venture capital in a globalised market place 7 th international venture capital forum athens, 28...
TRANSCRIPT
Venture Capital in a globalised market placeVenture Capital in a globalised market place
7th International Venture Capital ForumAthens, 28 June 2006
Vectis CapitalVectis Capital
Dionissis Alissandratos
Questions
1. How many here are Investors?2. How many Investors are NOT from Greece?3. How many here are Entrepreneurs seeking money?4. How many Entrepreneurs are NOT from Greece?5. How many are 1st Time Entrepreneurs?6. How many believe the VC value is more than just
money?
Vectis Vectis CapitalCapital
Key success factors for a start-up
The globalised environment
The role of VC in assisting a new company
The need for collaboration between local and international VCs
TopicsTopics
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InvestmentInvestment ModelModel
HIGHHIGHMIDMIDLOWLOW
HIGH
HIGH
MID
MID
LOW
LOW
INVESTSELECTIVELY INVESTDO NOT INVEST
PRODUCT COMPETITIVENESS
MA
RK
ET
PO
TE
NT
IAL
Adequate Management Adequate Management TeamTeam
Time Horizon of 4 - 6 Time Horizon of 4 - 6 yearsyears
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Key success factors for a start-up
A start-up should have an experienced, balanced Management Team
A start-up CANNOT pay fat salaries. It can pay Stock Options
The Management team should be working 24h/day - 365days/year for min the first 3 years
Product or service offered: innovative, with large life cycle, newer releases already in pipeline, quick move up in the value chain
The market that the start-up addresses should be “open minded” and willing to try the new product or service
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The globalised environment
Information travels fast. Across all continents consumers find similar products, services and methods of selling them
Increased competition among VCs for quality investments
Increased competition among providers of products and services in ALL sectors in EVERY market
Proper alliances to exploit Synergies Speed in execution of well thought strategies Thorough analysis of the target market
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Should have
The role of VC in assisting a new company
Supply of capital (which is never enough….) Enhances the image of shareholders’ base Due to it’s business experience can contribute towards:
a. the strategy planning for: marketing & sales, human resources, strategic alliances
b. Establishing proper “foundations” of the company regarding legal issues, management & operational structure etc.
It’s International network of contacts assists in finding:a. Consultantsb. Experienced outsourcing partnersc. Potential Clienteled. Follow-on financing
The more international exposure the VC has, the more value it brings to the new company
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Need for collaboration between Local and International VCs
Necessary characteristics of the market for a Foreign Investor:
Flexible business legislation Stable macroeconomic environment Adequate market size Supply of “competent” and “sophisticated” business
partners such as: banks, local investors, management teams, consultants etc.
Greece of 2006 has almost all of the above
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Need for collaboration between Local and International VCsThe contribution of the Local VC Better understanding of the market: culture, dynamics etc Stronger local network for deal flow and business partners Proximity to the venture for better monitoring Packaging a number of deals to achieve a sizeable
investment
The contribution of the International VC More diverse network of business contacts Potential collaboration with similar ventures in other
countries Specialized experience from similar investments
Each one of the above is less effective if alone
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Conclusion
There is a global competition in the majority of sectors Hard work, well defined strategies, focus, strategic
alliances and fast execution are the keys for successful ventures
Globalisation provides opportunity for larger and faster upside
A VC firm is a very valuable partner Optimum results through collaboration of a local and an
international VC firm
THANK YOU
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