The P os a d Co s of P i ate E uity Capital I esto I You Busi ess

The P os a d Co s of P i ate E uity Capital I esto I You Busi ess

The P os a d Co s of P i ate E uity Capital I
esto I You Busi ess
As
et i i fo aio lo , et ee
ould- e-e t ep e eu s a d i esto s o st u t the deal
aki g e ause of i sui ie t i fo aio a out the usi ess idea. Efe i e te h i ues of usiess p ese taio a e o e of the esse ial fa to s e su i g efe i e p ese taio of usi ess p oposals to pote ial i esto s. P i ate e uit i a i g has so e disi t ad a tages o e othe
fo s of fu di g. He e a e so e of the ai
e eits:
La ge A ou ts of Fu di g
Of all the opio s e’ e looked at so fa , p i ate e uit a p o ide
fa the la gest a ou ts of
o e . As e sa , the deals a e easu ed i hu d eds of illio s of dolla s.
The i pa t of that ki d of
o e o a o pa
a
e
assi e.
A i e I ol e e t
With a of the othe fu di g opio s e’ e looked at, the
i esto o le de has o l i i al i ol e e t i the u i g
of ou usi ess. P i ate e uit i s a e u h o e ha ds o ,
a d ill help ou e-e aluate e e aspe t of ou usi ess to
see ho ou a
a i ize its alue. This a lead to p o le s,
of ou se, if thei idea of a i izi g alue does ’t at h
ou s, as e’ll see i the e t se io . But ha i g e pe ie ed
p ofessio als i i atel i ol ed i ou usi ess a also esult i
ajo i p o e e ts.
I e i es
P i ate e uit i s ha e a lot of ski i the ga e. As e’ e see , the ote o o a lot of o e
to ake thei i est e ts, a d the ha e to pa that a k a d ge e ate a etu fo thei i esto s
o top of that. I o de to a hie e that, the eed ou usi ess to su eed.
Disad a tages of P i ate E uity
Diluio /Loss of You O
e ship “take
This is the ig o e. With the othe fu di g opio s e’ e looked at, the i est e t a e at a ost,
ut ou sill sta ed i o t ol of ou o pa . With p i ate e uit , ou get u h o e o e , ut
usuall ha e to gi e up a u h la ge sha e of the usi ess a d i efe t loss of Ma age e t Co t ol.
Beyo d the
o ey, you a also lose o t ol of the usi ess di e io
The p i ate e uit i
ous se io , that a
of ou
ill a t to e a i el i ol ed, a d as e
e a good thi g. But it a also
e io ed i the p e i-
ea losi g o t ol of asi ele e ts
usi ess like sei g st ateg , hi i g a d i i g e plo ees, a d hoosi g the
a -
age e t tea .
Dife e t Dei iio s of Value
A p i ate e uit i
e ists to i est i
o pa ies,
ake the
o e alua le, a d sell thei stakes fo la ge p oits. Mostl this is
good fo the o pa ies i ol ed—a
to
eate
is e
usi ess o
o e alue. But a p i ate e uit i
e
ould like
's dei iio of alue
spe ii a d li ited. It’s fo used o the i a ial alue of
the usi ess o a pa i ula date a out i e ea s ate the i iial i est e t, he the i
sells its stake a d ooks a p oit.
Ho do p i ate e uity i esto s
The ge e all

e ei e a etu
the i

A
o ey a k?
o thei i est e ts th ough o e of the follo i g a s:
A i iial pu li ofe i g IPO . “ha es of the o pa
all p o idi g a i
ake
ediate etu
a e ofe ed to the pu li , t pi-
o a i est e t th ough the sale of sha es i
.
e ge o a uisiio : the o pa
is sold fo eithe
ash o sha es i a othe
o -
pa .

A e apitalizaio : ash is dist i uted to the sha eholde s — the i esto s — eithe
fo
ash lo ge e ated
to fu d the dist i uio .
the o pa
o th ough aisi g de t o othe se u iies
Ho does p i ate e uity fu d a tually a ui e a i
The
ost o
o
a is th ough the le e aged u out o LBO. This is the takeo e of a o pa-
—pa t of it o so e of the i
o ed fu ds f o
's assets -- usi g p i ate e uit fu di g as ell as usi g o -
a ks. The fu ds a
— a d the its take p i ate — o the
pu li i
Othe
?
e used to u up all the o pa 's sha es if it's pu li
o e is used to u out the i
's o
e s if it's ot a
.
a s p i ate e uit
a
e used to take o e a i
i lude usi g the fu ds to g o a i
o to pa of a de t, a d thus gi i g the p i ate e uit holde s o t ol of the o pa
,
i ea h
ase.
Che ki g of p i ate e uity i esto eadi ess
Pilot A io of Regio al I est e t Readi ess T ai i gs i Pola d
- 4.
.
4 Bielsko-Biala & Cze ho i e-Dziedzi e, “ileisa Regio
The I pa t I est e t Readi ess P og a
e ai s to a el-
e ate i est e t i to so ial a d e i o
e tal usi esses
ased i Pola d
helpi g di e tl
usi ess supo t i situ-
io s a d i efe t ould- e a d e t ep e eu s to:

