VC 101

VC 101: Inside the Black Box Christine Herron Intel Capital July 2011

(AKA: Christine’s Quick & Dirty Guide to Venture Capital)

Know Your Audience ,[object Object],[object Object],[object Object],[object Object]

What We’ll Cover ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Quick Context: What VC is Not ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Quick Context: What VC is Not ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

VC Partnerships Revealed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How to Follow the Money ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Money Going In: Capital Contributions 1% of total 99% of total GP GP GP GP GP GP GP GP LP LP LP LP LP LP LP

Money Coming Out: Profit Sharing 20% of total 80% of total GP GP GP GP GP GP GP GP LP LP LP LP LP LP LP

Sample Fund Recap ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Staying in Business = Raising More Funds Year 1 Year 3-4 Each Fund Life = 10 Years 3-4 Yrs = Seed NewCos 6-7 Yrs = Harvest & Do Followons Must raise new funds to keep investing in NewCos; once new fund is raised, NewCo funding will come from it Fund III ($150M) Fund II ($125M) Fund I ($100M) After 6-7 years in business, VC will have 3+ concurrent, active funds at any one time; only one, however, will be funding NewCos Year 6-7

The VC Investment Cycle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How VC Trends Affect You ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Whether the market is going up or going down, VC money still has to be invested

Qualifying Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

VC 101

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VC 101