How it works
Investment in Europe
Equity capital (seed investment, business angel, venture capitalist, crowd funding)
Loan capital
Other capital (announcements, acces to credit)
Hints
1. How to raise money
for your startup
IED
Lesson 9/2014
Frieda Brioschi / Emma Tracanella
frieda.brioschi@gmail.com / emma.tracanella@gmail.com
2. 9. Funding
Course program
1. Italian Startups
2. Set up a startup in Italy
3. I've got an idea. And now?
4. Market and costs
5. Value analysis and business model
6. Business Model Examples and Pitch
7. Communicate
8. Being net
9. Funding
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3. 9. Funding
Today's table of content
• Equity capital (seed investment, business angel,
venture capitalist, crowd funding)
• Loan capital
• Other capital (announcements, access to credit)
• Hints
3
4. 9. Fundig
Being net: quick recap
Past slides available on Slideshare @ubifrieda:
!
https://www.slideshare.net/ubifrieda/
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5. 9. Funding
Being net: quick recap
During last lesson we discussed the launch of your
product/company in term of communication analyzing
Robert Scoble’s recipe:
“What you want to do is a story that travels to the
people who are most likely to need your product.
It all starts with a story”
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6. 9. Funding
Being net: quick recap
Then we went through a startupper advise, Giuliano
Iacobelli’s list of interesting and useful website:
• startup directories
• tech magazines
• magazines in your field/market
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7. 9. Funding
Being net: quick recap
We started discovering on/off line resources, discussing
what is an incubator and what are certified incubators
and which characteristics have public, private and
university incubators.
Then we approach a new way to work: coworking / with
its italian examples and then we listed same networking
recurring events.
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8. 9. Funding
Being net: quick recap
We intruduce the concept of funding: how to rise money
for your startup.
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13. 9. Funding
Seed Fund
• From Idea to Prototype - to support the business until it can
generate cash of its own, or until it is ready for further
investments
• Higher risk
• Not only $$ (mentorship, location, contacts,…)
!
• 500startups, Ycombinator, Techstars, SeedCamp
• Dpixel, Start Up Design Lab e SeedLab
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14. 9. Funding
SeedLab
SeedLab is an entrepreneurship program that provides
micro-seed funding and in-class training and
mentorship.
The program consists of an intensive track, to help
innovators with a good technology or business idea
build strongest business models, form effective teams
and meet international investors.
Enterprenur are selected for: personal skills, idea
proposed and qualification.
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15. 9. Funding
Business Angels
• Angels typically invest their own funds for convertible
debt or ownership equity
• Angel investment is a common second round of
financing for high-growth start-ups
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16. 9. Funding
Venture Capitalist
• Venture capital is the provision of high-risk capital by
an investor to finance the startup and growth of a
business in high-potential sectors.
• As a shareholder, the venture capitalist's return is
dependent on the growth and profitability of the
business.
16
http://www.startupitalia.eu/blog/article/101-venture-capitalist
17. 9. Funding
Crowdfunding
!
• Crowdfunding is the collective effort of individuals who
network and pool their money, usually via the Internet,
to support efforts initiated by other people or
organizations
• Interest and repayment starts immediately
• No ownership
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19. 9. Funding
Crowdfunding models
• Donation based - donate money to support a cause
• Reward based - non-monetary rewards, often a
product or a pre-series item.
• Social landing or peer-to-peer landing - receives an
interest rate in exchage
• Equity based - receives shares of a company
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21. 9. Funding
Kapipal
• Manifesto: your friends are your capital! Hence the
name "Kapipal" ("Capital" + "Pal").
• International platform for personal crowdfunding
(birthday or weeding presents, charity, etc.)
• 0% commission
• donation/reward based
• Founded in 2009
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22. 9. Funding
Eppela
• Reward based
• All or nothing
• Approved project only
• Open to everyone (legal people and entities public and
private, associations and foundations). With a bank
account!
• Founded in 2011
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24. 9. Funding
Fattelo (su Eppela)
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http://www.eppela.com/ita/projects/272/fattelo
Website: www.fattelo.com
25. 9. Funding
Skyislands - the film
(su Indiegogo)
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https://www.indiegogo.com/projects/skyislands-the-film
Website: www.skyislands.net
26. 9. Funding
BeCrowdy
• The first italian cultural crowdfundig platform
• Reward based
• All or nothing
• On line from april 4th 2014
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27. 9. Funding
Equity crowdfunding in Italy
• In July 2013 Italy became the first country in Europe to
implement a complete regulation on equity-
crowdfunding.
• National registry for crowdfunding operators.
• Only for innovative startup
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28. 9. Funding
Startsup
• Equity based
• Is the first Italian portal authorized by Consob for the on-
line collection of risk capital by innovative startups.
• It offers support towards the management of the project to:
• start-ups requiring capital;
• investors;
• start-ups that have already raised the needed capital.
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29. 9. Funding
Unicaseed
• Equity based
• First investment company in the registry special
section (bank and sim).
• Evaluation process
• Tutoring and support for the startup management
(before and after)
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30. 9. Funding
Loan Capital
!
• Low willingness to take risk
• Interest and repayment starts immediately
• No ownership
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31. 9. Funding
Loan Capital - Sources
• Banks
• Real Estates Funding
• Guarantee Schemes (through banks)
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32. 9. Funding
Other Types
• Grant and Awards
• Funds
• Leasing
• Factoring
• Negotiate payments terms
• Sponsorships
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http://www.slideshare.net/bendtsen/financing-your-business
33. 9. Funding
Announcements
ACRI - Acri is an independent, non-profit, apolitical
Association that represents the joint-stock Savings
Banks and the Foundations of Banking Origin, the non-
profit entities that came into existence in the early 1990s.
!
(www.acri.it)
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34. 9. Funding
Access to credit
Buonaimpresa – il credito cooperativo con i giovani che
vogliono fare impresa
!
(www.buonaimpresa.it)
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37. 9. Funding
Remember
• Fundraising takes longer than you think
• There are periods of low investor activities (avoid late
summer and winter holidays)
• A large amount of your funds may come from a few
people. Find this super nodes and support them
• A large number of intros will lead nowhere and will
waste your time.
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38. 9. Funding
More…
• With investors there are leaders and followers: you will
have higher conversion after getting a committed
investor or two.
• Advisor and mentorship will become more important
than connective
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