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Know your “Enemy” A lesson from the past
The “Art of War” Chapter 3 - Strategic Attack:“…if you know your enemies and know yourself, you can win a hundred battles without a single loss. If you only know yourself, but not your opponent, you may win or may lose. If you know neither yourself nor your enemy, you will always endanger yourself.”
IT Start-up LifecycleRe
venu
eSweat Equity,FFF & Business Angels
BA’sSyndicates
VC Funds, Strategic Alliances
Public Market
Birth of Next Generation of Startups
Know your Partner The actors in the investment lifecycle
Regional Funds
Investments in knowledge intensive companies are considered risky due to:
o the intangible nature inherent their activities o the relevant investment required o perceived high default rateso lack of an established income stream
Keep in mind that a risk capital investoro Wants the money backo Wants more (much more) than they invested o Wants to know when o Wants to measure the opportunity/risk
Know your Partner The actors in the investment lifecycle
Early stage (Proof of concept funds, BAs, Seed Funds, Venture Capitalist)
Pre-Seed Seed Start up
Later stage (Venture Capitalist)
Second round Expansion Capital
Scope
Company life-cycle
Identification of Market potential
Pre-businessplan
PrototypingAnd product development
Businessplan
Commercial-scale manuf.
And sales
Company established but not invoicing
Structuring commercial channels
Building up turnover
Continuous ideas/concepts/products innovation
Making Profits
Know your Partner Financial Cycle and more
What further measures could help to increase access to funding and channelling of funds to those who need them?o support the development of regional co-investments funds of adequate sizeo simplified and harmonized regional cooperative framework between managing
authoritieso providing business angels with a European passport to facilitate cross border
investmentso providing mutual recognition of existing fiscal incentives for business angels investing
freely across Europe
How can the EU further develop private equity and venture capital as an alternative source of finance for the economy? o the use of co-investment funds within the European Structural and Investment Funds (ESIF)
framework, could speed up the equity market and increase the diversification of the source of funding
o exit opportunities for investors could be enhanced by supporting the development of Post Angels Funds, funded by Public and Corporate investments, which would help to reduce the length of time to exit
Building a Capital Market Union Some proposals
