BEFI July 1 VC Siren

8/6/2019 BEFI July 1 VC Siren

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TheFounderIns-tute

Spring2011Fundraising

01.07.2011Berlin

SamuliSirén



Investorinsights

• OneSAPVenturesManagerreviewed220BPsin

2009,theyinvestedin2cases(0,9%)

• Europeangovernmentfundhasmade1501ststage

technologystartupinvestmentsinlast5years,13of

thosehasgotthe2ndroundfinancing(8,6%)

• IreceivedinJune201140investmentproposals,Iwillmake14investmentsin2011



Mypersonalfundraisingsta-s-cs

• Privateac-vi-esinlast15years

– Projectpar-cipated(e.gconceptswriWen) 50+

– Foundedcompanies 12

– Successfullyfinanced(atleast1ststage) 8

– Subsidyprogramsappliedandapproved 18

– Exitssofar 4

– Insolvencies 2



MyM&Aadvisorsta-s-cs

• Involvementsinfundraisingcasesbetween

09/2005–05/2011

– Opportuni-es(noM&A,norestructuring) 200+ – FundraisingMandates 37

– Successfullyclosedfinancing 15

– Exits(Investorhasmadeanexit) 3



CaseExamplein2011

• PIXRAYGmbH(formerlyknownasHITLabs)

– Founded05/2009,Iamoneofthecofounders

– Financedwith1Mio€in03/2011,beforethattwo

investorsroundswithoutsuccess(autumn2009and

autumn2010)

– Contactedtotal56investors,visitedaround20in18

months-me



FinancingProcess

1-2 Months

• Analysis of the company

• If necessary, strategic

adaptation of the company• Determination of the financing

requirement• Development of the financing

strategy• Compilation of the

documentation

2-3 Months

• Identifying the potential

financial partners

• Long and Shortlisting theinvestors

• Management of thecontacting and negotiation

process• Preparation and

accompanying the duediligence process

1-2 Months

• Preparation and negotiation

of the term sheet(s)

• Final negotiations• Contract signing• If applicable, controlling

Activities and Timeline

Process management

Financing

preparation Contacting

process

Final negotiations

and financing



hatdotheinvestorswanttosee?

1. Theywantseeacoolandcompleteteam(keyposi-ons

covered)Theseguyswewillgivecoupleofmillionsto

spend

2. Theywanttounderstandwhatyoudo.Usuallytheyare

notspecialistsforyourtopic(c’montheyarebankers!)

3. Theywanttoinvestinsolidcases,meaning:minimize

therisk,maximizethewin

4. Solidmaterials,factsandclearcommunica-on(slogans

like:“winwinweb2.0synergies”arenotthesethings)



Aboutthefinanceplan

• Makeadetailedfinanceplan,1sttwoyearsonmonthlybasis,

followingthreequarterly/annually

• Defineyourmajoropera-onalgoals(e.g.TechnicalPoC,

marketPoC,BreakEven)

• Splitthatintostepstodefineyourmilestones

• Theplanwilltellyouhowmuchcash,inwhichstepsyouneed

it,whatitisforandwhatyouwillreachwithit



hototalktoaboutseedfunding?

• 3F(friends,family&fools)

– Friends,ifyouwanttostayfriends,don´t

– Family,usuallyithurts,buttheyarethemostloyalandsuppor-ng

– FoolsakaBusinessAngels,hellyeahtakethemoneyandrun

• GovernmentalInvestmentFunds

– HTGF,IBB,ILB(similarineachState)

• SeedVCInvestors

– Max57ac-veinGERatthemoment(TeamEurope,Rockets,FoundFair,HanseVC,Catagonia…)

• StrategicInvestors



The-mingthing

• Atlatestyouneedtheseedfunding,whenyoucan‘t

payyourrentanymore>getasfaraspossible

withoutinvestors

• Talktothemearly,keepthemintheloop(Stealth

modeisnotagoodstrategy)

• TalkingtotheinvestorsaboutfundingISSALES,youneedalotofopportuni-es!Donotgambleon

talkingonlytoone.



Dealstructures,terms,etc.

• Getprofessionalsupportbeforesigningatermsheet

(legal,tax,m&a)

• Earlystageisaboutgengequityinvestment(or

equitytypecapital)

• Avoidanykindloans,personalguaranteesetc.–they

makeyousleepbad• Avoidanypenaltytermsinearlystagerounds



InvestorsaidNO,Iquit!

• elldon‘t.Legendsays:SergeyandLarry(Google)

visitedover60investorsbeforetheygottheseed

funding.(Idon’tknowhoymanytheytalkedto!)

• ritedownwhatinvestorismissing,doyourhome

worksandcallhimback.

• Fundingtakes-me,bepreparedforitandshowENDURANCE.



Asthefundraisingdidnotfly,whatwentwrong?

intheCompany/Planning

• Nobusinesscase

• Badplanning

• NoCustomers/Users

•

Badteam• NoProofofConcept

• Internalfights

• Productneverfinished

• Compe--oncrapsyour

customers

• Noexis-ngmarket

• Toolongsalescycles

• BreakEventoofaraway

withtheInvestor

• Theydidn’tunderstandyou

• Nofittotheinvestment

criteria

• VChasnomoney

• Otheralterna-vesarebeWer

• Missingexitscenarios

• Tooheavycompe--on

• Tooearlyortoolatemover

• Conceptfundingwasinthe

90s• Teamistooold

• Founderisawoman(that

babything,youknow!)

Stuff you can avoid! Stuff you cant help!



Thankyou

SamuliSirén

ManagerBusinessDevelopmentandInvestmentsatK–NewMediaGmbHPrivateInvestor

+491723161600

[email protected]



ho‘sTalking?

• SamuliSirén,bornfin,since1994inBerlin,hasabeau-fulwife&2

childrenandisapassionategolfer

• ManagerforbusinessdevelopmentandinvestmentsatK–New

MediaGmbH,inBerlin.• as5,5yearsinvestmentbankerandcofounderofFinfortec

GmbH,focusingonICT,mediaandrenewableenergysectors

• actsasaprivateinvestorandmentor

• ac-veintheICTbusinessfieldforalmost15yearsandisafounder,

ini-atorand/ormemberofthemanagementofdiversetechnologyorientedcompaniessuchasJovalaGmbH,BLStreamLtd.,ebionAG

(laterEquityscope)andHITLabsGmbH



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