Seed and Early Stage Venture Capital in the Globalised High Technology Market Place
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Transcript of Seed and Early Stage Venture Capital in the Globalised High Technology Market Place
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Seed and Early Stage Venture Capital in the Globalised High Technology Market Place
Dimitris KontarinisDimitris KontarinisDraper Fisher Jurvetson, Investment ConsultantDraper Fisher Jurvetson, Investment Consultant
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Venture Capital Stages
Value € € € € € €Exit
Operations OperationsWorking Model Working Model Working Model
Team Team Team TeamBusiness Plan Business Plan Business Plan Business Plan Business Plan
Idea Idea Idea Idea Idea Idea
Funding Angel Seed Seed Early Follow on Public OfferingEarly Follow on Mezzanine Acquisition
Start up maturity
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It is a tough job … ….It is a job that requires special skills when
compared to other types of financial investments
….It is a job that requires a lot of hands on work
…. It works when fund is effectively managed
…. It works when backed up by strong network
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International NetworkGlobal Localization
Fund / team in formation
Existing fund / team
DFJ ePlanet Singapore
DFJ ePlanet Beijing
DFJ ePlanet LondonTimberline
VenturesSeattle, WA
DFJ Frontier Sacramento &
Santa Barbara, CADraper Fisher Jurvetson
Menlo Park, CAZone Ventures
Los Angeles, CAWasatch VenturesSalt Lake City, UT,
Phoenix, AZ & Albuquerque, NM
Access VenturesWestminister, CO &
Austin, TX
DFJ Portage Chicago, IL
DFJ New EnglandCambridge, MA
DFJ GothamNew York, NY
DFJ Primaxis Toronto, ONT
Draper TrianglePittsburgh, PA
DFJ MercuryHouston, TX
DFJ SI VenturesRaleigh, NC &
Fort Meyers, FL
Draper AtlanticReston, VA
DFJAustralia
DFJ Faros
Greece
DFJ NexusRussia
DFJ India
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Early Stage Venture Capital in Globalized Markets
•Focus on the Quality of Managers/Entrepreneurs and Back Extraordinary PeopleFocus on the Quality of Managers/Entrepreneurs and Back Extraordinary People
•Invest in Business Models with Low Capital Requirements & High Gross MarginInvest in Business Models with Low Capital Requirements & High Gross Margin
•Identify World Class TechnologyIdentify World Class Technology
•Tolerate RiskTolerate Risk
•Business Models with Viable, Long-Term EconomicsBusiness Models with Viable, Long-Term Economics
•Diversify Portfolio (many deals) to Mitigate RiskDiversify Portfolio (many deals) to Mitigate Risk
•Target Markets with Explosive Growth PotentialTarget Markets with Explosive Growth Potential
•Companies serving real needs of business customersCompanies serving real needs of business customers
•Large global market opportunitiesLarge global market opportunities
Global Network Added Value
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Internet: Information has migrated globally
Populatio
n
InternetUsers
(million)
Internet Penetratio
n
Growth (2000-
2005)Mobile Users
(million)
Mobile Penetration
(%)
UK 60 38 63 146% 62 103.0France 61 26 43 208% 46 76.0
Germany 82 48 59 103% 76 90.0Italy 29 29 49 119% 65 111.0
Spain 44 17 39 218% 40 94.0Netherlands 16.5 10.8 66 177% 15 94.0
Finland 5.2 3.2 63 70% 5 98.0Greece 11.2 3.8 34 280% 10 89.0
5.3 39%Greek Diaspora
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Perception of High Tech Entrepreneur
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eEmployment=unEmployment
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Hard Entrepreneurial High Tech work
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What happened in Estonia ?
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Change Culture
D
D
FamilyCompanyGreater Social
Environment
Nation
DIndividual
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Corporate Targets for better living Creativity Uniqueness Innovation Weird Ideas That Work (Robert Sutton) EBIT driven business
Earnings Based on Innovation & Talent
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Corporate Venture and Venture CapitalCorporate VC examples France Telecom - Innovacom VC :
HarbourVest and GIC (Singapore), Access Capital Partners, AGF Private Equity, CIC Finance, European Investment Fund, the FPCR (Caisse des Dιpots Group).
Sonera-Magnum Deutsche Telekom-T-Ventures VC. Telenor-Telenor Venture Telefonica-Telefonica Ventures Italia Telecom-Saturn Venture Capital :
Olivetti; Telecom Italia Lab, Telecom Italia Mobile,VC Ramius Capital Group)
Bell Atlantic (Verizon) - Index Ventures (syndication with Skype and Google).
ΑΤ&Τ - Kappa IT και AT&T Venture
Corporate Venture Intel Capital Microsoft Blue Ventures Nokia Vodafone Ventures Samsung
VC Limited Partners Samsung (DFJ) Intel Microsoft Nokia
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Fixed Mobile Convergence: The Business Decathlon
Phone TV & entertainment Money and Credit Card
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Local Market DynamicsGlobal Potential
Government
IntellectualCapital
Infratsructure
Culture
Global Work Function
Family Corporate GovernmentIndividualFamily
Corporate Government
Individual
Family
Corporate
Individual
Global Business Landscape
Global BusinessLandscape
Global BusinessLandscape