© 2009 simon olson - carl h. lindner college of business · usa india israel . 4 dfj is a leader...
TRANSCRIPT
© 2009 Simon Olson
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Overview of Draper Fisher Jurvetson
DFJ Core Funds:
– $3.5 billion committed since 1985 – 400+ portfolio companies – DFJ Growth Fund (2006) for late stage – 11 investing partners; 27 investment
professionals
DFJ Global Network:
– 16 Network Funds on four continents – 150 professionals – $3.2B capital, 650 companies
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The DFJ Global Network covers 70% of the World’s GDP
Brazil
Russia (and CIS)
China
Western Europe
South Korea
Vietnam
USA
India Israel
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DFJ is a leader in the industry
DFJ RANKED IN THE TOP 10 GLOBAL VCs
AMONG A 1000 FIRMS
1. Draper Fisher Jurvetson 2. Sequoia Capital 3. Accel Partners 4. Intel Capital 5. First Round Capital 6. Dag Ventures 7. New Enterprise Associates 8. Kleiner Perkins Caufield & Byers 9. Benchmark Capital
The Top 100 Networked Venture
Capitalists
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Draper Triangle Ventures is a uniquely positioned seed and early stage venture capital firm that invests in and builds world leading technology companies
Pittsburgh based Midwest fund of Draper Fisher Jurvetson
$125MM under Management across 2 Funds
Headquarters in Pittsburgh, offices in Cincinnati and Cleveland
Exploit the advantages of a national fund investing in areas outside of Silicon Valley and Boston
Five investments in early stage Ohio-based Companies from Fund II
First Round, Lead Investor- Initial investments from $500,000-$2MM
Focused investing across technology and industry sectors
Partner with great entrepreneurs and company creators
Leverage expertise, experience and networks of DFJ Funds
Mission
West Capital Advisors co-‐manages strategic venture funds on an outsourced basis for corpora9ons and manages a co-‐investment fund for high net worth
individuals. Retainer-‐based services are offered to investors
seeking to leverage the firm’s exper9se and network without commiCng to a dedicated fund manager.
Generating Attractive Deal Flow
• Investments into private companies are typically broken into stages: – Seed/Angel Funding – True start-ups, funding only idea, no customers /
employees / operations. Zero revenue, only costs. – Venture Capital – Proven product/service within a small market, but large
potential, need to augment management and scale operations, historical revenues but negative operating profit. Designated Series A, B,… depending on stage. Minority investments.
– Growth Equity – Company has developed a regional or national client base, operations have scaled, at or slightly above break-even. Outside investors seek 15-49% ownership.
– Buyouts / Majority Recaps – Owners have built mature, successful businesses. Seeking to monetize inherent value for estate planning or retirement purposes. Outside investors seek 51-100% ownership
• West Capital targets investment opportunities in the Venture Capital stage.
Opportunity - Funding Gap • Seed stage
– Angel networks have become better established (very small, early stage, seed deals)
– Large amount of government money and effort has gone into early stage companies through organizations like CincyTech
– Almost every major city has similar organization creating increased quality early stage deal flow
• Venture Capital – Reduced allocation from traditional LPs – Industry contraction (fewer funds) – Narrow investment criteria
• Expansion Stage / Buy Out – Dominant private equity focus – Strategic buyers (corporations) have large cash balances on balance sheet – Sellers market – elevated valuations/multiples
• Rapid growth of community public/private accelerators - developed portfolios actively looking for follow on investment.