Startups & Venture Capital: An Alternative to Suit & Tie

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Startups & Venture Capital An Alternative to Suit & Tie Nicolas Wittenborn 19. February 2014 University of Mannheim,

description

These are the slides for a guest lecture Nicolas gave for the entrepreneurship initiative Thinc! at the University of Mannheim on February 19, 2014. Aimed at B.Sc / M.Sc students, the goal was to provide some background on the startup lifecycle and suggest entrepreneurship as an alternative to banking or consulting.

Transcript of Startups & Venture Capital: An Alternative to Suit & Tie

Page 1: Startups & Venture Capital: An Alternative to Suit & Tie

Startups &Venture Capital

An Alternative to Suit & Tie

Zwei Mannheimer Alumnis erzählen aus der Berliner Startup WeltWann: 19.02.14 19 UhrWo: 0189Anschließendes Get2Gether mit Bier & Sekt

Nicolas Wittenborn

19. February 2014University of Mannheim,

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Master

Master

Master

Flight Attendant :)

Consulting

Private Equity

Venture Capital

We sat here two years ago!

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ViciNico

Graduates now in startups

:(

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About me

Associate at Point Nine Capital !

I blog (a little) at heyni.co and tweet at @ncsh !

[email protected]

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How I joined P9

Started selling iPhones online

Intern / Freelance Analyst

Joined as Associate

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Point Nine Capital

• Berlin-based VC ‘Startup’ • Investing €100k-1M • In Europe & North America

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The Startup Lifecycle

The Founding

The Pitch

The Exit

The Financing

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The Founding

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The Founding• Idea / Product

• Original idea • Copy cat

•Team • First timer • Serial entrepreneur

•Setup • Join an incubator • Do it yourself

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The Pitch

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The Pitch: Checklist

Slide Deck

Financial Plan

MVP or first product

First traction / Proof of Concept

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The Pitch: CLTV vs CAC•Customer Acquisition Costs

• Acquisition cost per marketing channel (not blended) • Conversion rates

•Net profit per transaction • Average transaction volume • Profit margins

•Retention • Repeat purchases • Customer loyalty / Cohorts

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The Pitch: Conversion FunnelSimple Example Ecommerce

Ad Views

Visitors

Customers

x2000

x50

x12%

2.5%

CAC = €50

CPM = €25

(CPC = €1)

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The Financing

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The Financing: Sources•Bootstrapping

• Financed by cashflow • Wealthy founders

•Crowd-funding • Consumer appeal / PR • Equity or non-equity

• Incubation • Ressources • Know-how & network

•Venture Capital • Angel • (Micro) VC

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The Financing: Key topics•Capital Need

• Inventory • Competitive Situation

•Ownership • Valuation • Upside potential

•Timing • Right stage • Right fit

•Value-Add • Dumb or smart money • Industry / Business Model expertise

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The Exit

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The Exit•Trade Sale / M&A

• Acquisition by market leader • Merger with competitor

•Secondaries • SecondMarket • Taking something off the table

•Strategic investor • Distribution • Exit candidate

• IPO • Initial Public Offering • Homerun! :)

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Thank you! (and don’t forget to)