INTERNATIONAL STARTUPS THEMES

INTERNATIONAL STARTUP REQUISITESKey Execution Issues

By:Juan Ramon ZarcoUnited StatesHungary/Turkey - 2015

JRZ - Hungary/Turkey 2015

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INTRODUCTION

The 5 “T”s

Lean Startup Strategy and Execution

Financing

Corporate Entities

International Aspects

5 T’S


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5 T

TECHNOLOGY

10X

TERM

TRACTION

TEAM


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TECHNOLOGY

Unique, Novel, Relevant, Proprietary

IP filed (Granted vs. Filed vs. Provisional), 3-5 years, Trademarks


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10X

EVA

VC funds, Limited Partners Mandate

Projected Growth, Path to Profitability, Risks (Valuation)

In 5 years, 30% growth compounded annually = 10X


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TERMS

TERM SHEET

PRE-MONEY – POST-MONEY VALUATIONS Valuations are based on Projections and Historics from VC

Experience

PV, EBITDA Multiples, 4-6 or 20?

Negotiations and Due diligence – 4- 6 weeks


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TRACTION

Customers

Distributors

Experts

Partners


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TEAM

Resumes

Geographic Location

No less than 1 Founder

CORPORATE


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CORPORATE STRUCTURES

Limited Liability Corporation

C-corp

Sub-S

Holding Company

In the U.S., in which state to create entity

Voting Rights, Share Classifications

Advisory Boards

INTERNATIONAL


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INTERNATIONAL

Banking – Paypal/Russia

Transactions

Corporate presence in another country

Tax Planning

Cultural differences

Market Validation

Can local success be transferred internationally

LEAN STARTUP PRINCIPLES


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LEAN STARTUP PRINCIPLES

Iteration

Testing small market

Proof of Concept

Bounces back to “Traction”

FINANCING


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FINANCING STRATEGIES IPO mindset

Access to a Capital Market - liquidity

Bootstrap, Tranches, Exit Strategy

Expect Different Financing Rounds

Anticipate Shareholder Liquidation over financing series but in par with other comparables.

Friends and Family, Angels, VCs, Private Equity, IPO

Market Financial Liquidity

Unicorn or Zombie

thank you!köszönöm!

Juan Ramon Zarco

Silicon valley venture growth partners llc

703-376-4893

[email protected]

INTERNATIONAL STARTUPS THEMES

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