Startup Business Models
Tytus Michalski, Managing Director
16 years cross-border investment experience
Founding member of PMA, US$200M exit
PMA scaled to US$3B in institutional AUM
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Fresco Capital Overview
Early stage venture investors
Emphasis on people first
Cross-border
Context
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People first, business second
Who loves your product?
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Who loves your product?
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Everyone is not your target
Who loves your product?
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Start small, then grow
How will you make money?
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How will you make money?
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Create value for others first
How will you make money?
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Choosing a business model: easy Building an actual business: hard
What are the capital needs?
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What are the capital needs?
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Reach the next milestone
What are the capital needs?
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Capital efficiency helps upside and downside
How big is the opportunity?
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How big is the opportunity?
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Multiple perspectives
How big is the opportunity?
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Emphasis on bottom up
Constraints to scale?
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Constraints to scale?
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Internal (resource) constraints
Constraints to scale?
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External (market) constraints
Competitive edge?
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Competitive edge?
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Large company weak spots
Competitive edge?
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Startup differentiators
Economics at scale?
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Economics at scale?
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Live in the present prepare for the future
Economics at scale?
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Growth, margins and cashflow
Key risks?
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Internal vs. external
Key risks?
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Technology vs. business
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“If we command our wealth, we shall be rich and free;
if our wealth commands us, we are poor indeed.”
- Edmund Burke
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frescocapital.com @tytusm