Founder Institute vSep-13 v2

7/29/2019 Founder Institute vSep-13 v2

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AVDA. DIAGONAL 593 7ª PLANTA08014 BARCELONA (ESPAÑA)

ADDING VALUE BEYOND THE INVESTMENT



8 FANEUIL HALL MARKETPLACE 3RD FLOORBOSTON MA 02109 (USA)

Oriol Juncosa

Principal at Nauta Capital

Twitter: @ojuncosa - September 2013 -

The Founder

Institute



2Sep 2013

Agenda

Nauta Capital

Venture Capital process

Fundraising in practice

Final message



3Sep 2013

Nauta Capital: a leading venture capital fund based in Barcelona, London andBoston

Internet/eCommerce,

Mobile, Software>$200m AUM

Investing in

Europe and in theUS>60% outside Spain

Focus: Round A-Seed and Round B

opportunistically-1st ticket: €0.75m to €3.5m

-Total investment up €5/6m

Helping the best entrepreneurs building greatcompanies



4Sep 2013

Nauta Tech II and III – Selected portfolio companies by sector / geography

C o n s

u m e r

E n t e r p r i s e

Spain UK GermanyUS

(1)

(1) Sold to Nice Systems in 2011



5Sep 2013

Agenda

Nauta Capital

Venture Capital


Final message



6Sep 2013

VC industry: US vs. Europe (I)

Amount raised by VC backed companies Source: Turning the Corner, VC Insights , E&Y 2013

31,1

34,533,1

24,3

29,3

35,129,7

2.8593.110 3.049

2.759

3.1163.506

3.363

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012

Amount raised (US$bn)

Number of rounds

6,3

7,6

7,7

5,7

7,0

6,8

5,7

1.429

1.700

1.451

1.257

1.366

1.211

1.074

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

2006 2007 2008 2009 2010 2011 2012


Number of rounds

VC investment - US VC investment - Europe

Avg. amount raised (2006-12): $10m Avg. amount raised (2006-12): $5m



7Sep 2013

VC industry: US vs. Europe (II)

Source: Turning the Corner, VC Insights , E&Y 2013

VC backed M&A - US VC backed M&A - Europe

46

58

32

25

40

61

54

536

526

445 427

590 548

433

0

100

200

300

400

500

600

700

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012

Median value (US$m)

Number of transactions

21

25

27

25 23

42

28

338327

250

203 214 208

145

0

50

100

150

200

250

300

350

400

0

5

10

15

20

25

30

35

40

45

2006 2007 2008 2009 2010 2011 2012

Median value (US$m)


Avg. transaction value (2006-12): $45m Avg. amount raised (2006-12): $20m



8Sep 2013

VC industry: US vs. Europe (III)

2,1

1,1

0,0 0,2

0,6

1,0

0,5

96

46

10

3

1815 16

0

20

40

60

80

100

120

0,0

0,5

1,0

1,5

2,0

2,5

2006 2007 2008 2009 2010 2011 2012



3,7

7,5

0,6 0,9

3,3

5,4

11,2

57

80

8 8

47 4650

0

10

20

30

40

50

60

70

80

90

0,0

2,0

4,0

6,0

8,0

10,0

12,0

2006 2007 2008 2009 2010 2011 2012



VC backed IPO - US VC backed IPO - Europe

Source: Turning the Corner, VC Insights , E&Y 2013

Avg. amount raised (2006-12): $110m Avg. amount raised (2006-12): $35m

How should VCs and entrepreneurs think differently about VCinvestments and exits in Europe vs. the US in order to be successful?



9Sep 2013

Financing Life Cycle

Disposal / IPO



10Sep 2013

The VC process

Sourcing andscreening

Duediligence

Investment

ValueCreation

Exit

Ideally: fast decisionmaking

Reality: lots of meetingsand longer decisions

What are the key strategies for entrepreneurs to ensure asmooth fund raising process?



11Sep 2013

What do VCs look for?

Large and growing market

Clear customer need/ problemProduct / solution with sustainablecompetitive advantage

Scalability

A strong team with a clearexecution plan

STRONG METRICS (key: CLTV vs.CAC)

Proven revenue model

Clear path to profitabilityLow technology risk

Experienced founders with priorexits

Limited competitionLow capital consumption

Minimum Wish list

CLTV: customer lifetime value, CAC: customer acquisition cost

What are the topthree requirements?



12Sep 2013

Agenda

Nauta Capital

Venture Capital in context


Final message



13Sep 2013

When to raise capital?

Idea -> FFF (€10K to €100K)

MVP -> Angels / Seed (€100K - €1M)

Developed product and market traction -> Series A (€1M - €5M)

Significant revenue level and growth -> Series B (€5M - €10M)

Profitable or almost profitable -> Growth equity (>€10M)



14Sep 2013

How do you identify and qualify target investors?

Relevant sector and stage investment experience

Value added: contacts with other potential investors and (even) withpotential clients, technology experience, strategic approach coupled

with useful advice on selected operating decisions,..

Responsiveness to the entrepreneur and potential challenging keydecisions

Agreement with entrepreneurs on the key drivers of the business planand key elements of the execution plan

Location: the earlier the start up, the closer the VC needs to be

What is better: maximise amount raised, maximisevaluation or maximise quality of investor?



15Sep 2013

How much capital to raise?

Historical cash burn

Business plan cash consumption estimates

Expected timing until next round

Margin of safety / minimum cash balance

What is the factor most frequentlyunderestimated by entrepreneurs?



16Sep 2013

Use of proceeds of the round

Product

Marketing

People

IT

Working capital

Minimum cash balance

M&A

Cash out

What is usually the priority in:• Seed?• Early stage?• Later stage?



17Sep 2013

What are typical investment structures and deal terms?

Investment amount

Pre-money valuationPreferred vs. Common stock

Liquidation preference

Founder vesting

Board seats

Consent matters

Drag and tag along

Information rightsAntidilution

Minority shareholding

Angels / Seed funds: 1% to10% / 20%

VCs:

20% to 35% - earlierrounds

10% to 20% - laterrounds

Syndication amongst differentinvestors

ESOP pool

Capital structure Deal terms



18Sep 2013

Agenda

Nauta Capital

Venture Capital in context


Final message



19Sep 2013

Final message

Low start upcosts

Low opportunitycosts

Significant

angel/ seedfunds available

Fast newtechnology

developmentand adoption

Large talentpool available

…and crisis will

not last forever

There is no better time to start up a company than NOW!



20Sep 2013

Your turn

Q & A

Oriol Juncosa – Principal at Nauta Capital – Twitter: @ojuncosa



21Sep 2013

Disclaimer

The ideas presented in this document are only the author’s views

This document does not represent the position of Nauta Capital or of any ofits affiliates

Any error or omission is only atributable to the author

This document is solely intended for the participants at Founder’s Institute

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