Product Development &
   Venture Fund Raising


April2010
Contents


     1. Encore Ventures & DFJ Esprit
     2. General themes investors look for irrespective of stage
     3. Ve...
Who we are

    Encore Ventures - dedicated secondary vehicle under
     DFJ Esprit’s umbrella
        Encore Fund 1 - £...
The DFJ network in action
        LOCAL PRESENCE, GLOBAL REACH                                                            ...
Encore I Portfolio Overview

      Digital Media &   Hardware &   NextGen Telecom                   Healthcare &
         ...
Contents


     1. Encore Ventures & DFJ Esprit
     2. General themes investors look for irrespective of stage
     3. Ve...
General Themes Investors Look For Irrespective
    of Stage
     There is no generic template for success – huge variatio...
Contents


     1. Encore Ventures & DFJ Esprit
     2. General themes investors look for irrespective of stage
     3. Ve...
Venture Capital Funding Stages mapped
    to Product Development Stages
    Funding Stage     Product Stage         Key Qu...
Venture Capital Funding Stages mapped
     to Product Development Stages
     Funding Stage   Product Stage        Key Que...
Venture Capital Funding Stages mapped
     to Product Development Stages
     Funding Stage   Product Stage        Key Que...
Venture Capital Funding Stages mapped
     to Product Development Stages
     Funding Stage   Product Stage        Key Que...
Venture Capital Funding Stages mapped
     to Product Development Stages
     Funding Stage     Product Stage         Key ...
Contents


      1. Encore Ventures & DFJ Esprit
      2. General themes investors look for irrespective of stage
      3....
14 Buckingham Gate
London SW1E 6LB
United Kingdom
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Cc event 130410_esprit

