Raising Venture Capital Alok Mittal   June 2010
Agenda © Copyright 2008 Canaan Partners  Background Prepare Pitch Close <ul><li>Sources of Capital </li></ul><ul><li>Why V...
Sources of Capital © Copyright 2008 Canaan Partners  Family & Friends Bank Loans Incubators / Angels Venture Capital Strat...
Why Venture Capital <ul><li>Partnership – VC’s share risks and rewards </li></ul><ul><li>“ Smart” capital – sector specifi...
How can VC’s help create value Consummate Sales to Strategic Acquirers Advise on Acquisitions Establish Strategic Relation...
Do your homework <ul><li>Why is this the  right time  to raise capital? </li></ul><ul><li>What  do I need the capital for?...
Create the pitch © Copyright 2008 Canaan Partners  Background Prepare Pitch Close
Create the pitch (cont’d) © Copyright 2008 Canaan Partners  Background Prepare Pitch Close
Prospecting VC’s © Copyright 2008 Canaan Partners  <ul><li>Find the VC that’s right for you </li></ul><ul><li>Stage </li><...
Delivering the pitch © Copyright 2008 Canaan Partners  Background Prepare Pitch Close
What VC’s  really  want <ul><li>VC’s are  high risk, high reward   investors and look for:  </li></ul><ul><li>Superior bus...
Are marriages made in heaven? <ul><li>Don’t be discouraged if a VC rejects your business plan </li></ul><ul><ul><li>Does n...
Closing <ul><li>Typical funding process involves </li></ul><ul><ul><li>Intro meeting </li></ul></ul><ul><ul><li>Deep dive ...
Venture Catalysts for Next-Generation Market Leaders <ul><li>20 year old firm with offices in  </li></ul><ul><li>  Califor...
Credit <ul><li>Indian Private Equity and Venture Capital Association (IVCA)  www.indiavca.org   </li></ul>© Copyright 2008...
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Alok Mittal, Managing Director, Canaan India

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  • Broad Domain expertise Engaged entrepreneurial network Experienced investors Relentless pursuit of unique opportunities Board seats..lead percentage?????????
  • Right time : iYogi (early Stage in April 2007 -&gt; pilot w/ 1000 customer) Use of Capital : iYogi (Series B – build scale) How much : iYogi Series A - $3M; Series B - $9.5M; Series C - $15M
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  • - At present , 10% of InfoEdge revenues come from Property + Matrimony business
  • - At present , 10% of InfoEdge revenues come from Property + Matrimony business
  • - At present , 10% of InfoEdge revenues come from Property + Matrimony business
  • Transcript of "Alok Mittal, Managing Director, Canaan India"

