Soumettre la recherche
Mettre en ligne
Angel Investments Made Easy
•
11 j'aime
•
5,856 vues
Manish Singhal
Suivre
Simple concepts to get started on angel investments
Lire moins
Lire la suite
Petites entreprises & entrepreunariat
Économie & finance
Business
Signaler
Partager
Signaler
Partager
1 sur 71
Télécharger maintenant
Télécharger pour lire hors ligne
Recommandé
Ready for Funding?
Ready for Funding?
Manish Singhal
Fund Economics
Fund Economics
Manish Singhal
Session 6: Deal Sourcing
Session 6: Deal Sourcing
Manish Singhal
Angel Investing Made Easy, Shanti Mohan, Bangalore
Angel Investing Made Easy, Shanti Mohan, Bangalore
Sanjay Jha
Game companies as an investment 4.9.2012
Game companies as an investment 4.9.2012
butterfly_vc
Term Sheets Fundamentals
Term Sheets Fundamentals
Manish Singhal
Venture Capital: An Entrepreneur's Manual
Venture Capital: An Entrepreneur's Manual
Ben Holmes
Startup funding : bootstrapping vs fundraising
Startup funding : bootstrapping vs fundraising
France Digitale
Contenu connexe
Tendances
Vc 101 for Startups
Vc 101 for Startups
500 Startups
Startup funding scenario in India _Entrepreneur survey
Startup funding scenario in India _Entrepreneur survey
Saiswaroopa Iyer
Venture capital 101 - Imran Almaleh
Venture capital 101 - Imran Almaleh
Imran Almaleh
Presentation on private equity by ca. sudha g. bhushan
Presentation on private equity by ca. sudha g. bhushan
TAXPERT PROFESSIONALS
Investor readiness presentation
Investor readiness presentation
Mark MacLeod
Funding Options for Technology startups
Funding Options for Technology startups
Amit Ranjan
Fundamentals of forecasting
Fundamentals of forecasting
Aarish Shah
Private Equity Investment Deck PowerPoint Presentation Slides
Private Equity Investment Deck PowerPoint Presentation Slides
SlideTeam
Angel Investors
Angel Investors
ParticleX
Seed capital
Seed capital
Tom Howard
11 key elements of a high quality business investment proposal
11 key elements of a high quality business investment proposal
Simcom Global Trade Solutions
Chartered Investor Designation Teaser
Chartered Investor Designation Teaser
Michael Herlache, MBA
Covid 19. what to do as a business owner
Covid 19. what to do as a business owner
Dionisio II Delos Santos
VC 101
VC 101
Neal Dikeman
Fundraising for startups
Fundraising for startups
Marcin Zabielski
Start-up Valuation 101 Venture Fundamentals
Start-up Valuation 101 Venture Fundamentals
Jerome Wittamer
AngelsCube Presentation at Show Me the Money London 2015 #TMUMoney
AngelsCube Presentation at Show Me the Money London 2015 #TMUMoney
TechMeetups
Inside The Mind Of The Venture Capitalist: An Introduction to Venture Capital
Inside The Mind Of The Venture Capitalist: An Introduction to Venture Capital
J. Skyler Fernandes
Start Up Finance
Start Up Finance
Gina Evans
LAN Startup Valuation Guidelines
LAN Startup Valuation Guidelines
'Tomi Davies
Tendances
(20)
Vc 101 for Startups
Vc 101 for Startups
Startup funding scenario in India _Entrepreneur survey
Startup funding scenario in India _Entrepreneur survey
Venture capital 101 - Imran Almaleh
Venture capital 101 - Imran Almaleh
Presentation on private equity by ca. sudha g. bhushan
Presentation on private equity by ca. sudha g. bhushan
Investor readiness presentation
Investor readiness presentation
Funding Options for Technology startups
Funding Options for Technology startups
Fundamentals of forecasting
Fundamentals of forecasting
Private Equity Investment Deck PowerPoint Presentation Slides
Private Equity Investment Deck PowerPoint Presentation Slides
Angel Investors
Angel Investors
Seed capital
Seed capital
11 key elements of a high quality business investment proposal
11 key elements of a high quality business investment proposal
Chartered Investor Designation Teaser
Chartered Investor Designation Teaser
Covid 19. what to do as a business owner
Covid 19. what to do as a business owner
VC 101
VC 101
Fundraising for startups
Fundraising for startups
Start-up Valuation 101 Venture Fundamentals
Start-up Valuation 101 Venture Fundamentals
AngelsCube Presentation at Show Me the Money London 2015 #TMUMoney
AngelsCube Presentation at Show Me the Money London 2015 #TMUMoney
Inside The Mind Of The Venture Capitalist: An Introduction to Venture Capital
Inside The Mind Of The Venture Capitalist: An Introduction to Venture Capital
Start Up Finance
Start Up Finance
LAN Startup Valuation Guidelines
LAN Startup Valuation Guidelines
En vedette
Angel's Doing the Deal, by David Emerson
Angel's Doing the Deal, by David Emerson
Melissa Glass
How to make a pitch for Angels & VCs
How to make a pitch for Angels & VCs
Manish Singhal
Angel Investors
Angel Investors
Colin Burns
How to invest small chunks into syndicates by Gil Penchina (Super Angel) at V...
