I used this deck in a keynote at the Kima Ventures portfolio day, in Paris (France) on Dec 9, 2013. Kima has a very large portfolio of investments, mostly located outside of the US. Founders often hope to raise capital in Silicon Valley over the course of their financing journey, and my goal was to draw their attention to the traps and pitfalls ahead of them.
Things startups need to know if they want to raise capital from Silicon Valley
1. What
 you
 need
 to
 know
 if
 you
 want
Â
to
 raise
 capital
 from
 Silicon
 Valley
Â
Jeff Clavier
Founder & Managing Partner
Kima Ventures Portfolio Day
Dec 9, 2013 â Paris, France
2. SoftTech
 VC
 in
 a
 Nutshell
Â
§ď§âŻ Founded in 2004, SoftTech VC has backed 143 seed
stage startups in consumer internet, devices and Saas
§ď§âŻ Geographies:
§ď§âŻ 80% of the portfolio is in Silicon Valley, 10% is in New-York,
the rest is in SoCal, Boulder and Toronto/Waterloo
Jeff Clavier
§ď§âŻ To date:
§ď§âŻ 30+ companies have generated $1.5B in total exit
consideration
§ď§âŻ 70+ companies have raised $1.5B in follow-on financing
§ď§âŻ Top quartile performer in all funds
SoftTech is very much a startup â it just happens to operate
in the VC market. It was bootstrapped for 3 years (Fund I) â
and then scaled by raising $155M (Fund II, III, IV).
And yes, it had zero chance of being a success.
12/14/13
about.me/jeff
2
Charles Hudson
Stephanie Palmeri
3. A
 few
 SoftTech
 Exits
Â
Dec 05
Acquired by
Dec 09
Acquired by
Feb 12
Acquired by
12/14/13
Aug 06
Acquired by
May 10
Acquired by
Jul12
Acquired by
Dec 06
Aug 07
Acquired by
Acquired by
July 10
July 10
Acquired by
Acquired by
Jul 12
Aug 12
Acquired by
Acquired by
about.me/jeff
3
Aug 07
Acquired by
Dec 10
Acquired by
Aug 12
Acquired by
Dec 09
Acquired by
Oct 11
Acquired by
Apr 13
Acquired by
4. If
 you
 remember
 ONE
 thing
 from
 this
 talk
Â
âThe only real mistake is not trying, anything else is part
of an entrepreneurâs journeyâ
12/14/13
about.me/jeff
4
5. Here
 Is
 the
 SV/NY
 Funding
 Ecosystem
Â
Pre-Seed
< $500K
Seed
$1.2 to
$2.5M
Series A
$4M tp
$10M
Series B
$6M to
$15M
Growth
$20M+
12/14/13
â˘âŻBootstrapping/Friends and family/Crowdfunding
â˘âŻIncubators and Accelerators (YC, Techstars, AngelPad, SeedCamp)
â˘âŻSyndicates of micro-VC firms, angels and (potentially) traditional VCs
â˘âŻAngelList and Crowdfunding services as alternative or âfill upâ opportunity
â˘âŻOne traditional VC, with micro VCs investing pro-rata and adding strategic angels
â˘âŻFamily Offices, Strategics, Micro-VCs + Crowdfunding pools as alternative
â˘âŻAnother traditional VC (or two), with insiders coming in for pro-rata
â˘âŻSame mix as Series A for alternatives
â˘âŻMix of traditional/growth VCs, PE firms, hedge funds. In parallel, secondary transactions.
â˘âŻAlternative: direct co-investments from LPs, hedge/mutual funds, cash rich corporates
about.me/jeff
5
6. Challenges
 to
 Raising
 Capital
 in
 the
 US
Â
§ď§âŻ Visas for Founders and Executives
§ď§âŻ Financeable Idea: Big, Bold, Global Vision
§ď§âŻ Limited/Inexistent Network for employees and
investors referral
§ď§âŻ Team/Product Credibility vs. Traction
12/14/13
about.me/jeff
6
7. Two
 Practical
 Ways
 To
 Get
 To
 The
 Valley
Â
As an Employee
§ď§âŻ Get a large US co to sponsor
your visa and move you
§ď§âŻ Network your way into the
local community of
entrepreneurs and investors
§ď§âŻ After 2 to 4 years, youâre
local and you can figure out
your way into a new visa,
startup, funding, etc.
§ď§âŻ Takes time, but works well if
you are committed to the US
12/14/13
As an Entrepreneur
§ď§âŻ Raise seed financing in
France/Europe for a global
product, validated locally
§ď§âŻ Raise a Series A/B in Europe
with a global footprint target
§ď§âŻ Raise a Series B/C in the US
to expand/grow
§ď§âŻ If your startup has 2+ years,
transfer visas (L) is a
possibility
about.me/jeff
7
8. What
 Silicon
 Valley
 Investors
 Consider
Â
§ď§âŻ Market Opportunity
§ď§âŻ Distribution
§ď§âŻ Vision
§ď§âŻ Marketing
§ď§âŻ Team/Bench
§ď§âŻ Monetization
§ď§âŻ Traction
§ď§âŻ Economics
§ď§âŻ Competition
12/14/13
about.me/jeff
8
9. What
 Silicon
 Valley
 Investors
 Consider
Â
§ď§âŻ Market Opportunity
§ď§âŻ Distribution
§ď§âŻ Huge ($Bs)
§ď§âŻ Most critical
§ď§âŻ Vision
§ď§âŻ Marketing
§ď§âŻ Big, Ballsy, Impactful
§ď§âŻ Whatâs unique about yours
§ď§âŻ Team/Bench
§ď§âŻ Monetization
§ď§âŻ World class/Experienced
§ď§âŻ What brings the dough
when
§ď§âŻ Traction
§ď§âŻ Economics
§ď§âŻ Proof that the shit works
§ď§âŻ Do the CAC vs. LTV maths
work
§ď§âŻ Competition
§ď§âŻ Know your ecosystem
12/14/13
about.me/jeff
9
10. Big
 No-ÂâNoâs
Â
§ď§âŻ Expecting weâll move you
§ď§âŻ Expecting that itâs easy
§ď§âŻ Most investors will want to
see commitment to US
§ď§âŻ Convincing US investors
is unbelievably hard
§ď§âŻ Research how it worked
for SoundCloud, Klarna,
Unity, Criteo, Songkick,
Skype, Rovio, etc.
§ď§âŻ Traction in France is
enough to get US funding
§ď§âŻ Need global ambition and
European traction
§ď§âŻ A detail: the Exit slide in
the deck
§ď§âŻ Assume every VC is a
potential investor
§ď§âŻ Weâll show you the exitâŚ
door
§ď§âŻ Previous European deal is
a strong indicator
12/14/13
about.me/jeff
10
11. Finally
 a
 Few
 Recommendations
Â
§ď§âŻ You need to understand the ârightâ source and
amount of funding for your startup
§ď§âŻ Based on the vision and market opportunity
§ď§âŻ Depending on your stage, and industry
§ď§âŻ Crunchbase and AngelList are great sources of
information re who funded what
§ď§âŻ Remember: most professional investors will only
consider opportunities coming through a referral
§ď§âŻ Other successful European entrepreneurs are probably best
§ď§âŻ Incubators offer a real opportunity to get early stage
financing in the US
12/14/13
about.me/jeff
11