Building a Winning Team

Building a Winning Team - Erik Sander: EGN6640 1...

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1 1 Erik Sander: EGN6640 ± TheValue Proposition ± Management, management, and management Experienced; calculated risk takers, visionaries ± Market Large markets; niches; large barriers to entry; sustainable; controllable competition ± Financials Reasonable projections and assumptions; Large projected returns on each funded entity to cover the losers ± Technology The engine, not the vehicle; IP position; “I don’t care about the technology I care about the benefits” Erik Sander: EGN6640 2
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2 Rankings out of 5 Maximum Management Quality Return on Investment Market Size 012345 Proprietary, Unique Potential for Growth 3 Erik Sander: EGN6640 Profit Dynamics, Inc., VC Survey – 2002 (www.capital-connection.com/vcsurvey.html) ± Lack of experienced management team (40%) ± Didn’t fit investment criteria industries geographic area (17% Didn t fit investment criteria, industries, geographic area (17%) ± Insufficient market size or need (13%) ± No competitive advantage, non compelling technology (13%) ± No clear execution strategy (10%) ± Company too small, will not grow large enough (10%) ± Company too early stage (8%) ± No industry barriers to entry for competitors (6%) ± Risk to projected return too high (6%) ± Low margins, industry is facing margin pressure (4%) ± Valuation too high (4%) ± Company isn’t profitable; entrenched competitors; not referred; did a poor job presenting; viewedVCs only as a source of money Erik Sander: EGN6640 4 Profit Dynamics, Inc., VC Survey – 2002 (www.capital-connection.com/vcsurvey.html)
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Building a Winning Team - Erik Sander: EGN6640 1...

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