How to invest small chunks into syndicates by Gil Penchina (Super Angel) at V...
Vator
Seed Fundraising Webinar, Feb 2014
Seed Fundraising Webinar, Feb 2014
Thomas Wisniewski
Funding Fundamentals
Funding Fundamentals
Manish Singhal
Angel Broking Strategy - April 2010
Angel Broking Strategy - April 2010
Angel Broking
Taking Ideas to Business using MVPs
Taking Ideas to Business using MVPs
Manish Singhal
Statuts et pactes 160611 - Special Legal Session - @ Cabinet Daniel Kahn
Statuts et pactes 160611 - Special Legal Session - @ Cabinet Daniel Kahn
OpenCoffeeClub Paris France
Startupxplore syndicates
Startupxplore syndicates
Startupxplore
Venture capital and angel financing
Venture capital and angel financing
Ayush0734
Understanding seed/Angel funding for startups
Understanding seed/Angel funding for startups
Ansif Ek
Distributed web based systems
Distributed web based systems
Reza Gh
The Promise of a Centerless World - OuiShare Fest May 2016
The Promise of a Centerless World - OuiShare Fest May 2016
The Business Blockchain
Blockchain and Bitcoin: Why You Should Care
Blockchain and Bitcoin: Why You Should Care
The Business Blockchain
Shahed amanullah, tipping point for halal ihmc 2010, day 1 session 2
Shahed amanullah, tipping point for halal ihmc 2010, day 1 session 2
bruneimipr
Noel shield, developing a national halal brand, ihmc 2010 day1 session1
Noel shield, developing a national halal brand, ihmc 2010 day1 session1
bruneimipr
Global Islamic Microfinance Profile New
Global Islamic Microfinance Profile New
Alhuda Centre of Islamic Banking & Economics
Rushdi siddiqui, halal foods&islamic finance ihmc 2010, day 1 session 2
Rushdi siddiqui, halal foods&islamic finance ihmc 2010, day 1 session 2
bruneimipr
Halal Assurance System
Halal Assurance System
intaNish
En vedette
(20)
Angel's Doing the Deal, by David Emerson
Angel's Doing the Deal, by David Emerson
How to make a pitch for Angels & VCs
How to make a pitch for Angels & VCs
Angel Investors
Angel Investors
How to invest small chunks into syndicates by Gil Penchina (Super Angel) at V...
How to invest small chunks into syndicates by Gil Penchina (Super Angel) at V...
