1. Overview on financing instruments: Which instruments suit which business idea? ICT 2013 Conference Matthias Frieden, Go Beyond Investing 1www.eig-project.eu

2. Agenda 4 3. Where to seek funding 4. How to become investment ready 5. How to manage a financing round 6. How to manage investors and follow on rounds 1. How to design a financing strategy 2. What Relevant funding sources www.eig-project.eu

3. 1. Define stage of development and source of funds Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Prizes, Grants, Government Support Commercial Banks Equity markets Equity Gap Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu

4. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

5. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

6. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

7. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Prizes, Grants, Government Support Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu

8. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

9. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

10. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

11. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

12. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

13. 2. The different funding sources Seed Start –Up Series A & B Expansion Established Up to €50K Up to €500k €500k to €1M €750k upwards €50M upwards Founders, Family & Friends Venture capital Private Equity Commercial Banks Equity markets Business Angels Equity crowdfunding 6 Families & Strategic Investors Suppliers and/or customers www.eig-project.eu Prizes, Grants, Government Support

14. 3. Where to seek funds? 11www.eig-project.eu Business Angels & Venture Capitalists Startup competitions, grants & funds Equity crowdfunding platforms

15. 4. How to become investment ready 12 Executive Summary Elevator Pitch Management team & organization Product or service Market & competition Financials Exit Plan Communication vehicle Components of the business plan/power point presentation (slide deck) www.eig-project.eu

16. 5. How to manage a financing round 13 13457810 6 2 9 Legal Documents & activities General Activities Due Diligence to the entrepreneur and investor Week Articles of association Virtual and Physical pitches Executive Summary Long and short powerpoint presentation Term Sheet Shareholder Agreement Subscription Form Power of attorney Open an escrow account Fix an appointment in notary If project: constitute the company General Assembly Build and review a work plan: credible timeline Create the buzz G GETTING ACQUAINTED NEGOTIATIONTRANSACTION NDA www.eig-project.eu

17. 6. How to manage investors & follow on rounds 14 Do you think closing is the ending… - no, it’s just the starting point ! How to manage investors? How to prepare for follow on rounds www.eig-project.eu

18. Summary thoughts Fundraising is time consuming and carries an emotional drain Treat your investors like allies – and like humans Communicate clearly and listen to what the other party says – an outside opinion is a most precious gift Do Due Diligence on your investors: what value can THEY bring beyond money? Create buzz: financing a company on a cold call is (nearly) unheard of 15www.eig-project.eu

19. 16 Thank you www.eig-project.eu