Building your Building your business planbusiness plan

Financing optionsFinancing options

The main questionThe main questionWhy ?Why ?

Varies reasons:Varies reasons: Make money ?Make money ? Self fulfillment, interest ?Self fulfillment, interest ? Vision, need to change the world ?Vision, need to change the world ? Can not fit to other environments ?Can not fit to other environments ?

How to Finance a start-up:How to Finance a start-up:My own perspectiveMy own perspective

Entrepreneur since 1994Entrepreneur since 1994 (playing with models…)(playing with models…)

Phonet (sold in 1998)Phonet (sold in 1998) Septier (president and CEO)Septier (president and CEO) Cellebrite Cellebrite LibercellLibercell

Financing strategiesFinancing strategies

The business plan is highly The business plan is highly influenced by your financing influenced by your financing strategies:strategies: Financing pathFinancing path

How much and whenHow much and when Who will be your partnersWho will be your partners

VC’s, angels, projects etc..VC’s, angels, projects etc..

Various alternatives Various alternatives to fund a start-upto fund a start-up

VC’sVC’s Industrial partnersIndustrial partners Angels (the three F’s)Angels (the three F’s) ProjectsProjects Self financingSelf financing

Professional InvestorsProfessional InvestorsMajor factor – portfolio strategyMajor factor – portfolio strategy

The founders have one “baby”, The founders have one “baby”, professional investors have a professional investors have a portfolio…portfolio…

Time perspective (7Y…)Time perspective (7Y…) Thus, decision making is very Thus, decision making is very

different:different: Risk takingRisk taking Exit strategyExit strategy Commitment to survivalCommitment to survival

VC’s are only one option VC’s are only one option in the tool box…in the tool box…

Some of the most successful Some of the most successful companies in the world and in companies in the world and in Israel are not VC backed…Israel are not VC backed… Microsoft…Microsoft… AmdocsAmdocs TevaTeva ……

VC’sVC’s

Portfolio drivenPortfolio driven Time perspectiveTime perspective Deep pocketsDeep pockets InvolvedInvolved Example – Chromatics… Cisco..Example – Chromatics… Cisco..

A partner rather then an investorA partner rather then an investor

Fits to very difficult technological tasks with very high Fits to very difficult technological tasks with very high risk and potential…risk and potential…

my perspective – Phonetmy perspective – Phonet

Business plan impacts – presentation is everything. Business plan impacts – presentation is everything. extensive excellware …extensive excellware …

Industrial partnersIndustrial partners

Have their own agendaHave their own agenda Can provide support Can provide support

FinancingFinancing Real life experienceReal life experience Market assistanceMarket assistance

Fits to very experienced entrepreneurs with “real” Fits to very experienced entrepreneurs with “real” productproduct

My perspective – SeptierMy perspective – Septier

Business plan impact – real life, no bullshit…Business plan impact – real life, no bullshit…

AngelsAngels

““stupid money” – the three F’sstupid money” – the three F’s Limited involvementLimited involvement Limited supportLimited support

Most of them are history…Most of them are history…

ProjectsProjectsIn the main area of activity…In the main area of activity…

DiversionDiversion Longer time to marketLonger time to market Hands onHands on ControlControl

Fits to very experienced entrepreneurs Fits to very experienced entrepreneurs with a project type product with a project type product

My perspective – LibercellMy perspective – Libercell

Business plan impact – a few excel shits, extensive Business plan impact – a few excel shits, extensive cash flow controlcash flow control

Self financingSelf financing

Low budget productsLow budget products High market needHigh market need Specific advantage to the Specific advantage to the

entrepreneursentrepreneurs Longer time to marketLonger time to market ControlControl

My perspective – CellebriteMy perspective – Cellebrite

Business plan impact – cash flow is Business plan impact – cash flow is everything…everything…

Life cycle combinationsLife cycle combinations

Start with own limited Start with own limited resources…resources…

Get relevant project to add Get relevant project to add resourcesresources

VC or Strategic partnerVC or Strategic partner IPO…IPO…

Self financing Project VC or SP Exit

SummarySummaryMy viewMy view

Various ways to make it happenVarious ways to make it happen Depended on:Depended on:

ProductProduct TechnologyTechnology MarketMarket Founder characteristicsFounder characteristics

Find your own way…Find your own way…