seed capital
TRANSCRIPT
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A presentation of SEED Capital
– and an introduction to what we look for in
startups
April 2013Jakob Ekkelund, SEED Capital
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SEED in numbers (I)Agenda
1. Intro to Seed capital
2. Investment process and criteria
3. Cases
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SEED in numbers (II)
• Cand. Merc (CBS)
• Business experience– TDC Consumer, Head of Strategy – TDC, Strategy consultant– TDC, Graduate Traniee– TDC, Finance
• Startup experience: – Designfirmaet.dk– Rainmaking– Betternow.com– Sidneylëe.dk
• Selected board positions:– Vivino– Bownty– Wantr– Leikr
About Me:Jakob Ekkelund, Investment Manager (ICT), SEED Capital
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• Intro to Seed Capital
1
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SEED Capital is a venture capital company who finance and assist competent entrepreneurs based in Denmark and Southern Sweden developing Life science, IT, and Cleantech companies of the future.
In addition, SEED Capital acts as venture partner for government funded pre-seed investments through DTU Symbion Innovation.
Who is SEED Capital?
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Investment focus
Seed/early stage to exit, early syndication
Denmark and southern Sweden
Local academic and industrial centers of excellence
GeneralEnergy production efficiency (solar, wind, CHP)
Energy storage (fuel cells and batteries)
Cleaner and/or less resource demanding technological processes (industrial and material)
Pharmaceuticals and medtech (devices/diagnostics)
“Personalized” diagnosis and treatment
Opportunistic investments in “ground breaking technology”
Software: SaaS, mobility and convenience (Location Based Services) Crowd Sourcing, crossover consumer-social/enterprise
Hardware: Embedded systems, energy technology, signal processing, automation/robotics, nanotechnology
Tele/mobile: Mobile location based services, mobile marketing, mobile commerce
Cleantech
Lifescience
IT
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70 companies in portfolio
LifescienceIT
Cleantech
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Where do set in?
Technology creationMarket-Focused
Business and Product development
Commercialization
Governement & pre-seed
Seed & Business angels
Venture Capital StockTypical
investors
Time
Cash flow
Public Sector Private Sector
Sales
Valley of Death
DTU Symbion Innovation SEED Capital
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SEED key figures
• Managing 1+ bn. DKK– 2 Venture funds:
• SEED Capital Denmark II (530 mDKK)• SEED Capital Denmark K/S (532 mDKK)
– DK’s leading innovation environment (IM): • DTU Symbion Innovation A/S (2010: 50 mDKK for investments)
• 70 portfolio companies• 12 exits with >1x on invested capital, 2 IPO’s• 20 FTE
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SEED in numbers (II)Annual activities in brief
500+ business proposals
100+ meetings
~15 DTU Symbion Innovation investments
3-4 SEED Capital investments
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Investment sizes
DTU Symbion Innovation
Primary investm
ent
DTU Symbion Innovation
Secondary investment
SEED Capital
Time
82%
40%
0,5 mio. €3,5 mio. DKK
0,3 mio. €2,5 mio. DKK
0,8 - 6,7 mio. €5 - 50 mio. DKK
Public funding
Private funding
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How it works with funds
Execution
Execution
Execution
Fund no. 1 Fund no. 2
Cash in no. 1
Fund no. 3
Cash in no. 2
Fund no. 4
Investment
Investment
Investment
Investment
3-4 years
10 (+2) years
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SEED in numbers (II)Why should an entreprenur choose Seed Capital
• Money• Involvement through Board of Directors• Network• Great track record• We can take a company from the early
stages and take it all the way..
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2• Investment process and criteria
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The investment process
- Project screening
Introduction Convincing Deep diving Completion
Phases:
Activities:
Materials:
- Meeting
- Internal Pitch
- Partner presentation
- Due diligence
- Investment recommen-dation
- Final papers
- Term Sheet
- Teaser/Business Plan
- Partner deck (10 powerpoint slides)
- 2o pages Investment recommen-
- dation
- Investment & shareholder agreement +
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What we look for - in broad terms
10XCheaperSmallerBiggerFasterMore efficient
With a market potential of more than 1 billion €
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Investment Criteria - I
Team/Management
The management of the company has to consist of people with entrepreneurial spirit and relevant and well-documented professional qualifications—or have the prospect of developing them.
The management has to complement each other (No programmers / only programmers) and together form a visionary, cooperative, and dynamic team.
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Investment Criteria - II
Market
The newly developed product must be in an attractive market segment that is potentially large, rapidly increasing, or undergoing major restructuring, making new markets for the mentioned product possible
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Investment Criteria - III
Product
The product is highly innovative and has a remarkable and continuing competitiveness. The technology is an epoch-making discovery, and the company has preferably patented the discovery.
Its imperative that the product solves a ’burning’ pain forclearly identified customers
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Investment Criteria - IV
Scalability
The company is highly scalable and the model of income has a significant chance of generating extensive growth and, in time, obtaining considerable profitability.
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Investment Criteria - V
Exit
The investment has potential for a full exit. There should always be more than one exit option. The evaluation of the company looks favorable compared to the existing market conditions.
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Short cut .-)
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•Cases
3
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Interesting cases:
Endomondo provides an online service for tracking, monitoring and coaching your physical activities such as running, biking, walking, skiing etc.
Trustpilot is a web portal where consumers rank companies based on their customer service.
As a common (2D) printer prints on paper a Blueprinter 'prints' 3-dimensional objects based on 3D CAD computer models.
Libratone designs and develops wireless loudspeakers that stream music and audio wirelessly in excellent quality from which ever unit contains the user's music library
Firmafon provides a telephony solution for small end medium sized enterprises...
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Questions?