Artiman Ventures reviews start ups & lifecycle for venture funding

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Presentation Description

This presentation by Amit Shah shares his insights on venture funding; Artiman reviews their focus on disruption and the stages in the lifecycle of a startup company. He describes the reasons for a start up as well as the different phases in the lifecycle of the start up.

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Presentation Transcript

Innovation, Startups, Life:

Innovation, Startups, Life Amit Shah

What is Venture Funding?:

What is Venture Funding ? Riskiest money: Equity without security Money that your relatives will not lend you A bank lends when you don’t need it Types of Venture fund Seed Like the individual / team Early When it is a concept: Mid Product ready; some customers interested L ate stage funds In revenue; need money for expansion

Artiman: Investors & Entrepreneurs :

Artiman : Investors & Entrepreneurs U.S. Investment Team Amit Shah Yatin Mundkur Tom Dennedy Akhil Saklecha Ajit Singh Tim Wilson India Team M. J. Aravind Ramesh Radhakrishnan US Operations Team Ida Ng EIR Frank Thibodeau Adam De La Zerda Mahmood Panjwani Atul Sharan Venture Investing Experience Collectively managing $900+M invested in 140+ seed/early–stage companies 88 exits with aggregate realized return of 3.3x 11 IPO’s and 32 acquisitions Entrepreneurial Experience Co-founded 10 startups in the U.S. and India 6 successful exits with aggregate value of > $1 Billion ZeitNet , PipeLinks , Equator, Daksh , Ross, Kaleida , Clarity, Airgo , BioImagene Operating Experience - public and private Cisco, Rockwell, Siemens, AMD, AT&T, Lucent, Cabletron, Digital Island, FireEye , Airgo , Clarity Wireless, Adaptive, Compaq, Qualcomm, HP Technology Background Played pioneering roles in seminal industries: Server Computing, Networking, Voice over IP, IPTV, Digital Consumer Electronics 26 US patents

PowerPoint Presentation:

4 Investment Strategy “Concept” and Early Stage World class “entrepreneurs with ideas” Lower cost basis, providing significant ownership Ability to impact company strategy “White Spaces” Potential to dominate markets No identifiable competition, with at least a 12-month lead on technology or market Lower execution risk and outsized returns Scalable Business Models Develop technologies cost effectively Scale the business efficiently Fundamentally change economics of target sectors Leverage India Long-standing network and deep deal flow Same disciplined screen as in Silicon Valley To build companies that cannot be built in the US – BioImagene , Guavus , Cellworks

Innovation:

Innovation “Best ideas have come from outside industry” Intersect expertise in one market with another Think out of the box Do NOT be a hammer in search of a nail Intersection of experience, market understanding, ability to Execute Is it a business? Feature, Product or Company?

Artiman: Focus on Disruption:

Artiman : Focus on Disruption BioImagene (Acquired by Roche) Changing Standard of Care in Pathology Cellworks (www.cellworksgroup.com) Designing drugs the way computer chips are designed Aditazz ( www.aditazz.com) Designing & building Facilities the way computer chips are designed and fabricated Zspace ( www.zspace.com) Non-invasive testing for Cardio-vascular diseases Invensense ( www.invensense.com ) Motion Processing for consumer devices Prysm ( www.prysm.com ) First American TV company in 30 years

Why? O Why a startup?:

Why? O Why a startup? The trigger for doing a startup My boss sucks; I don’t like my job; He/she made it; why can’t I? Always wanted to do a startup Caution : Not sexy; most likely foolhardy Very , very hard work with incredible ups/downs Enjoyment is in hindsight

Still want to do a startup?:

Still want to do a startup? Create a Business Plan Not an excel spreadsheet or a word document or a powerpoint presentation An innate and clear understanding of what you are going after Remember : if it is in the press it is too late Truly understand the market dynamics

The Money:

The Money Most businesses should not raise venture money Do you really know why and how much money you need? Who do you raise it from? Customers, partners, friends and family, angels, VCs Government (Darpa, SBIC,…)

The VCs:

