Medici Firma Venture

Medici Firma Venture

Capital Process

Presented by :

mfventure.com
MF Venture Business Development

MF Venture Capital

www.mfventure.com

ONWARD PROSPERITY
MF Venture is an institutional venture capital
company that governs itself with onward
thinking and a mission to put allied prosperity
first.

MF Venture Capital

www.mfventure.com

INNOVATIVE

SMART

TECHNOLOGIES
UNIQUE

MARKETPLACE

INVESTING
IN
INNOVATION

GREAT

HIGH
QUALITY

CREATIVE

SCIENCE
COOL

PROFESSIONAL

FAST
RESPOND

MF Venture Capital

www.mfventure.com

ECOMMERCE

INVESTMENT CRETRIA &

INVESTMENT STRATEGY

INVESTMENT CRETRIA
MF VENTURE

0 : 01

Industry Focus

0 : 02

Industry A, B, C

0 : 04

Team
Relevant industry experience,
serial entrepreneurs, and
committed

MF Venture Capital

Stage Focus

0 : 03

Seed (X%), Series A (X%),

Series B (X%), Series C+
(X%)

0 : 05

Minimal Viable
Products (MVP)
100% complete and market
tested

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Investment Size
Seed (X%), Series A (X%),
Series B (X%), Series C+
(X%)

0 : 06

Traction
Revenue generating and/or
verifiable traction, Min Revenue
or EBITDA?

INVESTMENT CRETRIA
MF VENTURE

0 : 01

Competitive Advantage

0 : 02

Proprietary and/or unfair

advantages that create
sustainable competitive
advantages

0 : 04

Target Return

Capital Efficiency

0 : 03

Minimal capital needed for

operations and execution

0 : 05

Target Ownership
5%-25%

0 : 06

VCs: 5x-10x+ return potential,

PE: 2-5x return Potential

MF Venture Capital

www.mfventure.com

INVESTMENT STRATEGY
MF VENTURE

0 : 01

Markets

0 : 02

Large and evolving markets

where disruptions are
happening.

0 : 04

Follow-on Capital
Require real traction or an exit
on horizon

MF Venture Capital

Diversified Risk

0 : 03

Across a set of related

industries and range of stages

0 : 05

Exposure
No more than 10% of fund (or
expected total investment
capital) in any one company

www.mfventure.com

Co-Invest
Mainly co-invest, rarely lead

0 : 06

Extract Value
Knowledge, talent, technology,
and processes

INVESTMENT STRATEGY
MF VENTURE

0 : 07

Add Value

0 : 08

Liquidity Potential
< 5 Years

MF Venture Capital

0 : 09

Companies with multiple

avenues for success

Help provide key resources,

clients, employees, board
members, advisors, strategic
partners, investors, etc.

0 : 10

Versatility

0 : 11

Thing to Avoid
Regulatory risk, long sell
cycles, capital / labor intensive,
long tech development

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Involvement
Take board seats, observer
roles, rarely if ever take board
seats

0 : 12

Extract Value
Knowledge, talent, technology,
and processes

DEAL SOURCING &

DEAL FLOW MANAGEMENT

DEAL SOURCING
MF VENTURE

Events:
Startup / VC &
Industry Focused

Ecosystems:

Academic:

Accelerators &
Incubators

Top Colleges /
Universities

Other Investors:

Large Corporates:

DEAL
SOURCING

VCs, Seed Funds,

Angels, Angel
Groups

Network:

Tech Focused
Corporations

Proprietary
Network:

Employees, Clients
& Partners

Rising Startups /
Entrepreneurs

Industry
Leaders &
Experts

MF Venture Capital

www.mfventure.com

100

DEAL FLOW MANAGEMENT

Continually Rank & Weigh Deal Flow: In order of consideration

Team

Market Opportunity
Target Market Size, Growth of Target
Market, Penetration Needed

MF Venture Capital

Board Members / Advisors

Value Proposition

Business Model

Product / Service, Problem vs.

Solution

Revenue / Expense Strategy,

Financial Model

Traction

Stage (Risk)

Traction, Milestones and Timeline

Startup (beta + pre-rev), early

stage (beta + post-rev), growth
stage, etc.

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22

DEAL FLOW MANAGEMENT

Note: Traction is one of the highest weighed factors in deal flow management for VCs, and often becomes the determining factor
when compared to equally great teams, business opportunities, and deal terms, etc.

MF Venture Capital

Competition

Terms

Direct / Indirect Competitors, Market

Fit, Competitive Advantages

Investment Size, Note / Equity,

Valuation (Ownership), etc.

Co-Investors

Min Capital Needed

Co-Investors

To achieve breakeven? Before an

exit?

Value Add Potential

Exit Opportunities

Knowledge, Employees / Board

Members, Clients, Partners, etc.

Who?, Why?, When?

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22

PROCESS &
FUND STRUCTURE

PROCESS: SOURCE > LEARN > INVEST > EXIT

Source

Extensive Deal Sourcing

200-400 Companies / Yr

Who?, Why?, When?

Initial Screening & Elimination
40-80 Companies / Yr (20%)

Learn

Preliminary Due Diligence

Go (50%, 20-40) / No Go (50%, 20-40)
2nd Level Due Diligence
Investment Committee: Go (50%, 10-20) / No Go (50%, 10-20)

SIGN ND, IF
NEEDED

Final Due Diligence

Investment Committee: Go (50%, 5-10 Companies / Yr)

Invest

Term-Sheet & Investment Execution

5-10 Investments / Yr (1-3%)
Monitor, Support, Follow-Ons
Reporting & Oversight

Exit
MF Venture Capital

Exit Management
Focus on Winners, Not Losers
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84

PROCESS: SOURCE > LEARN > INVEST >

EXIT

Client

Order form

Analyst

Sketch

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Packing

Producting

Review

Design

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MF Venture Capital

www.mfventure.com

84

VENTURE FUND STRUCTURE

General Venture Capital Structure

Investors
(LPs)

Prot Sharing
(Carry):
80% = LPs
20% = GPs

Management Fee: 2%
Venture Fund
Management LLC
(GPs)

Invested
Venture A LLC

Venture B LLC

Venture C LLC

Liquidity Event
Portfolio Co. A

MF Venture Capital

Portfolio Co. B

www.mfventure.com

Portfolio Co. C

109

GET IN TOUCH

AUSTRALIA

Email : team@mfventure.com

UNITED STATES

Facebook/Twitter

CHINA

@mfventure

MF Venture Capital

www.mfventure.com

119