Mind the Bridge ItalyTour 2010

Transcription

1 AN INTRODUCTION TO ENTREPRENEURSHIP. FROM STARTUP COMPANIES TO FUND RAISING Mind the Bridge ItalyTour 2010 Università degli Studi Piemonte Orientale Novara, 11 Maggio With the support of:

2 Agenda 2

3 Agenda 3

4 STARTUP S LIFE Caution Adrenaline Passion Team Speed

5 INGREDIENTS FOR A STARTUP 5

6 WHAT IS AN ENTREPRENEUR 6

7 WHY?

8 MANAGER VS ENTREPRENEUR 8

9 Agenda 9

10 THE HISTORY OF THE VALLEY 10

11 THE (REAL) HISTORY OF THE VALLEY 11/13

12 THE (REAL) HISTORY OF THE VALLEY INTERNET? Today: 25 of Fortune 100 WAVES OF INNOVATION NASA DEFENSE Lockheed INTEGRATED CIRCUITS HP (47) PERSONAL COMPUTERS Intel (68) Apple (80) Kleiner Perkins (72) Yahoo, ebay, Google (90s) 3Com, Adobe, Cisco INNOVATION NETWORKS Adobe Systems AMD Agilent Technologies Apple Inc. Applied Materials Business Objects Cisco Systems ebay Electronic Arts Google Hewlett-Packard Intel Intuit LSI Logic Maxtor National Semiconductor Network Appliance Nvidia Oracle Corporation SanDisk Seagate Technology Solectron Symantec Sun Microsystems Yahoo!

13 THE MAIN PILLARS KEY QUESTIONS Is that replicable / portable? Is it sustainable long-term? What is the impact of the changing international outlook? 13

14 SOFT FACTORS KEY TO SUCCESS The importance of Dynamism, speed: continuous evolving world Approach to Risk Value of Failure (not just a downside but a must-have) Importance of the Hub: a world of opportunities Think Big 14

15 (5) LESSONS FROM GOOGLE 1. the team is all (almost) 2. healthy disregard for the impossible 3. big problems are better than small ones 4. users first 5. don t pay attention to the VC bandwagon 15

16 DO YOU KNOW? SQUARE UP 750 employees in 3 years >400 ml users today 21-year-old 15 bl $ valuation The world s largest cross-platform mobile open source project 16

17 Agenda 17

18 The Big Idea!!! But after the Idea, It s All About Execution 18

19 THE BUSINESS PLAN OPPORTUNITY (How big is...) RESOURCES ($, supply chain, ) ENTREPRENEURIAL TEAM BUSINESS MODEL (Long term sustenability) STRATEGY (mktg, sales,...) 19

20 WHO READS A BUSINESS PLAN? 20

21 WHAT DOES AN INVESTOR DO WITH A BUSINESS PLAN? hlooks to see who sent it 15 sec hanalyzes key aspects sector location investment required 60 sec hreads the plan 15 min hdecides whether or not to request a formal presentation 10min Total: 26 min 15 sec 21

22 BUSINESS What PLAN? investors OK want VS to KO see They have to see: Realistic forecasts based, as far as possible, in fact Monthly / quarterly projections for at least 1 year They do not wish to see: Plans full of glowing references to a prosperous, but ill-defined future Unsupported projections or unrealistically inflated figures 22

23 GOOD AND BAD BUSINESS PLANS 23

24 THE QUESTIONS EVERY ENTREPRENEUR MUST ANSWER 24

25 THE BP OUTLINE 25

26 TALKING $$$ 26

27 Agenda 27

28 INVESTMENT TYPES Business Angels Venture capital 28

29 THE ANGEL INVESTOR 29

30 ANGEL TYPOLOGIES High RELEVANT INDUSTRY EXPERIENCE Low Low RELEVANT ENTREPRENEURIAL EXPERIENCE High 30

31 THE VENTURE CAPITALIST 31

32 WHY VENTURE CAPITAL?

33 INVESTMENT STRATEGY Medium Risk High Risk Medium Risk Low Risk IPO M&A M&A Valuation Investment Focus Cumulative Investment IDEA DEVELOPMENT BETA CUSTOMERS EXPANSION MARKET SHARE months 3 months 3-6 months months months Vision/ Product Focus Management Focus Customer / Market Share Focus 33

34 VENTURE CAPITAL INVESTMENTS SLOWED DOWN, BUT US STILLS LEADS THE WAY 34

35 WHERE IS ITALY? Annual VC Investment (B US$) Number of Deals Italy [*Source: Ernest Young Global VC report 2007] Globalization Moving to extremes 35

36 Agenda 36

37 MIND THE BRIDGE FOUNDATION Mission: to promote a new Italian entrepreneurial ecosystem that is: CONNECTING TALENT ETHICAL, HIGHLY PROFESSIONAL, INTERNATIONALLY FOCUSED, EXCELLENCE DRIVEN bridging opportunities of the Silicon Valley with Italian talent associating mentors and role models professionalizing the business planning skills using and building the network give back to build a bigger pie 37

