Startup Business Models

Tytus Michalski, Managing Director

16 years cross-border investment experience

Founding member of PMA, US$200M exit

PMA scaled to US$3B in institutional AUM

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Fresco Capital Overview

Early stage venture investors

Emphasis on people first

Cross-border

Context

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People first, business second

Who loves your product?

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Who loves your product?

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Everyone is not your target

Who loves your product?

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Start small, then grow

How will you make money?

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How will you make money?

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Create value for others first

How will you make money?

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Choosing a business model: easy Building an actual business: hard

What are the capital needs?

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What are the capital needs?

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Reach the next milestone

What are the capital needs?

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Capital efficiency helps upside and downside

How big is the opportunity?

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How big is the opportunity?

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Multiple perspectives

How big is the opportunity?

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Emphasis on bottom up

Constraints to scale?

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Constraints to scale?

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Internal (resource) constraints

Constraints to scale?

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External (market) constraints

Competitive edge?

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Competitive edge?

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Large company weak spots

Competitive edge?

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Startup differentiators

Economics at scale?

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Economics at scale?

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Live in the present prepare for the future

Economics at scale?

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Growth, margins and cashflow

Key risks?

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Key risks?

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Internal vs. external

Key risks?

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Technology vs. business

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“If we command our wealth, we shall be rich and free;

if our wealth commands us, we are poor indeed.”

- Edmund Burke

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frescocapital.com @tytusm