enterprise equity venture capital enterprise equity venture capital investment general partner of...
DESCRIPTION
Enterprise Equity Venture Capital AIB Seed Capital Fund Background €53 million fund size (€30m increased in 2009 to €53m). Fund commenced 1 st July 2007 Enterprise Equity : All investments in Dublin over €250k. All Regional investments irrespective of size Initial investment size permitted - up to €500,000 Follow-on investment possible Maximum investment any one investment - €1.5m Start up and early stage companies Normally companies designated as HPSU’s by EI.TRANSCRIPT
Enterprise Equity Venture Capital
Enterprise Equity Venture Capital
Investment General Partnerof
The AIB Seed Capital Fund
Seed Capital for Growth
5 October 2011
Enterprise Equity Venture Capital
Background to Enterprise Equity VC
Founded in 1987. Currently two funds under management
Regional Fund €22 ml (closed to new investees) Co-Manager of AIB Seed Capital Fund €53 million
Invested in 68 companies (>165 transactions) 5 experienced investment professionals Offices in Cork, Galway, Dundalk and Dublin www.enterpriseequity.ie
Enterprise Equity Venture Capital
AIB Seed Capital FundBackground €53 million fund size (€30m increased in 2009 to €53m). Fund commenced 1st July 2007 Enterprise Equity : All investments in Dublin over €250k. All Regional
investments irrespective of size Initial investment size permitted - up to €500,000 Follow-on investment possible Maximum investment any one investment - €1.5m Start up and early stage companies Normally companies designated as HPSU’s by EI.
Enterprise Equity Venture Capital
AIB Seed Capital Fund• Invested in 38 Investees to-date in
59 separate tranches of Capital• Every €1 invested by AIBSCF has
levered an additional €3.30 from other sources
• By year end expect to have a portfolio of c 45 investees
Enterprise Equity Venture Capital
What is Venture Capital? Long-term Funding Equity Participation Active Involvement (at non-exec level) Usually unsecured If pure equity - no defined repayment If convertible preference shares – defined
repayment If convertible loan – defined repayment May be a coupon/(interest rate) with preference
shares/convertible loan
Enterprise Equity Venture Capital
Benefits of Venture Capital
Provides significant funding Leverages other funding Source of follow-on funding Raises Credibility Commercial/Strategic expertise Guidance/Governance
Enterprise Equity Venture Capital
You need to consider the following.
Dilution Loss of Autonomy Valuation Exit Focus
Enterprise Equity Venture Capital
How we view things
Management Team Calibre Experience/Expertise Composition Commitment What have they invested
Enterprise Equity Venture Capital
How we view things
Market Size Growth Accessibility : Distribution Competition Barriers to entry Value Proposition Who will buy : be specific
Enterprise Equity Venture Capital
How we view things
Product/Technology Stage of Development Market Driven Compelling Reason to buy Demonstrable Superiority Market Validation IP/Barrier to Entry
Enterprise Equity Venture Capital
How we view things
Business Model/Financial Demonstrate Economics of Business Realistic, Defensible Forecasts Path to Profitability Clean balance sheet Bottom-up – by product /by Customer
Enterprise Equity Venture Capital
The Deal
• When• How Much• What Mechanism• What Valuation
Enterprise Equity Venture Capital
Your VC Should
• Understand your Business• Understand what you are trying to do• Understand start-ups• Be a person you can work with
Enterprise Equity Venture Capital
PartnersManaging PartnerConor O’Connor, FCA, ASIP. Joined EE in 1991. Former Chairman of IVCA and past Board member of EVCA. Represented O’Connor family on Board of Arnotts from which they successfully exited.
Galway OfficeEric Reed, BA, FCA. Joined EE in 2003. Former Coopers & Lybrand, Digital Equipment, Multis Group, Anecto.
Rory Hynes, DPA. Joined EE in 2001. Former Údarás na Gaeltachta.
Dublin OfficeTom Shinkwin, BComm, MBA, FIB. Joined EE in 2005. Former Morgan Stanley, Ulster Bank (RBS).
Cork OfficeFrank Walsh, BComm, Dip. Comp. Sc., NASD Series 7. Joined EE in 2006. Former Volpe Welty, San Francisco.