Cii2 new fund raising. 2.5 mil euro. june 2014

The smart way to the Italian startup scene

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The smart way to the Italian startup scene2.5 mil fund raising, June 2014

cii2 2014 all right reserved

Quantitative does it betterEarly stage investing is all about quantitative. Things change too much too fast to put effort in qualitative analysis

The Best Italian Startup Proxy50 of the best Italian startups from the most active Italian accelerators. CII2 is the efficient startup market proxy

Smart investingWe have the right network at the right time

Why cii2


Recession is the best time for venture capitalTim Draper, one of the very few 3rd generation venture capitalist, observed that the best time for venture capital is during recession time and this window lasts for about 7 years. During recession it’s hard for the young people to find a job, so they are pushed to become entrepreneur and to use innovation to succeed. After a recession, as the economy picks up and good returns on investment are public, the VC space gets crowded by too many investors and it’s time to go move to private equity investments.So if you believe that Italy is still in a deep recession, this means that our 7 best investment years are just ahead. Don’t be afraid to be one on the first wave, the sooner you play, the bigger is the upside.

The best time for Angels is now

Why now


Youth unemployment is close to an all time high. Technology is cheap and disruptive. This is the best time to fund a start-up

Why now


Italy was lagging of the entrepreneurial activity but unemployment, technology and a brand new startup law are changing rapidly the shape of the country

Very low entrepreneurial activity

Why Italy

Italy at the bottom


Considering VC vs GDP, Italy is far behind any other developed and emerging economy. Going to 0.02% of GDP means a 400% growth. Italy is not even listed in the pro capita VC investment. We consider all this is a huge upside potential

Let’s go to 0.02 pct of Italian GDP

Why Italy


Italian colleges are graduating a relevant number of skilled people that often emigrate to find a decently paid job. The Italian record high tax rate is killing the hires but talents are here, ready to play the global startup game. Special fiscal breaks and the new start-up law are helping the change

Talents are here

Why Italy


Quantitative is best in start-ups

Why would you spend your time on a startup business plan if:

• 73% of startups will pivot at least twice in the first 2 years

• Only 18% of the revenues will come from the initial business plan assumptions

• 46% of the ceo founders will be out within 4 years

Why Quant


Building the model

Historical data show a 70% failure rate

Why Quant


We model 15,000 possible different scenarios

Our startup modeling portfolio

Why Quant


Single investment returns are like a lottery

Returns can be very high but chance of success is very low

Why Quant


Using the market statistics A 50 startups portfolioit’s more efficient

50 startups are better than 1

Why 50


Flattening down the expectation curve• Founders early

expectations are very high because of the dream drive. This is in contrast with the real value of the company witch is low at start

• We provide standard valuations. No difference among the startups.

• So we flatten the early part of the market curve

We don’t spend time on valuation

Why Standard

50k x 10% equity

We invest here. Always


Accelerator noise filtering

• Our partner accelerators make a 95% selection at calls for idea• Only 60% of the accelerated companies gets the cii2 micro

financing• That’s a huge 97% filtering before cii2 investment

Why Filters

call for ideas =95%filter

accelerator mentorship program

cii2

97% filtering

Italian startup universe


Let’s do the magic• Reduce failure rate with the accelerator filtering• Reduce dilution with the round follow on

Why Magic


No talk, move fast

Why No Talk

Constant growth• Steady

strong deal flow from accelerator partnership


34 investments already done

Why Fast


Why P101The next step is qualitative

Financing got a path• Financing Italian startups only starts with cii2• We made a partnership with P101, a vertical Italian VC fund on digital

companies • We asked P101 to track all our startups since our first investment• P101 will make some smaller rounds to help our startups to get to get ready for

a proper seed round with appropriate metrics• P101 agreed on being fast thanks to the startups KPI visibility we provide them

Access to KPI• P101 has access to all

our startups KPI so they can speed up the next round processing


Why P101Organized launch ramp

Cii2 portfolio

P101 250k with milestones

P101 seed funding 1mil to 3 mil

97% filtering by accelerators

Pick selection by P101

Champions funding by P101

• P101 has access to all cii2 startups the KPI data• P101 makes some small commitment with milestones• P101 invests on the champions• P101 allows co-investment by his shareholders

Co-investment allowed• Only to P101

shareholders


Why P101The next step is qualitative

P101 is the Best team in town


Why P101

Done deals

Independent selection• Internal

and external deal flow


Why P101

Co-investment option

Open to co-investments• Become

investor and you get a co-investment chance


Cii2• Quantitative, pre-seed, standard

investments. Very attractive valuations• It’s not a VC fund. Will make NAV valuation• Exit strategy is the listing in a liquid

secondary market

P101• Best deal flow on the Italian digital

startup market• Great Team• Great vintage P101 co-investments

• Cii2 and P101 open the doors to a selected deal flow

• Only P101 shareholders can apply

How to play the Italian renaissance


www.cii2.com

http://www.cii2.com/

Cii2 new fund raising. 2.5 mil euro. june 2014

Economy & Finance

Transcript of Cii2 new fund raising. 2.5 mil euro. june 2014