Lear
hi h type of i est e t is right for you o ,
a d ho to get it

Dis o er ho to rite i esta le usi ess pla s

Atra i e prese taio skills to gai a i est e t apital
The t ai i g p og a
es deli e ed du i g the pilot tesi g
i luded the th ee phases: PREPARATORY BLOCK
fo sta t-ups, ENABLING BLOCK
PRACTICING BLOCK
- Pit hi g
- Busi ess pla
Fi a i g
i g a d
ith the i esto s. Regio al
"I est e t Readi ess" t ai i g p og a
pa ts' skills of usi g e uit
i luded t ai i g pa kage desig ed to de elop pa i i-
apital fo the i ple e taio of usi ess ideas. I
t ai i g ou se allo ed to i p o e a o g
seed apital i the i iial stage of o pa

o e that
pa i ipa ts skills o ho
isk apital oppo tu iies a d thei
odaliies;

Gi e the oppo tu it to e t ep e eu s to

E ha e e t ep e eu s skills i

I p o e thei skills i efe i el p ese t the usi ess p oposiio to a ds eal i
easu e thei i est e t eadi ess le el;
ete i e-tu i g thei
usi ess p oposal a d pla ;
I p o ed i est e t eadi ess a si ulate the de a d side
i esto s. The p i ipal o je i e is to help pla e “MEs i a posiio
ial i esto s ith a
to aise isk/
de elop e t, i pa i ula l :
Raise a a e ess a d u de sta di g of e t ep e eu s o
e ui e e t a d ope aio
espo se to a o e,
esto s.
aki g “MEs
o e at a i e fo
he e the
a p o ide pote -
edi le i est e t oppo tu it , to the e eit of oth the “ME a d the pote -
ial i esto . A su essful out o e
e ts. Regio al t ai i g p og a
ould e a i
ease i the u
e of “MEs at a i g i est-
"i est e t eadi ess" i iiated olla o aio of usi ess oa h-
es, usi ess o igi ato s a d so ei es also i esto s. Tha ks to that as ell as i te est it I esto
Readi ess sho ed
up o i g
pa i ipa ts, si ila tea hi g i iiai es a e pla ed to the i ple e taio i
ea .
Pilot A io of Regio al I est e t Readi ess T ai i gs i Belgiu
th to
Whe looki g at the i a i g of i
fo us. Co side a le
o k has ee
o ai e “MEs, the suppl of fu ds Has ee the
th Ju e
ai
o e
a ied out to i p o e the suppl of fu ds fo i est e t i
“MEs. I esto s ho seek to o tai a p oit o thei i est e t a d u less the a e o i ed that
a “ME a g o a d e o e p oita le, the
ake a o
it e t. To e su e a efe i e
a ket i the suppl of i a e fo “MEs, it is the efo e e essa
to de elop the de a d side to
help “MEs at a t i esto s. I othe
ill ot
o ds, “MEs should e o e i est e t ead .
I the ou se of the e e ts the p oje t itself, its ta get a d a hie e e ts ha e ee disse i ated. A
e
good le el of i te est has ee
egiste ed, espe iall du i g the i al uesio a d a s e ses-
sio a d se e al uesio s a d la ii aio s ate the e d of the t ai i g a i iies hi h ha e ee
also e uested.
All pa i ipa ts, ha e ee p o ided ith a I fo Pa k a out the p oje t hi h o tai ed the p oje t
toolkit a d addiio al o ta ts i EBN fo allo i g i te ested pa ies to o ta t the o ga isaio a d
ha e othe pote ial follo ups of the sa e t ai i g. Coa hi g a d self-assess e t e e ise p o ided du i g Pilot, i o de to de elop skills of t ai ees of the p og a
e a out ho to gai
isk/seed
apital i the i iial stage of o pa , allo ed fo :
Guidi g e t ep e eu s i ide if i g the eak esses of thei
usi ess p oposiio a d i di g ho
to i p o e it;
“uppo i g e t ep e eu s i i e-tu i g thei
e uested
usi ess pla addi g all the ele a t i fo
aio
i esto s;
I t odu i g e t ep e eu s to all the a aila le sou es of sta t up i a i g i ludi g e uit a d
suppo t the
i
hoosi g the
ost ade uate o e i a o da e to thei spe ii
“uppo i g e t ep e eu s i efe i el p ese t thei
eeds;
usi ess p oposiio i f o t of pote ial i -
esto s.
Fi al E e t of GReaC P oje t
Proje t GReaC su
To
ary at losi g e e t. Kato i e/Pola d/ 6 De e
er
4
eet the eeds of people ith a usi ess idea ho a t to aise apital f o
Regio al De elop e t Age
G oup Nethe la d , Ruse Cha
Net o k Belgiu
Bielsko-Biala Pola d togethe
e of Co
e e a d I dust
e te al i esto ,
ith Meta G oup Ital , )e ike
Bulga ia a d Eu opea Busi ess
i ple e ted the p oje t "Gei g Read fo the Capital", i ludi g the de elop-
e t a d tesi g of spe ialized t ai i g
odules i the ield of ope aio a d aisi g i est e t ap-
ital.
The ai
of the i al p oje t o fe e e as to p ese t oth, the e pe ie e a d a hie e e ts of the
p oje t o
aisi g apital f o
ules of o
The
outside i esto s, as
ell as the p ese taio of the uilizaio
e iall a aila le p i ate e uit fu ds fo the de elop e t of i
o ai e p oje ts.
eei g fo used at issues as:
eaio of s e gies et ee ke pla e s i the

