© Prof. Dr. Klaus Nathusius1
Georg-August-Universität GöttingenWirtschaftswissenschaftliche Fakultät
Entrepreneurship& Entrepreneurial Finance
Presentation on March 18, 2011Berlin
at the Conference „Startup Camp Berlin 2011“
Kontaktinformationen:
Prof. Dr. Klaus NathusiusManaging General PartnerGENES GmbH Venture Services Tel: +49-2234-955460Kölner Straße 27 Fax: +49-2234-955464 [email protected] Frechen Mob. +49-171-9960847 www.genes-ventures.de
Georg-August-Universtät GöttingenPlatz der Göttinger Sieben 3D-37073 Göttingen www.uni-goettingen.de/eef
Prof. Dr. Klaus Nathusius
VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) HÄNDEN?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?
GENES GmbH Venture ServicesVenture Capital Fonds Management
Early Stage Consulting und Coaching
VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) Händen?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) Händen?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?
© Prof. Dr. Klaus Nathusius2
GENES GmbH Venture Services
•Founded in 1978 by Prof. Dr. Klaus Nathusius
•Venture Capital (VC) management company and venture consulting
company
•GENES was the pioneer of VC in Germany following the US mode of operation
•First VC Fund: International Venture Capital Partners S.A. Holding,
Luxembourg
•Second VC Fund: Euroventures Germany, C.V., Eindhoven/Netherlands
•Ex Chairman of EVCA European Private Equity and Venture Capital Association,
Brussels
•1992 – 2002 VC investments in East German industrial companies after the
German unification
•Since 1978 entrepreneurship teaching and training programs in German
Universities and Chambers of Commerce
•Since 2002 VC investments (Seed and Start Up Capital) in university and
industrial spin offs
© Prof. Dr. Klaus Nathusius3
Venture Capital Definition (1)
• equity financing
• early stage financing
• pre stockmarket financing
• duration of financing: 3 to 7 years
• financing + value adding
• equity financing
• early stage financing
• pre stockmarket financing
• duration of financing: 3 to 7 years
• financing + value adding
© Prof. Dr. Klaus Nathusius4
Venture Capital Definition (2)
• VC = „apprenticeship“ business
• VC = „pedestrian“ business
• no „Lifestyle Ventures“
• target: Middle Market Ventures
• target: High Potential Ventures
• VC = „apprenticeship“ business
• VC = „pedestrian“ business
• no „Lifestyle Ventures“
• target: Middle Market Ventures
• target: High Potential Ventures
© Prof. Dr. Klaus Nathusius5
Types of Start Up Financingand Financial Instruments
Base Models Types of Financing Financial instruments
No-Budget-Model
no financing round
„self feeding business“ sweat equityR+D project financingmoonlightingprepayments
Low-Budget-Model
one financing round
equity and debt financing founders capitalF+F capitalbank debtsuppliersleasingpublic funds and subsidies
Medium + Big-Budget-Model
several financing rounds
equity and debt financing seed capitalbusiness angelsventure capitalcorporate venture capitalprivate equitymezzanine financingprivate placementIPO+ financial instruments of low budget model
© Prof. Dr. Klaus Nathusius6
Optimal Financing Structures and Corporate Life Cycle
profit
time
productdevelopment
marketentrance
marketpenetration
marketdiffusion
equity
equity Mezzaninecapital
debt.
Debt. Mezzanine
capital equityIPO
debt.
