Mark Farmer – Founder, General Partner

Business Funding in Tough Times

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It’s no different

Less capital available

Competition tougher

Bar is higher

Work harder & smarter

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The innovation pipeline

Most ideas don't make it to a start up company

Most start up companies don't make it to profitability

Most profitable companies don't make it to exit

Most exits are not big exits

What’s special about your idea?

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AM I WASTING MY TIME?

Be honestGlass half empty or half full?

Put your idea on the table and push it around

Is it really a good idea?

Is the customer in pain?

Can I really help?

Will customers buy it?

Will there be enough of them?

Does the customer have good alternatives

Beware self delusion & self referential criteria

What is the magnitude of the opportunityWhat is the scale of your ambition?

Does it match your partner’s / investor’s

What are you prepared to do, to sacrifice, to make it happen?

Are all the conditions right for success (sequoia)

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Angels or Demons?

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Run a process

Create an edge

Beware the slow no

Create a compelling event

Aim to get multiple offers in at the same time

AM I WASTING MY TIME?

Consider an advisor

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Qualify Qualify Qualify

1000 – 100 – 10 – 1 to offer means lots of scope to waste time

How big is the fund

How many investments will they make?

How much capital do they reserve for each company?

Where are they in the fund life cycle?How many investments?

How much capital deployed?

What criteria do they use to decide?

What process do they go throughUnderstand where you are

Who is your competition

What’s the proposition for the investor – does it work? Is it the best deal they are looking at?

Should I really be talking to these guys

AM I WASTING MY TIME?

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The investment committee

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Can you work with these guys?

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Eden

£90m fund

£450m return target (5x)

25 investments

We know that 80% will fail

5 companies will generate 95% of our return

Each investment must be capable of returning the fundAnd some

Targeting ownership at exit of 20%-40%

Exit valuations of £200-£400m

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What do we look for?

Big markets$1bn +

global

Massively disruptive propositions

Uncertain competitive landscapes

Stand out teamsDrive

Focus

Persistence

Realism

Attraction factor

Experience

Ambition

Can we work with these guys?

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So remember

Its no different – just harder

the sequoia The odds of success are very low

the conditions must be right?

Be brutally honest

Are you wasting your time

Angels or demons?

Run a process & create a compelling event

Qualify qualify qualify

Can I work with these guys?

AM I WASTING MY TIME?

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A parting shot

It can work

We have created :A lot of tears

44 companies

2000 jobs

$750m in enterprise value

25 multi – millionaires

If you are truly honest with yourselfAnd you think you are onto something

DONT GIVE UP!