Nuvolab seminar for Accelmed 2014: "Approaching investors"

download

of 91

Embed Size (px)

description

DETAILS of THE SEMINAR: Title: ACCELMED WEBINAR "Approaching Investors" Time: 29/7/2014 - 14.30 to 15.30 Trainer: Francesco Inguscio, Nuvolab srl Objective: The webinar on "Approaching investors"will help start-ups understand the process to fund a new company, identify different funding possibilities and know about process and tacite rules to approach and negociate a deal with an investor. Contents: - Overview - An inconvenient truth - Finding funding: different sources - How to approach investors - Conclusions Francesco Inguscio - Bio Francesco Inguscio is CEO and founder of Nuvolab, one of the main venture accelerator for startups in Italy. In 2010 he worked for M31, one of the most important business incubator in Italy as Business Development Director of its Silicon Valley branch, M31 USA. Formerly, he has been working both for the US Market Access of San Jose, a first rate international start-ups incubator in Silicon Valley, as business developer, and for the Angels Forum of Palo Alto, a leading business angel network in California, as financial analyst. In March 2010 he was awarded with his team of VRMedia, at Stanford University, with the Mind The Bridge prize, as the most innovative high tech startup in Italy. Previously, among others, he succeeded in working as research fellow in School of Advanced Studies SantAnna of Pisa (2009); as analyst IBM Global Business Services (2008) on market planning and IP management projects; as business strategy analyst in Accenture Business Consulting (2006), where he was involved in several projects concerning marketing and strategy analysis for the banking & insurance industry, and in the development of new financial products; he also worked in Prometeia (2005), a financial firm where he supported the development of innovative financial products and the creation of risk management tools for the banking industry. Francesco earned a BA in Management & Finance magna cum laude in 2003 and a MA in Finance magna cum laude in 2005, both from the University of Padova. In 2008, he got a Master in Innovation Management cum laude at the School SantAnna of Pisa. Currently; in 2010 he earned a Certificate in Technology Entrepreneurship at the Santa Clara University (CA), supported by the Fulbright BEST Program Grant.

