1. 9th International Venture Capital Forum
a brief user’s guide
Help-Forward Network
Epaminondas Christophilopoulos,

2. Presentation Outline Financing a venture – Success factors
Sources of finance
Venture Capitals
The 9th International VC Forum
The 8th International VC Forum - statistics
Hints

3. Critical Success Factors
A balanced team with track record
IPR & an Exit strategy
Proof of Concept & Competitor analysis
Clearly defined market
Defensible competitive advantage

4. Investment & Investors- is it Fundable?
A good idea - New, different?
Feasible - Dream or Vision?
Commercially Viable - Will it make money?
A winning team?

5. Investment & Investors – Finding your prince
“Kiss the Frogs!”

6. Investment & Investors – Stage: Research & Development
Type of Funding:
Seed Capital & Grants
Source of Funds:
Family, Friends and Government, some Business Angels and VC’s

7. Investment & Investors – Stage: Start-up & Early stage
Type of Funding:
First Round & Second Rounds
Source of Funds:
Venture Capital, Business Angels, Corporate Investors

8. Investment & Investors – Stage: Development & Maturity
Type of Funding:
Expansion & Growth
Source of Funds:
Bank Loans, Factoring, Corporate Investors, Venture Capital, Company Pension Fund, IPO

9. Venture capitalists Characteristics Who are they? What do they seek?
How do they operate? 22

10. VC: characteristics (part I)
Objective is profit
Professionally managed
Usually other people’s money
Minimum size generally Euro 1m
Many higher: up to Euro 20m 23

11. VCs: characteristics (part II)
Few focused on early stages
Usually time driven - focused on exit
Selective
Go for large, global markets 24

12. What do VCs seek?
Operating companies
Return
Control / information 29

13. VCs: operating companies
Growth in rapidly growing markets
Markets must be large and global
Large = E1-2bn potential sales
Markets should be relatively empty
So tend to seek technology markets 30

14. VCs: return (I) Profit through sale or flotation
Annual return on investment of 40 to 50% OR
Euro 1m in
and four years later
Euro 4m out 31

15. VCs: return (II) In three years out of ten companies
One will be a star
Two will be OK
Five will be unchanged
Two will die 32

16. VCs: control / information
Portfolio balance/focus
Negative control
Minority protection
Information flow
Control over exit
If lead investor than proximity 33

17. How do VCs operate?
Intake
Due diligence
The deal
After the deal 34

18. VCs: intake An example (VC with 4 professionals)
1000 proposals a year - five a day
Read 200 business plans (the rest are rejected from the first read)
Visit 50
Investigate 10
Offer on 5
Invest in 2 (success rate 1-2%) 35

19. VCs: due diligence During three to six months Research market
Research people
Research claims/liabilities
Study strategy
Assess exit routes 36

20. VCs: after the deal Board representation
Monthly or quarterly reporting
Support varies by investor
Hands off unless going badly
Constantly looking for the exit 39

21. Investment & Investors- – The investment circle
Insurance Companies
Corporate Finance
Pension Funds
Venture Fund Liquidated
Investment and Investors
Shareholders
Entrepreneur
Stock Market or Trade Sale
Venture Fund

22. The 9th International VC Forum (1)
Register NOW to the largest international venture capital forum in Southeast Europe!
The 9th International Venture Capital Forum is a unique two-day event dedicated to raising financing for ambitious and dynamic entrepreneurs, business oriented researchers and new technology-based firms in Southeast Europe.
Businessmen, researchers, policy makers from Southeast Europe and East Mediterranean are invited to attend, present their business ideas and discuss venture opportunities in dedicated bilateral meetings. 39

23. The 9th International VC Forum (2)
Place: Hilton Hotel, Athens
Date: June 2008
Venture capital firms are requested to present their availability and interest to explore the Event Portfolio by sending company's profile and contact details to by 30th April 2008.
Entrepreneurs and researchers are invited to submit their business plan the latest by 12 May 2008
The "Best Business Plan Prize" will be awarded to three Business Plans selected by the VCs. 39

24. The 8th International VC Forum (1)
Geographical Distributions of BPs
Country
(%)
Greece 37
69%
Turkey 8
15%
Bulgaria 4 7%
Cyprus
Germany 1 2%
TOTAL 54 39

25. The 8th International VC Forum (2)
Thematic Distribution
SECTORS
(%) IT 20
37%
Consumer Products 15
28%
Health & Safety 5 9%
Telecommunications 3 6%
Consulting / Services
Electronics 2 4%
Industrial Applications
Energy
Environment 1 2%
Transport / logistics
TOTAL 54
 100% 39

26. The 8th International VC Forum (3)
Market Focus
market
(%)
Global 26
48%
National 13
24%
European 10
19%
Local 5 9%
TOTAL 54 39

27. The 7th International VC Forum (1)
Geographical Distribution of BPs
Country
(%)
Greece 37
47%
Israel 10
13%
Turkey 6 8%
Bulgaria 5 6%
Romania
Cyprus 4 5%
Czech Republic 3 4%
Poland 2 3%
Slovenia
Esthonia 1 1%
USA
Latvia
Great Britain
Hungary
TOTAL 79 39

28. The 7th International VC Forum (2)
Thematic Distribution
Sectors
(%) IT 24
30%
Consumer Products 9
11%
Electronics 8
10%
Telecommunications 7 9%
Industrial Applications/ materials
Health & Safety 6 8%
Consulting Services
Energy
Environment 4 5%
Transport 1 1%
Aeronautics & Space
TOTAL 79 39

29. The 7th International VC Forum (3)
Market Focus
market
(%)
Global 37
47%
National 20
25%
SA Europe / Balkans 15
19%
European 7 9%
TOTAL 79 39

30. Hints -Present competition/risks together with opportunities
Invest on preparing a realistic Business Plan
-Present competition/risks together with opportunities
-Clearly define markets
-Present financial needs and 5 year investment plan
- Describe clearly your competitive advantage
- Executive Summary
Present attractive earnings/cash flow (30-50% return for investment)
Present realistic exit strategies 39

31. Additional info Help-Forward Network
Epaminondas Christophilopoulos,
9th International Venture Capital Forum