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“ Funding a Technology Startup –  Insights into the World of Venture Capital” Tom Weithman Managing Director, CIT GAP Funds Remarks to Capital Technology Management Hub  November 10, 2009
Overview ,[object Object],[object Object],[object Object]
What Is Venture Capital? ,[object Object]
Sources of New Venture Financing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VC Fund Structure Asset Allocation Alternative Assets Capital Call Carried Interest Management Fee Fund Life Deployment Period Key Concepts Illustration Source: Wikipedia
Why do VCs Invest? ,[object Object],[object Object],[object Object],[object Object],[object Object]
What Do VCs Invest In? Source: MoneyTree Report – NVCA/PWC/Thomson Reuters
Venture Capital Outcomes - NVCA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Major Changes in Venture Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Institutional Investment Patterns  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Proliferation of Private Equity
VC Investment Patterns  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ IPO Market Impairments” “ Why are IPOs in the ICU?” by David Weild and Edward Kim, Grant Thornton, 2009
“ The Great Recession” –  Immediate Impacts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ The Great Recession” –  Long-Term Impacts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For Entrepreneurs …Take-Away #1  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For Entrepreneurs … Take-Away #2  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For Entrepreneurs … Take-Away #3  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Funding a Technology Startup – An Insight into the World of Venture Capital”   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Back-Up Slides
Factors Impacting IPO Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VC Performance v Committed Capital
VC Performance V Investments
Institutional Commitment to PE  Bill Gurley, “What Is Really Happening to the Venture Capital Industry?”, abovethecrowd.com, posted August 24, 2009
Proliferation of Venture Capital
VC Capital Under Management, 1988-2008
Source: University of New Hampshire Center for Venture Research, Price Waterhouse Coopers Early Stage Private Equity  2007 Angel Investments 2007 VC Investments $25+ Billion 51,000 Deals Average Deal Size : $500,000 $25+ Billion 3,416 Deals Average Deal Size : $7,500,000 Early Stage to Late Stage
Where Do VCs Invest? Life Sciences Clean Technology Information Technology
Brief History of VC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment Stage and Expected Return ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Time-to-Liquidity Investor’s Expected Return Technology Risk Business Risk Entrepreneur’s Cost of Capital  High Low
VC Deal Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VC Today … Facts, Rumors, and Allegations? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Entrepreneurs Raise Venture Capital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For Entrepreneurs Seeking VC …  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Alternatives to VC?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Washington Metro Area Strengths ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Funding A Technology Start Up Insights Into The World Of Venture Capital

  • 1. “ Funding a Technology Startup – Insights into the World of Venture Capital” Tom Weithman Managing Director, CIT GAP Funds Remarks to Capital Technology Management Hub November 10, 2009
  • 2.
  • 3.
  • 4.
  • 5. VC Fund Structure Asset Allocation Alternative Assets Capital Call Carried Interest Management Fee Fund Life Deployment Period Key Concepts Illustration Source: Wikipedia
  • 6.
  • 7. What Do VCs Invest In? Source: MoneyTree Report – NVCA/PWC/Thomson Reuters
  • 8.
  • 9.
  • 10.
  • 12.
  • 13. “ IPO Market Impairments” “ Why are IPOs in the ICU?” by David Weild and Edward Kim, Grant Thornton, 2009
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 21.
  • 22. VC Performance v Committed Capital
  • 23. VC Performance V Investments
  • 24. Institutional Commitment to PE Bill Gurley, “What Is Really Happening to the Venture Capital Industry?”, abovethecrowd.com, posted August 24, 2009
  • 26. VC Capital Under Management, 1988-2008
  • 27. Source: University of New Hampshire Center for Venture Research, Price Waterhouse Coopers Early Stage Private Equity 2007 Angel Investments 2007 VC Investments $25+ Billion 51,000 Deals Average Deal Size : $500,000 $25+ Billion 3,416 Deals Average Deal Size : $7,500,000 Early Stage to Late Stage
  • 28. Where Do VCs Invest? Life Sciences Clean Technology Information Technology
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.

Notes de l'éditeur

  1. IT/Consumer had massive investment in late 90s. Volume and distribution has dropped significantly over time. Life Sciences has been more stable over time Industrial/Energy spiked more recently, although lack of capital efficiency scared some off in 2009 - Retailing/Distribution has practically disappeared as a category - Financial Services has dropped as well
  2. - Focus by sector, stage and geography