Mini Workshop: Investeringen

Niek Huizenga niek@yeah.euwww.niekhuizenga.comwww.linkedin.com/in/nhuizenga

2006 – 2008

Company closed down

2008 - 2010

Company sold to industry leader

2010 - 2012

2012 – now (video)

Award for the best Dutch co-working space (2015)Next time: Business Visit

2014 – now (demo)

Future of music education

Entrepreneur: “All I need is an investor”

The power of bootstrapping

Basics of funding

Pecking order of finance

• Self or network– Personal savings/time– Crowd funding

• Loan– Normal– Subordinate

• Equity– Investor– Strategic Partner

Funding stages

1. Pre Seed (50k): Self, friends, family & fools– Idea stage, search for customers demand, only founding team

2. Seed (500k): Business angels– Prototype stage, first customers, first employees

3. Series A/B/C (1M+): VC’s / Strategic Investors– Scaling stage, serious revenue, growing team

4. Exit (a lot): IPO / acquisition – Serious challenger or opportunity for big players

Funding stages

Checklist for an investor

• A working product• A growing market• A launching customer

• …. A great team• …. A great team• …. A great team• …. A great team

Process of an investment

The search for an investor (1)

• Do you have the ambition?

• Define your risk profile?

• How much funding you need?

• What are you willing to share / give away?

• What do you need besides funding?

The search for an investor (2)

1. Make your materials: one pager, pitch deck, business plan

2. Mobilize your network and announce you are looking for funding

3. Make a list of potential funders (desk research)

4. Visit events to meet potential funders (field research)

5. Approach the least appealing funders first and practice

6. When you have enough feedback and confidence, approach the most appealing funders

Be critical to yourself, if you do not find investor’s interest maybe it is because of you!

Making the deal: Term Sheet

Two main negotiation topics: Economics & Control

• Economics– Valuation– Type of stock– Dividends– Anti Dilution Rights

• Control– Valuation– Governance– Vesting conditions– Management and CEO replacement– Ambition for exit

• No experience? Always get an advisor!!

Making the deal: Due Diligence

• Due diligence– Product– Market– Team– Financial

• Do your own due diligence!

Making the deal: Bring in the lawyers!

• Participation agreement• Shareholders agreement• Guarantees and disclosing• Management agreement• Company constitution• Representations• Warranties• Etc. etc. etc.

Making the deal: Champagne!!

• Closing• Day at the notary!• Lot of signatures!• Don’t forget to celebrate!!

Getting an investor is like a marriage

• Are you sure you need funding?• Put everything on paper and

assume the worst case scenarios!• Never sign anything until you

fully understand everything!• Trust and share the vision!• Remember: you can only give

away shares once

Tvilight BV“Intelligent streetlights, reducing energy consumption”

• Spin out from the TU Delft • Started in 2012 as a one person project• In 18 months company grew to 25 employees• In Summer 2013 we closed an investment of 4M• Now growing rapidly on global scale

www.tvilight.com

Venture Deals

Feedback

niek@yeah.euwww.about.me/niekhuizenga