Embed Size (px)
Citation preview
www.atemiscloud.com
Financing a start upFTU 12/12/2013
Benoit BarrierMaster of Business AdministrationMaster of Economics
Founder of Atemis (1998) Business Management software 100% Cloud MaPologne.com (2000) French social network Niceworks (2005) Real Estate Investment Marketanalys (2006) Marketing services 100% Cloud PriceItBuy (2012) Price social network on Mobile SaveBook (2013) Books sharing social network on Mobile
Plan
The marketThe processExamples
The market
Which needs?
Who finance? Individuals (Love Money)Group of individuals (Business Angels)Professionals (VC with OPM)Companies (Google ventures, Intel
Capital, Facebook,..)
Type of investors
Investors map
Where are the VC?
Total number of US companies
Total money invested by VC
Investors by amounts
Investors expect a large return (3-4 times) The due diligence cost
The VC focus Invest in
A team An idea A market
The main investments are largely on software
The numbers of deals
Latest Investments in USA
The process
The requirementsAn idea : 3 V
Vision: disruptive, ability to affect the future Value: customers who need urgently and pay for Values: for the employees, investors, customers
A team With the right competences and passion A successful start-up is a learning machine A B2C App requires 1 tech, 1 marketing, 1
designerA market
Validation, Calibration, Scalability
The preparationExecutive summary
1-2 pages Action titles
Business plan 40-60 pages
Presentation (ppt) 20-40 slides
The process1/be introduced to 1 VC partner2/partners exchange between them3/pitch to the VCs4/Due diligence5/Negociations6/Contract and shareholders pact
Pay attention to the conditions
Learning and pivotingA start-up is a learning machineLearn from the professionals
Get their feedbacks Know the bottle necks
Better to pivot / change the model A good team will always reach a good idea Better to have a good team with a bad idea, than
a good idea with a bad team.Get the top 20 VC in the world
They make your company successful They have the right contacts They will insure the exit points
Exit point: M/A or IPO?
Exit point: M/A or IPO? IPO to raise more than 100 M$Service, product is scalableValuation depends on the market
More B2C applications: facebook, twitter, Wix…Relative independence
Funds require performance Obligations to follow Nasdaq rules
IPO requirements3 possible listings standards.
11 M$ net income for the last 3 years. No losses. 27.5 M$ cash flows for the last 3 years. No
negative cash flows. 850 M$ of market capitalization
Cost of application is 225.000 USD
The international top VC 1-51. Accel Partners www.accel.com2011-2012 Exits: Amobee (acquired by Singapore Telecommunications), Brightcove, Facebook, Groupon, Kosmix (acquired by Walmart), Mu Dynamics (acquired by Spirent), NextG Networks (acquired by Crown Castle), Trulia Total Exit Value: $53.938 billion
2. Greylock Partners www.greylock.com2011-2012 Exits: Instagram (acquired by Facebook), Facebook, LinkedIn, Palo Alto Networks, Workday, Zynga Total Exit Value: $67.217 billion
3. Andreessen Horowitz www.a16z.com2011-2012 Exits: Instagram (acquired by Facebook), Facebook, Nicira Networks (acquired by VMware, Skype (acquired by Microsoft) Total Exit Value: $60.360 billion
4. Meritech Capital Partners www.meritechcapital.com2011-2012 Exits: BlueArc (acquired by Hitachi Data Systems), Facebook, NextG Networks (acquired by Crown Castle), PopCap Games (acquired by Electronic Arts) Total Exit Value: $52.501 billion
5. Founders Fund www.foundersfund.com2011-2012 Exits: Facebook, Yammer (acquired by Microsoft) Total Exit Value: $50.8 billion