Seed Fundraising Webinar, Feb 2014
Seed Fundraising Webinar, Feb 2014
Funding Fundamentals
Funding Fundamentals
Angel Broking Strategy - April 2010
Angel Broking Strategy - April 2010
Taking Ideas to Business using MVPs
Taking Ideas to Business using MVPs
Statuts et pactes 160611 - Special Legal Session - @ Cabinet Daniel Kahn
Statuts et pactes 160611 - Special Legal Session - @ Cabinet Daniel Kahn
Startupxplore syndicates
Startupxplore syndicates
Venture capital and angel financing
Venture capital and angel financing
Understanding seed/Angel funding for startups
Understanding seed/Angel funding for startups
Distributed web based systems
Distributed web based systems
The Promise of a Centerless World - OuiShare Fest May 2016
The Promise of a Centerless World - OuiShare Fest May 2016
Blockchain and Bitcoin: Why You Should Care
Blockchain and Bitcoin: Why You Should Care
Shahed amanullah, tipping point for halal ihmc 2010, day 1 session 2
Shahed amanullah, tipping point for halal ihmc 2010, day 1 session 2
Noel shield, developing a national halal brand, ihmc 2010 day1 session1
Noel shield, developing a national halal brand, ihmc 2010 day1 session1
Global Islamic Microfinance Profile New
Global Islamic Microfinance Profile New
Rushdi siddiqui, halal foods&islamic finance ihmc 2010, day 1 session 2
Rushdi siddiqui, halal foods&islamic finance ihmc 2010, day 1 session 2
Halal Assurance System
Halal Assurance System
Similaire à Angel Investments Made Easy
Angel Funding Made Easy - Shanti Mohan, Founder @LetsVenture
Angel Funding Made Easy - Shanti Mohan, Founder @LetsVenture
Sanjay Jha
AIME Workshop, Shanti Mohan, Delhi
AIME Workshop, Shanti Mohan, Delhi
Sanjay Jha
Angel Investing Made Easy, Shanti Mohan
Angel Investing Made Easy, Shanti Mohan
Sanjay Jha
Primer on angel investing 1000 angels
Primer on angel investing 1000 angels
Diego Jose Ramos
Headstart startup event 20190608 at iiit hyderabad
Headstart startup event 20190608 at iiit hyderabad
Kazuaki ODA
Strategy and Finance for Starups@IISc
Strategy and Finance for Starups@IISc
Kazuaki ODA
Lean US Market Entry
Lean US Market Entry
Winston Choe
Basic Theory and Practice of Startup Strategy at APU 20191106
Basic Theory and Practice of Startup Strategy at APU 20191106
Kazuaki ODA
How to Launch Your Own Business(2019-01-11)@Hokkaido Univ
How to Launch Your Own Business(2019-01-11)@Hokkaido Univ
Kazuaki ODA
Investment & by Challenge Advisory
Investment & by Challenge Advisory
Chris Burns
Angel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspective
Ravi Trivedi
VC Fundraising Deck Template: Carta x Kauffman Fellows
VC Fundraising Deck Template: Carta x Kauffman Fellows
Nihar Neelakanti
Carta_VCPitchDeckTemplate.pptx
Carta_VCPitchDeckTemplate.pptx
adsfcvd
US Startup Investment Market (Startonomics Tokyo, June 2009)
US Startup Investment Market (Startonomics Tokyo, June 2009)
Geeks On A Plane
US Startup Investment Market (Startonomics Tokyo, June 2009)
US Startup Investment Market (Startonomics Tokyo, June 2009)
Dave McClure
Entrepreneurial finance walnut venture
Entrepreneurial finance walnut venture
Kevin Yu
Starting Up:Introduction to venture Capital: by Anand Lunia
Starting Up:Introduction to venture Capital: by Anand Lunia
GetEvangelized
Vc Intro Seedfund Iimc
Vc Intro Seedfund Iimc
guestab57a1
Staurt Paul private equity briefing
Staurt Paul private equity briefing
David Cogan
Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015
Launcher / Startup studio
Similaire à Angel Investments Made Easy
(20)
Angel Funding Made Easy - Shanti Mohan, Founder @LetsVenture
Angel Funding Made Easy - Shanti Mohan, Founder @LetsVenture
AIME Workshop, Shanti Mohan, Delhi
AIME Workshop, Shanti Mohan, Delhi
Angel Investing Made Easy, Shanti Mohan
Angel Investing Made Easy, Shanti Mohan
Primer on angel investing 1000 angels
Primer on angel investing 1000 angels
Headstart startup event 20190608 at iiit hyderabad
Headstart startup event 20190608 at iiit hyderabad
Strategy and Finance for Starups@IISc
Strategy and Finance for Starups@IISc
Lean US Market Entry
Lean US Market Entry
Basic Theory and Practice of Startup Strategy at APU 20191106
Basic Theory and Practice of Startup Strategy at APU 20191106
How to Launch Your Own Business(2019-01-11)@Hokkaido Univ
How to Launch Your Own Business(2019-01-11)@Hokkaido Univ
Investment & by Challenge Advisory
Investment & by Challenge Advisory
Angel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspective
VC Fundraising Deck Template: Carta x Kauffman Fellows
VC Fundraising Deck Template: Carta x Kauffman Fellows
Carta_VCPitchDeckTemplate.pptx
Carta_VCPitchDeckTemplate.pptx
US Startup Investment Market (Startonomics Tokyo, June 2009)
US Startup Investment Market (Startonomics Tokyo, June 2009)