  1. 1. Product Development & Venture Fund Raising April2010
  2. 2. Contents 1. Encore Ventures & DFJ Esprit 2. General themes investors look for irrespective of stage 3. Venture funding stages vs. Product development stages 4. Case study 2
  3. 3. Who we are Encore Ventures - dedicated secondary vehicle under DFJ Esprit’s umbrella Encore Fund 1 - £130m purchase of 3i’s European venture portfolio Krishna Visvanathan - Partner DFJ Esprit – leading technology focused European VC 11 years as Venture Capital Three funds, with >£350m under management investor. Recently closed our new fund and actively seeking new Previously a partner at 3i investment opportunities responsible for several successful investments including Ezurio, Blue Encore & DFJ Esprit part of DFJ Global Network Lithium, Ubinetics, E2V plc & Fastnet Systems Two brands to cater to the requirements of our investors Currently on the boards of In essence - 12 highly experienced venture investors with Cambridge Semiconductor, Icera, Light Blue Optics, Netronome, >150 years of combined investing experience across all Taptu & The Cloud stages Strategic partner of CCL’s with respect to their spin out activity 3
  4. 4. The DFJ network in action LOCAL PRESENCE, GLOBAL REACH ESPRIT RECENT EXITS DFJ Esprit London, UK Holding Cash EBIT@ Revenue DFJ VTB Aurora Company Revenue Exit EV Period Multiple Moscow, Russia Exit Multiple DFJ Hyderabad, India (Yrs) Returned Bengalore, India DFJ Tamir Flashman Tel-Aviv, Israel DFJ Athena $29.8m Negative $225.0m 7.6x 3.0 5.3x Seoul, South Korea DFJ DFJ DragonFund China Beijing, China Shanghai, China Beijing, China $46.0m Breakeven $125.0m 2.7x 1.6 4.8x $10.6m Negative $123.0m 11.6x 3.6 3.1x DFJ Frontier $0.1m Negative $62.2m 1,555x 4.0 3.1x Sacramento, CA Santa Barbara, CA Draper Triangle Draper Fisher Jurvetson Pittsburgh, PA Menlo Park, CA DFJ Gotham $27.6m Negative $100.0m 3.6x 4.6 10.4x DFJ Growth Fund & DFJ Incube New York Menlo Park, CA Element Partners Element Partners Radnor, PA Menlo Park, CA Draper Triangle Pittsburgh, PA $10.8m Negative $36.9m 3.4x 1.5 1.9x DFJ Dragonfund China San Jose, CA EPIC Ventures Salt Lake city, UT Zone Ventures Phoenix, AZ Los Angeles, CA Albuquerque, NM $7.6m Negative $41.5m 5.5x 2.4 2.3x Access Venture Partners Denver, CO & Austin, TX DFJ Mercury Houston, TX $40.0m Negative $40.0m 1.0x 4.3 1.2x DFJ FIR Brazil Fund $0.5m Negative $35.0m 76.1x 9.0 1.1x Sao Paulo, Brazil Median $10.8m - $62.2m 5.5x 3.6 3.1x Average $19.2m - $87.6m 185.2x 3.8 3.7x 4
  5. 5. Encore I Portfolio Overview Digital Media & Hardware & NextGen Telecom Healthcare & Software CleanTech Internet Semis & Wireless Biosciences Current Investments Pulmagen Therapeutics Exits 5
  6. 6. Contents 1. Encore Ventures & DFJ Esprit 2. General themes investors look for irrespective of stage 3. Venture funding stages vs. Product development stages 4. Case study 6
  7. 7. General Themes Investors Look For Irrespective of Stage  There is no generic template for success – huge variations by company/segments e.g. web vs. software vs. hardware vs. biotech/medtech  There are always exceptions  Successful companies/investments share many similar characteristics  People, people, people - the team we are backing is always key:- – Vision, ambition, conviction, hunger  Product meets a need, TAM is sizeable - not a technology looking for a market  Routes to market  Competitive landscape  Business/Revenue model  Scalability – people, product and business model  Understanding of what it takes to create a winning product and a winning company 7
  8. 8. Contents 1. Encore Ventures & DFJ Esprit 2. General themes investors look for irrespective of stage 3. Venture funding stages vs. Product development stages 4. Case study 8
  9. 9. Venture Capital Funding Stages mapped to Product Development Stages Funding Stage Product Stage Key Questions  Pre-seed/Seed  Concept/ Proof of  Illustrates the vision of the founder(s) Concept (α)  Value proposition – is it credible ? Just a better mouse trap or something truly novel? Visualisation appeals to emotive aspects of an investor 9
  10. 10. Venture Capital Funding Stages mapped to Product Development Stages Funding Stage Product Stage Key Questions  Series A  Prototype/  Does it work? demonstrator (β)  Is it really better than state of the art?  Can it be “production-ised”? Is it defensible – IP/know how? Customer feedback loop? 10
  11. 11. Venture Capital Funding Stages mapped to Product Development Stages Funding Stage Product Stage Key Questions  Series B  Production ready  Form, fit, function (FCS/GA)  Differentiation/Competitive benchmarking  ASPs & BoM costs 11
  12. 12. Venture Capital Funding Stages mapped to Product Development Stages Funding Stage Product Stage Key Questions  Series C  Mass production  Scalability & profitability & beyond  Product Variants  Value potential & metrics  Roadmap  Sustainability vs. One trick pony 12
  13. 13. Venture Capital Funding Stages mapped to Product Development Stages Funding Stage Product Stage Key Questions  Pre-seed/Seed  Concept/ Proof of  Illustrates the vision of the founder(s)? Concept (α)  Value proposition – is it credible?  Just a better mouse trap or something truly novel?  Visualisation appeals to emotive aspects of an investor  Series A  Prototype/  Does it work? demonstrator (β)  Is it really better?  Can it be “production-ised”?  Is it defensible – IP/knowhow? Customer feedback loop  Series B  Production ready  Form, fit, function (FCS/GA)  Differentiation/Competitive benchmarking  ASPs & BoM costs?  Series C  Mass production;  Scalability & profitability & beyond product variants Value potential & metrics  Roadmap  Sustainability 13
  14. 14. Contents 1. Encore Ventures & DFJ Esprit 2. General themes investors look for irrespective of stage 3. Venture funding stages vs. Product development stages 4. Case study 14
  15. 15. 14 Buckingham Gate London SW1E 6LB United Kingdom

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