The funding ecosystem for space start-ups Thomas Tanghe Brussels, 15 May 2017 SpaceTec Capital Partners GmbH Sendlinger Strasse 22 80331 Munich Germany T +49 89 45 16 09 80 F +49 89 45 16 09 79 www.spacetecpartners.eu SpaceTec Partners SPRL Avenue Louise 66 1050 Brussels Belgium T +32 2 318 09 29 F +32 2 502 60 49 www.spacetecpartners.eu
SpaceTec s consultant clients include The funding ecosystem for space start-ups 1
SpaceTec regularly supports startups Strategy Investment Readiness Market Access Funding Laser terminals air & space GeoIntelligence & machine learning High-resolution moisture data Hyperlocal maps Modern farmer s tool Enabling geolocated IoT IoT authentication Data fusion for automated driving Marine real-time analytics Safe marine navigation Operating system for IoT Connected space telescopes Low-power cm-positioning for IoT Single-chip based navigation Locating solutions Mobile app for Outdoor The funding ecosystem for space start-ups 2
Where is the money???? Sources: SIA TauriGroup, SIA Futron, Booz&Co, STP The funding ecosystem for space start-ups 3
What is a good business in one slide The most essential element in your business is your customer Don t sell technology, don t sell products and don t sell features Simply solve a customer s problem with a service or solution B2B: how are you improving your customers' bottom line? Build your value proposition Your value proposition explains how you solve your customers problem It details which specific benefits or value you will add (price, efficiency, customer experience, etc.) It describes why your customer should buy from you and not from your competitors What are your differentiators? Use language your customers use and understand You have a great product or service when: Your product delivers greatly on a singular value proposition You talk to your customers Your customers are paying The funding ecosystem for space start-ups 4
Research programmes (e.g. H2020, National) The funding chain for space start-ups 100k EUR 500k EUR 1-5M EUR Idea Incubation Early Stage Venture Capital Later Stages Idea and business plan competitions Incubators & Accelerators Regional funds (DE) Generic Private Venture Capital National funds (DE) Specialised Venture Capital Networking platforms Business Angels & Crowdfunding Corporate VCs EU SME Instrument Commercial Banks The funding ecosystem for space start-ups 5
External finance is often required to grow Financing streams Yourself & Organic Growth Friends, Family & Fools Start-up support schemes Business Angels Private and public venture capital Private equity Corporate investors Bank loan Revenue streams Public grants & procurement Commercial contracts Focus of tonight The funding ecosystem for space start-ups 6
Ideation competitions help you to test your ideas The funding ecosystem for space start-ups 7
Incubation and acceleration schemes support you in the early days The funding ecosystem for space start-ups 8
Business Angels provide smart capital Business Angels are providing smart capital but invest locally and can be hard to identify aims to bring all investors and entrepreneurs interested in investing and promoting space in Europe together. Source: EBAN The funding ecosystem for space start-ups 9
Venture Capital invests in scalable businesses targeting large markets 1% of start-ups are funded by VC in the US - Harvard Business Review The funding ecosystem for space start-ups 10
What is the link between a hockey stick and start-ups? Profit Time Venture Capital Growth Capital & Private Equity The funding ecosystem for space start-ups 11
Corporate investors seek financial returns but also have a strategic interest The funding ecosystem for space start-ups 12
What are the ingredients of an investor pitch? Mission / vision statement Description of company / product / service Market size Unique Selling Proposition (USP) & Competition Marketing plan & market entry Be sharp and to-the-point! An investor is not a technologist nor a customer Partners Financials Management team Elevator pitch Have a one-liner, 1min pitch, 3min pitch, 10min pitch, etc. The funding ecosystem for space start-ups 13
European eco-systems are navigating entrepreneurs to funding Smart Capital Dealflow Support TYPES OF FUNDING Researchers Business Ideas Entrepreneurs INFORMATION TRAINING COACHING ECO-SYSTEM / INSTITUTIONS The funding ecosystem for space start-ups 14
Contact The funding ecosystem for space start-ups 15