US Startup Investment Market (Startonomics Tokyo, June 2009)
US Startup Investment Market (Startonomics Tokyo, June 2009)
Entrepreneurial finance walnut venture
Entrepreneurial finance walnut venture
Starting Up:Introduction to venture Capital: by Anand Lunia
Starting Up:Introduction to venture Capital: by Anand Lunia
Vc Intro Seedfund Iimc
Vc Intro Seedfund Iimc
Staurt Paul private equity briefing
Staurt Paul private equity briefing
Launcher at Conference Startup Pirates 2015
Launcher at Conference Startup Pirates 2015
Plus de Manish Singhal
What is Deeptech
What is Deeptech
Manish Singhal
Building a deeptech thesis
Building a deeptech thesis
Manish Singhal
Psychology 101
Psychology 101
Manish Singhal
Making Follow On Decisions
Making Follow On Decisions
Manish Singhal
Session 11: Term Sheet Fundamentals
Session 11: Term Sheet Fundamentals
Manish Singhal
Session 8: Evaluating Products
Session 8: Evaluating Products
Manish Singhal
Session 9: Evaluating Tech in Deep Tech
Session 9: Evaluating Tech in Deep Tech
Manish Singhal
Deal Evaluation
Deal Evaluation
Manish Singhal
Founder Evaluation
Founder Evaluation
Manish Singhal
Career as a VC
Career as a VC
Manish Singhal
Fundamentals of Venture Capital
Fundamentals of Venture Capital
Manish Singhal
ESOPs Demystified
ESOPs Demystified
Manish Singhal
Pi ventures ai_impact
Pi ventures ai_impact
Manish Singhal
Future Jobs in the world of Automation
Future Jobs in the world of Automation
Manish Singhal
Artificial Intelligence - Trends & Advancements
Artificial Intelligence - Trends & Advancements
Manish Singhal
Pi ai landscape
Pi ai landscape
Manish Singhal
Rise of Applied Artificial Intelligence in India
Rise of Applied Artificial Intelligence in India
Manish Singhal
Changing Landscape of Angel Investing in India
Changing Landscape of Angel Investing in India
Manish Singhal
Are you ready for Scaling Your Business
Are you ready for Scaling Your Business
Manish Singhal
Perspective on Go To Market
Perspective on Go To Market
Manish Singhal
Plus de Manish Singhal
(20)
What is Deeptech
What is Deeptech
Building a deeptech thesis
Building a deeptech thesis
Psychology 101
Psychology 101
Making Follow On Decisions
Making Follow On Decisions
Session 11: Term Sheet Fundamentals
Session 11: Term Sheet Fundamentals
Session 8: Evaluating Products
Session 8: Evaluating Products
Session 9: Evaluating Tech in Deep Tech
Session 9: Evaluating Tech in Deep Tech
Deal Evaluation
Deal Evaluation
Founder Evaluation
Founder Evaluation
Career as a VC
Career as a VC
Fundamentals of Venture Capital
Fundamentals of Venture Capital
ESOPs Demystified
ESOPs Demystified
Pi ventures ai_impact
Pi ventures ai_impact
Future Jobs in the world of Automation
Future Jobs in the world of Automation
Artificial Intelligence - Trends & Advancements
Artificial Intelligence - Trends & Advancements
Pi ai landscape
Pi ai landscape
Rise of Applied Artificial Intelligence in India
Rise of Applied Artificial Intelligence in India
Changing Landscape of Angel Investing in India
Changing Landscape of Angel Investing in India
Are you ready for Scaling Your Business
Are you ready for Scaling Your Business
Perspective on Go To Market
Perspective on Go To Market
Dernier
Establishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptx
shrinivas kulkarni
How to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guide
Managry
Institutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptx
shrinivas kulkarni
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Content Strategy Inc.
HDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and Supplier
Bhavin Kanani
What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?
Managry
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
zaidashadali00
Analysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business Plan
mohsinrai101
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Managry
Expense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business Success
Managry
Dernier
(10)
Establishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptx
How to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guide
Institutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptx
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
HDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and Supplier
What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
Analysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business Plan
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Expense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business Success
Angel Investments Made Easy
1.
© Copyright LetsVenture.In
All rights reserved Manish Singhal Founder & CEO manish@letsventure.com @letsventurein
2.
