Rupesh Chatwani - Technology VC at EBRD Angel/Advisor

Let’s get Serbia rocking!

Rupesh Chatwani
EBRD Technology Venture Capital

www.ebrd.com/vc @rupechat

This guy has done a pretty good job!


And so have these guys (and girls)!


But we need to do more…
© EVCA
 Private equity investment in 2011 as % of GDP:


A lot more!
© EVCA
 Annual PE investments, 2007-2011 (in € million):


Why does it matter? One word - Jobs!
Not Him (RIP)! But Him (or Her)!


Really? Do PE investments help?
© IFC
 Job creation effects of IFC-supported PE funds:


What about IT? Let’s look at the US…
© Phillip Bond, TechAmerica
 Each technology job supports 3 jobs in other sectors
of the economy
 The multiplier effect for IT jobs is even higher – nearly
5 to1
 >375,000 IT businesses, employing >5.9m workers at
an average wage 86% higher that the average
private-sector wage
 (App Economy alone = ca. 0.5m new jobs)
 By 2018, IT jobs are projected to grow by 22%, the
fastest for all professional occupations


So what does it take?
 3 ingredients to building a technology ecosystem:
 Talent
 Access to funding
 Culture
 Also nice to have:
 Economic activity
 Favourable taxation
 Investor protection / corporate governance


There are some very encouraging signs…
© AngelList
 Number of startups listed on AngelList by Country:


And already some success stories!
© Branko Milutinović, Nordeus
 #1 online sports game: 200+ countries, 35 languages
 Founded in 2010, bootstrapped, 100% founder owned
 15% monthly revenue growth, 80 employees
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
5/9/10
6/9/10

8/9/10
9/9/10

1/9/11
2/9/11
3/9/11
4/9/11
5/9/11
6/9/11
7/9/11
8/9/11

1/9/12
2/9/12
3/9/12
4/9/12
5/9/12
6/9/12
7/9/12
8/9/12
9/9/12
7/9/10

9/9/11
10/9/10
11/9/10
12/9/10

10/9/11
11/9/11
12/9/11


Plus it has never been easier!
© Saul Klein, Index Ventures
Tell Stories Sell

Work Raise Money


Funding should accelerate your business
© Graham O’Keeffe, Joy Capital


Sources of business funding
© Graham O’Keeffe, Joy Capital


How can we help?

+


Who is the EBRD?
 Largest single investor in the region (29 countries)

 3,374 projects (since 1991)
 €71b (business volume) / €211b (project value)
 1,877 staff across 33 regional offices


We are already very active in Serbia

EUR m No. of operations
700 35
31
600 28 30

24
500 25 Serbia
21 Convertible debt and
Equity
400 20
Euro 7.5 million
15
300 15 2009

200 10

100 5
Serbia
216 127 444 598 526
- - Equity and Debt

2007 2008 2009 2010 2011
Euro 16 million
Annual business volume Number of operations
2007


With a wide range of financing sources…

Loans Equity

 Senior, subordinated, convertible  Common stock or preferred

 LT (up to 10y or more) or  Minority position only (up to 35%)
ST revolving
 Mezzanine
 Floating/ Fixed rates
 Other
 Choice of currencies (€, US$,
– guarantees
RUB etc.)
– currency swaps


And other facilities for SMEs
 Indirect financing instruments
 Through banks and microfinance institutions
 Through equity funds
 Direct financing instruments
 Local Enterprise Facility
 Direct Investment Facility
 Direct Lending Facility
 Medium-Size Co-financing Facility
 Non-financial instruments
 Turn-Around Management and Business Advisory Services


What is EBRD Venture Capital?
Dedicated Team Dedicated To Region

Dedicated Facility Dedicated To Tech


What do we look for?
 Early and growth stage technology companies with:
 An innovative, technology-based solution or business
model;
 A defensible competitive advantage;
 A large addressable market;
 The potential for fast growth;
 An ambitious, motivated and committed management
team; and
 The ability and desire to create value for shareholders
 We are VERY picky! And NO seed stage!


How do we invest?
 Equity (usually preferred equity)
 €1-10 million (over the lifetime of the investment)
 Minority position
 Syndication
 Board seat (active hands-on)
 Standard venture capital rights and terms including:
 Anti-dilution protection
 Pre-emption, drag, tag and registration rights


How do we help?
 Strategic advice
 Recruiting and hiring
 Introductions to partners
 Increasing profile and visibility of the company
 Internationalization of the business
 Exit planning and optimization
 And much more…


How should you pitch us?
 Check us out first – is there a fit?
 SHORT slide deck – with all the key information:
 Investment overview
 Customer value proposition
 Market size and structure
 Competition
 Differentiation
 Route to market
 Customers
 Management team
 Financials


Don’t forget - picking winners is hard
© Paul Graham, Y Combinator
 The best startup ideas seem at fist like bad ideas
 Consider Facebook: How lame. A site for college
students to waste time? The perfect bad idea, a site:
 For a niche market
 With no money
 To do something that didn’t matter
 Even Google seems like a bad idea – lots of search
engines already – was there room for one more?
 When you pick a winner, you won’t know it for 2 years
 Fundraising is not merely a useless statistic, but
positively misleading

Thank you!

Questions?


Rupesh Chatwani - Technology VC at EBRD Angel/Advisor

Recomendados

Recomendados

Mais conteúdo relacionado

Destaque

Destaque (16)

Último

Último (20)

Rupesh Chatwani - Technology VC at EBRD Angel/Advisor