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Transcript of Seed capital
- 1. A presentation ofSEED Capital and an introduction towhat we look for instartupsJakob Ekkelund, SEED CapitalApril 2013
2. Agenda SEED in numbers (I) 1. Intro to Seed capital 2. Investment process andcriteria 3. Cases 3. About Me: in numbers (II)SEEDJakob Ekkelund, Investment Manager (ICT), SEED Capital Cand. Merc (CBS) Business experience TDC Consumer, Head of Strategy TDC, Strategy consultant TDC, Graduate Traniee TDC, Finance Startup experience: Designfirmaet.dk Rainmaking Betternow.com Sidneyle.dk Selected board positions: Vivino Bownty Wantr Leikr 4. 1 Intro to Seed Capital 5. Who is SEED Capital? SEED Capital is a venture capital company who finance and assist competent entrepreneurs based in Denmark and Southern Sweden developing Life science, IT, and Cleantech companies of the future. In addition, SEED Capital acts as venture partner for government funded pre-seed investments through DTU Symbion Innovation. 6. Investment focus Energy production efficiency (solar, wind, CHP)GeneralCleantech Energy storage (fuel cells and batteries) Cleaner and/or less resource demanding technological processes (industrial and material)Seed/early stageto exit, earlysyndication Pharmaceuticals and medtech (devices/diagnostics) Lifescience Personalized diagnosis and treatmentDenmark and Opportunistic investments in ground breaking technologysouthern SwedenLocal academicand industrial Software: SaaS, mobility and convenience (Location Basedcenters of Services) Crowd Sourcing, crossover consumer-excellence social/enterprise ITHardware: Embedded systems, energy technology, signal processing, automation/robotics, nanotechnology Tele/mobile: Mobile location based services, mobile marketing, mobile commerce 7. 70 companies in portfolio IT Lifescience Cleantech 8. Where do set in?Market-Focused BusinessTechnology creation Commercializationand Product developmentCash flow Sales TimeValley of DeathTypicalGovernement &Seed & BusinessVenture Capital Stockinvestorspre-seed angelsPublic SectorPrivate Sector DTU Symbion InnovationSEED Capital 9. SEED key figures Managing 1+ bn. DKK 2 Venture funds: SEED Capital Denmark II (530 mDKK) SEED Capital Denmark K/S (532 mDKK) DKs leading innovation environment (IM): DTU Symbion Innovation A/S (2010: 50 mDKK for investments) 70 portfolio companies 12 exits with >1x on invested capital, 2 IPOs 20 FTE 10. Annual activities in brief SEED in numbers (II)500+ businessproposals100+ meetings ~15 DTU Symbion Innovation investments 3-4 SEED Capitalinvestments 11. Investment sizesPrivate fundingPublic funding0,8 - 6,7 mio. 5 - 50 mio. DKK 40% 0,3 mio. 2,5 mio. DKK82%0,5 mio. 3,5 mio. DKK Time 12. How it works with funds Fund no. 1Fund no. 2 Fund no. 3Fund no. 4Cash in no. 1Cash in no. 2InvestmentExecutionInvestment Execution Investment ExecutionInvestment 3-4 years10 (+2) years 13. Why should an numbers (II) SEED in entreprenur chooseSeed Capital Money Involvement through Board of Directors Network Great track record We can take a company from the early stages and take it all the way.. 14. 2 Investment process andcriteria 15. The investment processPhases: Introduction Convincing Deep diving CompletionActivities: - Project- Internal Pitch - Due diligence - Final papers screening- Partner- Investment - Meetingpresentation recommen- dation- Term SheetMaterials:- Teaser/Business - Partner deck - 2o pages- Investment &Plan(10 powerpoint Investment shareholderslides)recommen-agreement + - dation 16. What we look for - in broad terms Cheaper 10X Smaller Bigger Faster More efficientWith a market potential of more than 1 billion 17. Investment Criteria - ITeam/ManagementThe management of the company has to consist of peoplewith entrepreneurial spirit and relevant and well-documented professional qualificationsor have theprospect of developing them.The management has to complement each other (Noprogrammers / only programmers) and together form avisionary, cooperative, and dynamic team. 18. Investment Criteria - IIMarketThe newly developed product must be in an attractivemarket segment that is potentially large, rapidlyincreasing, or undergoing major restructuring, makingnew markets for the mentioned product possible 19. Investment Criteria - IIIProductThe product is highly innovative and has a remarkableand continuing competitiveness. The technology is anepoch-making discovery, and the company has preferablypatented the discovery.Its imperative that the product solves a burning pain forclearly identified customers 20. Investment Criteria - IVScalabilityThe company is highly scalable and the model of incomehas a significant chance of generating extensive growthand, in time, obtaining considerable profitability. 21. Investment Criteria - VExitThe investment has potential for a full exit. There shouldalways be more than one exit option. The evaluation of thecompany looks favorable compared to the existing marketconditions. 22. Short cut .-) 23. 3 Cases 24. Interesting cases:Endomondo provides an online service for tracking, monitoringand coaching your physical activities such as running, biking,walking, skiing etc.Trustpilot is a web portal where consumers rank companiesbased on their customer service.As a common (2D) printer prints on paper a Blueprinter prints3-dimensional objects based on 3D CAD computer models.Libratone designs and develops wireless loudspeakers thatstream music and audio wirelessly in excellent quality fromwhich ever unit contains the users music libraryFirmafon provides a telephony solution for small end mediumsized enterprises... 25. Questions?