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Sweden – USEntrepreneurial Forum 2009
How to Fund Your Company in Turbulent Economic Times
Sources of Funds
• Self-Financed• Friends & Family• Angel Investors• Venture Funds• Government Programs• Strategic Partners• Suppliers• In-Kind Investors• Service Providers
Realities of the Current Market
• Smaller Private Kroner All Around– Venture Capital Funds– Venture Capital Investments– Angel Investors– Angel Investments
• Greater Government Kroner in Many Countries
• Reduced Appetite for Risk• Changing Regulatory Environment
Strategies & Tactics
• Be 110% Prepared for Meetings• Use Milestones Whenever Possible• Conserve, Conserve, Conserve• Consider Cross Border Alliances • Understand Your Fundraising Audience– Domestic– US
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30.00%
40.00%
50.00%
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Venture Investing By Stage
Startup-SeedEarlyExpansionLater
6
2,500 Business Plans
25 VC Investments
5 Wins
The Venture Fund Lifespan Funnel
7
Historical Realities
• Venture capital funding rate 1-2%
• Venture capital success rate 10-20%
• Venture capital failure rates 20-40%
• Investment IRR hurdle rates driven by these statistical realities
Ultimate Reality
• Fundraising is Always Hard• Even in “Easy” Fundraising Environments
Some Opportunities are Shut Out• Being Entrepreneurial Means Adapting to
Change• If this were easy, everyone would do it. It is
the hard that makes it great.
