The document summarizes a guest lecture on startup fundraising. It provides an agenda that covers why startups raise capital, how startup funding works through different rounds of investment, potential sources of capital, what investors look for in investments, where to find investors, and concludes with a Q&A. The lecturer's background and KPN Ventures' investment focus and portfolio are briefly introduced.
2. Agenda
⢠Introduction
⢠Why raise capital
⢠How startup funding works
⢠Which sources of capital
⢠What investors look at
⢠Where to find investors
⢠Q&A
4. Personal Introduction
⢠Managing Director KPN Ventures
⢠Founder/partner River Venture Partners
⢠MSc Chemical Engineering and MBA (INSEAD)
⢠5 years Finance & Strategy (McKinsey)
⢠8 years in Digital Media BusDev (Sanoma
Digital)
⢠7 years in Venture Capital
⢠Married, father of three teenagers
⢠Loves live music, movies, vintage design and
slow food
⢠Supporting sustainable development, education,
research journalism and diversity
5. About KPN Ventures
Key objectives Investment scope Portfolio
1. Strategic return
by creating
partnerships to
boost the
development of
innovative products
& services
2. Financial return
on exits
⢠Early growth-stage companies
(>âŹ0.5m revenues), based in Europe
⢠Active in:
o Cyber Security
o Digital Healthcare
o Internet of Things
o Smart Home
o Cloud Computing
o Data & Analytics
o Mobile/OTT services
o Networking technology
⢠âŹ0.5m - âŹ2.5m initial investments, as lead
investor or co-investor
⢠Selective investments in complementary VC
funds
EXITED
EXITED
INNOVATION FUND
Fund-in-fund:
10. How startup funding works
Idea-stage ...more
roundsâŚ
You
0
100% of 0
FFF stage
âŹ50-100k
Family
âŹ140k
28% of âŹ500k
Seed round
âŹ100k-âŹ1m
Angel
investor
âŹ500k
22% of âŹ2.3m
Series A
round
âŹ1-âŹ10m
VC
investor
Employee
option pool
âŹ2.5m
13% of âŹ20m
Series B
round
âŹ10-20m
2nd VC
investor
âŹ5m
10% of âŹ50m
IPO
âŹ50m+
Public
investors
âŹ50m
9% of âŹ575m
Co-founder
stage
<âŹ50k
Co-founder
Co-
founder
âŹ50k
33% of âŹ150k
Your
stakeâs
value
19. ⢠total market size & growth
⢠addressable market
segment(s)
⢠international scalability
⢠profit margins
4. Potential
20. ⢠product development
roadmap
⢠go-to-market plan
(customer acquisition)
⢠hiring plan
⢠financial plan, with
cashflow prognosis
5. Plan
21. ⢠realistic valuation
⢠staged funding
⢠protective rights
⢠governance & control
rights
⢠information rights
⢠investor value add
6. Terms
25. When/how to approach investors
Research investors
⢠Right scope, right stage, right ticket size?
⢠Similar investments?
⢠What can they bring?
⢠Which partner do you want on your board?
MAKE
LONGLIST
WITH
RELEVANT
INVESTORS
START WITH
SECOND TIER
AS TRY-OUT
Reach out
⢠Preferably through personal intro
⢠Send clear teaser deck with ask
(feedback, network connections, meeting to explain/demo)
⢠Propose 30 min. video call or to meet at event/office hours
⢠1x gentle reminder mail/call
26. the hook - grab attention
why? - state your mission
highlights of the concept
what makes you different?
Why are you the right team?
back-up with data points
keep it short & practice
elevator pitch
27. mission: primary goal of the company
proposition: target audience, problem solved & uspâs
current results: kpi data & customer feedback
business model: core activities & revenue model
organization: team & partners
growth plan: market opportunity & customer acquisition
financials: cash flow projection & funding need
investor deck
29. The VC perspective
⢠Dealflow: assessing 500+ startup to close 5 investments
⢠Thesis-driven: targeting investments in emerging/hot spaces, with specific
characteristics
⢠Founder focus: entrepreneurs should drive growth and have sufficient skin in the
game
⢠Unicorn focus: each investment should have âŹ1b exit potential to generate fund
return, compensating for failed investments
⢠Risk averse: taking time to get more information/validation; external urgency
needed (e.g. FOMO)
⢠Syndication: investing alongside existing and other new investors for additional
validation, value-add and shared risk
⢠Horizon: all companies should be exited when fund ends 8-10 years after start