20 Feb 2012 - Hanken School of Economics

1. Yakir Falik
February 2012
Info@yakirfalik.com
(C) Yakir Falik 2012

2. • Yakir Falik
• MBA Brunel Business School London
• Managing Director
• Co founded 2 start-ups
• Consultant for seed start-ups
(C) Yakir Falik 2012

3. • Where is the money?
• Angels Vs. VC?
• Shall I raise funds?
• What are investor looking for …
• Preparation
• Meeting
• Follow up
• Deal making
(C) Yakir Falik 2012

4. Personal
Savings
Family and
Crowd sourcing
Friends
Institutional Government
institutions -
lenders Incubators
Corporate Angels/
funding
VCs
(C) Yakir Falik 2012

5. Angels VCs So what?
Consider total investment
Investment 25K < to < 1M 1M and above needed (cash flow +)
Stage Seed / Start-up All stages
Length exit 2 years < to < 5 years 5 years and above
Likely exit Value 10 folds 10 Above Exit strategy
Are you willing to take the
Relinquish control Not always Very likely back seat
Are you likely to secure
Selection Criteria Relaxed Rigid funding
Share holding Up to 20% More than 20% Big share small pie
(C) Yakir Falik 2012

6. Investors are demanding stakeholders
Remember this is a marriage not a one night stand !!!
• Relinquish control
• Do I really need the money now?
* Users * Revenue * Breakeven
• Certification / Network
• Contingency fund
• Market entry
(C) Yakir Falik 2012

7. • Human capital – Start up team. Skills & Market Knowledge
• Emerging trends - social media, Personalisation, Ecommerce
• Imitability - Legal / Network effect
• Market size
• Business Model
• Profits
Tip : Acknowledge uncertainty
* Start-ups that pivot once or twice raise 2.5x more money, have 3.6x better
user growth, and are 52% less likely to scale prematurely than start-ups that
don't
(C) Yakir Falik 2012

8. • Prepare for a long process you will hear no’s often
• Ideas > Money
• Identify potential investors– Market / former investment / competitors
• Network/ Recommendation – a good word goes a long way
• Prepare cool demos / beta / Physical evidence mention users, page views, revenue
• Prepare 1 Page exec summery/ PPT / Business plan
* This were you are selling * What are you asking for ? No valuation.
• Take advice - Advisors/ Solicitors / Accountants / entrepreneurs / investors
(C) Yakir Falik 2012

9. • Confirm time and length , don’t do “lunch”
• Be clear and concise – know your presentation/business
• Be confident passionate and polite.
• Be clear on what you ask, No valuation.
• If you don’t have the information suggest to follow up with the answer
• If they seem interested agree on the next step
• Don’t be insulted by No, ask why?
(C) Yakir Falik 2012

10. • Use solicitors and advisors, watch the small print!
• Get interested parties aware of each other
• Due diligence is a long process
• Company control reside in the board
(C) Yakir Falik 2012

11. Good Luck…
(C) Yakir Falik 2012