Partnering with a Venture Capitalist:

An entrepreneur’s manual

Alex Brabers, Executive Vice-President Gimv

2

Why ?

3

The VC: a rich business partner

4 Aim for Sequoia’s, not Bonzais

5

6

Strategic

committee

Remunerat

ion

committee

BoD

Exit committe

e

Developme

nt

VAR

Channel

partner influencer

founders

Beta

customer Special

interest

group

Audit

committee

Developm

ent

Partners

VP R&D Patents

Technology

Multiple

revenues

Bus model Value

chain

fun Bus model

2

scaling

Incentives CEO

VP sales

energy

flexibility VC B-

round

team

Financial

plan

persistence

Research

company

acquisition

s exit

Role model

Alpha

customer

customer reporting

customer

Auditor

Headhunte

r PR agency

customer

scorecard minutes

meetings

consultant

Investmen

t banks

Co-

investor

Product

marketing lawyer

VP S&M

Co-lead

VC

infrastruct

ure VC C-

round

Lead VC

IT

Communication

Channel

strategy Partner

sales

ambition Internatio

nal sales

premises

7

Enabling

Partnerships

Financial

Support

Governance

Legal

Support

Industry

Network

Management

team

We only offer our added value to the CEO. We do not impose. He/she decides.

Supporting

Business

Building

8

Who ?

9

Diversity of partners

10

Diversity of VC’s • International

• Deep pockets

• Team player

• Strategist

• Hands-on/hands-with

• Business building

• Structured processses

• Connected

• Industry insight

• Long term perspective

• Tough guys

• Track record

• Successful

• Local

• Drip feeding

• Individualist

• Financial

• Hands-off

• Shareholder

• Ad hoc

• Isolated

• Generalist

• Short term perspective

• Nice guys

• Inexperienced

• Unsuccessful

11

Choosing among the VC’s

12

Matching profiles

13

How ?

14

Matching process

Real life

• Dating

• Engaging

• Wedding

• Marriage

VC life

• Initial contact

• Due diligence

• Closing

• Business building

• Exit

15

Business

plan sent out

Initial

meeting

Closing

Follow-on

meeting

KO criteria

passed

Multiple information

requests

Presentation to

full VC team

Term sheet

Initial due

diligence positive

Main due diligence

ongoing

Investment memo

prepared

w0 w2 w4 w6 w8 w12 w15 w16

Signing

Indicative investment process

Contract drafting

16

Due diligence

17

Due diligence

Product – Technology

– Intellectual Property

– Unique Selling Proposition

versus Competition

Management team –Complete & coherent

–Experience

–Skills & Potential

–Ethics

Market –Existing & target customers

–Channels & Partners

–Market potential

Exit potential

Financials –Past financials

–Forecasts

–Business model

18

Parties involved

Due diligence (internal) • Sponsor & Co-sponsor

• Market analyst

• Financial analyst

• Legal counsel

Due diligence (external) • Technical consultant

• Financial auditor

• HR auditor

• (IP) lawyer

• Market analyst

Sponsor: project manager and deal champion

Supported by Co-sponsor

Decision making • The full VC team Decision

• The advisory board Sounding board

• Investment committee Quality control

Deal execution • Sponsor / co-sponsor Legal counsel / lawyer

19

The entrepreneur and VC

as business partners

A strong combination

20

Questions ?

Alex Brabers

EVP Gimv

alex.brabers@gimv.com T: +32-3-290.21.65

M: +32-495-21.21.64

www.gimv.com