SlideShare une entreprise Scribd logo
Show	
  Me	
  the	
  Money	
  
TechMeetups	
  
19th	
  November	
  2013	
  
Cass	
  Business	
  School	
  

Ma?	
  Rothman,	
  Managing	
  Partner	
  
Overview	
  
• 
• 
• 
• 
• 
• 

Hemisphere	
  
Funding	
  strategy	
  
Investor	
  selecIon	
  
PresentaIon	
  
Terms	
  
Timetable	
  
2	
  
• 
• 
• 
• 
• 
• 

Investment	
  and	
  advisory	
  
Focus	
  on	
  plaJorms	
  
Growth	
  stage	
  
InternaIonal	
  expansion	
  
PorJolio	
  of	
  six	
  companies	
  
Raised	
  capital	
  in	
  San	
  Francisco	
  &	
  London	
  over	
  
the	
  past	
  13	
  years.	
  	
  
3	
  
•  Funding	
  strategy	
  is	
  as	
  important	
  as	
  product	
  or	
  
markeIng	
  strategy	
  
–  Rule	
  of	
  the	
  Raise	
  
•  Raise	
  more	
  than	
  you	
  think	
  you	
  need	
  
•  Raise	
  it	
  when	
  you	
  don’t	
  need	
  it	
  	
  
•  Raise	
  it	
  from	
  people	
  who	
  bring	
  more	
  than	
  money	
  

4	
  
Select	
  investors	
  

–  Stage,	
  HNW,	
  strategic	
  
–  With	
  industry	
  or	
  sector	
  knowledge	
  
–  Round	
  ‘sweet	
  spot’	
  
–  A	
  network	
  of	
  customers	
  and	
  execuIves	
  
–  Experience	
  as	
  entrepreneurs	
  
–  Investment	
  track	
  record	
  
–  Geography	
  	
  

•  Follow-­‐on:	
  

–  ParIcipate	
  in	
  the	
  next	
  round	
  	
  

•  Advisors	
  &	
  Governance	
  

5	
  
Presenta4on	
  
–  Focus	
  on	
  a	
  single	
  business	
  line	
  
–  Address	
  business	
  objecIons	
  upfront	
  
•  Revenues,	
  markeIng,	
  opportunity	
  size	
  

–  Show	
  don’t	
  tell	
  
–  Pitch	
  by	
  analogy:	
  examples	
  that	
  amplify/validate	
  
–  Concept	
  vs	
  Data	
  driven	
  (vision	
  vs	
  numbers)	
  

6	
  
Presenta4on	
  content	
  
•  Opportunity	
  size:	
  TAM,	
  pipeline	
  
–  Customers/users:	
  how	
  many,	
  how	
  long?	
  quotes	
  

• 
• 
• 
• 

GTM	
  
Risks	
  
CompeIIve	
  landscape:	
  idenIfy	
  USP	
  
Metrics:	
  measure	
  success	
  
–  Users,	
  partners,	
  growth,	
  revenues,	
  profits	
  
7	
  
•  Product	
  pipeline	
  
–  Where	
  is	
  it	
  now?	
  Milestones	
  

•  Team	
  
–  ExecuIon,	
  experience,	
  holes	
  

•  Financials	
  
–  Reasonable	
  assumpIons	
  
–  Comparables 	
  	
  	
  

•  Use	
  of	
  Funds	
  
•  Recap	
  the	
  focus,	
  forecast	
  and	
  funding 	
  	
  
8	
  
 
Terms	
  
•  ValuaIon	
  
•  Series/round	
  
•  Lead	
  &	
  followers	
  
•  SyndicaIon	
  
•  ConverIble	
  debt	
  
•  Warrants/opIons	
  
•  Founders	
  shares	
  
9	
  
Timetable	
  
•  90	
  days	
  
•  Due	
  diligence	
  
–  Cap	
  table	
  
–  Customer	
  contracts	
  
–  Employees	
  

•  Legals	
  
•  Closing	
  
•  Next	
  round	
  –	
  valuaIon	
  appreciaIon	
  
10	
  
Ma?	
  Rothman,	
  managing	
  partner	
  
ma?@hemispherecapital.com	
  
	
  

11	
  

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Show me the money -- Raising Venture Capital in the UK

  • 1. Show  Me  the  Money   TechMeetups   19th  November  2013   Cass  Business  School   Ma?  Rothman,  Managing  Partner  
  • 2. Overview   •  •  •  •  •  •  Hemisphere   Funding  strategy   Investor  selecIon   PresentaIon   Terms   Timetable   2  
  • 3. •  •  •  •  •  •  Investment  and  advisory   Focus  on  plaJorms   Growth  stage   InternaIonal  expansion   PorJolio  of  six  companies   Raised  capital  in  San  Francisco  &  London  over   the  past  13  years.     3  
  • 4. •  Funding  strategy  is  as  important  as  product  or   markeIng  strategy   –  Rule  of  the  Raise   •  Raise  more  than  you  think  you  need   •  Raise  it  when  you  don’t  need  it     •  Raise  it  from  people  who  bring  more  than  money   4  
  • 5. Select  investors   –  Stage,  HNW,  strategic   –  With  industry  or  sector  knowledge   –  Round  ‘sweet  spot’   –  A  network  of  customers  and  execuIves   –  Experience  as  entrepreneurs   –  Investment  track  record   –  Geography     •  Follow-­‐on:   –  ParIcipate  in  the  next  round     •  Advisors  &  Governance   5  
  • 6. Presenta4on   –  Focus  on  a  single  business  line   –  Address  business  objecIons  upfront   •  Revenues,  markeIng,  opportunity  size   –  Show  don’t  tell   –  Pitch  by  analogy:  examples  that  amplify/validate   –  Concept  vs  Data  driven  (vision  vs  numbers)   6  
  • 7. Presenta4on  content   •  Opportunity  size:  TAM,  pipeline   –  Customers/users:  how  many,  how  long?  quotes   •  •  •  •  GTM   Risks   CompeIIve  landscape:  idenIfy  USP   Metrics:  measure  success   –  Users,  partners,  growth,  revenues,  profits   7  
  • 8. •  Product  pipeline   –  Where  is  it  now?  Milestones   •  Team   –  ExecuIon,  experience,  holes   •  Financials   –  Reasonable  assumpIons   –  Comparables       •  Use  of  Funds   •  Recap  the  focus,  forecast  and  funding     8  
  • 9.   Terms   •  ValuaIon   •  Series/round   •  Lead  &  followers   •  SyndicaIon   •  ConverIble  debt   •  Warrants/opIons   •  Founders  shares   9  
  • 10. Timetable   •  90  days   •  Due  diligence   –  Cap  table   –  Customer  contracts   –  Employees   •  Legals   •  Closing   •  Next  round  –  valuaIon  appreciaIon   10  
  • 11. Ma?  Rothman,  managing  partner   ma?@hemispherecapital.com     11