Presentation on theme: "Venture Business 20030920 이기범 20000135 노영우. Definition & General Idea What is a venture start-up company (VSC)? How do VSCs work?"— Presentation transcript:
Venture Business 이기범 노영우
Definition & General Idea What is a venture start-up company (VSC)? How do VSCs work?
Entrepreneurs who started in their 20s Microsoft (Bill Gates & Paul Allen) Netscape (Mark Andressen) Dell Computer (Michael Dell) Apple Computer (Steve Jobs and Steve Wozniak) Digital Equipment Corporation (Ken and Stan Olsen) Federal Express (Fred Smith) Genentech (Robert Swanson) Polaroid (Edwin Land) Nike (Phil Knight) Starbucks (Howard Schultz) Web-I( 윤석민 ), NC 소프트 ( 김택진 ), NHN ( 이해진 ), 한글과 컴 퓨터 ( 이찬진 ), 세롬기술 ( 오상수 ), …
Path for Company 사업 아이디어 공동창사자 수배 사업 계획서 (Business Plan) 만들기 경영진 확보 – stock option 종자돈 조달 (venture capitalist) 은행 예치 사업장 마련하기 창사 신규 직원 채용 추가 자금 조달 첫 제품 출시 운전 자금 조달 신규 기업 공개 보통 4- 8 년 소요
Why Start a (high-tech) Business? To fulfill personal ambitions and interests –Money and power –Improve life style –World Peace? –How about you
Why Start a (high-tech) Business? Growing the economy –Net new jobs Approximately 600,000 to 1,000,000 new businesses in U.S. yearly. Silicon Valley, Boston, and Washington D.C. –Newly formed high-tech firms consistently created between 22 to 28 percent of all high-tech jobs It is new high-tech firms that create economic growth
사업 Item 선정의 고려사항 기술개발 환경 우수성 활용도 파급효과
Technology or Product? Buyers have no interest in your technology Buyers want to see a product that solves a problem or creates a competitive advantage for them
Forming a Team Forming a team?! Why?
Statistics On Teams Members with previous entrepreneurial experience form teams that have a better survival rate. Companies that are started by teams show a higher success rate (2 to 1) High tech cost to develop is very high
Reasons For a Team Every business startup needs additional people Founding team is one of the most important factors that determine the value of an enterprise “ A ” strategies come from “ A ” teams
More Reasons for a Team Commercialization of new technologies is a group effort Skills required for commercialization are not often found in one person Technology is not the only hard part of a high tech startup
Team ’ s Importance Great teams are in short supply. –Plenty of technology, plenty of entrepreneurs, plenty of money, plenty of venture capital. There's enormous change underway in every facet of the world. –To take full advantage of those opportunities, focus on the team. Teams win.
Members of a Team An expert in the technology. An expert in sales and marketing. An expert in finance, budgeting, and financial control. An expert in manufacturing of products of similar type. Other experts.
Team Formation Know-how Proper selection is vital A business needs much more than technology to thrive New firm management teams rarely change during the first 6 years Common mistake: –Limiting the choice of founding team members to your own personal network!
Team Formation Method 1 Select individuals who are much like you –Extension of you –Example If you are an extrovert, you cannot hire someone who is introverted, negative and hates people.
Team Formation Method 2 Select individuals who possess the skills that you do not have –Keep outlook in mind
What is a Business Plan? A multipurpose document –articulates the critical aspects, basic assumptions and financial projections Blueprint for the company –Force the entrepreneur to think through business concept in systematic way –Interest and attract potential investors for new business support –May serve as legal document with which fund raised Optimistic in nature and one-side presentation, but should contain a full disclosure of risks Example – “This investment is highly speculative and is suitable only for individuals who can afford a total loss of their investment” Should not contain “ deals ” –Usually more formal offering memorandum is followed
Business Plan Structure Table of Contents, Table of Figures, etc Executive summary Introduction Business operations –Corporate history –Corporate structure –Founders background –Employees Background
Business Plan Structure Products and services Production Process Engineering Technology Technology future Problems Identified
Business Plan Structure Industry Analysis –Broad overview –Industry segment analysis –Regulations –Profitability Potential Competitive analysis –Market spending –Tech substitutes –Competitor matrix
Business Plan Structure Markets –Geographic –Target market –Market niche –Feature and benefits –Product positioning –Product differentiation
Business Plan Structure Channels of Distribution –Current –Proposed Promotion Advertising Public relations Printed and Non-printed material Trade shows etc.
