bicstartnowhow - stage financing for ventures

STAGE FINANCING FOR VENTURES Dr. Joachim Behrendt

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StartNowHow

• Open seminar series for active and prospective entrepreneurs

• 10 sessions on monthly basis until summer 2017

• Covers relevant theoretical and practical aspects of entrepreneurship

• Based on lecture „Entrepreneurship“ @Bogazici University

• Based on experiences of entrepreneurs, investors, mentors and consultants

• Each session with guest speaker (entrepreneurs, investors, mentors, etc.)

• Certificate provided for participants (from BIC Angels / Bogazici University Entrepreneurship Center) joining at least 70% of the sessions

• Language: English / Turkish

• Thursdays 17.15h – 19.30h

• Next session: Thu 6. April 2017

• Topic: The investment process – pitching, negotiations and termsheet

• Guest Speaker: Mehmet Onarcan, Mentors Network / projecthouse

• Early registration for each session required (eventbrite), limited capacity!

• Priority for regular participants

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StartNowHow - Seminar Topics (preliminary)

1. Thu 22.09.16: The entrepreneurial ecosystem in Turkey

2. Thu 20.10.16: Entrepreneurship as a profession

3. Thu 17.11.16: Financial planning for startups

4. Thu 15.12.16: Planning, developing and testing a business model

5. Thu 12.01.17: Opportunity recognition and evaluation

6. Thu 09.02.17: Market and competitor research

7. Thu 09.03.17: Funding the startup – stage financing for ventures

8. Thu 06.04.17: The investment process – pitching, negotiations and termsheet

9. Thu 04.05.17: Startup Valuation

10. Thu 01.06.17: Success and failure as an entrepreneur


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StartNowHow - Literature

• Bowers, Brent, 8 Patterns of Highly Effective Entrepreneurs, Doubleday, New York, NY 2008

• Bygrave, William D. / Zacharaiks, Andrew, The Portable MBA in Entrepreneurship, 4th ed., Wiley, Hoboken, NJ 2010

• Drucker, Peter F., Innovation and Entrepreneurship, 1st ed. 1985, reprinted 2010, Elsevier, Kiddlington, 2010

• Harper, Stephen C., Extraordinary Entrepreneurship: The Professional’s Guide to Starting an Exceptional Enterprise, Wiley, Hoboken, NJ 2005

• Hirshberg, Meg Cadoux, For Better or for Work, All Inc., New York, NY 2012

• Hisrich, Robert D. / Peters, Michael P. / Shepherd, Dean A., Entrepreneurship, 9th ed., McGraw-Hill, New York, NY 2012

• Kuratko, Donald F., Entrepreneurship: Theory, Process, Practice, 8th ed., South-Western, Mason, OH 2009

• Leach, J. Chris / Melicher, Ronald W., Entrepreneurial Finance, International Edition, 4th ed., South-Western, Hampshire 2012

• Osterwalder, Alexander / Pigneur, Yves, Business Model Generation, Wiley, Hoboken, NJ 2010

• Ries, Eric, The Lean Startup, Crown Business, New York, NY 2011

• Smith, Janet Kiholm / Smith, Richard L. / Bliss, Richard T., Entrepreneurial Finance – Strategy, Valuation, and Deal Structure, Standford University Press, Stanford, CA 2011

• Stokes, David / Wilson, Nick, Small Business Management and Entrepreneurship, 6th ed., South-Western, Hampshire 2010

• Taleb, Nassim Nicholas, The Black Swan – The Impact of the Highly Improbable, revised ed., Penguin, London 2010

• Timmons, Jeffry A. / Spinelli, Stephen, New Venture Creation – Entrepreneurship for the 21st Century, 9th ed., McGraw-Hill, New York, NY 2011


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Initial New Venture Losses

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Source: Timmons, J.A./Spinelli, S., New Venture Creation, p.427

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Low-Budget vs. Big-Money-Models


Source: Volkmann, C.K./Tokarski, K.O./Grünhagen, M., Entrepreneurship in a European Perspective, p.291

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Startup Life Cycle

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Life Cycle Financing


Source: Timmons, J.A./Spinelli, S., New Venture Creation, p.433

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R&D Grant Programs

Startnowhow – Seminar 8

Source: Novicor

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Business Failure Rates


Source: Shane, Ihe Illusions of Entrepre-

neurship, New Haven / London 2008

US study UK studies

Source: Stokes / Wilson, Small Business

Management, p. 87

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Lemons and Pearls


Source: Timmons / Spinelli, New Venture Creation, p. 158

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Venture Life Cycle and Target Returns


Source: Leach, J.C./Melicher, R.W., Entrepreneurial Finance, p.255

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Actual VC Returns

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Source: Smith, J.K./Smith, R.L./Bliss, R.T., Entrepreneurial Finance, p.343

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Mezzanine Capital



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Equity, Debt and Mezzanine Capital



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BIC

• Agreement BIC – Investors

• BIC Angel Investments is a brand of BIC Behrendt International Consulting A.Ş., owned 100% by Joachim Behrendt

• BIC provides angel investment services but does not invest itself

• Joachim Behrendt invests himself alongsinde other BIC angels

• Interested investors enter into a service agreement with BIC

• By invitation only / ends anytime one party decides not to continue

• Contains limited confidentiality provisions

• Exptected (but not obligatory): At least two investments per year, minimum ticket size normally 25,000 TL

• Angel Investments

• Investors invest directly into the startup and become shareholders in A.Ş.

• All BIC angels (including Joachim Behrendt) belong to the same shareholder group in proportion to their investment, protected by minority rights

• Termsheet and definitive agreements (template-based) are provided by legal advisors of BIC, quick agreement with startups targeted

• BKS application process for startup handled by BIC

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BIC Angel Investment Network: Legal Framework R

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Investment Process of Business Angels



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VC‘s Organizational Structure


Source: Smith, J.K./Smith, R.L./Blisss, R.T., Entrepreneurial Finance, p.90

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VC Capital Investment Process


Source: Smith, J.K./Smith, R.L./Blisss, R.T., Entrepreneurial Finance, p.95

BIC ANGEL INVESTMENTS Dr. Joachim Behrendt

Phone: +90 212 328 1939 Fax: +90 212 328 1933

www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a

Email: [email protected]

http://twitter.com/joachimbehrendt

http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a

