alternative ways to finance startups
TRANSCRIPT
An alternative way to finance Entrepreneurs
Who is Melcion?
6 partners and over 100 clients
Our clients are entrepreneurs who run companies in various
industries and several countries. Most of them are private, some
are public.
Size ranges from 0 revenue to 1000 M revenue with an average of 15
M
2 partners
in the US4 partners
in Europe
TextFirst LevelSecond LevelThird LevelFourth Level
What do Melcion partners do?
Help Entrepreneurs in any possible way
Meet with each client once a month
Be available whenever needed
Help find new ideas
Have a different point of view
Enable the entrepreneur to take the helicopter view
We are paid on a yearly basis a flat fee at the entrepreneurs discretion123456
How we define an Entrepreneur?
Need for challengeNeed for autonomyLeaders
EntrepreneursSelf employed
Startup financing
The Venture Capital MythBusiness PlanRaising CapitalExecuting1 year of work for free
50k of cost personal expenses
Venture Capital sifting
1 deal out of a 100 projects received.
If youvisit50 VC
thats 50% chances1 deal out of 10
So thats 5%compounded
chances
Inc Fast 500
Growth measured on a 3y period
First year with a 750k$ minimum
Inc.Com
For 28 years now, that's about 15.000
A yearly selection of 500 US private
fast growing companiesThe demographicsGrowth : 8000% on 3y
Average funding: 75k$
Venture Capital funded : 2 to 4%
BA funded : 2%
Reality check on Venture Capital
Chances for entrepreneurs who raise equity with Venture Capital
are < 1%So it can't be1 deal out of 10
that succeedsIt has to be1 out 30 to 50
Research from Pr O. Gottschalg andL. Phalippou over 25y,
the average private equity industry performance
is 3 points under S&P performancePr
O. GottschalgPrL. Phalippou
Startup financing
The Venture Capital MythBusiness PlanRaising CapitalExecuting1 year of work for free
50k of cost personal expenses
Venture Capital sifting 1 deal out of a 100 projects received
If youvisit50 Venture Capital
That 50% chances
1 deal out of 10 50
So thats 5% 1% compounded chances
What solutions?
Sales
TargetingPricingHunt for the wounded elephant?
Not everyone is your ideal first client
In marketing, optimal price is defined as the highest
price
your customer can and will afford to pay
Business model re-engineering
Lower cash need
Faster access to client solutions
Deals with suppliers/distributors
What to do when all the above is not enough ?
Convertible notes
Structured notes
Thank you for listening!
www.melcion.com
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