14
MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Embed Size (px)

Citation preview

Page 1: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

MIF VC Meeting

Marcus Regueira

Buenos Aires – October, 2005

Page 2: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

about us ... Founded 1999, Brazil

US$48 million under management

18 Portfolio Companies in 3 Brazilian cities

3 Exits (1999, 2002 and 2005)

24 Associates – Senior Associates include native speakers of Portuguese, English, Italian, Spanish and German

Senior Associates hold advanced degrees (PhD, JD, LLM & MBA) from Carnegie Mellon, INSEAD, Northwestern, Stanford, UCLA, Wharton, and from top Brazilian schools

14 pro-active Private Investors, successfull entrepreneurs themselves

Our DNA and upbringing for M&A and Entrepreneurial Partnerships

Guilherme Emrich & Marcus Regueira, Senior Partners

Page 3: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

FundoTec I & II - Venture Capital Funds:

FundoTec IIR$ 60,000,000

MANAGED BY: FIR Capital Partners

CLOSE: December 2005

LEAD INVESTORS:

FINEP

PETROS (PETROBRAS)

FundoTec IR$ 30,000,000

MANAGED BY: FIR Capital Partners

CLOSED: June 2001

LEAD INVESTORS:

Sumitomo Corporation

Inter-American Development BankIADB

Page 4: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Portfolio:

innova

Alvos

Information Technology Biotechnology

Page 5: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Our Model = Tailored Involvement … becauseDistinct Investments have Distinct Needs.

Senior Associates:Marketing & Sales

Human CapitalFinancial / Tax / Fiscal

General CounselCorporate Controller

TechnologyThe Periscope

R&D Partners

Universities,Excellence Centers

CorporateManagement

Training

PAEX-Tec,Dom Cabral

Company 1 Company 2 Company ... n

Page 6: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

The Periscope, 24x7 scanning for:

• Co-Investors

• Strategic Partners

• Competition, incl. as Potential Business Partners

• Consolidation Plays

• Technology & Market Trends, in Brazil & Abroad

Page 7: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

General Profile Prior to Investment:

The Company

Strategy

Management Process

Structure

Generally Undefined

Inadequate:

Product FormatCommercial PlanGoals & ObjectivesFinancial Metrics Dissonant Financial and Commercial Plans

Inadequate:

Processes to support StrategyCost Benefit AnalysisCommunication between Management and Board / Shareholders

Inadequate:

CapitalManagementManagersFinancial ControlsAccountingMarket IntelligenceCorporate Governance Does Pay.

Absolutely Essential.

Page 8: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Our Corporate Governance Model:

The Company

PEOPLE

PROCESS

STRUCTURE

Align Vision and Values and Interests = Investors / Board / Managers

Hands-on Board

PAEX tec

Hire Controller and (at times) CEO

Controller: Strong Financial Background

CEO: Strong Management Background and (specially) Marketing&Sales

Efficient Communication = Mgmt / Board / Sharehldrs

Vision and Values Transparent to the Organization

ConsensusDriven Decision Making

GAAP and Independent Auditors

Proprietary Management Reporting System (SAE)

Formal Discipline Investor-Investee x Teamwork

Immediately Prior to Investing:

Adequate the Structure to the Avaliable Investment

Adequate the Structure to the Strategy

THE FORMALITIES OF THEINVESTOR-INVESTEE RELATIONSHIP

MUST BE ADHERED TO.

AT THE SAME TIME, THE KIND OFOPEN BUSINESS ENVIRONMENT

THAT IS CONDUCIVE TO INNOVATIONMUST EXIST.

Page 9: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Our Proprietary Reporting System (SAE):

TheCompany

FIR Capital Analyst

Fund Investors

FIR Capital Controller

WEB BASED

MANAGEMENT REPORTING (SAE)

& INVESTOR RELATIONS

Page 10: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Successful Exits:

Acquired byNovoNordisk

2002

Acquired by UOLUniverso Online

1999

Acquired byGoogle2005

Page 11: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Successful Exits Require:

– a Flexible Strategy, Designed Prior to Entry,

– Rigorous Execution from day one.

In addition,

– Entrepreneurs Focused on the Business in order to secure

• Attractive Local Market Share and/or

• World Class Technology

– Our Analysis of our investment from Acquirer’s Viewpoint,

– and, fundamentally, Adequate Corporate Governance.

Page 12: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

The Akwan Case:

FOUNDERS Stanford Students UFMG Professors

OPERATIONAL MODEL

Search Engine

Computer Clusters

Search Engine

Computer Clusters

FOUNDED 1998 2000

INVESTMENTS Angels + VCsFIR Capital was

Angel & VC

ENTERPRISE VALUE US$ Billions US$ Millions

REVENUE MODEL Innovative Media Company Web & Corporate SearchEngine

THE FUTURE “Perennially re-inventing itself ” Google R&D Center

in Latin America

Page 13: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Akwan Investment Cycle:

Stock-options issued

to engineers

2000 2003 2005

Cumulative Cashflow

2001

FIR CapitalProduct Creation

Liquidity Event

Sales

“It wasn’t a question of choosing Brazil. We chose Akwan that

happened to be in Brazil.”Alan Eustace

VP de Engineering, Google(Exame/2005)

Page 14: MIF VC Meeting Marcus Regueira Buenos Aires – October, 2005

Marcus Regueira - [email protected]

TEL: 55 (31) 3074-0020

please visit us @ www.fircapital.com