    1. 1. Raising Venture Capital Alok Mittal June 2010
    2. 2. Agenda © Copyright 2008 Canaan Partners Background Prepare Pitch Close <ul><li>Sources of Capital </li></ul><ul><li>Why Venture Capital? </li></ul><ul><li>How can VC’s help create value? </li></ul><ul><li>Doing your homework </li></ul><ul><li>Create the pitch </li></ul><ul><li>Prospecting VC’s </li></ul><ul><li>Deliver the pitch </li></ul><ul><li>What VC’s really want? </li></ul><ul><li>Are marriages made in heaven? </li></ul><ul><li>Closing </li></ul>
    3. 3. Sources of Capital © Copyright 2008 Canaan Partners Family & Friends Bank Loans Incubators / Angels Venture Capital Strategics Expansion / Buyout Early Stage Mature Background Prepare Pitch Close
    4. 4. Why Venture Capital <ul><li>Partnership – VC’s share risks and rewards </li></ul><ul><li>“ Smart” capital – sector specific </li></ul><ul><li>“ Patient” capital – seeking long-term returns </li></ul><ul><li>Hands-on investing </li></ul><ul><li>VC Value-adds: contacts, practical advice </li></ul>© Copyright 2008 Canaan Partners Background Prepare Pitch Close
    5. 5. How can VC’s help create value Consummate Sales to Strategic Acquirers Advise on Acquisitions Establish Strategic Relationships Recruit and Mentor Management Recruit Management Partner in Strategic Direction Inspire Financial Discipline Hone Tactical Strategies Leverage Relationships Mentor Through IPO or M&A Process Background Prepare Pitch Close
    6. 6. Do your homework <ul><li>Why is this the right time to raise capital? </li></ul><ul><li>What do I need the capital for? </li></ul><ul><li>How much do I need to raise? </li></ul><ul><li>What is my business worth ? </li></ul><ul><li>What attributes do I need in my investors? </li></ul>© Copyright 2008 Canaan Partners iYogi Case Study Background Prepare Pitch Close
    7. 7. Create the pitch © Copyright 2008 Canaan Partners Background Prepare Pitch Close
    8. 8. Create the pitch (cont’d) © Copyright 2008 Canaan Partners Background Prepare Pitch Close
    9. 9. Prospecting VC’s © Copyright 2008 Canaan Partners <ul><li>Find the VC that’s right for you </li></ul><ul><li>Stage </li></ul><ul><li>Size </li></ul><ul><li>Sector </li></ul><ul><li>Geography </li></ul><ul><li>Leverage your network to get an introduction </li></ul><ul><li>Business contacts </li></ul><ul><li>Friends / family </li></ul><ul><li>School or college </li></ul><ul><li>Professional organizations </li></ul>Background Prepare Pitch Close
    10. 10. Delivering the pitch © Copyright 2008 Canaan Partners Background Prepare Pitch Close
    11. 11. What VC’s really want <ul><li>VC’s are high risk, high reward investors and look for: </li></ul><ul><li>Superior businesses – market size, growth and defensible position </li></ul><ul><li>Quality and depth of management team – experience, passion, interpersonal relationships </li></ul><ul><li>Exit opportunity and scale – public listing or acquisition </li></ul>© Copyright 2008 Canaan Partners Background Prepare Pitch Close
    12. 12. Are marriages made in heaven? <ul><li>Don’t be discouraged if a VC rejects your business plan </li></ul><ul><ul><li>Does not say anything about the quality of your company </li></ul></ul><ul><ul><li>Try to seek feedback and move on </li></ul></ul><ul><li>Don’t take funding from necessarily the first VC that offers you funding </li></ul><ul><ul><li>Fit and relevance should be key criteria in choosing an investor </li></ul></ul><ul><li>Once you choose your VC(s), make sure to leverage them beyond just the capital </li></ul><ul><ul><li>Most VC’s are experienced entrepreneurs and can add value to your business </li></ul></ul>© Copyright 2008 Canaan Partners Background Prepare Pitch Close
    13. 13. Closing <ul><li>Typical funding process involves </li></ul><ul><ul><li>Intro meeting </li></ul></ul><ul><ul><li>Deep dive + due diligence </li></ul></ul><ul><ul><li>Reference/customer checks </li></ul></ul><ul><ul><li>Term sheet negotiation </li></ul></ul><ul><ul><li>Close </li></ul></ul><ul><li>Fundraising can take significant time and resources </li></ul><ul><ul><li>Don’t let it distract you from your core business! </li></ul></ul><ul><li>Expect the entire process to take ~12 weeks </li></ul>© Copyright 2008 Canaan Partners Background Prepare Pitch Close
    14. 14. Venture Catalysts for Next-Generation Market Leaders <ul><li>20 year old firm with offices in </li></ul><ul><li> California | Connecticut | India | Israel </li></ul><ul><li>$3 billion under management across 8 funds </li></ul><ul><li>Current fund: Canaan VIII - $650 million </li></ul><ul><li>131 liquidity events </li></ul><ul><li>Invested in over 250 companies </li></ul>About Canaan Partners
    15. 15. Credit <ul><li>Indian Private Equity and Venture Capital Association (IVCA) www.indiavca.org </li></ul>© Copyright 2008 Canaan Partners
    16. 16. Thank You

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