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Alok Mittal, Managing Director, Canaan India
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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 -> 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
  • - 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
  • - At present , 10% of InfoEdge revenues come from Property + Matrimony business

Alok Mittal, Managing Director, Canaan India Presentation Transcript

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