RYLA-Cyprus Rotary District 2452Unleashing The Power of …. ALL Together

Raising Funds Demetris C. HadjisofocliManaging Director, Helix Business Incubator, Ltd.Managing Director, Entrepreneurship Frontier Network, Ltd.Director, Liaison Office University of NicosiaCoordinated Induction of Entrepreneurship Education in Schools

March 22, 2014

Entrepreneurship & Car Paradigm Common: Wheel, Tires, Body, Engine

Definition - Systemic Entrepreneurship®______________________________________ Systemic Entrepreneurship® is a holistic approach to

entrepreneurship execution were the stakeholder environment allows the user to use general frameworks and principles in a modular way during the development of business leaders, business models, monetization strategies and while the corporate strategic objectives are met, to ensure that the end target of Economic, Political, Social, Legal, Environmental equality across the societal graph is reached.

Definition - Social Entrepreneurship __________________________________ Social entrepreneurship is the process of pursuing suitable solutions to

social problems. More specifically, social entrepreneurs adopt a mission to create and sustain social value. They pursue opportunities to serve this mission, while continuously adapting and learning.

Possible Social Problems Unemployment among youth Poverty Civil Unrest Recession Closure of large number of SMEs

Productive Entrepreneurship

Entrepreneurship_______________________________

Entrepreneurship is an agent of creative distraction

Individuals NOT Corporations are the driving force

Small agile companies as opposed to traditionally large companies

Knowledge intensive

Needs Policy shifts

What is the contribution to systemic societal development _________________________________

Entrepreneurship focuses Solely on economic growth Blind focus on straight forward monetization contributes to scorch earth

business models, business strategies, business systems How does society as a whole contributes to the development of

responsible business leaders Education Culture Values discussion Ethics (not just business ethics but ethics in general)

What do we need Entrepreneurship to address?______________________________________ How do we address the issue of social and financial equality?

Society and quality of life should move forward in unison; not necessarily at the same level but in unison

The gap between social groups at worst should remain the same, but we should strive to shrink it (capitalism needs free willing customers)

Disparities, inequalities Entrepreneurship that brings economic justice, equality, environmental

sustenance Economic, Political, Social, Legal, Cultural, Technological, Environmental

Perspective social, economic, political, religious considerations Correlation between Entrepreneurship and Development

Example of Systemic Entrepreneurship Developing agribusinesses in rural Africa, that strives to empower individuals

and communities It operates in several African countries. Researchers have introduced a system of vegetable

production that combines conventional farming with hydroponic technologies for healthy and high value crop cultivation

In partnership with the Sun International hotel group, a vegetable production network has been established, allowing local groups of farmers to produce vegetables for sale to top hotels serving the international tourism market This has led to the emergence of agri-entrepreneurs, and overall, the farmers benefiting

earned income of $1million annually since 2006. Beneficiaries include vulnerable groups like homeless, the visually disabled, widows and orphans

These are examples of the kind of systemic entrepreneurship that are needed. It takes a social problem and utilizes knowledge transfer to come up with a solution that is not about economic growth per se, but about human development

Funding - Due Diligence____________________________________ The process through which investments are decided Detailed, Broad, Deep Has some fixed elements Has some local elements Need expertise to perform It is important and critical to the success of an

investor but it should not delay the process

Ideas will fail for sure; better chances are 2 in 50

Entrepreneurship Drive________________________________________

The ability to identify new ideas

Passion, determination and the drive to try them out

Willingness to listen and learn

Have the character to know when it is time to pivot to a better version…

Team____________________________________ Not everyone can become an Entrepreneur but

ALMOST everyone can be Enterprising ………..Teams that have GREAT Technologists Engineers Operations Legal

Individuals who are Agile and Flexible If someone is not an Entrepreneur but has those

qualities, put a GREAT Entrepreneur on their team Know what the team does not know – No Ego!

