Seed capital in practicea guide for you to start-up*

with the help of the Openfund or other seed funding structures

George Tziralis & Miro SolankaFri Sep 24, WebExpo 2010, Prague, CZ

•who we are / what we do•tips for you to apply•a case study

toc / in short

June 07

The story starts in June 07, with the first tiny

Open Coffee Athens meeting

February 08

Since then, the network has grown

really strong

5

November 08

& the interest on entrepreneurship has

skyrocketed

6

January 10ok, but what’s next?

we came a long way

community-wise

still, the ecosystem is broken

how can we get there?

•brainpower

•community

•funding

•advisory

to start-up, you need

✓ brainpower✓ community

- funding

- advisory

here’s what we had

funding, worldwideav

aila

bilit

y

seed VC rounds public

funding, in cse europeav

aila

bilit

y

seed VC rounds public

0high-tech, early stage

investments in GR, 2007 (in €, EVCA)

✓ brainpower✓ community✓ funding✓ advisory

we wanted to offer

making start-ups happen

•7 executive members- bringing knowledge, experience

& passion to the table

•57 advisors & counting- on technology, management,

sales, marketing, everything you need to start-up

who we are

•stellar teams

•globally innovative ideas, still at seed level

•disruptive biz models

•in and around software and the web

looking for

•open to everyone (teams of 2-4)

•online submission,

•in person interview &

•presentation day

call for proposals

•pick up to 7 start-ups

•extensively support in all things start-up

•for a 4-month period

•iterate

“incubate”

•hands-on mentoring, day-to-day, no interfering

•networking, globally

•30-50k€ for 15% of shares

•smooth start & grow

offer

•quit everything else

•focus on your skills, team & idea

•don’t waste time on unproductive activities

•make it happen

all you need to

•collected 100s of apps, from 30 countries

•selected 5 start-ups, based on 5 countries

•just opened new CFP!

within our first year

•share some insights•break some myths•provide some advice

how to apply, let’s

*some: subjective views due to limited experience

•WYS (What You See): What entrepreneurs write

•WYG (What You Get): What investors read & understand

WYS vs WYG

descriptionshort yet remarkable

WYS vs WYG - description

•complex is good, lengthy is great

•complex is not easily sellable, lengthy may remain unread

•both by investors and clients

•fantastic idea! (yet not relevant)

•find a fit structure to apply, do your homework first

•eg in OF, only software/ web/ mobile ideas get accepted

WYS vs WYG - description

•simple & concise

•to the extent you get clear

•also provide a one-sentence pitch

description

team

chief jack of all trades

all things tech guy

domain & marketing

staryour core asset, treat is as such

WYS vs WYG - team

•“we are truly great, we can do that part time”

•are you truly fully committed?

•anything but a clear yes simply won't fly

WYS vs WYG - team

•we have 'strong technical background'

•share your past work - what makes you great

•ideally - have tech & biz & domain knowledge on board

•introduce yourselves, tell us more about you

•how members bond & complement each other

•trade-off between skills & commitment, pick wisely

team

product

start smallbe laser-focused

innovate globally

•“we’ll build the next Google” (or equivalently huge project)

•mission impossible, or

•they have no idea

WYS vs WYG - product

•“we’ll build the local X”

•shallow market, no opportunity

•hard to beat a well-positioned global product

WYS vs WYG - product

•be reasonable, beyond sharing your excitement

•showcase that you know what you are up to

•also that you have a plan & focus on a specific idea

product

competition

you are not alone, nor should you want to be so

•“we are one of a kind”

•no market research performed, or

•a questionable need

WYS vs WYG - competition

•are there competitors? “Yes” (one word)

•who are they / product weaknesses?

•is it reasonable to build a new product & compete?

WYS vs WYG - competition

•provide a list of your closest competitors

•showcase that you differ

•educate your reader, pitch your expertise

competition

funding

is fuel for your business,take proper advantage of it

WYS vs WYG - funding

•“we’re superb! thus, we ask for lots of money”

•study what is offered first•no homework done

suggests you're not a serious partner

•“we’re modest, we ask for less money”

•the targets are set low, or

•not experienced on building a business

WYS vs WYG - funding

•make a request within the range offered

•provide a rough cost breakdown

•next to a product, try to set up a scalable business

funding

goals

•“we’ll have millions of users, within 4 months”

•unrealistic targets, or

•very inexperienced team

WYS vs WYG - goals

WYS vs WYG - goals

•“we’ll be ready to start building a product”

•very slow, or the product too big to fit

•focus on a feasible one within the timeframe

•pave the way to a working product, quantify

•bringing you close to a next round of funding, or

• organic sustainability/growth

goals

•be honest•build trust•you are looking for a

partner

to sum up

•highlight what makes you a great fit for that product/market

•show that you are aware of your weaknesses and you have a plan to address them

•plans are wrong, yet needed as a compass

to sum up

http://theopenfund.com | info@theopenfund.com

apply till Nov 30

Get Organised. Meet. Play.

the story starts here...

can’t keep up with email

This REALLY bothers me!

can’t find other players!

That’s HOW I like it!

how to get there

✓vision & plan

✓committed team

- $$$

- experience & advice

•value proposition

•team that delivers

•2-way relationship

•how you will deliver

get the fuel

selection process

1. online submission of the application

2. remote interview3. in-person presentation

•define the core idea

•write less & more concisely

•revisions based on feedback from the Openfund

#1: initial application

#2: interview

•extensive feedback in preparation from the OF board

•5’ presentation & 5’ demo

•Q&A section

•be yourself

#3: presentation

•collaborate with the OF

•20’ pitch to the executive board, investors and advisors

•meet in-person

#4: incubation

•4-month period to deliver the v1.0

•worked together with the advisors

•20% preparation & 80% perspiration

The launch day!

Come play with us!

http://sportmeets.com | miro@sportmeets.com