hampton consulting ltd. [email protected] entrepreneurship & venture capital (vc)...
TRANSCRIPT
![Page 1: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/1.jpg)
Hampton Consulting Ltd. [email protected]
Entrepreneurship & Venture Capital (VC) Investment
A Risky Business?
![Page 2: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/2.jpg)
Hampton Consulting Ltd. [email protected]
Experience – Before MBA (03-04) 13 years in mobile telecoms & IT
Co-founder / CEO of CopperEye High performance indexing for databases Raised c. £6M institutional funding Catalyst: MIT’s Entrepreneurship competition
Prior to CopperEye: I was a “corporate career person” Stagnating in operational senior management Overworked, under-challenged, under-rewarded
![Page 3: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/3.jpg)
Hampton Consulting Ltd. [email protected]
Experience – Post MBA Co-founder / MD of Hampton Consulting
Advice to start-up technology companies Consultancy to mobile telecoms companies
Co-founder / Non-exec director of Aquantra Specialist Bath-based technology recruitment company Self-funded (a little!) plus organic growth
Co-founder / CEO of Zenulta Providing enterprise event correlation solutions Delivered 2 rounds of funding
Co-founder / CEO of iRooms Providing enhanced utilisation of space Self-funded by founders – relationship with electronics
manufacturer
![Page 4: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/4.jpg)
Hampton Consulting Ltd. [email protected]
Entrepreneurial Motivation Reduced bureaucracy
Ability to take decisions Speed to market
Share in the fruits of your labour
Unlimited upside potential. Downside potential?
Faster career progression Less rigid role definitions
![Page 5: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/5.jpg)
Hampton Consulting Ltd. [email protected]
Recipe for Success? Experienced team
Diverse skill sets “Stand on the shoulders of giants” (I. Newton)
Find a unique angle on a business problem
Network like crazy http://www.linkedin.com
Build strong reference customers
![Page 6: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/6.jpg)
Hampton Consulting Ltd. [email protected]
Funding a Business Bank loans
Secured loan Often matched by personal investment High personal risk
Venture Capital (& angel) investment Can provide “value added” operational skills
Low personal risk
![Page 7: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/7.jpg)
Hampton Consulting Ltd. [email protected]
Why is Venture Capital the Lower Risk Route? No personal financial risk
Just warranties & disclosures
Job security in large companies? Yeah right!! Funding gives run of at least 1 year Follow on funding Longer notice periods (6 months)
Saleable commercial experience
![Page 8: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/8.jpg)
Hampton Consulting Ltd. [email protected]
How do you get VC Funding? (1) Find a good idea – a solution to a problem Network with individuals in different vertical markets
“Know your onions” Exit value £60M -> £300M
Do market research Know your competitors Build a business plan
![Page 9: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/9.jpg)
Hampton Consulting Ltd. [email protected]
How do you get VC Funding? (2) Draw up a shortlist of VCs who invest in your marketplace http://www.bvca.co.uk
“Value added” investment, or “dumb money”?
Try to get personal introductions / referrals
Choose your professional advisors carefully
![Page 10: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/10.jpg)
Hampton Consulting Ltd. [email protected]
MBA Summer Project “Leveraging the VC Relationship – The Entrepreneurs’ Perspective”
Interviewed 6 entrepreneurs in areas of: Relationship with VCs Legal & commercial terms used in investment agreements
Board balance & composition Control within the relationship
![Page 11: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/11.jpg)
Hampton Consulting Ltd. [email protected]
Earlier Research Relationship between entrepreneur & VC MUST be balanced & cooperative for a company to be successful
If an entrepreneur loses influence due to poor performance or greedy investors, the company will fail
![Page 12: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/12.jpg)
Hampton Consulting Ltd. [email protected]
Project Findings (1) Entrepreneurs have most influence at first funding round Negotiate then “play the long game”
Board structure has no effect on entrepreneur’s influence within relationship
Founder mentoring is a good idea
![Page 13: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/13.jpg)
Hampton Consulting Ltd. [email protected]
Project Findings (2) Choose a VC with entrepreneurial experience if this is your first company Fairer terms
Fairer terms promote trust and cooperative behaviour Greater chance of success
![Page 14: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/14.jpg)
Hampton Consulting Ltd. [email protected]
Project Findings (3) Entrepreneurs should raise more capital than they think they need
Maintain influence by recognising “domain expertise”
![Page 15: Hampton Consulting Ltd. jtucker@hamptonconsulting.co.uk Entrepreneurship & Venture Capital (VC) Investment A Risky Business?](https://reader035.vdocuments.mx/reader035/viewer/2022071807/56649ed35503460f94be3896/html5/thumbnails/15.jpg)
Hampton Consulting Ltd. [email protected]
What’s next for me? Developing my current businesses
Helping others grow theirs Advisor capacity on strategy & investment
Conducting venture capital “due diligence”