infoshare 2014: nikolay davidov, finding value in institutional investors

Getting Value from InvestorsNick Davidov

About myself

Director and co-founder of iTech Capital

CEO of Pult Group

Chairman of AdCamp

BoD member in IconText, Realweb, Apps4All, AppInTop

iTech portfolio:

Agenda

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Investments and investors classification What values do they bring? Searching for your perfect investor Funds’ lifecycle Approaching investors and marketing Q&A

Investor Classification

Why do they invest? Financial Investors:

Private Investors Institutional Private Equity Institutional Public Equity

Strategic Investors Expansion Vertical Integration Horizontal Integration Diversification

Investment stages and investors classification

Investment stage Typical company development stage

Sources of funds Typical investment size for internet companies*

Seed/pre-seed Idea/prototype Grants, incubators, business angels, FFF

$10-500k

Round-A First revenues Early VCs, business angels

$500k-$5M

Round-B Expansion, rapid growth, chasing break-even point

VC funds $2M-$10M

Round-C Expansion, re-structuring, first M&A, growing profits

Growth / Late stage VCs

$5M-$50M

Round-D Pre-IPO stage Private Equity arms of large public investment funds

$50M+

Public IPO Everyone $200M+

Financial Investors, based on stage:

What values do financial investors bring?

Outside view and experience Transparency, structure and overall liquidity Reputation and introductions Research and legal support Further investor marketing Oh and some money as well

Deal and funds lifecycle

Approaching and marketing your company

Pitching anyone passing by - not for you. Do proper homework:

Get your deck done nicely Choose possible investors by country and industry focus Filter by investment stage Take a look at their portfolio

Ask someone to introduce, if impossible – track on conferences, write an email “out of the blue”.

Balance between an auction and a future zoo on your board.

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Q&A