© Copyright LetsVenture.In
All rights reserved Manish Singhal Entrepreneur, Coach, Angel Investor v Several years of experience in start-ups as well as established companies like Sling Media, Ittiam Systems & Motorola v Active Angel Investor v Contributed to MPEG-4 standard as a member of MPEG committee. Hold two patents on video technology v On Advisory board of Freshersworld.com, ApartmentADDA v B Tech Electrical Engineering IIT Kanpur (1992) v Sports Enthusiast, Wildlife Photographer @manish_saarthi http://in.linkedin.com/in/smanishsinghal
3.
© Copyright LetsVenture.In
All rights reserved Agenda v State of the Angel Investment in India v Angel Investments 101 v What is Angel Investment? Why should you do it? v How do you make a return? v How do you evaluate a startup? v Deal Dynamics v Valuation v Process v Primer on Term Sheets / SHA v How do you get started? v Syndicates on LV v Pitches with analysis (Post Lunch)
4.
© Copyright LetsVenture.In
All rights reserved Angel Scenario in the USA Source: http://online.wsj.com/news/articles/ SB10001424052702304402104579149390398554348
5.
© Copyright LetsVenture.In
All rights reserved State of seed/Angel Investments v 2012 Deals and Roughly between 120-150 deals Ø Networks (IAN, Mumbai Angels, Hyderabad Angels, Bangalore Angels) etc contributing to guess estimate of 30-35% of the deals Ø Median investment value for Seed/Angel investment: 1.5 CR Ø Roughly 50 deals between Dec-Mar 13 Ø Rise of the institutional first cheque (Blume, Kae, firstcheque, Harvard, 500startups etc) Ø Start of incubators
6.
© Copyright LetsVenture.In
All rights reserved State of seed/Angel Investments v 2013 • Slight slow down (Impact of Section 56 ?) • New players (including incubators) starting to deploy funds • RISE of the incubation model (today approx 50+ incubators) • Accelerators working on batches 2 & 3 • HOT sectors (not including consolidation): Healthcare, Education
7.
© Copyright LetsVenture.In
All rights reserved Funding ~200 startups / year Source: ventureintelligence Unconfirmed reports say ~500-700 angel investors in India
8.
© Copyright LetsVenture.In
All rights reserved Do you want to change it?
9.
© Copyright LetsVenture.In
All rights reserved Why Angel Invest? v Support Entrepreneurship v Leverage your knowledge and connections v Develop an alternate asset class v Make Money
10.
© Copyright LetsVenture.In
All rights reserved Who is an Angel Investor v Strong Passion for entrepreneurship Ø It is nearly a pseudo entrepreneurship v Bring value to the startups v Anyone with Surplus capital which can be invested
11.
© Copyright LetsVenture.In
All rights reserved What returns can you expect? v 2/3 of startups fail world wide v 75% of the angel investments do not make returns v Very high risk / High Return Game v India, still a young eco-system. Not many data points… Ø Some reports show a return of 3x – 22x
12.
© Copyright LetsVenture.In
All rights reserved How do you exit? v Since you own equity in the venture, only when you sell equity to someone else, you make money Ø You do not make money on dividends / profit share
13.
© Copyright LetsVenture.In
All rights reserved How do you exit? v Subsequent Rounds of Funding v M&A v Promoter Buyback v IPO
14.
© Copyright LetsVenture.In
All rights reserved Typical Curve 0 1 2 3 4 5 6 7 8 9 Valuation Year Seed Round Angel Round Series A Series B Series C Bridge Round*
15.
© Copyright LetsVenture.In
All rights reserved Typical Curve 0 1 2 3 4 5 6 7 8 9 Valuation Year Seed Round Angel Round Series A Series B Series C Return* Bridge Round* *20-25% Discount from the round valuation
16.
© Copyright LetsVenture.In
All rights reserved Valuations Jump 0 1 2 3 4 5 6 7 8 9 10 0 5 10 15 20 25 30 35 Money Raised (CR) ValuationMultiple Bridge Round Series A
17.
© Copyright LetsVenture.In
All rights reserved Valuations Jump 0 1 2 3 4 5 6 7 8 9 10 0 5 10 15 20 25 30 35 Money Raised (CR) ValuationMultiple Bridge Round Series A ValuaFons can jump by 2-‐3x in a Bridge Round 5x-‐8x in a Series A
18.
© Copyright LetsVenture.In
All rights reserved Understanding Investments
19.
© Copyright LetsVenture.In
All rights reserved Understanding Investments Source: Wikipedia
20.
