growthink, backing-profiting with entrepreneurs in your midst

7/27/2019 Growthink, Backing-Profiting With Entrepreneurs in Your Midst

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Identifying, Backing, and Profiting with theEntrepreneurs in Your Midst

Whats In Store in The New Decade for Private Equity?

December 31, 2009 10:00 am PST / 1:00 pm EST


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Overview

Webinar Protocol Purpose of this Webinar

The 00s - Worst Decade Ever

Where Do We Go From Here

Three Best Practices

Who Is It For?

The Growthink Investment Vehicle


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Conference Call Protocol

1. 30 Minute Conference Call2. Questions/comments as we go:

Type in utilizing GoToWebinar toolbar

3. After Call: Survey feedback

Within 2 hours after the call, you will receive, via email,copies of the reviewed slides and a recording of thepresentation


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Purpose of this Web Conference

1. To share with you best practices of investing in entrepreneurial,privately-held companies

Because it is good for you

Because it is good for America and the world

2. To introduce the Growthink investment vehicle

Tactical application of our core investment principles


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What Does This Mean?

Trillions lost Both in $$$ and opportunity costs

Retirement and wealth building plans

delayed / deferred

Heartache and heartbreak


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Where Do We Go From Here?

1. May venture capital rise again2. May, on December 31, 2019:

The NASDAQ and Dow be trading at,respectively, above 10,000 and above 30,000

Less than 5% annual 20-year return

3. May the nation's entrepreneurs lead theway


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3 Best Practices For The Decade To Come

1. Exploit the Pricing Inefficiency Gap2. Focus on Technology Companies

3. Embrace The Black Swan


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#1: Exploit The Pricing Inefficiency Gap

Pricing efficiency is the insurmountableobstacle to alpha public market returns

NOONE consistently beats the publicmarkets

Those that claim that they do are simplydata-mining

Early-stage private company investingstill provides significant opportunity toadvantageously price deals

HUGE information gaps between marketparticipants


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#2: Focus On Technology Companies

Only 1/3 of early-stage equityinvestment goes into technologybusinesses*

Clean Tech, Healthcare, ComputerHardware and Software

Likelihood of high technologycompanies having successful exits fortheir investors is more than 20x

greater than non-technologycompanies

ONLY invest in technology businesses

*Source: Scott Shane, Fools Gold: The Truth Behind Angel Investingin America


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#3: Embrace The Black Swan

Early-stage private company investingis driven and dependent on outliers:

93% of all early-stage private companyinvestments have a negative or break-evenreturn

7% of investments have returns greater than10x

*Sources: The PricewaterhouseCoopers/NationalVenture Capital Association MoneyTree Report,

Thomson Reuters, The Wiltbank Angel Report


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The Black Swan

Popularized by the great Lebanese thinker

and writer Nicholas Taleb:

Comes from the Enlightenment in Europe todescribe logical fallacy

Europeans assumed that all swans must be whitebecause they had never seen a black swan

Then in the 18th century black swans werediscovered in Australia

Logicians associated the term Black Swan to theconcept that a previously perceived impossibility

may actually come to pass.


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3 Attributes of A Black Swan

1. It is an outlier outside the realm of regular

expectations

2. It carries an extreme impact

3. Human nature makes us concoct explanations

for its occurrence after the fact


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How Does One Make Money With The Black Swan?

Bet on the unexpected The big outlier events - the 10

to 1 shots and beyond - arealways UNDER-PRICED in themarketplace


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3 Best Practices

1. Exploit the Pricing Inefficiency Gap

2. Focus on Technology Companies

3. Embrace The Black Swan


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The Growthink Investment Vehicle

1. Managed access to a portfolio of

entrepreneurial, technology-biasedprivate companies Cleantech, Healthcare, Software

Select, alternative investments

Digital media, entertainment

2. Less concerned about investmentamount than working with the RIGHTinvestors

Long-term, fundamental investors


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To Learn More

Return our survey

Contact:

Jay Turo: 310-846-5004

Email:

[email protected]

growthink, backing-profiting with entrepreneurs in your midst

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