The VCs “They are evil; dumb; do not understand my business; trying to screw me; …” - All true - No different than a marriage How well do you know the person? - Look beyond the sexy early days and to the fat middle age and can you live with it? - Ecosystem

Finally…:

Finally… Actually doing a startup Phases Primordial Middle Ages Industrial Revolution Deliverance

Primordial:

Primordial Concept Early fools Extreme Energy Some lucidity

Middle Ages:

Middle Ages Newer Skeptics & converts Energy / focus correlation Outside thoughts Confusion

Industrial Revolution:

Industrial Revolution Scale Technology ready for customers Sales and Marketing starts ramping Internal Challenges Job function confusion (mix of newer v/s older employees) Communications Hallway conversations don’t work Processes (unfortunately) needed Fallout People dissatisfaction Inability to scale Some don’t make it thru transition

Deliverance:

Deliverance Customer interaction starts Initially Skepticism Goes to “ piddly stuff” Some more selling and it becomes “maybe” If persistence, the customer “converts”

Start-Up Check List:

Start-Up Check List Establish business entity Engage a lawyer/be cautious going solo with online resources Corporation is the entity of choice if you plan to raise money for the business Establish initial ownership of company with co-founders Fed/State registration, business license and permits Secure Key Personnel As shareholders, consultants or employees

Start-Up Check List (cont.):

Start-Up Check List (cont.) Secure work space Clean up the garage, lease an office, come to Artiman Open bank account Obtain necessary insurance Workmen’s comp Medical Liability Implement Accounting System Popular Quickbooks is adequate Select payroll vendor (Paychex, ADP)

Business is Never as Planned:

Business is Never as Planned You will have to Refine your Business Plan Annual Strategy Plan Annual Operating Plan Annual Financial Budgets

Artiman Tool Kit:

Artiman Tool Kit www.artiman.com/startup-toolkit Templates and sample documents covering: Annual Operating Plans Board Meetings Financial Human Resource Legal

Artiman Tool Kit Index :

Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Description Format   Description Format 1 AOP1 AOP Time Line Graphic Illustration PPT   21 HR2 Form of Offer Letter Word 2 AOP2 Sample AOP Time Line Excel   22 HR2.1 Form of Empl, Conf. Inf. and Inv. Assign. Agt Word 3 AOP3 Sample AOP PPT   23 HR3 New Hire Check List Excel 4 AOP4 Product Planning Template Word   24 HR4 Separation Release Letter Word 5 AOP5 Sample Project Responsibility Owners Word   25 HR5 EE Termination Check List PDF 6 Board1 Key Examples of Information for Board Meeting Excel   26 HR6 90 Day New Hire Review Form Word 7 Board2 Sample Board Package PPT   27 HR7 Employee Self-Evaluation Form Word 8 Board3 Action Item Template Excel   28 HR8 Performance Eval and Career Dev Form Word 9 Board4 Sample Board Consent by Email Word   29 HR9 Staff Empowerment Article Word 10 Board5 Sample Board Indemnification Agreement Word   30 HR10 Consultant Agreement Word 11 Board6 10 Immutable Rules for Exec Presentation PDF   31 Legal1 Sample VC Term Sheet Word 12 Fin1 Financial Package Excel   32 Legal2 Sample Non-Disclosure Agreement Word 13 Fin2 Company Cap Table Excel   33 Legal3 Sample Note & Warrant Purchase Agrmt Word 14 Fin3 Expense Report Template Excel   34 Legal4 Sample Note Word 15 Fin4 Insurance & Benefits Cost Schedule Excel   35 Legal5 Sample Warrant Agreement Word 16 Fin5 Sample Cash Investment Policy Word   36 Legal6 Sample Mgt Rights Agreement Word 17 Fin6 Sample Fixed Asset Capitalization Policy Word   37 Legal7 Form University License Term Sheet Word 18 Fin7 Sample Travel & Expense Reimbursement Policy Word   38 Legal8 Document Creation/Retention Review PPT 19 HR1 Sample Employee Handbook & Policies Word   39 Legal9 Fenwick Start-up Legal Resource Presto PDF 20 HR1.1 Sample Company Handbook Word  

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