© Copyright LetsVenture.In
All rights reserved When ? v Idea in a slide v Prototype Ready v Customer Traction v Paying Customers v Product-Market Fit v Multiple customer segment v Business Model Fit
21.
© Copyright LetsVenture.In
All rights reserved Milestones & Raise Milestones/Stage Age Revenue Raise Amount From Whom 1 Venture Launched 0 – 0.5 0 5 – 25 L Self, Friends, Family 2 Beta Product Launched B2C : Product used by real customers, Few paying customers B2B : Good Customer Pipeline, 1-2 customers in trial 0.5 – 1 yr Small amount 25L-75L Self, Friends, Family, Individual Angels, Accelerators 3 Stable version Regular Customer growth 1 – 1.5 yrs 10 – 15 L per year 50 L – 1.5 Cr Self, Accelerators, Seed Funds, Individual Angels 4 Product- Market fit found Strong & Consistent Customer Growth Clear Product & Revenue for next 2-3 yrs 1 – 2 yrs 20 – 50 L per year 1CR – 4 Cr Individual Angels, Seed Funds, Few Venture firms 5 Business Model Fit found Clear growth Path for next 3-5 yrs Consistent growth in paying customers Potentially breakeven 1.5 – 3 yrs 2Cr – 5Cr per year 3 Cr – 20 Cr Venture Funds Note: The values in the above table are indicative only
22.
© Copyright LetsVenture.In
All rights reserved Typical Raise 0 1 2 3 4 5 6 7 8 9 Valuation Seed Round Angel Round Series A Series B Series C Product Market Fit Business Model Fit Bridge Round*
23.
© Copyright LetsVenture.In
All rights reserved Typical Raise 0 1 2 3 4 5 6 7 8 9 Seed Round Angel Round Series A Series B Series C Product Market Fit Business Model Fit Bridge Round* 3CR – 20CR 5-25L 25-75L 50L-1.5CR 1CR – 4CR 50L-1.5CR
24.
© Copyright LetsVenture.In
All rights reserved Evaluating Startups
25.
© Copyright LetsVenture.In
All rights reserved
26.
© Copyright LetsVenture.In
All rights reserved As an Angel Investor – what do you really care for?
27.
© Copyright LetsVenture.In
All rights reserved Exit!
28.
© Copyright LetsVenture.In
All rights reserved What is needed for an exit?
29.
© Copyright LetsVenture.In
All rights reserved Scale!
30.
© Copyright LetsVenture.In
All rights reserved 0 1 2 3 4 5 6 7 8 9 Seed Round Angel Round Series A Series B Series C Product Market Fit Business Model Fit Bridge Round*
31.
© Copyright LetsVenture.In
All rights reserved 0 1 2 3 4 5 6 7 8 9 Seed Round Angel Round Series A Series B Series C Product Market Fit Business Model Fit Bridge Round* Do not spend too much time on revenue models instead spend more time on how the team is figuring their way to PM fit. Evaluate whether the core team is coming together Evaluate whether the team knows how to scale and remain in PM fit even after a business model launch Ability to build & run a larger team. Role definition among the founding team is clear Is the team capable or open to bring in senior talent to really grow the business.
32.
© Copyright LetsVenture.In
All rights reserved
33.
© Copyright LetsVenture.In
All rights reserved Team v Chemistry & Coachability v Skills / Domain Expertise v Structure & Role Definition v Founder’s skin in the game v Ownership distribution v Previous track record v Access to Advisory Board / Mentors
34.
© Copyright LetsVenture.In
All rights reserved Other Factors v Is it a “Me too” business? v Do they have an edge in the market place which is defendable (Entry Barrier) v Is the market size big enough for them to keep scaling? v Are they focused on profitability or growth?
35.
© Copyright LetsVenture.In
All rights reserved Key is to develop one or two specific points why will this startup succeed (Investment Thesis)
36.
© Copyright LetsVenture.In
All rights reserved When not to Invest v Exit Discomfort v Founder Discomfort v Business Discomfort v Structure Discomfort
37.
© Copyright LetsVenture.In
All rights reserved Deal Dynamics
38.
© Copyright LetsVenture.In
All rights reserved Understanding Valuation v “Worth” of the company typically ascertained while raising capital v More of an art rather than science v Determines the % dilution the entrepreneur will go through while raising money
39.
