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Venture Funding and Strategies. Presentation Structure. Sources of Funds Investors – private equity, VCs, Angels Loans – Bank Loans – SBA Loans Government Subsidies – SBIR Grants, Green Tech Subsidies Exit Strategies Merger Acquisition Management or Employee Buyout, LBO
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Presentation Structure • Sources of Funds • Investors – private equity, VCs, Angels • Loans – Bank Loans – SBA Loans • Government Subsidies – SBIR Grants, Green Tech Subsidies • Exit Strategies • Merger Acquisition • Management or Employee Buyout, LBO • Transition Companies • IPO • Bankruptcy
Investors • Private Equity Firms – TPG Capital, Carlyle Group, KKR, Apollo, Bain, Cerberus • Invest: $ Billions • Venture Capital Firms – Draper/Fisher/Jurvetson, Sequoia, Accel, Highland, Greylock, KPCB • Invest: $ Millions • Angels – Tech Coast Angels, Pasadena Angels • Invest: $ Hundreds of Thousands • Accredited Investors
Private Equity Firms “Corporate Flippers”
10 Largest Private Equity FirmsBy Funds Raised • 1. TPG Capital • 2. Goldman Sachs Principal Investment Area • 3. The Carlyle Group • 4. Kohlberg Kravis Roberts • 5. The Blackstone Group • 6. Apollo Global Management • 7. Bain Capital • 8. CVC Capital Partners • 9. First Reserve Corporation • 10. Hellman & Friedman
Largest Private Equity Deals • 15. 2005 Hertz: $16.95 billion by Carlyle, Merrill Lynch and Clayton Dubilier & Rice • 14. 2005 Capmark: $18.88 billion by Kohlberg Kravis Roberts • 13. 2006 Albertson's: $19.05 billion by Cerberus Capital Management • 12. 2006 Freescale Semiconductor: $19.27 billion by Blackstone, Carlyle, Permira and TPG • 11. 2006 Kinder Morgan Oil: $23.65 billion - Carlyle, Goldman Sachs and Riverstone • 10. 2007 Alliance Boots (UK): $26.4 billion - KKR
9. 2007 Hilton Hotels: $27.68 billion - Blackstone • 8. 2006 Clear Channel: $28.14 billion - KKR, Bain Capital and Thomas H. Lee • 7. 2007 Alltel: $28.74 billion - Goldman Sachs and TPG Capital • 6. 2006 Harrah's Entertainment: $30 billion - Apollo Global Management and TPG • 5. 2007 First Data: $30.87 billion - KKR and TPG • 4. 2006 Hospital Corporation of America: $35.81 billion - Bain, KKR and Merrill Lynch • 3. 2007 Equity Office Properties: $41.41 billion - Blackstone • 2. 2007 Energy Future Holdings: $47.23 billion - KKR, TPG and Goldman Sachs • 1. 1989 RJR Nabisco: $55.38 billion - KKR
Venture Capital Firms Finding the VC Firm
http://thomsonreuters.com/products_services/financial/financial_products/a-z/pratts_guide/http://thomsonreuters.com/products_services/financial/financial_products/a-z/pratts_guide/
Venture Meetings Southern California
http://www.boogar.com/resources/venturecapital/asia_pacific6.htmhttp://www.boogar.com/resources/venturecapital/asia_pacific6.htm
http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589
The Term Sheet • http://www.askthevc.com/blog/ • http://www.feld.com/wp/archives/category/term-sheet • http://www.veri.com/t/understanding-term-sheets/1301 • http://www.whichdraft.com/venture_capital_financing/term_sheets.html
Topics and Issues Covered in Term Sheets http://www.feld.com/wp/archives/category/term-sheet
https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdfhttps://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdf US Venture Capital InvestmentsBy the Numbers National Venture Capital Association
https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdfhttps://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdf
https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdfhttps://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/Q3%202011%20MoneyTree%20Report.pdf Quarter 3, 2011
“PricewaterhouseCoopers & Entrepreneur’s VC 100.” Entrepreneur, July 2001 http://www.pwcmoneytree.com/exhibits/2004_Entrepreneur_VC_100.pdf
http://www.pwcmoneytree.com/exhibits/SmallBusinessSuccessMag-Fall-2004.pdfhttp://www.pwcmoneytree.com/exhibits/SmallBusinessSuccessMag-Fall-2004.pdf 2004
Where Does VC Money Go? Quarter 3, 2011
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http://www.garage.com/ Guy Kawasaki
Europe Team Silicon Valley Team Israel Team
1999 Alventive Design-to-order products through its online community. Ariba Business-to-business electronic commerce solutions. Ticker: ARBA BridgeSpan Settlement services for the real estate industry. Collab.net Open source softwaremarketplace. Decision Point Systems Technology based pre-employment services. E-Dr. Network E-commerce site serving eyecare professionals. EmployeeSavings.com Leading provider of Internet-based work/life solutions. eShop* Electronic commerce tools (acquired by Microsoft) Ticker: MSFT Impresse B2B e-commerce network for commercial printing. People Support Provider of comprehensive Internet customer care services and technologies. TradeOut.com A global Internet marketplace for business surplus. Vcommerce.com The leading provider of outsourced commerce on the Internet.
Sequoia Capital • Michael Moritz
Draper Fisher Jurvetson • Founder Tim Draper • Portfolio Companies • Owns 28.1% of Baidu.com • SkypeWebsite
Kleiner Perkins • Maltese Falcon – 289 feet, 88 metres, $130 MM Thomas James Perkins (born 1932) American businessman, capitalist, and was one of the founders of leading venture capital firm Kleiner, Perkins, Caufield & Byers.