Presentation on Fundraising

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Startup FinancingFounder Institute – June 29, 2011

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

about.me/FilipTack

► Co-Founder at Nomadesk, a leading provider of cloud storage, file sharing and synchronization software that enables users to access, share, synchronize and safeguard files from any location, whether online or offline.

► Co-Founder at Carambla, a real time Marketplace for parking.

► “Startup executive” with a predilection for disruptive innovation and startup business (SaaS, Cloud Computing); raised over € 7 million in venture capital (seed, series A and B).

► Nomadesk is venture-backed by Gimv, BAMS Angel Fund and BAN Vlaanderen. Received the EBAN Award for “Most Successful Angel-Backed Company” in 2009

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Who We are

► Nomadesk offers the easiest and most secure way to share files for professionals.

► What Customers Say – How We Compete:– “Zero thought, in-the-flow file sharing and data

security”– Nomadesk at Kirsten Realty– Nomadesk at CEO Collaborative Forum

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

• Nomadesk creates virtual drives on your computer that are mounted like a hard drive and act like a fileserver

• “Drag-and-drop” a file in the Nomadesk drive and it is automatically…

How Nomadesk Works – “5 Magical Things”

shared with other people you’ve invited

synchronized to your other computers

backed-up to a secure data center; compliant with EU privacy laws

encrypted and stored locally on your computer;offline availability

256-bit encryption mobilized and made accessible via any smartphone, tablet

Drag-and-Drop

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Tough Cookie: The Odds…

► …are against us!

– Idea to IPO 6 in 1.000.000– Plan to IPO 6 in 1.000– Funded to IPO 1 in 10

o (source: Saratoga Venture Finance)

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Tough Cookie: The Financing (Dutch)

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Funding Resources

1. FFFF (“Love Money”) is insufficient2. Banks offer credit on collateral:

– Team risk– Product risk– Market risk

3. VC-funds are only interested in large deals:– Team risk– Product risk– Market risk

4. PE-funds are only interested in super-large deals (leveraged by n°2)– Team risk– Product risk– Market risk

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

The Mission…

“patience”

“guts”

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

timeSweat equity Seed money Start-up Expansion

Entrepreneur

Business Angel (syndicate)

CF

Venture Capitalist

Bank

engineeringprototype

know how timeresearch

1st marketingplan

proof of conceptproduct dev. business planproductionprototype

1st personnelstart marketingmanagement teammarket studies

workingcapital

helpdeskmaintenanceproduct enhancements

regionalmarketsegment

marketing plan

Staged Financing, a “Bumpy Ride”

Nomad

esk

2012

PrototypeProduct

introduction Marketing

Expansion

Sales

Concept

Productsupport

2004:Founder Funding

2005:Angel Funding

2007:“Series A” VC Funding

2010:“Series B” VC Funding

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Founders – Friends – Fools – Family

► FFFF = insufficient €► FFFF = risk profile?► FFFF = experience?► FFFF = expectations?► FFFF = fragmented capital structure?

► Founders – Friends – Fools – Family

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Business Angels – Venture Capital

► Think “Dilution” – and come to grips with it!► Think “EXIT”!► “Do You Want To Be Rich, Or Be the King?”

– paradox: when founder-CEOs do well, it increases the chances that they’re going to be replaced.

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

► Business Angels:– Small pockets– Heterogeneous (“risk”,

“professionalism”, etc.) hard to manage!

– Deal makers/breakers– Project-driven– More “hands-on”– Fragmented

shareholder structures (risk-management)

– To be discovered…

► Venture Capital:– Deep pockets– Fragmented landscape

“Deal Flow” trap!– Bitingly professional– Portfolio-driven– More “hands-with”;

“hands-off”?– Simple shareholder

structures (liability-management

– To be discovered...

BA versus VC

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Key Considerations – For Entrepreneurs

► The (founder) CEO should acknowledge that:– The “risk-capital supply chain” is what it is – for good

reasons; hardly any short cuts (YOU BA VC Banks?!)

– Interest of BAs and VCs are not fully aligned:o Project-drive (BA) versus portfolio-drive (VC)o Same trousers YET smaller pockets

– Conflicts will arise, so become a referee!– You need help:

o Build a balanced boardo Independent directorso Peer networks/mentor

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Five for the road for entrepreneurs...

1. Team2. Commitment (“Skin in the game”)3. Business idea; i.e., Exit potential4. So… bootstrap!:

– Tests team dynamic– Demonstrates commitment– Validates business idea

5. Be flexible, avoid complex deal structures

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

If the going gets tough, NEVER forget that...

► “One of the greatest pains to human nature is the pain of a new idea. It makes you think that after all, your favourite notions may be wrong, your firmest beliefs ill-founded.Naturally, therefore, common men hate a new idea, and are disposed more or less to ill-treat the original man who brings it.”

o Walter Bagehot (1826-1877); a British journalist and early editor of “The Economist” specialised in institutional economic issues.

This document is strictly confidential and must not be given to any third party, or be reprinted or copied in whole or in part without the prior consent of the author. © 2012 Nomadesk, Inc.

Contact

Filip TACKFounder

[email protected]/nomadesk

about.me/FilipTack

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