MEDICI FIRMA VENTURE
Transcript of MEDICI FIRMA VENTURE
MF Venture Capital www.mfventure.com
Medici Firma Venture Capital Process
Medici Firma Venture
mfventure.com MF Venture Business Development
Presented by :
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ONWARD PROSPERITY
MF Venture is an institutional venture capital company that governs itself with onward
thinking and a mission to put allied prosperity first.
MF Venture Capital www.mfventure.com
SMART
INVESTING IN
INNOVATION
MARKETPLACE
GREAT
SCIENCE
FAST
RESPOND
COOL PROFESSIONAL
CREATIVE
ECOMMERCE
INNOVATIVE TECHNOLOGIES
UNIQUE
HIGH
QUALITY
INVESTMENT STRATEGY
INVESTMENT CRETRIA &
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INVESTMENT CRETRIA MF VENTURE
Industry Focus
Industry A, B, C
0 : 01 Stage Focus
Seed (X%), Series A (X%), Series B (X%), Series C+ (X%)
0 : 02 Investment Size
Seed (X%), Series A (X%), Series B (X%), Series C+ (X%)
0 : 03
Team Relevant industry experience, serial entrepreneurs, and committed
0 : 04 Minimal Viable Products (MVP)
100% complete and market tested
0 : 05 Traction
Revenue generating and/or verifiable traction, Min Revenue or EBITDA?
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INVESTMENT CRETRIA MF VENTURE
Competitive Advantage
Proprietary and/or unfair advantages that create sustainable competitive advantages
0 : 01 Capital Efficiency
Minimal capital needed for operations and execution
0 : 02 Target Ownership
5%-25%
0 : 03
Target Return VCs: 5x-10x+ return potential, PE: 2-5x return Potential
0 : 04 0 : 05 0 : 06
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INVESTMENT STRATEGY MF VENTURE
Markets
Large and evolving markets where disruptions are happening.
0 : 01 Diversified Risk
Across a set of related industries and range of stages
0 : 02 Co-Invest
Mainly co-invest, rarely lead
0 : 03
Follow-on Capital
Require real traction or an exit on horizon
0 : 04 Exposure
No more than 10% of fund (or expected total investment capital) in any one company
0 : 05 Extract Value
Knowledge, talent, technology, and processes
0 : 06
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INVESTMENT STRATEGY MF VENTURE
Add Value
Help provide key resources, clients, employees, board members, advisors, strategic partners, investors, etc.
0 : 07 Versatility
Companies with multiple avenues for success
0 : 08 Involvement
Take board seats, observer roles, rarely if ever take board seats
0 : 09
Liquidity Potential
< 5 Years
0 : 10 Thing to Avoid
Regulatory risk, long sell cycles, capital / labor intensive, long tech development
0 : 11 Extract Value
Knowledge, talent, technology, and processes
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DEAL SOURCING & DEAL FLOW MANAGEMENT
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DEAL SOURCING MF VENTURE
Ecosystems:
Accelerators & Incubators
DEAL SOURCING
Academic:
Top Colleges / Universities
Network:
Employees, Clients & Partners
Proprietary Network:
Rising Startups / Entrepreneurs
Other Investors:
VCs, Seed Funds, Angels, Angel
Groups
Large Corporates:
Tech Focused Corporations
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Industry Leaders &
Experts
Events:
Startup / VC & Industry Focused
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DEAL FLOW MANAGEMENT Continually Rank & Weigh Deal Flow: In order of consideration
Team
Business Model
Stage (Risk)
Market Opportunity Target Market Size, Growth of Target Market, Penetration Needed
Value Proposition
Traction
Product / Service, Problem vs. Solution
Traction, Milestones and Timeline
Board Members / Advisors
Revenue / Expense Strategy, Financial Model
Startup (beta + pre-rev), early stage (beta + post-rev), growth stage, etc.
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DEAL FLOW MANAGEMENT Note: Traction is one of the highest weighed factors in deal flow management for VCs, and often becomes the determining factor
when compared to equally great teams, business opportunities, and deal terms, etc.
Terms
Min Capital Needed
Exit Opportunities
Competition Direct / Indirect Competitors, Market Fit, Competitive Advantages
Co-Investors
Value Add Potential
Co-Investors
Knowledge, Employees / Board Members, Clients, Partners, etc.
Investment Size, Note / Equity, Valuation (Ownership), etc.
To achieve breakeven? Before an exit?
Who?, Why?, When?
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PROCESS & FUND STRUCTURE
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Exit Management Focus on Winners, Not Losers
Monitor, Support, Follow-Ons Reporting & Oversight
Term-Sheet & Investment Execution 5-10 Investments / Yr (1-3%)
Final Due Diligence Investment Committee: Go (50%, 5-10 Companies / Yr)
2nd Level Due Diligence Investment Committee: Go (50%, 10-20) / No Go (50%, 10-20)
Preliminary Due Diligence Go (50%, 20-40) / No Go (50%, 20-40)
Initial Screening & Elimination 40-80 Companies / Yr (20%)
Who?,Why?,When?
Extensive Deal Sourcing 200-400 Companies / Yr
PROCESS: SOURCE > LEARN > INVEST > EXIT
Source
Learn
Invest
Exit
SIGN ND, IF NEEDED
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PROCESS: SOURCE > LEARN > INVEST > EXIT
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Design
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VENTURE FUND STRUCTURE General Venture Capital Structure
Venture A LLC
Venture B LLC Venture C LLC
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Investors
(LPs)
Venture Fund Management LLC
(GPs)
Portfolio Co. B Portfolio Co. C Portfolio Co. A
ManagementFee:2%
Invested
LiquidityEvent
ProfitSharing(Carry):80%=LPs20%=GPs
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