Business Plan Structure Cash flow Income statement Balance sheet The 20X rule Banks want ratios
BP Lengths According to Receiver Banks 10 ~ 20 pages Investors –Interested in factors that predict growth < 40 pages
BP Lengths According to Receiver Strategic partner –Looking for a strategic fit for tech or products < 40 pages Management team operations > 60 pages Operational > 100 pages M&A – P/E comparisons etc.
BP Lengths: Don ’ t Worry! Let the most articulate team member lead or edit the writing Don't obsess over the plan. –Better plans are often 30 pages, but sometimes just 3 –Intel: 1 page Sun: 3 pages
Business Plan Properties Should be short ( < 40 pages) and clearly written Do not assume the reader is expert in the technology and the market Show Attractiveness of the market, Price you can charge, Competitive advantage Have the plan read by a financial advisor and account Better have the plan read a legal advisor to avoid later trouble –“ Investors are guaranteed an attractive financial returns ” –Put standard boilerplate The Executive Summary, The Company, The Product or service, The market, Competition, Sales and marketing, Operations, Financials, Appendix 로 구성
Business Plan Contents – 1/4 Executive Summary –Most critical, first impression of the venture –Should be written last –Briefly explain The company ’ s status and its management Product or services and benefits to users Market and competition A summary of the company ’ s financial prospects Amount of money needed and how it will be used The Company –Company ’ s origin, objectives and management –How the company will be organized, who will fill these roles, and their responsibility –Background on the founders
Business Plan Contents – 2/4 The Product or Service –Details on product: What needs does the product meet - compared with competitor ’ s –If already in use, the usage, results, customer testimonials –If not manufactured, key milestones in the process –Patent and proprietary technology The Market –Size, rate of growth, purchasing characteristics. –The company ’ s perspective on the market –Reaction from the market
Business Plan Contents – 3/4 Competition –Competitive firm and products. Competitor ’ s product, price, marketing approach Sales and Marketing –Explain how the product will be sold –How target customers identified –How awareness will be built through advertising, promotion, direct mail, etc. –Detail distribution channel, direct sales force, reps, direct mail, etc –Address product introduction strategy to the marketplace
Business Plan Contents – 4/4 Operations –How the product manufactured Facilities, subcontractors, equipments Financials –5-year financial projection –Income statement, balance sheet, cash flow forecast, break-even analysis, –Highlight sales, earnings, cash surplus in summary form –Driven by documented assumption in units and price –Amount of money sought –Anticipated exit route for the investors. Appendix –Resume of all key personnel, their responsibilities –Portray them as a well-balanced team –Other supporting documents
What is a Board of Directors The law requires a corporation to have a board of directors to protect the interests of the corporation and shareholders An effective board can also provide independent advice and act as a check to the CEO But for small companies, usually founders
Goal of Ownership To treat each founder as fairly as possible –Success of company depends on each founder working hard Each founder must be satisfied that the ownership arrangement is fair
Questions for Determining Ownership Who will own what percentage of the business? Who will actually be in control? What property and how much money will be contributed to the business by each founder? How much time will the participants be expected to devote to the business? What incentives will be provided to remain with the business? What happens when a founder leaves? What protections does a founder have against being kicked out of the business? Are there other persons who were involved with the business who are not currently actively involved?