Position for Success____________________________________

KNOW A PITCHING EAR …. Not all money is created (or given) equally Not all investment people have the same philosophy,

psychology, interests, knowhow.. Not all cultures/ecosystems are the same

A pitching angle Tech, Business Model, Operations, Monetization…. ADJUST IT

Value Proposition_______________________________________

KNOW Numbers

KNOW Markets

WHAT is the Problem to be Solved

WHAT is the Monetization of the Solution

HAVE a TEAM

Tool Box – Major Points____________________________________ To the point Business Plan; Executive Summary (short & sweet) Only the “justified & confirmed” Facts; no blah blah!!! Sustainable Competitive Advantage Know your business inside-out Know what you don’t know

Avoid Tunnel Vision Syndrome Confirm the viability of your idea

Know and Respect your competition Think & Plan 2 steps ahead (market trends) Team with Chemistry & Know-How; Build a balanced team-gene pool Assess & know your cost Sales pipeline

Tool Box – Use of Funds!___________________________________

Why do you need the money? How will the money be used? Legitimate reasons

Grow Sales Product Development Marketing Recruiting Training Infrastructure

Tool Box – Transparency___________________________________

What are the controls which guarantee legitimate use of funds?

Established Audit processes

Weekly/Monthly reports

Knowledgeable/Functional Board of Directors

What is all about?____________________________________

How is a company established, expand or grow?

Finding money (capital) at a reasonable cost to try make your dreams a reality….

Who: Business Incubators, Crowd Funding, Administration, Venture Capital, Equity Markets, Angel Investors, Investment Banks, Friends & Family….

Cost: Equity, Interest

Angel Investors, Friends & Family_____________________________________ What is it?

Where entrepreneurs and start ups usually go to get money for an idea or proof of concept.

Type of Financing Seed & Mezzanine

Cost? Give away a piece of the company to investors. Around 20% of your idea.

Examples Wealthy individuals, The Morino Institute, Corporate

Investments

Crowd Funding_____________________________________ What is it?

It is a public forum where Entrepreneurs go to get money for an idea or proof of concept

Type of Financing Startup, Seed

Cost? Give away various incentives i.e. first products, lower price,

incentives Around 5% fee to the site

Examples Gofundme, kickstarter, indiegogo

Local Government and EU Level Funding______________________________________ What is it?

Local Government/European Commission agencies make funding available through various schemes

Type of Financing Project specific

Cost? Administrative Investment Low Interest rates

Examples Jeremie program loans, Partnership Alliances, SME Instrument

Business Incubators_____________________________________ What is it?

Where entrepreneurs, and start ups usually go to get money to develop & execute a business plan at the early stages…

Type of Financing Start up

Cost? Equity position in the company! Give away a piece of the company to

the people with the money. Relatively ok cost! No more than 20% equity position

Examples Helix Business Incubator , Diogenes et al

Venture Capital____________________________________ What is it?

Where entrepreneurs, and startups usually go to get money to execute a business plan at a later stage…after prototype, prove of concept stage

Type of Financing Round A, B, C, D … , Bridge

Cost? Equity position in the company! Give away a piece of the company to the people with the money. Very

expensive!

Examples Columbia Capital, Kleiner Perkins, The Raja Group etc…

Equity Markets_____________________________________

What is it? Where established companies go to get money for extraordinary

growth planning.

Type of Financing Stock markets

Cost? Give away a piece of the company to investors. Market defines price.

Examples DowJones, NASDAQ, FUTSE etc.

Investment Banks_____________________________________

What is it? Where established companies go to get money for extraordinary

growth planning, or to address critical cash/liquidity issues

Type of Financing Bridge, Loan, Growth

Cost? Give away a piece of the company to investors or Loan type

Terms. Need and Market defines price.

Examples Most large banks and other financial institutions

Final Caution!____________________________________

Until the Money is in the Bank, in an account you control, the deal is not done!