The future of funding20th January 2015

A G E N D A

• Trends in startup financing

– Costs

– Improved risk management

• Government involvement

• Impact on the venture industry

O P E N S O U R C E S O F T W A R E D R I V E S

D O W N C O S T S

L O W E R C O S T S E N A B L E I M P R O V E D

R I S K M A N A G E M E N T

I M P R O V E D C A P I T A L E F F I C I E N C Y

Source: Tomasz Tunguz

Series A median valuations(USD millions)

Source: Cooley LLP via Tomasz Tunguz, August 2014

I N C R E A S E D S E R I E S A V A L U A T I O N S

R A T E O F C H A N G E I S I N C R E A S I N G

O N L Y S T A R T U P S C A N I N N O V A T E

F A S T E N O U G H

UK

Europe

G O V E R N M E N T S S U P P O R T

S T A R T U P S

Venture

Industry

D E A L V O L U M E H A S E X P L O D E D

T O P A C C E L E R A T O R P R O G R A M M E S

C R O W D F U N D I N G P L A T F O R M S

Equity Product

B A R B E L L R E T U R N S

Early Stage Late Stage

P O W E R M O V I N G T O C O M P A N I E S

Lower cash requirement More potential investors=

I N V E S T O R S A D D M O R E V A L U E . .

… F O C U S O N S E C T O R S …

… A N D I M P R O V E T H E I R M A R K E T I N G

G R E AT

T E AM / P R O V E N

M E T H O D S

O F F I C E S P AC EF U N D S

Office Hours – 6th February#FPLive – 21st January

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S U M M A R Y

• Declining startup costs means lower capital requirements

• Which gives entrepreneurs more power

• Leading to increasing importance of

– Value add

– Investor sales and marketing

• Making investors service providers to entrepreneurs

• Interesting question now is what should you bundle with capital