This document discusses venture capital funding in Central and Eastern Europe. It notes that returns on venture capital funds come from large investments ("big checks") in companies that have high valuations, like "black swan" companies valued at over 250 million PLN. However, there are very few such large, highly-valued tech companies in the region. The document suggests alternative approaches for venture capital in CEE, such as lowering risk, focusing on niche B2B businesses, or engaging global partners to help regional companies expand beyond CEE.

3. Venture Capital Funnel in CEE.

4. It was 9th of April 2012 when we all were
stunned
BTW “Stunned” is the code word for jealous…

5. Nice, isn’t it?

6. Why big checks are important?

7. Because the returns onVenture Capital Funds
comes from big checks only
This is purely American experience, but the valid one.

8. Without returns for Investors, there would be
no tech startup funding.
Money follows the returns.

9. A little bit of math behindVC firm
• 50% of the investments are dead
• 10% is responsible for the most of the returns
(1 out of 10)
• It is best description of “power law distribution”

10. So SiliconValley model is about searching for
“Black Swans”.

11. What the Black Swan company is?
• It is the company which exited returns total
capitalization of the given fund.
• Let’s assume that you have a 50 milion PLN fund.
• Your average share in portfolio company is 20%
• Conclusion is simple: you have to exit at total
valuation (100% shares) of 250 million PLN.

12. How many public listed companies (on GPW)
have valuation bigger than 250 m.?
164

13. How many of them come from tech industry…
10 

14. Maybe our approach should be different?
There are logical alternatives.

15. Either we lower risk acceptance with a strategic
approach of lowering the “loss ratio” (remember
50%!!!)
Which is makingVC a kind of early stage PE company.

16. That means reasonable returns but in a longer
perspective
No innovation.

17. “One of the most important thing to
understand about startup investing is that
the best ideas look initially like a bad ideas”

18. Or...

19. Scaling tech companies in this part of the World
is crucial for future of the whole tech scene.
Once again: returns attracts money,

21. How to…
1. Black Swans are rarely local since the idea of the
world wide web isn’t.
2. IMO we have to focus on niche business (mostly
B2B) trying to win them at least regionally.
3. Engaging global partners (funds, angels, advisors).

22. Going global is no longer is something
“nice2have”. It’s crucial if want to survive.
Copycat times are over.
If you are one of Samwer brothers skip this slide…

24. SpeedUp Venture
Group
Bartłomiej Gola www.speedupgroup.com
www.iqbator.pl
Facebook.pl/SpeedUpGroup
www..speedblog.pl
@golabartek