Risikokapital og finansiering

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Risikokapital og finansiering
UIO, 1 februar 2005
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Contents

• Introduction
• The FSV Group
• How VCs think and operate
• Creating a successful startup
• What to do now?

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FSV is a leading Nordic VC

• Among the oldest and most seasoned VCs in the
  Nordic
• Established in 1985
• Currently investing from MNOK 530 FSV III, raised
  April 2000
• Operating FSV IV, MNOK 590, largest secondary
  direct in the Nordic to date
• FSV was a founding member of the NVCA (in 1989 .
  and in 2001)
• Experienced Investor in Nordic and international
  tech companies
• Reviewed gt3 000 projects and 6-8 portfolios since
  inception
• Invested in 65 companies and one major portfolio
• Close co-operation with Advent International
  throughout
• Founding member of the Nordic Venture Network
• Proven exit track record
• 12 IPOs, 3 on Nasdaq
• 46 industrial exits
• Introduced International VC structures to Norway
• Preference shares, Anti-dilution, Veto-rights,
  Drag, Tag etc.

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Our business

• .. Is to identify high potential growth
  companies
• .. Invest in these companies
• work closely with management and other owners
  to build value in a 3-5 years perspective.
• .. Exit (IPO or trade sale), and repeat

Structured as funds to ensure liquidity focus and
to protect owners
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FSV currently manages approx. NOK 2 billion
invested capital across 100 portfolio companies
FSV I
FSV II
FSV III
FSV IV

• Established 1985
• NOK 130 mill. fund
• ICT sector focus
• Fund closed

• Established 1996
• NOK 300 mill. fund
• Dedicated ICT fund

• Established 2000
• NOK 530 mill. fund
• Dedicated ICT fund
• 70 of committed capital invested

• Established 2003
• NOK 590 mill. secondary fund with follow-on
  capital
• Sectors include ICT, energy, maritime, services

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FSV has a diversified blue chip investor base
Main shareholders in Four Seasons Venture II




Aksjefondet Skandia Teknologi


Gjensidige NOR Spareforsikring



Bonheur ASA


Møller Investor AS



Den Norske Krigsforsikring for Skib


Schibsted Multimedia AS



Ganger Rolf ASA


Skaufoss AS



Gjensidige NOR Forsikring


Torstein Tvenge



Gjensidige NOR Sparebank


Vesta Forsikring AS

Main shareholders in Four Seasons Venture III



A
vanse



Orkla ASA



Bonheur ASA


Schibsted Multimedia AS





Control Consult AS



Skandia Liv AB



Den Norske Krigsforsikring for Skib



Sparebank 1 Livsforsikring AS



Gjensidige Forsikring



Storebrand Livsforsikring
AS



Gjensidige NOR Spareforsikring



Torstein Tvenge



Hartog Co. AS

Main shareholders in Four Seasons Venture IV


Brage Invest AS



Lærdal Finans AS




Dyvi AS



Natexis Private Equity International



Firmament AS




Opplysningsvesenets Fond



Foinco AS




Skagen Vekst



Hafslund Offentlige Pensjonskasse



Sundt AS



Hamang Papirfabrik AS



Tredje AP
-
Fonden


Indigo Invest AS



Vital Forsikring ASA


Institusjonen Fritt Ord


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Contents

• Introduction
• The FSV Group
• How VCs think and operate
• Creating a successful startup
• What to do now?

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A good VC manages risk
Pre-seed Investments
Risk
Seed Investments
Venture Investments
Private Equity Investments
Public Shares
Corporate Bonds
Treasury Bonds
Return
Due diligence process and right agreement
structures are key risk management tools
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..and seeks to optimise the risk-reward ratio

• Build your execution plan
• Estimate capital required
• Consider risk-reward from investor perspective
• (market risk? - technology risk? - team risk?)
• ....reiterate

Knowing the customer is a pre-requisite for a
succesful sale (you want the investor to buy
your story)

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The venture lifecycle is fairly standardised
Vekst /
Growth/
Vekst /
Vekst /
Dealsourcing
Screening
Due Diligence
Internasjonal
-
Investering
Exit
Screening
Due Diligence
International
-
Investment
Exit
Screening
Screening
Due Diligence
Internasjonal
-
Investering
Exit
Due Diligence
Internasjonal
-
Investering
Exit
isering
isation
isering
isering
2
5 years
2-18 weeks
-
-

• Screening
• Ensure broad flow of high quality
• Conduct initial screening

• Due Diligence
• Deep analysis of the company
• Issue Term Sheet
• Complete legal, commercial and technological Due
  Diligence

• Investment
• Unanimous partner group
• Investment committee approval
• Best practice legal structures

• Growth/Intern.
• Build the company

• Exit
• Exit through
• Merger
• Trade Sale
• IPO

Purpose
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..and most VCs look for the same basic things

• A great team
• .and ideally a good idea and scalable business
  model
• A large and/or fast growing market

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Building trust early creates the right basis
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..for a productive partnership

• VCS DRIVE THE VALUE AGENDA
• Strategic international perspective and
  experience
• Partnering customers, channel and technology
• Building the management team
• Coaching (and changing) management
• Financial and strategic control functions
• Assisting in MA, IPO and other financing
  activities
• Balancing the technology and market perspectives

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Who controls the company following an investment?
maintaining sense of shared purpose is
essential for success
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Classic entrepeneur pitfalls

• Explaining product/business model is only thing
  that matters
• VCs consider individual projects solely on their
  own merits
• Raise money when needed as opposed to when
  available
• 100 times 1 gt 30 times 10
• VCs focus exclusively on maximising upside
• Rational machines, not emotional humans.

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Contents

• Introduction
• The FSV Group
• How VCs think and operate
• Creating a successful startup
• What to do now?

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Creating a successful startup

• Share information, ownership, honour
• Sell to everyone all the time
• Create an ecosystem people can move mountains
• Get paying customers - the proof of the pudding
  is in the eating!

Create a self-fulfilling prophecy!

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The (FSV) SNDI ecosystem
Investors
Steinvender ASA
Newco (now FSV IV)
Advisory Board Sector Experts
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Contents

• Introduction
• The FSV Group
• How VCs think and operate
• Creating a successful startup
• What to do now?

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What now?

• Build credibility and competence
• Work with people you respect (and that know more
  than you)
• Learn to sell
• Get to know your niche