address them
•plans are wrong, yet needed as a compass
to sum up
http://theopenfund.com | [email protected]
apply till Nov 30
Get Organised. Meet. Play.
the story starts here...
can’t keep up with email
This REALLY bothers me!
can’t find other players!
That’s HOW I like it!
how to get there
✓vision & plan
✓committed team
- $$$
- experience & advice
•value proposition
•team that delivers
•2-way relationship
•how you will deliver
get the fuel
selection process
1. online submission of the application
2. remote interview3. in-person presentation
•define the core idea
•write less & more concisely
•revisions based on feedback from the Openfund
#1: initial application
#2: interview
•extensive feedback in preparation from the OF board
•5’ presentation & 5’ demo
•Q&A section
•be yourself
#3: presentation
•collaborate with the OF
•20’ pitch to the executive board, investors and advisors
•meet in-person
#4: incubation
•4-month period to deliver the v1.0
•worked together with the advisors
•20% preparation & 80% perspiration
The launch day!
Come play with us!
http://sportmeets.com | [email protected]