h/f liquidity fund deck
TRANSCRIPT
Providing Pre-IPO Investment Opportunities
Investors want returns in their portfolio...
...however, early-stage private equity poses
unique problems, making investing difficult.
PROBLEM
Problems with early-stage private equity investing
▪ The average position liquidates in 10 years
LACK OF LIQUIDITY1.
SHORT ODDS OF COMPANIES SURVIVING
2.
HARD TO MANAGE3.
TOO MUCH TIME
4.
▪ 90% of startup companies will not survive▪ The Wall Street Journal notes that 75% of startups
will not return any investor capital
▪ Kauffman research showed investors have to hold between 20–30 companies for diversification.
▪ Average time spent by an angel investor on due-diligence activities was 20 hours per week
▪ Follow-on investments require extra due diligence
SOLUTION/TRACTIONWE PROVIDE A PATH
TO LIQUIDITY VIA:
▪ Later-stage companies are 2 years away from liquidity
▪ Companies making millions in revenue
▪ Mergers and Acquisitions (M&A)▪ Initial Public Offerings (IPOs)
WE TAKE A UNIQUE APPROACHWE TARGET:
Companies pay us in stock for our services
INVESTORS SIMPLIFY THEIR INVESTMENTS
Buy one fund and:
- Save time
- Alleviate the need for multiple rounds of due-diligence
-
You get improved investment outcomes
145 cities
45 countries
OUR NETWORKWe see the best deals from
around the world
H/F’s portfolio companies have:
▪ A total worth of over US$600 million
▪ Collectively raised over $70 million
250,000 members
OUR TRACTION
01 02 03 EXECUTING EXPLORING PERFORMING
We have multiple portfolio
companies exploring public exits
in exchanges around the world,
such as:
The average yearly performance
of our portfolio companies is
above 30% IRR.
Executed five M&A transactions
from our portfolio to:
HireVue
ASX
NSE
AIM
NASDAQTwo Private Equity Funds
WE PROVIDE A PATHWAY FORGROWTH IN OUR PORTFOLIO
FOR A % OF COMPANYIN RETURN
BUSINESS MODELWe select the best companies based on their ability generate real recurring revenues, generally Business-to-Business (B2B) or Software as a Service (SaaS) opportunities:
BATTLE-HARDENED TEAMS▪ 30+ years experience▪ Management team at an executive level▪ People who’ve approved purchase orders (POs) or
have forged profitable business relationships
ELOQUENT SOLUTIONS▪ Strong intellectual property▪ Excellent user experience (UX)▪ Great technology
LARGE MARKETS▪ Multi–billion-dollar markets▪ High annual compounding growth
Portfolio Acquisitions
Momentum Holdco, Inc.
Acquired By
PORTFOLIO ACQUISITIONS
▪ Largest publisher of mobile travel guides in the world
▪ 600+ guides in Apple App Store
▪ IPO countdownless than one year
TYPE OF COMPANIES WE WORK WITH:
Assuring receivables timely converted to cash by multi-billion dollar corporations
Clients:
HF LIQUIDITY FUND, LLC STRUCTURE
5 %
5 %
5%
5%
5%
5%
5%
5%
5%
5%5%
5%
5%
5%
5%
5%
5%
5%
5%
5 %
8 Portfolio Companies
1M total shares
300k shares
700k shares
30% H/F retains
70% to investors
HF LIQUIDITY FUND, USE OF FUNDSCompliance
5%Legal
5%Accounting
5%
Events
10%
Sales
12%
Business Development13%
Company Expenses
25%
Technology(Licensing, SaaS, and
Software Development)25%
Example of an exit:
▪ 1 company IPOs for $100M
▪ HF Liquidity Fund owns 5% of stock which is $5M cash received
▪ HF Liquidity Fund is composed of 1M shares
▪ Each shareholder receives $5 per share (5M/1M shares) distributed pro-rata
IPO Liquidity Event Example
*Time to complete contracting of dealflow 12 months. Typical lock-in period 12 months. Time to IPO market 1 year. Total time of monies in fund 4 years.
IPO Liquidity Event Example
8 x $20,000,000 x 0.04 $6,400,000
WHAT INVESTORS GET BY BEING A PART OF LIQUIDITY
The average exit is modeled at
$20 million
We receive a minimum of 4% of the common
shares of the company at exit
The fund will be composed of the
assets of 8 companies
The average share price is
$6.40 per share For early investors coming through Crowdfunder, we are discounting
this value by
20% down to $4.80 per share
1,000,000 shares 1,000,000 shares
=
MANAGEMENTJONATHON ANGELL
Experienced angel investor, technologist, investment banker,
and strategic consultant
Expert in M&A transactions from origination to closing
I hold a Masters of Business Administration (MBA) degree as well as:
▪ Certified Public Accountant (CPA)
▪ Certified Financial Manager (CFM)
▪ Presently serve on various Boards
Jonathan NelsonFounder, H/F
Don HutchisonCEO, Work.com
Jacob MullinsCEO, Exitround
Will BunkerFounder, match.com
Miguel CasillasFounder & ED, SV Links
ADVISORS
Felipe Matta NavarroGP, Chile Ventures
TESTIMONIALSH/F liquidity solves the problem that many VCs and startups face: liquidity and exit; it also focuses on a geographic area that has huge potential but is often neglected: Latin America.Yiwen LiDirector, Asia Pacific at NANTHEALTH
Deep domain expertise combined with pure passion to support the entrepreneurial ecosystemYousef HammadBECO capital
This fund provides exposure to some of the best startups from around the globe. If you need to invest in a diversified fund that provides exceptional returns, this is it.Chris SangBespoke Development, Startups , Angel Investor & Venture Advisor
Innovative grass roots effort to help find & forge compelling new businesses. Look in the dictionary under 'scrappy' and you're going to find Hackers & Founders--just as you will if you look under 'effective.' These guys were lean before it was a catch-phrase, and they rock.Don HutchisonSVP & GM at Excite@Home
Jonathan and team have created a unique, differentiated network that's allowed them to curate amazing companies.Samir KajiSenior Managing Director at First Republic Bank
Effective way to participate in more dealsMark FriedganSerial Entrepreneur and Early Stage Investor
*Discounts available for higher commitments - $50K minimum
https://hf.cxJonathon Angell | (415) 336-1808 | [email protected]
200,000 SHARES AVAILABLE AT$4.80 PER SHARE