Startnowhow - Opportunity Recognition and Evaluation

08.12.2014

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BIC Angels Investments

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Profile of an Investor...

• Male (%70-%95)

• Aged between 35-60

• University graduate

• Proven track record as an Entrepeneur or

Professional

• Can dedicate 1 day minimum for the startup

• Can invest 100K –1M TL into a startup (%20 of PA)

• Willing to open his/her network for the startup

• Knows the industry he/she is investing in

• Geographically close

Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar 13.Nov.2014

Why be an Investor … *?

• Monetary gain

• Personal Gratification

• Diversification of portfolio

• Contibution to the economic development of the society

• To keep oneself busy

*Not necessarily in this order

Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar 13.Nov.2014

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An Investor invests in … • Projects they easily understand

• Projects that excites them…

• Projects they can contribute to ..

• The team .. interity , dedication , focus ..

• Founders they can communicate with

..’coachable’

• Projects of reasonable size

• Startups with not too many shareholders

Source : Prof. Erhan Erkut MEF Universitesi; BIC Angel Investor Seminar 13.Nov.2014

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Selection Committee and Lead Investor

• Selection Committee

• Consists of 4-8 members of BIC Angel Investments, efforts 1-2

hrs/week

• Evaluates 1st round candidates, if interested participates in 1st round

meetings, public and partner pitching events Istanbul / Izmir / Ankara

• Selects 2nd round candidates

• Supports continuous improvement of startup selection process

• Lead Investor

• Elected from BIC Angel Investors of respective startups

• Takes lead in mentoring, coaching and supporting founders

• Initially weekly, later at least monthly meetings

• Represents BIC Angel Investors in startup, coordinates cooperation

• Becomes nonexecutive member of BoD, protected by BoD insurance

• Invites to, and runs monthly founder-investor business development

meetings

6 BIC Angels Investments 08.12.2014

Out of 100 Startups

seeking investment

• The ones which are elected after a 2-3

minute presentation • 30 minutes evaluation 60 red 40

• 3 hours evaluation 25 red 15

• Fullday evaluation 10 red 5

• Terms-conditions 3 red 2

• GO AHEAD ……..........................2

Source : Prof. Erhan Erkut MEF Üniversitesi; BIC Angel Investor Seminar

13.Nov.2014

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Investment Criteria….of Projects

Main consideration: Founder‘s capabilities

- Capable, skilled and, if possible, experienced team (preferred 2-3 founders)

- Willing to listen and share no ego, open minded , transparent

- Full commitment and low salary expectations necessary,

8/12/2014 8 BIC Angels Investments

Markets

Business Model

Life Cycle Financing

Acceptable Valuation

Capable Founder &Team

Added Value

Sustainable and scalable business model targeted

- Supporting lean startup approach, start with minimum viable product (MVP)

- Proven and tested business model before spending for marketing & sales

Startup financing

- Startup / early growth (first round) financing preferred

- Seed financing in exceptional cases

Valuation in line with current Turkish market conditions

- Target post-money valuation start up financing: 1-2 Mio TL

- Deviations for seed financing (-) / Early growth financing (+)

Investments into Turkish Internet / ecommerce /other markets

- Criteria: Market size, market growth, entry barriers, global reach

Cooperation with BIC Angel Investments adds value to the venture

- Cash injection can push business

- Mentorship and support services can add significant value to the business

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Stage 1: Sourcing and Initial Screening

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Stage 2: First Pitch and First Analysis


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Stage 3: Second Meeting / Full Analysis


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Main Reasons for Failure

12 BIC Angels Investments

Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.2 68

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CASE 1


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CASE 2


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28 BIC Angels Investments

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CASE 3


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THANK YOU

Turhan Beriker

[email protected]

Startnowhow - Opportunity Recognition and Evaluation

Business

bic angel investmentsprofile

bic angel investments08

round financing

lean startup approach

startup of pa willing

round meetings

round candidates

founders willing