transcript

  • APPROACHING INVESTORS Accelmed Accelera6on Programme July 29 2014
  • Summary Overview An inconvenient truth Finding funding: dierent sources How to approach investors Conclusions
  • Nuvolab is a business accelerator and a catalyst of change dedicated to all the reali=es in the (Italian) entrepreneurial ecosystem. What is Nuvolab?
  • What is a startup?
  • What is a startup? An innova=ve company
  • A startup is temporary organiza6on in search of a repeatable, scalable business model (Steve Blank, The Startup Owners Manual) 1. Temporary organiza6on 2. In search 3. Of a business model 4. Repeatable 5. Scalable A good deni6on
  • A startup has a well dened lifecycle that ends with the valida=on of its (repeatable and scalable) business model. Done that, it becomes a real company. Its a journey. Temporary organiza6on
  • A startup is a ? and not a ! (more appropriate for successful company) beside the word business model. Credits: Steve Blank, The Startup Owners Manual Credits: Eric Ries, The Lean Startup ? ..in search...
  • A business model describes the ra=onale of how an organiza+on creates, delivers, and captures value (A. Osterwalder, 2010). In other words is about how a rm will make money and sustain its prot stream over =me. ..of a business model...
  • A repeatable business model, is a business model, which will generate cash-ow more than once. This sounds very obvious, because as it seems every business is repeatable. But this is not true. When you sell your house: this is not a repeatable business model. But of course it is a repeatable business model to sell houses of other people. Repeatability of your business model is strongly related to a specic ques=on: if your business will growth or not in the future. ..repeatable...
  • Scalability is the ability of a system, network, or process to handle a growing amount of work in a capable manner or its ability to be enlarged to accommodate that growth. Meaning for a business: when your revenues grow, your prots grow (more than) propor=onally (economy of scale). Scalability of your business model is strongly related to a specic ques=on: how your business will growth in the future. ..and scalable!
  • Not every (new) company is a (scalable) startup. A startup is not a younger/smaller version of an old tradi=onal company. Startup (=?): a temporary organiza=on in search of a repeatable, scalable business model . Company (=!): a permanent organiza=on designed to execute a repeatable and scalable business model So startups have (some) dierent needs compared to tradi=onal companies i.e. nancial needs and funding sources: Since they need =me (and money) in order to nd an answer about their business model (?) specic funding needs (especially when their business is capital intensive) Since they are high-poten=al (scalable) companies (!) specic (some6me exclusive) sources of nding / investors So what?
  • The startup journey: a lifecycle perspec6ve (metaphor)
  • The startup journey: a lifecycle perspec6ve (metaphor)
  • STAGE 1 STAGE 2 STAGE 3 CONSERVATION SUSTAIN SCALE EFFICIENCY VALIDATION DISCOVERY IDEA STAGE 4 STAGE 5 STAGE 6 STAGE 7 REVENUES TIME Start Launch Build Chasm Scale Maturity Source: Four Step To Epiphany (S. Blank), Startup Compass (Stanford) e Startup Lifecycle (F. Des=n) The startup journey: a lifecycle perspec6ve (product PoV)
  • Summary Overview An inconvenient truth Finding funding: dierent sources How to approach investors Conclusions
  • STAGE 1 STAGE 2 STAGE 3 CONSERVATION SUSTAIN SCALE EFFICIENCY VALIDATION DISCOVERY IDEA STAGE 4 STAGE 5 STAGE 6 STAGE 7 REVENUES TIME Start Launch Build Chasm Scale Maturity Source: Four Step To Epiphany (S. Blank), Startup Compass (Stanford) e Startup Lifecycle (F. Des=n) Startup lifecycle: take the product PoV..
  • FINANCIAL NEEDS 7 STAGES CASH FLOW EXPANSION MATURITY Financial needs Revenues Cumula6ve cash ow ..and combine it with the nancial PoV..
  • FINANCIAL NEEDS 7 STAGES CASH FLOW EXPANSION MATURITY Financial needs Revenues Cumula6ve cash ow ..where the nancial need is evident!
  • FASE 1 FASE 2 FASE 3 CONSERVATION SUSTAIN SCALE EFFICIENCY VALIDATION DISCOVERY IDEA FASE 4 FASE 5 FASE 6 FASE 7 Note: overlapping product and nancial perspec=ve has only didac=c purpose FINANCIAL NEEDS 7 STAGES CASH FLOW EXPANSION MATURITY Financial needs Revenues Cumula6ve cash ow Start Launch Build Chasm Scale Maturity It will persist 6ll your business model is validated or..
  • FINANCIAL NEEDS 7 STAGES CASH FLOW EXPANSION MATURITY Financial needs Revenues Cumula6ve cash ow The valley of death ..6ll you will exit from the market prematurely
  • Source: The Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By HBS (2011): Failure = liquida=ng all assets, with investors losing most or all the money they put into the company the failure rate for start-ups is 30-40%. Failure = failing to see the projected return on investment failure rate is 70-80%. Failure = declaring a projec6on and then falling short of mee=ng it failure rate is a whopping 90-95%. Classic company Tech Startup The Valley of Death
  • Failure rate by industry
  • 6 Copyright 2011 Nuvolab - All Rights Reserved Fonte: http://www.chubbybrain.com/blog/top-reasons- startups-fail-analyzing-startup-failure-post-mortem/ Le 20 principali cause di morte prematura per una startup (secondo ChubbyBrain, database VC e BA) Source: h_p://www.chubbybrain.com/blog/top-reasons- startups-fail-analyzing-startup-failure-post-mortem/ The top 20 Reasons Startups Fail
  • 1. Being inexible and not ac=vely seeking or using customer feedback 45% 2. Building a solu=on looking for a problem, i.e., not targe=ng a market need 30% 3. Not the right team 30% 4. Poor Marke=ng 28% 5. Ran out of cash 25% 6. I got this product. Now I just need a business model 25% 7. Release product at the wrong =me 20% 8. Lack Passion and Exper=se 19% 9. Do not cut your losses a la Pivot at the right =me 19% 10. A User Un-Friendly Product 16% 11. Pricing Issues 16% 12. Do not use your connec=ons 16% 13. Disharmony with Investors/Co- founders 12% 14. Lose Focus Distracted by Shiny Objects 12% 15. Burn Out 12% 16. Get outcompeted 10% 17. Be unable to A_ract Investors 6% 18. Loca=on, Loca=on, Loca=on 6% 19. Not working on it full =me 6% 20. Start the company at the wrong =me 6% The top 20 Reasons Startups Fail
  • So.. Startup life is a very hard thing!
  • SMART MONEY Competences Funding What is missing?
  • Verve Capital Partners (2011): what is the VC spent per capita in European countries (USA $ 67 pc) 5 groups Group 1 ($70-60): Switzerland ($69 pc), the Netherlands ($ 62 pc) Group 2 ($60-50): Sweden, Finland