de elop e t of the k o ledge e o o
a ket ho should e i ol ed i the
a d easie a ess to the seed fu ds seed-
apital, e tu e apital

de elop e t of p ofessio al t ai i g
odel app op iatel tailo ed to the eeds of e-
gio al o aio al edu aio a d t ai i g s ste s

fa ilia ize futu e a d e isi g e t ep e eu s
ith the k o ledge a d est p a i es
ega di g the ight aitude / usi ess ultu e a d p ese taio skills i at a i g i a ial i esto s

i
ease the p ofessio alis
a d the ualit a d ei ie
spe i e a d e isi g usi esses
eaio of

Busi ess E i o
e t I situio
o e fa ou a le o diio s fo the de elop e t of i
Co fe e e pa i ipa ts e o e fa ilia
a ket a d the de elop e t of pe so al skills e essa
efe i el p ese t thei
to s, the e
i
to
usi ess p oposals to pote ial i es-
easi g a ess to a d use of the so- alled " isk
apital" fu ds.
I addiio , pa i ipa ts had the oppo tu it to lea
i esto eadi ess t ai i g path de eloped
futu e a d e isi g e t ep e eu s,
a out
Meta G oup, fo
ith a a ge of e uit
fu d aisi g feed a k i de elop e t of i
o ai e usi ess
ideas, i ple e ted i f a e of GReaC p oje t.
GReaC p oje t i iiated fo the i st i e i the egio s o p ehe si e oope aio
ess e i o
et ee
e t, usi ess idea o
o ai e sta t-ups,
ith est p a i es ega di g suppo t the de elop e t
of e te p ises, th ough p ope u de sta di g of e tu e apital
of se i es p o ided to p o-
ep ese tai es of the usie s a d e uit i esto s.
This oope aio is i po ta t i o de to a hie e the
ai goal,
t ai i g fo t ai e s, usi ess i situio s a d i di iduals
a d aisi g i est e t apital. This
p a i es o
hi h is to de elop a
odel of
ith a usi ess idea a out fu io i g
odel is ai ed to e a le the e ha ge of k o ledge a d est
ele a t usi ess ultu e a d skills to use
ode
i est e ts sou es i the de elop-
e t of e t ep e eu ship.
EBN Te hCa p
4, Mu i h Ge
th
htp://
Co e saio s
ith
a
stakeholde s i te ested i
a out GReaC p oje t du i g the e e t ith
to suppo t i
o e tha
o ai e e t ep e eu s ha e ee sho
eei gs, eal-i e de o st aio s, the ai
eai g i
o aio
pa i ipa ts. Ne
–
a y
th No e e
.e te h a p.eu/
ithi a e la ged EU e os ste
tools,
ethods, a d p o esses
ased a d tested th ough pit hi g sessio s, ilate al
o kshops a d a d a i e hi iio a ea. Ke e pe ts a d
tool de elope s, i ludi g GReaC o es, e posed a d i te a ted ith the audie e du i g this d a i
-da
e e t, hi h as dedi ated to the follo i g topi s:

C eai it a d idea de elop e t

Rapid a ele aio

Ad a ed oa hi g

Net o ki g a d o li e usi ess o

I
u iies
o ai e i a e
The ele a e of the EBN pa i ipaio a d the disse i aio of the GReaC ithi this e e t as ai i g at
p o oi g the p oje t’s esults a d its sho t a d lo g te
EU a d at i
easi g the le el of a a e ess i
o je i es fo suppo i g e stakeholde s i the
elaio to the esta lish e t of o ta ts ith pote ial fu -
de s a d i a ial suppo te s.
Fo o e i fo aio
e ki dly i ite to all of you to isit ou p oje t e site as ell as FB a ou t.