Ownership Splitting the pie can be the most difficult decision –Determines who benefits from the company's success and to what degree Often an avoided issue –Delaying resolution of this issue can be disastrous Consider almost any contribution to the business that you think should be recognized –Cash and property contributed to the company –The nature of contributed property –Future contributions expected from each founder Cash, property, time and effort (sweat equity), or technical or business expertise –The opportunity costs each founder will incur by joining the business
Ownership: Be Fair, Not Equal Establish a fair formula for the distribution of shares of stock among the team members Fair does not mean equal! Valuation is negotiable among the team members –Any value that is agreeable to all is appropriate and fair
Ownership High tech startups frequently distribute stock options instead of stock –Allows the team to avoid paying tax on stock Team members want to have the right to vote in shareholder meetings –Options have no voting rights on holder Make your team member remain employed in firm –Issue the shares over a period of three to five years with so many for each year
Maintaining Control 51% Closely held ( founding team) A few shareholders have over 50%
Funding Pre-seed Seed Startup Early (First Stage) Venture Late stage venture
Funding: Pre-Seed Small amount of funds required by the nascent entrepreneurs in order to define their value proposition, convince themselves of the viability of the concept and initiate activity Primarily self-funded or provided by the 3F –3F: Friends, Family and Founders. $150,000
Funding: Seed Small amount of capital provided to an inventor or entrepreneur to prove a concept and to qualify for start-up capital Involves –Product development –Market research –Building a management team –Developing a business plan
Funding: Startup Provided to companies completing product development and initial marketing Companies may be in the process of organizing, or they may already be in business for one year or less, but have not sold their product commercially
Seed and Startup Sources Self Individual Angel investors Customer financed Non-diluteable equity sources Firms in these stage are high tech startups with no sales Funding required is often less than $500,000
What is an Angel Investor? An affluent individual who provides capital for a business start-up, usually in exchange for ownership equity Unlike venture capitalists, angels typically do not manage the pooled money of others in a professionally-managed fund Angel investors often organize themselves into angel groups to share research and pool their own investment capital
Roles of Angel Investors Angel capital fills the gap in start-up financing between the 3F and venture capital Angel investment is a second round of financing for start- ups –Difficult to raise more than $100,000~$200,000 from friends and family –Venture capital funds will not consider investments under $1 ~ 2 million Accounts in total for more money invested annually than all venture capital funds combined –US$24 billion vs. $22 billion in the US in 2004 According to the University of New Hampshire's Center for Venture Research
Funding: First Stage
Provided to companies that have expended their initial capital and require funds to initiate full-scale manufacturing and sales Traditionally been funded by Venture capitalists –Increasingly being addressed by angel networks and large firms interested in strategic partnerships The typical placements are under $2,500,000
How Venture Capitalists Work 1/3 The classic approach is for a venture capital firm to open a fund –A fund is a pool of money that the VC firm will invest The firm gathers money from wealthy individuals and from companies that have money they wish to invest The firm will raise a fixed amount of money in the fund –For example, $100 million
How Venture Capitalists Work 2/3 The VC firm will then invest the $100 million fund in some number of companies –For example, 10 ~ 20 companies Each firm and fund has an investment profile –For example Biotech startups Dot Com businesses A mix of companies that are all preparing to do an IPO (Initial Public Offering) in the next 6 months The profile that the fund chooses has certain risks and rewards that the investors know about
How Venture Capitalists Work 3/3 The Venture Capital firm will invest the entire fund and then anticipate that all of the investments it made will liquidate in 3 to 7 years. –“ Go public" (meaning that the company sells shares on a stock exchange) –Be bought (acquired) by another company The cash that flows in lets the VC firm cash out and place the proceeds back into the fund The goal is to have made more money than the $100 million originally invested The fund is then distributed back to the investors based on the amount each one originally contributed
Funding: Last Stage
Investment financing: –Company product –Market expansion –Keeping the company financially healthy shortly before a liquidity event Typical placements in this stage are under $5,000,000
Funding: Last Stage 상품 학술정보 기술 이익 창출
Run Business Forever? Not everyone who starts a business wants to run it forever Some may want to get the business going, make it profitable, and then sell their share in the company and move on Some do it because they enjoy the challenge of starting new companies Some want to get rich and then retire or repeat the process and get richer
Exit Strategy Exit 은 투자된 자본이 빠져 나가는 통로 IPO, M&A 를 통하여 수십 ~ 수백배 이익 실현 Exit 이 원할해야 투자자금과 우수인력이 벤쳐업계에 집중 IPO 는 벤쳐기업 성공을 측정하는 잣대 중 하나 – 자본시장의 가치평가가 가능한 단계 – 사업으로서 일정 수준에 오른 것으로 인정 미국에서 창업이후 NASDAQ 등록까지 4~5 년 소요 IPO 로 진입기회가 많은 반면 퇴출가능성도 높음 IPO 이후는 더욱 전문 경영 체계로 운영해야 –High risk high return 보다는 안정된 방향으로 사업 전개해야
Liquidity Initial Public Offering (IPO) Acquisition
What is an IPO? Initial Public Offering When a privately owned company issues shares of stock to be sold to the general public The company is no longer privately owned, but is owned by a variety of investors
Why IPO? When a company is privately owned, people who helped fund the company all hold shares in the company –Those shares have little value since they are not publicly traded After the company's IPO, those shares can increase in value by a huge margin. –Anyone who has a lot of those shares could become very rich by selling them
Acquisition A tool used by companies for the purpose of expanding their operations and increasing their profit
Acquisition Examples Adobe Systems Inc. acquires Macromedia Inc. –$3.4 billion Paramount/Viacom acquire DreamWorks –$3.1 billion The Walt Disney Company acquires Pixar –$7 billion. Google acquires YouTube –$1.65 billion
Ideal Habitat: Features Favorable “ Rules of the Game ” Strong value-added business services Free flow of capital to most effective uses Free flow of people to best application talent Free flow of ideas to enhance collective learning Global linkages to other industrial clusters
Ideal Habitat Presence of a high-quality work force Flexible and mobile work force –Low mobility favors old companies –High mobility favors new companies Business climate the rewards risk taking and does not punish failure Open business environment – “ It ’ s a positive sum game ” Presence of venture capital industry that understands high-tech Ready acceptance of diversity and youth
Ideal Habitat Presence of research institutions and universities that effectively interact with industries –Co-evolution of ideas Community dynamics of collaboration between business, local governments, and the independent sector Presence of a modern communication infrastructure High quality of life in the community
Silicon Valley Way
싸이월드 와 메디슨 vs 과연 그들은 무엇이 달랐을까 ?