The international top VC 6-86. Sequoia Capital www.sequoiacap.com2011-2012 Exits: Amobee (acquired by Singapore Telecommunications), Aster Data Systems (acquired by Teradata), Cafe Press, Clearwell Systems (acquired by Symantec), Cotendo (acquired by Akamai), InfoBlox, Instagram (acquired by Facebook), Jive Software, LinkedIn, LitePoint (acquired by Teradyne), LogLogic (acquired by TIBCO Software), Loopt (acquired by Green Dot), Palo Alto Networks, Provigent (acquired by Broadcom), ServiceNow Total Exit Value: $23.793 billion
7. Benchmark Capital www.benchmark.com2011-2012 Exits: Ambarella, Bytemobile (acquired by Citrix Systems), Clicker (acquired by CBS), Cotendo (acquired by Akamai), Demandforce (acquired by Intuit), Digital Fuel (acquired by VMWare), Gaikai (acquired by Sony), HipLogic (acquired by Zynga), Instagram (acquired by Facebook), Mu Dynamics (acquired by Spirent), NorthStar Systems (acquired by SEI), Proofpoint, Riot Games (acquired by Tencent), Servicesource, Terracotta (acquired by Software), Tropos (acquired by ABB), Ubiquiti Networks, Yelp, Zillow, Zipcar Total Exit Value: $8.432 billion
8. Bessemer Venture Partners www.bvp.com2011-2012 Exits: Endeca (acquired by Oracle), LinkedIn, Millennial Media, Ubiquiti Networks, Yelp Total Exit Value: $15.665 billion
Examples
Instagram = 1 Billion $ in 553 days
Kevin Systrom and Mike Krieger Stanford University Twitter intern + Nextstop
End 2009 creates Burbn Beg 2010 Party with Baseline Ventures and
Andreessen Horowitz (-> 500k $) 8 weeks of developments 6 oct 2010. Instagram is launched
10.000 users in the 1st hour 100.000 the first week 1.000.000 at the end of the year
Jan 2011. Look for VC. Serie A
Instagram = 1 Billion $ in 553 days Feb 2010. Serie A. 7M$ -> Valuation of 20
M$. (4 employees with 1.75 M Users and 290.000 pict per day, revenues = 0)
Mid 2010: new community managers Jan 2011 = 15 M users Mar 2011 = 27 M users Apr 2011: Series B: 50 M (Sequoia Capital, Thrive
Capital, Greylock Partners, Benchmark Capital, and Baseline Ventures). Valuation 500 M$.
4 days later: Sold to Facebook for 1 billion $.
Systrom got 400 M$.
SingTel Acquisition in 2012 Amobee (Redwood City 7/03/2012: 321M$) Amobee’s flagship product is an end-to-end advertising platform for
publishers, advertisers, and operators. Since the SingTel acquisition, it has launched PULSE Create, a platform that lets users make 3d and rich media ads.
AdJitsu (Silicon Valley 8/05/2012 Undisclosed ) AdJitsu is a wholly owned business unit of US-based Cooliris, a company
that turns digital content into interactive visual experiences to improve user experience. AdJitsu’s technology is used to create and display 3D mobile ads. The acquisition was made through Amobee.
HungryGoWhere (Singapore 22/05/2012: USD 9.4M) HungryGoWhere is Singapore’s leading restaurant review site. Following
the SingTel acquisition, they introduced a new online restaurant reservation service to compete with Chope and Reserveit.sg. Currently, it faces pressure from Yelp, which recently entered Singapore.
SingTel Acquisition in 2012 Eatability (Australia 26/07/2012: 6.2
M$) Eatability is one of Australia’s leading restaurant review sites, containing
more than 235,000 reviews and 37,000 restaurant listings. The acquisition was made through Australia’s second largest telco Optus, which is wholly-owned by SingTel. USD 6.2M
Pixable (New York 20/09/2012: 26 M$) Pixable, based in, has created a free web and mobile app that offers users a
personalized photo experience created from predictive analytics and artificial intelligence. It has 4 million users.
TheMobileGamer (Singapore 25/09/2012: 1.5 M$) TMG is a startup that aggregates, distributes, licenses and develops mobile
gaming software. SGD1.8M by SingTel for 35.5% stake.
The start-up opportunities1/ Cloud2/ Social3/ Mobile
Any ideas? Work on it…..
Sourceswww.Techcrunch.comAsian tech newsStanford University: Entrepreneurship
Through the Lens of Venture CapitalFoundation.kr (Kevin Rose Google ven
tures) IPO requirements Interview Ben Horowitz Interview Kevin Systrom
