dealroom.co presentation at noah 2013
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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
dealroom.co
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 ?
dealroom.co
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! team@dealroom.co
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