"How do VCs support their startups from seed to Series A?" By Romain Lavault

HOW DO VCS SUPPORT THEIR STARTUPS FROM SEED TO SERIES A?

BY ROMAIN LAVAULT

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HOW DO VCS SUPPORT THEIR STARTUPS FROM SEED TO SERIES A?

ROMAIN LAVAULTGENERAL PARTNER @ PARTECH VENTURES

@ROMAINLAVAULT

March 2016

2 Partech Ventures - Confidential

About me… •  Engineer & Rocket Scientist •  Married and Father of 3 •  Aircraft Pilot and Boxer

•  10 years as Startupper in Machine Learning Software •  Raised 5M€ in Seed in 2002 •  Exit for $36M in 2011

•  VC since 2013

•  Raised 2 Seed funds, 3rd in progress

•  Made 63 investments in Europe and US

•  Sold companies to:

3 Partech Ventures - Confidential

Team mates - in San Francisco, Paris, Berlin

Omri Benayoun General Partner

Philippe Collombel Managing Partner

Bruno Crémel General Partner

Nicolas El Baze General Partner

Reza Malekzadeh General Partner

Mark Menell General Partner

Jean-Marc Patouillaud Managing Partner

Olivier Schuepbach General Partner

Otto Birnbaum Principal

Jai Choi Venture Partner

André François-Poncet Senior Associate

Boris Golden Principal

Romain Lavault General Partner

Christelle Pariat Chief Financial Officer

Marie Raichvarg General Partner Partech Shaker

Nico Valenti Gatto Open-innovation Principal

Marie-Hortense Varin Senior Associate

Delphine Villuendas General Counsel

Alban Wyniecki Principal

Claire Godron Senior Associate

Emmanuel Delaveau General Partner

5 nationalities, an average of 12 years of investment experience, 50 deals closed in 2015

4 Partech Ventures - Confidential

Looking for the next game changers

4

5 Partech Ventures - Confidential

What makes me tick (these days)

1.  Augmented / Virtual Reality

2.  Artificial Intelligence / Assistants

3.  Enterprise Bots

4.  On-Demand Economy

5.  HealthTech

6.  CyberSecurity

7.  EdTech

8.  FinTech / InsurTech

9.  IoT & Consumer Hardware

10.  Blockchain as a service

6 Partech Ventures - Confidential

Exceptional Team Story & Purpose

Momentum Emerging Tech /Markets

What we look for in Seed

7 Partech Ventures - Confidential

Some of the coolest startups I back

8 Partech Ventures - Confidential

Some of the coolest startups I back

9 Partech Ventures - Confidential

Some of the coolest startups I back

10 Partech Ventures - Confidential

Huge exits are very rare

11 Partech Ventures - Confidential

The majority will fail

2009-2010 cohort

12 Partech Ventures - Confidential

Funding and Exit Value are correlated

Source: Crunchbase

The average successful US startup has raised $29.4M and sold for $155.5M (5.3X) The average IPO-ed startup raised $162M before going public

13 Partech Ventures - Confidential

Time and Exit Value NOT correlated

14 Partech Ventures - Confidential

The key Series A criteria

MOMENTUM

…works for M&A too!...

15 Partech Ventures - Confidential

Managing your runway vs momentum

16 Partech Ventures - Confidential

Raising money from a VC

17 Partech Ventures - Confidential

Raising from a VC: it is not about money

We are enablers & influencers: •  Create suitable conditions for growth

•  Help you hire game-changing talents

•  Ask the right questions to help you think & decide

•  Provide feedback, advice, guidance & insights

•  Share patterns, frameworks, data & best practices

•  Be there to listen, coach & empower you

•  Connect you with the right people / open doors

•  Facilitate next financing rounds and M&A.

18 Partech Ventures - Confidential

Case Study KEY STEPS •  Met Founders at ScPo incubator •  Raised 1M€ round •  Decision to triple burn rate •  Partech Shaker + telesales •  Recruited top guns (COO, CMO) •  Acquired competitor •  Opened office in SF + 3 countries •  Sell to 33 countries (1,000 clients) •  70 people after 12 months •  130 integrations/partnerships •  Signed with Accor Group •  Second round •  Acquisition by Booking.com

19 Partech Ventures - Confidential

Monthly Email Update* Strategy Sessions

Network w/ Portfolio Real-time Crisis Mgmt Share Hiring Plan

Here is how to get the most value from your investors:

*Include what’s going well / not well, key metrics, hiring update, financing update, roadmap, help wanted

Specific Intros

The Slingshot effect in practice

20 Partech Ventures - Confidential

Shipping your product: from Beta to 1.0

•  Only ship features that work perfectly

•  Customer support from Day 1

•  Track users throughout the

funnel and inside product

•  Learn how adopters use your product

•  Communicate constantly with user base

21 Partech Ventures - Confidential

Growth Hacking strategies (sample)

22 Partech Ventures - Confidential

What to track (for Series A)

•  DAU/MAU •  Cohorts •  Conversion rates •  Session times •  Virality (if any) •  CPV/CPI/CAC •  Repeat business •  LTV (if any)

23 Partech Ventures - Confidential

Story telling (but always be selling)

24 Partech Ventures - Confidential

Final thoughts: US/Europe differences

March 2016

QUESTIONS?

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