© Copyright LetsVenture.In
All rights reserved Terminology v Investor wants to invest 1CR for 20% of the company Ø Post Money Valuation = 1CR / 20% = 5 CR Ø Pre Money Valuation = 5CR – 1CR = 4CR v Investor wants to invest 1CR for a 3CR pre- money valuation Ø Post Money Valuation = 1CR + 3CR = 4CR Ø % of the company = 1CR / 4CR = 25%
40.
© Copyright LetsVenture.In
All rights reserved Understanding Valuation v Models for Valuation Ø Discounted Cash Flow (DCF) • Forecast several years of revenue & expenses • Discount the resulting cash flow back to the present using a expected rate of return Ø Cost-To-Recreate Model • An estimate of what it would cost to duplicate the venture • Make vs Buy decision thinking
41.
© Copyright LetsVenture.In
All rights reserved Understanding Valuation v Models for Valuation Ø Market Multiple Model • Most commonly used • Value the company by looking at recent sales or offerings of comparable companies and then using a multiple to adjust • Typically 3x to 5x of projected revenues
42.
© Copyright LetsVenture.In
All rights reserved Understanding Valuation v Models for Valuation Ø Exit Based Equity Planning • Estimate target exit return • Calculate how much further dilution the company will go through to get to that target • Plan for that dilution upfront and ask for higher stake • Popular with institutional investors
43.
© Copyright LetsVenture.In
All rights reserved Valuations – Recent Examples MoneyRaised(CR) Annual Revenue (CR) 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 0 1 2 3 4 5 6 Series1
44.
© Copyright LetsVenture.In
All rights reserved Valuations – Recent Examples Pre-Money(CR) Annual Revenue (CR) 0 2 4 6 8 10 12 14 0 1 2 3 4 5 6 Series1
45.
© Copyright LetsVenture.In
All rights reserved %Dilution Annual Revenue (CR) Valuations – Recent Examples 0 5 10 15 20 25 30 35 40 0 1 2 3 4 5 6 Series1
46.
© Copyright LetsVenture.In
All rights reserved Typical Dilutions 0 1 2 3 4 5 6 7 8 9 Seed Round Angel Round Series A Series B Series C Product Market Fit Business Model Fit Bridge Round* 3CR – 20CR 5-25L 25-75L 50L-1.5CR 1CR – 4CR 50L-1.5CR 5-15% 10-30% 25-40%
47.
© Copyright LetsVenture.In
All rights reserved Dilution over Lifecycle Year 0 1 3 5 Start Initial Hires Seed Round Create Pool VC Round Pool Refresh 2nd VC Round Founders 100.0% 90.0% 68.4% 59.9% 44.9% 43.2% 32.4% Seed Investors 0.0% 0.0% 24.0% 21.0% 15.8% 15.2% 11.4% Initial VC Investors 0.0% 0.0% 0.0% 0.0% 25.0% 24.1% 18.1% Later VC Investors 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 25.0% Early Employees + Advisors 0.0% 10.0% 7.6% 6.7% 5.0% 4.8% 3.6% Employee Pool 0.0% 0.0% 0.0% 12.5% 9.4% 13.0% 9.8% Total 100% 100% 100% 100% 100% 100% 100% Note: The values in the above table are indicative only
48.
© Copyright LetsVenture.In
All rights reserved Convertible Debt v Early stage companies are difficult to value v Deferred valuation tied to next event of funding v Typically a discount on valuation is given v Not very popular in India
49.
© Copyright LetsVenture.In
All rights reserved Convertible Debt v Base Valuation – Minimum Discount v Monthly Discount v Cap on the maximum discount
50.
© Copyright LetsVenture.In
All rights reserved The Funding Process Pitch to Investors Verbal Commitment to Invest Term Sheet SHA Closure Legal DD Fix Issues Financial DD Drop Issues too serious? YN All Ok? Y N
51.
© Copyright LetsVenture.In
All rights reserved Understanding Term Sheets v Management typically holds common stocks v Professional investors, both angels and venture capitalists, take preferred stock Ø More control over decisions Ø Better economic terms v Interests of common stocks and preferred stocks needs to be negotiated in the term sheet agreement v Economic & Control Interests
52.
© Copyright LetsVenture.In
All rights reserved Economic Interests v Liquidation Preference Ø In the event of sale / liquidation, preferred stock holders are entitled for a pre-determined return before common stock holders Ø Participating clause further allows the preferred stock holders to get further returns on pro-rata basis Ø If there is not enough cash, the preferred clause can take the founders with no returns
53.