38 MIND THE BRIDGE FOUNDATION Model: funded by foundations/companies/private sector/donors not government partnering with the most relevant actors CONNECTING TALENT INDEPENDENT Nurturing the future Italian Googles (MtB Roadshows) Selecting the best of breed (Annual MtB Business Plan Competition & MtB Venture Camp) Providing training & education to the new generation of entrepreneurs (MtB Start-up School) Hosting&mentoring the most promising startups in the Silicon Valley (MtB Gym) Pitching Silicon Valley investors / partners (MtB Gran Finale event) 38

39 MTB BUSINESS PLAN COMPETITION BUSINESS PLAN COMPETITION Selection of most promising BP by a top notch Selection Committee Association of Mentors and training modules 2 days Venture Camp event (fall) Hosting in the earth of Silicon Valley (GYM) Road Show week in Silicon Valley Gran Finale event pitching Silicon Valley investors/partners 2010: Applications are open until JULY 39

40 2009 SELECTED START-UPS Revolutionary antenna system (Milano) Wi-Fi-derived solutions (Milano and Boston) Comprehensivenon-invasive solution for both vertebral fractures and bone strenght assessment(lecce) Solution to update any digital information (Sassari) Social-network which allow users to create music through the web (Treviso) Social marketplace for travel, where experts can provide users with information and personalized offers (Milano) Virtual and Augmented Reality technology (Pisa) 40

41 THE OPPORTUNITY FROM CARIPLO FOUNDATION Project: Educazione all imprenditorialitàinternazionale: dalla creazione di impresa alla raccolta di capitali Goal: spread international entrepreneurship in Lombardy Lead: CrESIT, Insubria University Partners: Cibie, University of Pavia Fondazione Politecnico Mind the Bridge Foundation With the support of: 41

42 HOW DOES IT WORK? 2 SEPARATE FUNNELS 42

43 HOW DOES IT WORK? THE TIMELINE 43

44 THANK YOU FOR YOUR ATTENTION Questions & Answers SOCIAL MEDIA: Facebook: Mind the Bridge - Connecting Talent Twitter: aonetti BLOGS: Contacts Giuseppe De Giorgi Alberto Onetti degiorgi@ai.polimi.it info@mindthebridge.org USEFUL LINKS:

45 APPENDIX 45

46 RAISING MONEY TODAY IN SV DON T TALK TO ME IF YOU are you not local how many exits again? don t show me the buyer (don t IPO me ) haven t jumped yet 46

47 THE FUNDING DECISION Early sources Bootstrapping Founders capital Savings Credit cards Equity Financing Capital from: Family/friends Angels Early stage VC Later sources Loans Acconts receivable Strategic Partners Retained earnings VC firms Corporate VC Private placement Investment banking Public markets 47

48 THE VENTURE CAPITALIST 48

49 VENTURE CAPITAL GENERAL INVESTMENT PROCESS Limited Partners Distributions Fundraising Commitments VC Firm (General Partners) Fund Fund Fund Proceeds Investment Disbursements Startup Companies IPO/M&A Exit 49

50 AGREEMENT VARIABLES AND CONTROL MECHANISMS 50

51 VENTURE CAPITAL COMPENSATION STRUCTURE 51

52 SILICON VALLEY: DOES IT REALLY KICK ASS? [*Source: PwC 2009] 52

53 WHAT S HOT? EU - Top VC funds Raised 2006 Amount (M EU) Scottish Equity Partners 235 Northzone Ventures 175 Life Sciences Partners BV 150 US - Top VC funds Raised 2006 Amount (M $) Oak Investment Partners 2,560 New Enterprise Associates 2,500 Polaris Venture Partners 1,000 Top Industry Segments - Silicon Valley 2006 Rank Segment Amount (US$ M) Rounds 1 Software 2, Communications 1, Biopharmaceuticals 1, Semiconductors 1, Information Services Medical Devices Electronics Cons/Bus Services Energy Cons/Bus Products 75 9 [*Source: Ernest Young Global VC report 2007] 53

54 WHY NOW? IT S THE BEST OPPORTUNITY talent abounds from scarcity comes clarity innovation comes from hunger startup cost ~0 54

55 WHAT IS A BUSINESS PLAN? DOCUMENT: IDENTIFICATION DESCRIPTION ANALYSIS OF A BUSINESS OPPORTUNITY DEVELOPMENT: hstrategies + PROCEDURES TO CONVERT A BUSINESS OPPORTUNITY INTO A SPECIFIC BUSINESS PROJECT FOR ESTABLISHED COMPANIES: GROWTH DIVERSIFICATION FROM THE CORE ACTIVITY 55