Learning from my best failures
early stage investments by entrepreneurs
BUSINESS ANGEL / MICRO VC
Nicolas Berg, Serial Entrepreneur, Redalpine Venture PartnersSTART Summit – St. Gallen – March 23, 2013
Speaker & panelist: Nicolas Berg Serial entrepreneur with 10 startups (1984-2013)
- e.g. founder of Borsalino 1998, sold 2000 at 20x multiple to Ringier
- e.g. CEO Questli since July 2012
Full time angel investor in 16 startups (2000-2006) - e.g. Investor & Country Manager XING 2004-2010
IPO at 30x multiple 2006 Redalpine Venture financed 20 startups (since 2007)
- Built portfolio of 20 European high innovation startups with Redalpine I & II
- 5 portfolio companies ranked among 20 Swiss top start-ups in 2012
Lecturer, jury member and journalist- venturelab; Venturekick, SVC, Heuberger, Suvorov Award- Die Zeit, Bilanz, NZZ, Bilanz, HandelsZeitung, Sonntag etc.
Entrepreneur, angel investor, VC, supporter
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Redalpine in a nutshell
Manages Redalpine I CHF 20M micro VC fund (2007-2015)
Manages Redalpine II CHF 60M micro VC fund (2012-2020)
- Seed/early stage in continental Europe
Most innovative sectors in Europe- Technology/New Media and Life Science
Fund thesis- European seed/early stage offers potential for superior exit
multiples- Best choice in Switzerland – strong links to Germany and
Russia
Convincing track-record Institutional approach to seed/early stage investing
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Why learning from failures?
Failures easier to analyze than success Sometimes you win and don‘t know why –
just luck or in a good flow? You need to fail to get closer to the edge
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What investors are looking for
Team, team, team- At least 2 extraordinary personalities that
can IMPLEMENT milestones of next 2 years Disruptive idea, technology or business
model Attractive market
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Motivation of investor
Profit opportunity (e.g. exit multiple of 30x feasible)
Adrenaline Being active & useful
- Network- Knowledge
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Close to reality distortion, psycho
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Selectively focused, autistic
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1. Stubborn and autistic
Resistant to advice – or asking mom, dad and grandma till she gets the answer she wants
Says “smart investor” but thinks “just give me the money for MY company, sugar daddy!”
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2. Naïve model pupil
Reacts and obeys to any advice naïve, model pupil or weather vane Definitely not an entrepreneur!
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3. Selectively honest, dishonest
Communicates only good news instantly Not honest Secret agenda
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4. Con artist, scammer, manic
Communicates only good news instantly Not honest Dubious genius
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5. Egotist, no team player
Poor alpha animal, can’t delegate Never recruits strong team member Non empathic, poor motivator
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5. Money driven, not by results
Exit, salary, participation and bonus in focus
Vision, cause and results only second priority
Self marketer
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Grow big stars, scout many talents
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Swiss football teams have 2 options:
invest $40m to buy Messi or Ronaldo try to earn $45m extra with him or
invest $5m to scout & train 20 young talents sell the best one for $20m
Act pro-active, don’t follow crowdAnd ice hockey player can either: skate to the spot where the puck is now as most
players or to the place where the puck is going to be (Wayne
Gretzky)
Source: http://www.brainyquote.com/quotes/authors/w/wayne_gretzky.html
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Invest as pro-active as a hockey star is playing
«You miss 100% of the shots you don't take.»
Wayne Gretzky, Hockey legend
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