© Prof. Dr. Klaus Nathusius7
Structure of Equity-Financing
Public Equity
stockmarkets
Later Stage Financing • development• growth• MBO/MBI• Turnaround• change of ownership• Re Starts• („Vulture Fonds“)
Private Equity
non listed shares
Equity
Early Stage FinancingVenture Capital
• Pre Seed• Seed• Start Up• early development
© Prof. Dr. Klaus Nathusius8
Exit-Routes
IPO (Initial Public Offering)
trade sale
secondary purchase
buy back
write off
IPO (Initial Public Offering)
trade sale
secondary purchase
buy back
write off
© Prof. Dr. Klaus Nathusius9
Venture Capital Process: Players
Investee Companies
Investors
VC Process
Venture Capital Company
© Prof. Dr. Klaus Nathusius10
Venture Capital - Framework
ressources
chances people
context
risiks
© Prof. Dr. Klaus Nathusius11
VC Management as Financial Intermediary
Banks, Insurance Comp., Pension-Funds, Industrial Investors,Private Investors, Government
investment
decisions
capital-infusion
distribution
fund-initiativecapital-acquisition
reporting
investment-processmonitoring
value addingexit-strategy
VC-Investors
Intermediary
VC-Investees
VCManagement-Team
VCFund
Portfolio
© Prof. Dr. Klaus Nathusius12
Venture Capital Decision Criteria
management team
marketable (innovative) product
marketpotential
scaleble business model
convincing profit potential
international potential
acceptance of partnership with financial investor
exit routes
not dividend oriented, but value increase oriented
company valuation acceptable
management team
marketable (innovative) product
marketpotential
scaleble business model
convincing profit potential
international potential
acceptance of partnership with financial investor
exit routes
not dividend oriented, but value increase oriented
company valuation acceptable
© Prof. Dr. Klaus Nathusius13
Venture Capital Cycle
phase 1: sourcing and first contact
phase 2: screening and first selection
phase 3: due diligence and valuation
phase 4: financial structuring and investment proposal
phase 5: negotiating and investment decision
phase 6: closing
phase 7: value adding + monitoring
phase 8: exiting
Phase Dauer
4 weeks
––
1-3 months
2 weeks
1-2 months
––
3-5 years
0,5 - 1,5 years
© Prof. Dr. Klaus Nathusius14
Performance of a Venture Capital Portfolio(sample, fund size: € 10 mill.)
Performance Segments Cash Returnin mill. €
total losses 3 x 0 = 0
no „capital gain“ 3 x 1 = 3
two – to five times money back 2 x 5 = 10
multiple of 10 plus 2 x 10 = 20
total return
(before transactions costs and taxes)
33
© Prof. Dr. Klaus Nathusius15
Finanzierungsgenese von Amazon.com
Jahr Finanzierungsinstrument Kapitalzufluss in Mio. US $
1995Quartal 3
GründerfinanzierungFamily&Friends (F&F)
0,1
1996Quartal 1
Venture Capital(Kleiner Perkins)
8,0
1997Quartal 2
Börsen-Erstemission (IPO) 50,0
Quelle: Marcus, James: amazonia, Five Years at the Epicenter of the Dot.com Juggernaut, New York 2004
© Prof. Dr. Klaus Nathusius16
Finanzierungsgenese von Web.de
Jahr Finanzierungsinstrument Kapitalzufluss in Mio. €
Januar 1999 Aktienkapital(Ausgründung aus CINETIC GmbH)
0,1
Juni 1999 Venture Capital & Business Angel(3i, Bayview, Dr. Georg Baumann)
8,0
August 1999 (Institutionelle) Investoren(Aktienemission an 3i, Commerzbank Beteiligungs Gesellschaft, Sal. Oppenheim, Wilhelm von Finck Senior und Junior, AXA Colonia)
21,9
Januar 2000 Bridge Finanzierung(Aktienemission an bisherige Investoren)
7,5
Februar 2000 Börsengang (IPO) 180-224
Quelle Zahlenmaterial: Mayringer, Heinz: Corporate Financing in the Growth Industries, Basics & Case Studies, Salzburg 2001
© Prof. Dr. Klaus Nathusius17
Resümee und Ausblick
Deutschland brauchtbessere unternehmerische Sensorik (Opportunity Recognition)
mehr und qualifiziertere Gründungen und Gründer
mehr Gründungskapital
- Business Angels
- Seed Capital Fonds
- Early Stage Venture Capital Fonds
qualifizierteres Gründungskapital (Venture Training)
bessere Rahmenbedingungen für Gründungsinvestoren
insbesondere steuerliche Anreize
bessere Rahmenbedingungen für Entrepreneurship Ecosysteme
Deutschland brauchtbessere unternehmerische Sensorik (Opportunity Recognition)
mehr und qualifiziertere Gründungen und Gründer
mehr Gründungskapital
- Business Angels
- Seed Capital Fonds
- Early Stage Venture Capital Fonds
qualifizierteres Gründungskapital (Venture Training)
bessere Rahmenbedingungen für Gründungsinvestoren
insbesondere steuerliche Anreize
bessere Rahmenbedingungen für Entrepreneurship Ecosysteme