설립배경 및 회사소개 (Cyworld) 1999 년 설립 KAIST 벤처 동아리인 EC-Club (Electronic Commerce Club) 에서 출발 인터넷상에서 ERP 시스템 및 커 뮤니티 프로그램 연구 개발 중 착 안하여 기술 개발 ( 기술 및 BM 특 허 4 건 ) KAIST 박사과정 5 명이 사업 핵심 추진 주체로 출발 이동형, 형용준 등 (6 인 ) 꾸준한 인터넷 커뮤니티 서비스 운영을 통해 축적된 우수한 능력 의 커뮤니티 기획, 디자인, 개발 인 력이 포진되어 있다. 실명제 인맥 기반의 가상사회, 신 뢰기반의 정보공유를 컨셉 사람과 사람 사이의 친분관계를 형성 및 범용 커뮤니티 서비스
설립배경 및 회사소개 (Medison) 1985 년 KAIST 출신 박사들을 중심으로 벤처형태로 설립한 종합 의료기기 업체 초음파 진단기 분야는 기술, 자본집약분야임을 깨닫고 매출 15% 연구개발에 집 중투자 1995 년 국내최초로 컬러영상 초음파진단기 개발 오스트리아의 kretztecknik 와 일본의 acoma x-ray industry 를 인수하여 3 차원 영상기술 확보 및 4 차원 초음파 진단기개발. 신규사업으로 의료영상정보사업 진출. 자율적인 생산방식의 운용으로 초음파진단기의 가격경쟁률을 국내와 국외에서 각각 40%, 30% 확보했다. 사무소와 연구소, 홍천 공장을 잇는 정보통신망을 구축하는 등 조직 내 정보운영. Spin – off 방식으로 신규사업 진출 메디슨을 주축으로 20 여개의 의료정보전문업체들이 모여 메디슨 연방 출범 무분별한 벤쳐투자와 코스닥의 위축으로 투자자금 회수 불능, 유동성 위기. 초음파 진단기 시장의 급격한 위축과 대기업의 시장점유율 잠식 시작. 단기적인 유동성위기를 막기위해 중요 자회사인 오스트리아의 kretztecknik 경쟁사에게 매각.
