Importance of Smart Money and what a start-up should look for instead of just money. A presentation from Lotus 9 - conference about startups. Website: http://www.aiesec.lv/lotus

1. The Importance of Smart Money:
What a Startup Should Look For on
Top of Just Cash?
Lotus 9/ AIESEC
15th of December, 2012 @ RBS

2. Do Startups Need Money?
• YES, but...
• What kind of a startup are you?
– Lifestyle business (SME)
or
– Buyable startup
or
– Scalable startup

3. Small Business vs. Scalable Startup

4. Where’s the Money?
Scalable
Venture Capital
Seed/ Funds
Start-up
Funds and
Founders Business Private Equity Funds
+ Angels
FFF
Lifestyle
Starting-up Maturity

5. Money: Degree of Wisdom
• FFF • Business Angels
DUMB
• Seed Funds
• Bank Loans • VC Funds
• Industrial Investors
• Public (government)
money, especially SMART
grants

6. Smart Money: What’s in it?
• Experience
– Have seen all the mistakes you will make
– Have developed best practices
• Contacts
– Industry
– International
• Loyalty & goal alignment
• ... and Money...

7. Incubators & Accelerators
• Business Incubator
– An infrastructure-centered concept
– Basically, a grant (subsidy) with a focus
• Technology Incubator
– A funding-centered concept
– Attempt of “smart-inizing” of (mostly) public funding
• Startup Accelerator
– Boot camp of startups coupled with smart money

8. Funding Scene in Latvia
• Direct Grants
• Business Incubators (Regions + Riga Creative
Industries Incubator)
• Banks, including LHZB special programs
• Non-bank/ junior lenders
• Micro-Angels
• Seed (Imprimatur Capital) and VC (BaltCap)
funds

9. Summary: What’s the Strategy?
• Decide on startup type
• Decide on business model
• Look for the resources’ needs and gaps to fill
• Look for what’s going on in (your) funding
market
• Go out and raise financing STRATEGICALLY

10. A Word on TechHub Riga
• TechHub is NOT an incubator!
• TechHub is a collocation space
(joint office) for tech startups,
funded by memberships and
sponsors
• TechHub is a focal point of
tech startup community in LV,
active in promoting of startup
culture

11. Questions Welcome!
viesturs@techhub.com