Join Zack Miller, Head of the Investor Community at OurCrowd, and David Stark, Investment Associate at OurCrowd, as they discuss the investment strategies necessary to build and maintain a successful startup portfolio. By nature, startup investments are a high risk/high reward asset class. Knowledge, therefore, is key in maximizing your profit potential when investing in startups. Join us to learn: The startup math that investors use to get rich Understand how companies' valuations change over time and what that means for your investments</li> Learn how OurCrowd and other startup investors see an eventual return on their investment and how those returns are calculated This webinar is appropriate for both investors and entrepreneurs alike.

1. Cashing In
How to make money investing in startups

2. Your hosts
David Stark,
Investment Associate
Zack Miller, Investor Community

3. OurCrowd
a better way to invest in Israeli startups

4. Startup Lifecycle

5. Startup success is predicated
on being able to continuously
market to more mature
customers

7. Investors participate at
different stages
(“rounds”) along the way

8. Seed Round
A Round B Round
Later Rounds

9. The Startup Math

10. Early Stage Valuation
Model: #1

11. Early Stage Valuation
Model: #2

12. Early Stage Valuation
Model: #3

13. Mid Stage Valuation Model
• Marketplaces: 1x gross transactions and 20x
EBITDA
• SaaS: 4x this year’s revenue and 3x next year’s
revenue
• Revenue multiples by sector

14. Late Stage Valuation
Model

15. Buy low sell high
?

16. At each funding round,
investors run the risk of
getting diluted
vs

17. More math: Effect of dilution

18. –Paul Graham
“If a company does really well,
you eventually will get diluted,
because the valuations will get so
high it’s not worth it for you.”

19. The importance of reserving
capital
1. Some deals are pay
to play
2. Doubling-down on
your winners
Dave McClure’s Moneyball for Startups:
Invest BEFORE product/market fit, double-down after

20. Exit, turn right for
profits

21. The importance of portfolios
the right way to hedge investor risk

22. Prof Robert Wiltbank’s
Angel Investing Study
• Diversified angel investors averaged 2.5X
ROI
• BUT, 90% of returns to investors came from
only 10% of exits

23. How to identify a
$billion unicorn

24. –Paul Graham
“The 2 most important things to understand
about startup investing, as a business, are (1)
that effectively all the returns are concentrated in
a few big winners, and (2) that the best ideas
look initially like bad ideas.”
Seemingly bad
ideas
Good ideas
Huge winners
Peter Thiel Model

25. Different types of exits
• Mergers and Acquisitions
• Going public (IPO, Reverse Merger)
• Acquihires
• Soft Landings
!

26. • Cash acquisition
• Merger
• IPO
• Dividends
Taxes, Fees, Liquidity and Net
Returns

27. Exit
scenario
Investment
case
Build a great business and the exit
will sort itself out

28. Seed round
Idea phase
Series C-D rounds
POC, revenues
Series A-B rounds
R&D, early sales
Diversification across early-stage phases

29. OurCrowd
a better way to invest in Israeli startups

30. Funding the
next generation
of successful
startups
Since February 2013,
invested in 36 startups
!
OurCrowd and our
community of investors have
invested over $43 million in
these firms

31. Any questions?
For feedback or more
information:
!
zack@ourcrowd.com
http://www.ourcrowd.com