Insights Into Venture Capital

Startup Istanbul is a large startup event which brings together founders, investors and executives in the region. It is a gathering of the leading startups, internet companies, business angels and venture capitalists from Asia and Europe

Magnus R. Gaarder is an acquaintance and the Founding Partner of the investment firm nFront. He brings capital, software development and strategy support to companies across various stages of development. nFront’s focus is on game-changing, capital efficient, software propositions based in Europe or the U.S.

Highlights from his Gaarder’s talk, “Insights into Venture Capital“

• Team: exceptional team with high level of persistence, integrity, drive, leadership skills and market insight.
  
• Sector & stage: B2B software products at the series A/B stage –> lowers write-off rates and protect fund return floor.
  
• Disruption: disruptors of fast-growing global sectors where technology has had limited impact to date.
  
• Growth: strong monthly growth in revenues and other relevant KPIs.
  
• Barriers to entry: high barriers to entry introducing deep R&D, intellectual property, brand and customer relationships.
  
• Timing: Raising capital when company and market is facing minimal growth friction.
  
• Sustainability: sustainable business models, preferably recurring (e.g. subscription model), with a direct path to profitability.
  
• Scalability: Highly scalable companies with strong gross profit margins and a clear global potential.
  
• Capital efficiency: Talent-driven companies with historic capital efficiency. Continue to build efficient operations and culture.
  
• What VCs can help with, besides capital:
  • Recruiting
  • Credibility
  • Operations
  • Financing
  • International expansion