Show Me the Money
TechMeetups
7th July 2014
Idea London
Matt Rothman, Managing Partner
Overview
• Hemisphere
• Funding strategy
• Investor selection
• Presentation
• Terms
• Timetable
2
• Investment and advisory
• Focus on platforms
• Growth stage
• International expansion
• Portfolio of six companies
• Rai...
Source: © DJX VentureSource
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
2009 2010 2011 2012 20...
Source: © DJX VentureSource
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
2009 2010 2011 2012 2013
Euro...
Source: © DJX VentureSource
Average deal size 2009-2013
Europe US Difference
Seed Round $0.58 $0.82 -29.9%
First Round $2....
• Funding strategy is as important as product or
marketing strategy
– Rules of the Raise
• Raise more than you think you n...
Select investors
– Stage, HNW (SEIS/EIS), strategic
– With industry or sector knowledge
– Round ‘sweet spot’
– A network o...
Presentation
– Focus on a single business line
– Address business objections upfront
• Revenues, marketing, opportunity si...
Presentation content
• Opportunity size: TAM, pipeline
– Customers/users: how many, how long? Quotes
• Team: history, skil...
• Product pipeline
– Where is it now? Milestones
• GTM
– Execution, experience, holes
• Financials: paperwork
– Reasonable...
Terms
• Valuation – the market decides
• Series/round
• Leaders & followers
• Syndication
• Convertible debt
• Warrants/op...
Timetable
• 90 days
• Due diligence: legal and financial
– Cap table
– Customer contracts
– Employees
• Legals
• Closing
•...
Matt Rothman, managing partner
matt@hemispherecapital.com
14
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Show Me The Money London 2014 - Presentation by Matt Rothman Managing Partner at Hemisphere Capital

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Managing Partner (London), was CEO of SOFTBANK Emerging Markets, a $200 million fund
established by SOFTBANK Corp. and the International Finance Corp., from 2000 to 2002. He launched and operated offices in Kuala Lumpur, Istanbul, Warsaw, Johannesburg and San Francisco. Prior to joining SOFTBANK, Matt was a strategic consultant to a number of venture-backed startups focusing on capital formation, business development, and alliances. Until February 1998, Matt was General Manager of Sony Online Ventures, and Senior Vice President of Sony New Technologies, the strategic development arm at Sony Corp. of America

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Show Me The Money London 2014 - Presentation by Matt Rothman Managing Partner at Hemisphere Capital

  1. 1. Show Me the Money TechMeetups 7th July 2014 Idea London Matt Rothman, Managing Partner
  2. 2. Overview • Hemisphere • Funding strategy • Investor selection • Presentation • Terms • Timetable 2
  3. 3. • Investment and advisory • Focus on platforms • Growth stage • International expansion • Portfolio of six companies • Raised capital in San Francisco, New York & London over the past 13 years. 3
  4. 4. Source: © DJX VentureSource $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 2009 2010 2011 2012 2013 US: Average Deal Size (2009-2013) ($M) Seed Round First Round Second Round Later Stage Linear (Seed Round) Linear (First Round) Linear (Second Round) Linear (Later Stage) $3.71 $0.76 4
  5. 5. Source: © DJX VentureSource $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 2009 2010 2011 2012 2013 Europe: Average Deal Size (2009-2013) ($M) Seed Round First Round Second Round Later Stage Seed Round First Round Second Round Later Stage Linear (Seed Round) Linear (First Round) Linear (Second Round) Linear (Later Stage) $2.26 $ $3$$0.34 5 $0.34
  6. 6. Source: © DJX VentureSource Average deal size 2009-2013 Europe US Difference Seed Round $0.58 $0.82 -29.9% First Round $2.79 $4.48 -37.7% Second Round $5.63 $8.24 -31.6% Later Stage $11.52 $15.19 -24.2% 6
  7. 7. • Funding strategy is as important as product or marketing strategy – Rules of the Raise • Raise more than you think you need • Raise it when you don’t need it • Raise it from people who bring more than money 7
  8. 8. Select investors – Stage, HNW (SEIS/EIS), strategic – With industry or sector knowledge – Round ‘sweet spot’ – A network of customers and executives – Experience as entrepreneurs – Investment track record – Geography: UK, US, Europe • Follow-on: – Participate in the next round – Who they co-invest with • Advisors & Governance 8
  9. 9. Presentation – Focus on a single business line – Address business objections upfront • Revenues, marketing, opportunity size – Show don’t tell – Pitch by analogy: examples that amplify/validate – Concept vs Data driven (vision vs numbers) – It will be all about execution risk 9
  10. 10. Presentation content • Opportunity size: TAM, pipeline – Customers/users: how many, how long? Quotes • Team: history, skills, talent • Risks • Competitive landscape: identify USP • Metrics: measure success – Users, partners, growth, revenues, profits – If you can’t measure it, you can’t manage it 10
  11. 11. • Product pipeline – Where is it now? Milestones • GTM – Execution, experience, holes • Financials: paperwork – Reasonable assumptions – Comparables • Use of Funds • Recap the focus, forecast and funding needs 11
  12. 12. Terms • Valuation – the market decides • Series/round • Leaders & followers • Syndication • Convertible debt • Warrants/options • Founders shares 12
  13. 13. Timetable • 90 days • Due diligence: legal and financial – Cap table – Customer contracts – Employees • Legals • Closing • Next round – valuation appreciation 13
  14. 14. Matt Rothman, managing partner matt@hemispherecapital.com 14
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