© Copyright LetsVenture.In
All rights reserved Liquidation preference v Typical clauses Ø 1.x or Investment Amount (higher of the two) Ø 1.5x with a cap on time or money
54.
© Copyright LetsVenture.In
All rights reserved Example v Amount Invested = 5CR @ 20CR pre-money v Number of shares before series A = 1M Stake 20% [5CR / 25 CR] Number of Shares Issued 250K Price / Share 200 INR [5CR / 250K]
55.
© Copyright LetsVenture.In
All rights reserved Example Liquidation Preference Basic Share (CR) Participating Share (CR) Total (CR) Simple Prorating 10CR [20% of 50CR] NA 10CR 1x 5CR 9CR [20% of 45CR] 14CR 1.5x 7.5CR 8.5CR [20% of 42.5CR] 16CR v Amount Invested = 5CR @ 20CR pre-money v Investors hold 20% stake v Company exited at 50CR
56.
© Copyright LetsVenture.In
All rights reserved Economic Interests v Future Participation in Financing / Sale Ø Right of First Offer – Preferred Stock holders get the first right to participate. Ø Exit Provisions v Waterfall model v Strategic Sale -> IPO -> Drag Along v Drag Along before the time out above a certain value
57.
© Copyright LetsVenture.In
All rights reserved Control Interests v Restriction on Founders Shares Ø Vesting Curve Ø Lock-in Ø Right of First Refusal Ø Tag Along v Board Seat Ø Reserved Matters
58.
© Copyright LetsVenture.In
All rights reserved Others v Legal & Accounting Fees Ø Mostly all investors put the burden of the legal fees on the entrepreneur v No Shop Ø This prevents entrepreneurs from shopping around with other investors while the dialogue is on. Time period can range from a few weeks to a few months. v Due Diligence
59.
© Copyright LetsVenture.In
All rights reserved How do you start?
60.
© Copyright LetsVenture.In
All rights reserved Getting Started v Set aside a “forgettable” corpus v Make a portfolio of ~10 investments over 2-3 years and possibly ~20+ over 4-5 years v Lean on experienced angels to get started with v Invest in your area of expertise v Help the startup without being over bearing v Meet the founders, spend time with them
61.
© Copyright LetsVenture.In
All rights reserved Gradually work towards having your own Investment Thesis
62.
© Copyright LetsVenture.In
All rights reserved Investment Thesis v Your theory of investment v Examples Ø Product Companies with differentiation and potential to go global Ø Both niche & mass products / services startups with potential for emerging and developed markets Ø Invest in ventures which work towards bringing a change in the social sector
63.
© Copyright LetsVenture.In
All rights reserved Lead Investor v Typically an investor leads the team in a syndicate. A lead investor has the following major tasks Ø Setting up the terms of the deal Ø Help Build a syndicate Ø Possibly take a board seat and help run the company Ø Facilitate next round of funding
64.
© Copyright LetsVenture.In
All rights reserved Post Deal Management v Good to build a rhythm of a monthly review / quarterly report v Provide them help without being over bearing Ø Exercise patience when startup founders are not taking your suggestions v Open Doors
67.
DISCOVER Efficient
Startup Listing Comprehensive Investment Ready Profiles Investor Listing with Interests & Portfolio SYNDICATE 1 Syndicate closed in 7 days 5 Syndicates opening COMMITMENT-TO-CLOSURE 5 Complete
68.
DISCOVER Efficient
Startup Listing Comprehensive Investment Ready Profiles Investor Listing with Interests & Portfolio SYNDICATE 1 Syndicate closed in 7 days 5 Syndicates closed in total COMMITMENT-TO-CLOSURE 5 Complete
69.
DISCOVER Efficient
Startup Listing Comprehensive Investment Ready Profiles Investor Listing with Interests & Portfolio SYNDICATE First Syndicate closed in 7 days 5 Syndicates opening COMMITMENT-TO-CLOSURE 5 Complete
70.
Thank You! © Copyright
Saarthi Integrated ConsulFng LLP. All rights www.LetsVenture.com letsventurein @letsventurein manish@letsventure.com
71.
© Copyright LetsVenture.In
All rights reserved Quick Tips v Get started by participating in syndicates v Network with experienced investors v Invest in the area of your expertise v Develop relationships with the entrepreneurs v Allocate corpus v When in doubt, do not invest! v In the end, go with your gut!
Télécharger maintenant