회사연혁 ( 싸이월드 ) – : ㈜싸이월드 법인 등록 – : 싸이월드 오픈 – : 미니홈피 서비스 시작 – : 유료서비스 선물가게 정식 서비스 시작 – : 미니룸 서비스 시작 – : ㈜뮤직시티와 제휴하여 ‘ 뮤직샵 ’ 오픈 – : SK Communications 합병 – : 제 1 회 싸이데이 개최 (4 월 2 일 ) – : Mobile 싸이월드 서비스 open – : Mobile 싸이월드 WAP 서비스 open
회사연혁 ( 메디슨 ) 1985 메디슨 창업 1985 KAIST 연구원 중심으로 ( 주 ) 메디슨 설립 1986~1989 국내시장 진입 1986 첫 제품 SA 3000 출시 1988 강원도 홍천군 농공 단지 내 제 1 공장 준공 1990~1995 해외시장 공략 1990 SA 88 FDA 승인 1991 제 1 회 VENTURE 기업 대상 수상 1991 러시아 공화국 경협 3000 만 $ 수출승인 1992 홍천 제 2 공장 준공 1994 국제 품질보증 규격 ISO 9001 획득 1996~1998 기술에 의한 세계도전 1996 주식시장 상장 1996 오스트리아 KRETZTECHNIK 사 합작 1998 세계 최초 4D Ultrasound 개발 제품 발표회 1998 ATL 과 초음파 진단기 사업 전략적 제휴 계약 체결 1999~2000 초 생명 기업을 통한 성장 개 회사 spinout ( 써텍, M2 Comm., Future) 2000 해외자회사 ‘ 크레츠테크닉 ‘ 유럽 증시 상장
싸이월드가 성공 할 수 있었던 이유 이용의 편의성 마치 자신의 집을 꾸미는 듯한 느낌의 UI 를 통해 좀 더 이용을 용이하게 하 였다. 적절한 target marketing 감성마케팅 ( 고객의 기분이나 감정에 영향을 미치는 음악, 향기, 이미지 등 을 통해 상품 판매를 촉진 ) 을 이용해 인터넷 사용이 적었던 여성회원들을 회원으로 확보 폰카, 디지털 카메라의 보급 확대 다른 사람들과의 관계를 통해 커뮤니케이 션 하려는 한국네티즌들의 욕구에 부합 적절한 타이밍의 인수합병 (M&A)
Medison 이 실패 한 이유 (1) 무분별한 차입경영 주식시장의 활황 → 보유주식의 값급등 ( 믿고빚얻음 )→ 벤처기업사냥 → 코스닥시장에 거품이 빠지고 주가가 급락 → 투자자산 부담 → 신용등급이 투기등급으로 낮춰짐 → 현금흐름이상에 단기부채 끌어씀 → 빚 연간 매출액의 1.5 배 적절한 대응 미흡 3000 억원의 부채는 언제든지 갚을 수 있다고 생각 → 이후 재무구조 조정시기를 놓치면서 메디슨의 경영은 급속도로 몰락 → 2000 년 10 월 무한기술투자지분 매각,11 월 한글과컴퓨터 주식 250 만주 매 각, 지난해 4 월 메디슨 엑스레이 사업 매각,7 월 크레츠테크닉 매각 → 때늦은 대응이어서 상황을 호전시키기에는 역부족
Medison 이 실패 한 이유 (2) 명분에 너무 충실, 경영을 소홀히 함 2000 년 6 월 한신평에서 신용등급을 내리기 전부터 한글과 컴퓨터 등 보유 주식을 팔아 부채를 갚는다는 방침을 정했다. 하지만 이 회장은 한글과컴 퓨터에 대한 두 가지 원칙을 세웠다. 하나는 ‘ 국내기업에 판다 ’ 이고, 다른 하나는 조금씩 내다 팔지 않고 ‘ 한꺼번 에 기관에 판다 ’ 는 것이었다. 남의 손에 넘어가더라도 경영권은 안정돼야 한다는 판단에서였다. 그러나 이 두 가지 원칙을 고집하다 보니 제때 주식 을 처분할 수 없었다. - 이후 이회장은 “ 기업인이 기업을 먼저 생각하지 않고 국가정책과 시장부 터 생각한 것은 잘못된 판단이었다. ” 고 털어놨다. 방만한 투자 전공분야인 의료기기 개발과는 연관성이 없는 사이버키스트 ( 온라인 교육 ), 벤처캐피털 등 여러 분야에 걸쳐 800 억원 이상을 투자. 다양한 분야의 벤처기업들을 사 모아 ‘ 벤처연방체 ’ 를 구성한다는 것이 이 회장의 꿈이었다. 벤처연방체의 시너지 효과를 예상하였으나, 과다한 투자 로 비효율이 더 컸다.
Competitive Advantage: Start-ups and Established Firms Characteristics –SU ’ s Stockholders and managers are more risk taking –SU ’ s Managers and key employees have a significant ownership position –In SU, Individual incentives support adding value to the entire enterprise –SU has less internal competition –SU is more responsive –SU may attracts different people – flexible reward system –SU has lower overhead –EF focus on larger potential markets and profits –EF has sales and marketing infrastructure, established channels. –EF has system that design and deliver products –EF has more financial power SU > EF in business where –Higher than normal risk –Niche market –Product/service utilize new technologies and architectural innovation –Speed and flexibility of response are key to competitive position –Product/service that can be developed less expensively w/o high overhead
Lasting Advantages ? Can your product be copied by an EF w/ strong marketing channel ? If your niche market turns into large market, can it be entered by an EF ? If Yes, then –Sell to an EF Technology, employees, customers –Grow quickly to have the advantages of a large company
References 2005/readings/Entrepreneurship.ppt mgtclass.mgt.unm.edu/Walsh/ html m