dealroom.co presentation at noah 2013
DESCRIPTION
Dealroom presentation at the NOAH Conference 2013 in London presented by Yoram Wijngaarde on 13 November 2013TRANSCRIPT
NOAH Conference 2013
dealroom 13 November, 2013
dealroom.co
How can you discover new tech companies?
dealroom.co
As a Venture Capital fund, how to manage deal-flow?
dealroom.co
For Sale For founders, a discreet
way to test market appetite?
dealroom.co
Discover, track, connect, share data.
dealroom.co
Venture Capital has been an underperforming asset classes
Source: Kauffman Foundation study, May 2012. 6
(10%)
0%
10%
20%
30%
40%
50%
60%
70%
Median IRR
Mean IRR
dealroom.co
Survey conducted with VCs left some clues.
dealroom.co Source: Dealroom estimates.
VCs spend 51% of their time scouting for opportunities
80% diligence &
analysis
51% scouting for deals
Public Markets
Venture Capital
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hit ratio from initial contact to successfully closed deal
5% Less than
Source: Dealroom survey.
dealroom.co
What’s wrong with the other 95% ?
Source: Dealroom survey.
dealroom.co Source: Dealroom survey.
basic stuff
“too small” “too big”
“not enough growth”
“too early” “too late”
“wrong geography”
dealroom.co
VC’s still mostly use low-tech tools to discover new companies
56%
28%
11%
33%
0% 10% 20% 30% 40% 50% 60%
News sites
Google Alerts
Other
Source: Dealroom survey.
dealroom.co
50%
50%
33%
33%
17%
6%
0% 10% 20% 30% 40% 50% 60%
Email (cold)
Intro
Cold call
Conferences
Other
How VCs establish new contact with founders
Source: Dealroom survey.
dealroom.co
How is this perceived by founders and CEOs ?
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Founders are approached by VCs too much, or too little.
And usually at the wrong time
33%
25%
25%
17%
0% 5% 10% 15% 20% 25% 30% 35%
Never
Rarely
Monthly
Weekly
Source: Dealroom survey.
dealroom.co
Is there a more efficient way?
dealroom.co
The typical VC deal pipeline
17
Closing
Confirmatory due
diligence
Desktop research
Commercial due diligence
Preliminary info sharing
dealroom.co 18 Source: Dealroom survey.
Closing
Confirmatory due
diligence
dealroom Desktop research
Commercial due diligence
Preliminary info sharing
The typical VC deal pipeline
dealroom.co
Build a tracking list of companies you want to keep an eye on
19
“Opened San Francisco
office to cover U.S.”
“We just hired a VP of Sales”
“Series A funding
completed”
“5M paying
users reached”
dealroom.co
Dealroom covers all investment stages from seed to late growth
20
seed stage
early growth stage
late growth stage
mature stage
Note: based on Dealroom methodology.
dealroom.co
Secure dealroom to disclose non-public info with selected parties
21
dealroom.co
Many benefits for founders and CEOs
ü More control over information outflow
ü Build a well-informed investor following
ü Optimize timing of deals & shorter duration
ü Better deal terms
ü Saving big on deal-related fees
dealroom.co
400 funds & investors
2,000 companies
dealroom.co
tracking connections
12,000 Within two weeks
dealroom.co
tracking connections
65,000 Today
dealroom.co
Thank you! [email protected]