Seed Forum Pitchtraining Camp

Introduction to investor readyness

3 aims

• Presentation skills• Content – the investment proposal• Plan for long-term private equity funding for

growth

3 deliverables

• 7 min full pitch• 30 sec power pitch• Answer the question – what is disruptive ?

Agenda Pitch Training Camp• Introductory brief• Presentations in process groups – practice• Workshop on main parameters for investor readiness • Plenary lectures investor readiness

- Documents in the investment process- The investment process – a detailed description - Preparation for due diligence - Negotiation techniques- How to protect the competitive edge - The art of networking

Investor mind-set • What is the business concept? • Who is the team and why will you succeed ? • What is the market or market niche ? • What are the competitive advantages? • What is unique ?• What is the business model ?• What is the capital need? • How will the invested funds be used? • What is the exit strategy ?

Value drivers • Industry sector (size, growth, margin etc.)? • Commercial competence in the team? • Team members – previous entrepreneurial and exit experience?• IP? • Scalable business model? • High margins on sales ? • Positive balance sheet? • Recurring revenues? • Multiple revenue streams ?• Commercial proof of concept ?• First move advantage ? • Shorter exit period than 3 years ? • Market disturbing exit strategy ?• Comparable exits ?

”BORN GLOBALISM IS THINKING BIG"

How to innovate ?

• To create something new ?• To improve the existing ?

What is a growth company ?

• Technology companies• Non-Tech companies with a growth potential• Lifestyle companies

Born globals

• Start-ups go international much earlier than before

• Private equity funding is the new trend in internationalization

The concept

• Fundraising forums for start-ups and investors • Pitch Training Camps to make start-ups

investor-ready • A process to reduce the risk on investment

The Process

• Nomination• Pitch training camp• Evaluation • Fundraising forums

Investors mind-set

• To reduce the risk • Start-ups investor ready• High quality deal-flow• Syndicate investments • Networking with investors

Types of investors

• Private investors– Friends, family and founders (FFF)– Business Angels (BA)

• Structured capital– Seed Funds– Venture Funds (VC)– Corporate Venture– Family offices

The «Seed Gap»

FFF Seed FundsBA VC PE

Market launch

Cash-positive

Start-up mind-set

• Funding • Internationalization and growth • Competence in investor readiness• Mind-set – THINK BIG • B2B

Seed Forum 2002 – 2013

• 26000 investors in Seed Forum database• 2000 nominators in the network• 1600 members in the start-up alumni community• More than 200 partners globally that contributes to

Seed Forum • Investor matchmaking forums in 27 countries• Local forums in 5 countries• Companies selected to present from 23 countries

Seed Forum Global 2013

A global concept

• A not-for-profit best practice initiative• A concept for access to new markets • Export process from Norwegian innovation• A global community for investors, start-ups

and key-persons in innovation

A complete concept

• Fundraising forums• Seed Forum Academy• Seed Forum Alumni• Business Angel Networks • I-HUB accelerators• Access to new market services

Investor approach

• Your own direct talks• With a broker / Corporate Finance Partner • Fundraising forums – Seed Forum• Combination of all above

The forum format

• Last minute brief • Morning forum + networking• Evening reception• Late Night Seed Forum• Round-up session

Round-up session

• Leads sorted in 3 priority groups- A: Immediate meetings- B: Immediate e-mails - C: Courtesy

• Creating concrete follow-up strategies

After the initial contact

Innledende diskusjoner

Initial contact / Seed Firum

Term Sheet Due DiligenceNegotiations on documen-tation

Initial discussions

Investor approval 2

Investor approval 1

Investor ”go ahead”

General review of:

– The company

– Business plan

– Financial statements

/ budget

– Discussions with

management

Main terms and

conditions of the

investment

– Legal

– Technical

– Environment

– Market

– Transactions

Agreement

– Shareholders

Agreement

– Loan Agreement

– Employment

agreements

Closing

Documents to prepare

• BS - Seed Forum Business Summary • PP investor presentation • IM - Investment Memorandum

(and one-pager summary)• Miniature due diligence booklet• Non-disclosure agreement

The concept of DRAMA

How to present persuasively

• Framing• Hyping• Enthusiasm• The WOW factor • Presenting as a ”Super profit” opportunity

AND – THE ART OF NETWORKING

Development of pitch

1) Make standard presentation according to investors mind-set

2) Find the trigger points / value drivers2) Practice standard presentation 4) Make your presentation special

Investor mind-set • What is the business concept? • Who is the team and why will you succeed ? • What is the market or market niche ? • What are the competitive advantages? • What is unique ?• What is the business model ?• What is the capital need? • How will the invested funds be used? • What is the exit strategy ?

Value drivers • Industry sector (size, growth, margin etc.)? • Commercial competence in the team? • Team members – previous entrepreneurial and exit experience?• IP? • Scalable business model? • High margins on sales ? • Positive balance sheet? • Recurring revenues? • Multiple revenue streams ?• Commercial proof of concept ?• First move advantage ? • Shorter exit period than 3 years ? • Market disturbing exit strategy ?• Comparable exits ?

Presentations

• Who are you ?• What`s your business? • Why are you here? • Why are you an entrepreneur?

Practicle run-through

• Introduction of presenter• Do not look at the screen !• Warning after 6 and a half minute• Questions and coaching• Where to start ?

IMPORTANT AGREEMENT

• It is better that we comment things now that you will hear it from investors later !

AGREE ?