This document provides an overview of partnering with a venture capitalist from an entrepreneur's perspective. It discusses why entrepreneurs seek venture capital funding, the types of venture capitalists that exist, and how the matching and due diligence process works between entrepreneurs and venture capitalists. The key points covered are: why entrepreneurs partner with VCs for funding and business expertise; the diversity of VC firms in terms of size, experience, and approach; how entrepreneurs can evaluate which VC is the best match; and the indicative investment process that includes initial meetings, due diligence, and signing contracts.

1. Partnering with a Venture Capitalist:
An entrepreneur’s manual
Alex Brabers, Executive Vice-President Gimv

2. Why ?
2

3. The VC: a rich business partner
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4. Aim for Sequoia’s, not Bonzais 4

5. 5

6. Exit
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Research Alpha Auditor Co- Co-lead
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Role customer customer VP S&M Lead VC Communi
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strategy 6
Investmen sales nal sales
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7. Management
team
Industry
Financial Network
Support
Supporting
Business
Building
Enabling
Governance Partnerships
Legal
Support
We only offer our added value to the CEO. We do not impose. He/she decides. 7

8. Who ?
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9. Diversity of partners
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10. Diversity of VC’s
• International • Local
• Deep pockets • Drip feeding
• Team player • Individualist
• Strategist • Financial
• Hands-on/hands-with • Hands-off
• Business building • Shareholder
• Structured processses • Ad hoc
• Connected • Isolated
• Industry insight • Generalist
• Long term perspective • Short term perspective
• Tough guys • Nice guys
• Track record • Inexperienced
• Successful • Unsuccessful
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11. Choosing among the VC’s
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12. Matching profiles
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13. How ?
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14. Matching process
Real life VC life
• Dating • Initial contact
• Engaging • Due diligence
• Wedding • Closing
• Marriage • Business building
• Exit
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15. Indicative investment process
Business Initial Follow-on Multiple information Presentation to
plan sent out meeting meeting requests full VC team
Term sheet Contract drafting Signing Closing
w0 w2 w4 w6 w8 w12 w15 w16
KO criteria Investment memo
passed Initial due Main due diligence prepared
diligence positive ongoing
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16. Due diligence
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17. Due diligence
Product Management team
– Technology – Complete & coherent
– Intellectual Property – Experience
– Unique Selling Proposition – Skills & Potential
versus Competition – Ethics
Financials
Market – Past financials
– Existing & target customers – Forecasts
– Channels & Partners – Business model
– Market potential
Exit potential
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18. Parties involved
Sponsor: project manager and deal champion
Supported by Co-sponsor
Due diligence (internal) Due diligence (external)
• Sponsor & Co-sponsor • Technical consultant
• Market analyst • Financial auditor
• Financial analyst • HR auditor
• Legal counsel • (IP) lawyer
• Market analyst
Decision making
• The full VC team Decision
• The advisory board Sounding board
• Investment committee Quality control
Deal execution
• Sponsor / co-sponsor Legal counsel / lawyer
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19. The entrepreneur and VC
as business partners
A strong combination 19

20. Questions ?
Alex Brabers
EVP Gimv
alex.brabers@gimv.com
T: +32-3-290.21.65
M: +32-495-21.21.64
www.gimv.com
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