Venture Capital in a globalised market place 7 th International Venture Capital Forum Athens, 28 June 2006 Vectis 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 1 st Time Entrepreneurs? 6.How many believe the VC value is more than just money? Vectis Capital

 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 Topics Vectis Capital

Investment Model HIGH MID LOW HIGHHIGH HIGHHIGH MIDMID MIDMID LOWLOW LOWLOW INVEST SELECTIVELY INVEST DO NOT INVEST PRODUCT COMPETITIVENESS MARKET POTENTIAL  Adequate Management Team  Time Horizon of years Vectis Capital

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 Vectis Capital

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 Vectis Capital 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.Consultants b.Experienced outsourcing partners c.Potential Clientele d.Follow-on financing The more international exposure the VC has, the more value it brings to the new company Vectis Capital

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 Vectis Capital

Need for collaboration between Local and International VCs The 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 Vectis Capital

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 Vectis Capital