The document summarizes a guest lecture on startup fundraising. It provides an agenda that covers why startups raise capital, how startup funding works through different rounds of investment, potential sources of capital, what investors look for in investments, where to find investors, and concludes with a Q&A. The lecturer's background and KPN Ventures' investment focus and portfolio are briefly introduced.

1. Guest Lecture:
Startup Fundraising
Herman Kienhuis, May 21 2019, Den Bosch
Entrepreneurial Finance
JADS, Department of Business Law TLS – 2018-2019

2. Agenda
• Introduction
• Why raise capital
• How startup funding works
• Which sources of capital
• What investors look at
• Where to find investors
• Q&A

3. Introduction

4. Personal Introduction
• Managing Director KPN Ventures
• Founder/partner River Venture Partners
• MSc Chemical Engineering and MBA (INSEAD)
• 5 years Finance & Strategy (McKinsey)
• 8 years in Digital Media BusDev (Sanoma
Digital)
• 7 years in Venture Capital
• Married, father of three teenagers
• Loves live music, movies, vintage design and
slow food
• Supporting sustainable development, education,
research journalism and diversity

5. About KPN Ventures
Key objectives Investment scope Portfolio
1. Strategic return
by creating
partnerships to
boost the
development of
innovative products
& services
2. Financial return
on exits
• Early growth-stage companies
(>€0.5m revenues), based in Europe
• Active in:
o Cyber Security
o Digital Healthcare
o Internet of Things
o Smart Home
o Cloud Computing
o Data & Analytics
o Mobile/OTT services
o Networking technology
• €0.5m - €2.5m initial investments, as lead
investor or co-investor
• Selective investments in complementary VC
funds
EXITED
EXITED
INNOVATION FUND
Fund-in-fund:

6. How about you?

7. Why raise capital?

8. Why raise capital?
• Starting up cost
• Financing early-stage losses
• Working capital investments
• Creating cash liquidity buffer
• R&D investments
• Production/inventory investments
• Customer acquisition investments
• International expansion
• Accelerating growth

9. How startup funding works

10. How startup funding works
Idea-stage ...more
rounds…
You
0
100% of 0
FFF stage
€50-100k
Family
€140k
28% of €500k
Seed round
€100k-€1m
Angel
investor
€500k
22% of €2.3m
Series A
round
€1-€10m
VC
investor
Employee
option pool
€2.5m
13% of €20m
Series B
round
€10-20m
2nd VC
investor
€5m
10% of €50m
IPO
€50m+
Public
investors
€50m
9% of €575m
Co-founder
stage
<€50k
Co-founder
Co-
founder
€50k
33% of €150k
Your
stake’s
value

11. Which sources of capital?

12. Which sources of capital?

13. supplier credit
bank loans
strategic (corporate)
investors
venture capital
angel
investors
Sources of startup and scale-up funding
capitalneed(€mln)
100
50
10
5
1
0.5
0.1
high risk low risk
stock exchange
(public equity)
private equity
start
development phase
friends & family
Pre-seed
(preparation)
Seed
(mvp)
Early-stage
(start-up)
Later-stage
(consolidation)
Growth-stage
(scale-up)
Maturity
(ICO’s)
innovation
loans
crowdfunding
subsidies

14. •family & friends: quickstart, trust-based
•crowdfunding: b2c, creative projects, pre-sales, creating ambassadors,
market validation
•supplier credit: quickwin, co-creation with partner
•seed/innovation loans: government-provided or government-
guaranteed subordinated loans for startups
•innovation subsidies: EU or Dutch government grants for specific
R&D projects or market research activities
•informal investors: cash, network, personal involvement
•strategic investor: cash, customers, expertise, network (and potential
exit)
•venture capital: cash, industry network, scaling experience
•bank loan: cash (at lower cost), personal guarantees

15. What investors look at

16. • drive & dedication
• diversity &
complementary
• execution mindset
• expertise & track-record
• partners & advisors
1. Team

17. • solving a real problem
• sustainable competitive
advantage
• revenue & business
model
• operational flywheel
2. Product / Proposition

18. • customer metrics:
conversion, retention,
growth
• customer feedback
• willingness to pay
• CAC vs CLV
3. Traction

19. • total market size & growth
• addressable market
segment(s)
• international scalability
• profit margins
4. Potential

20. • product development
roadmap
• go-to-market plan
(customer acquisition)
• hiring plan
• financial plan, with
cashflow prognosis
5. Plan

21. • realistic valuation
• staged funding
• protective rights
• governance & control
rights
• information rights
• investor value add
6. Terms

22. Where to find investors

23. Where to find investors
• Your network: Linkedin, university, former colleagues, other entrepreneurs
• Startup events: tech conferences, startup challenges, pitch events, demo days, investor
speeddates
• Startup support services: StartupDelta, university entrepreneurship support, regional
economic development organizations, chamber of commerce, financing & subsidy advisors
• Industry associations: Nederlandse Vereniging van Participatiemaatschappijen (NVP),
Business Angel Netwerken NL, Dutch Startup Association
• Online directories: nlfunding.co, Crunchbase, Dealroom.co, Index.co,
• Online marketplaces: Angellist, FundsUp, Glassdollar, Angel Investment Network
• Crowdfunding platforms: Symbid, Leapfunder, Oneplanetcrowd, Seedrs

24. Dutch Venture Capital funds
(source: Peak Capital)

25. When/how to approach investors
Research investors
• Right scope, right stage, right ticket size?
• Similar investments?
• What can they bring?
• Which partner do you want on your board?
MAKE
LONGLIST
WITH
RELEVANT
INVESTORS
START WITH
SECOND TIER
AS TRY-OUT
Reach out
• Preferably through personal intro
• Send clear teaser deck with ask
(feedback, network connections, meeting to explain/demo)
• Propose 30 min. video call or to meet at event/office hours
• 1x gentle reminder mail/call

26. the hook - grab attention
why? - state your mission
highlights of the concept
what makes you different?
Why are you the right team?
back-up with data points
keep it short & practice
elevator pitch

27. mission: primary goal of the company
proposition: target audience, problem solved & usp’s
current results: kpi data & customer feedback
business model: core activities & revenue model
organization: team & partners
growth plan: market opportunity & customer acquisition
financials: cash flow projection & funding need
investor deck

28. The VC perspective

29. The VC perspective
• Dealflow: assessing 500+ startup to close 5 investments
• Thesis-driven: targeting investments in emerging/hot spaces, with specific
characteristics
• Founder focus: entrepreneurs should drive growth and have sufficient skin in the
game
• Unicorn focus: each investment should have €1b exit potential to generate fund
return, compensating for failed investments
• Risk averse: taking time to get more information/validation; external urgency
needed (e.g. FOMO)
• Syndication: investing alongside existing and other new investors for additional
validation, value-add and shared risk
• Horizon: all companies should be exited when fund ends 8-10 years after start

30. Q&A

31. Investment Analyst Internship
@ KPN Ventures
• Business, Finance, Technology/Innovation
Management majors
• Proven affinity with (digital) technology and
entrepreneurship
• English language; Dutch fluency not required
• 4-6 months placement
• 50/50 Amsterdam/Rotterdam
Contact us at kpnventures@kpn.com