Ahead of the marcus evans Elite Summit 2017 and the Private Wealth Management Summit Fall 2017, Peter Craddock discusses what investors need to look for in selecting a venture fund, and the value of an LP co-investment option

1. How Investors Can Get Value
from Venture Investments
Interview with: Peter Craddock,
Managing Director, Shoreline
Venture Management LLC
“In early-stage venture capital invest-
ing, being able to co-invest into a fund’s
individual portfolio companies is a key
advantage. Co-investing tightens up the
liquidity cycle significantly by enabling
additional investment in the winners
that emerge among our portfolio
companies,” says Peter Craddock,
Managing Director, Shoreline Venture
Management LLC.
Shoreline Venture Management LLC is a
venture capital firm at the marcus
evans Elite Summit 2017, taking
place in Switzerland, and the Private
Wealth Management Summit Fall
2017, in Las Vegas, Nevada.
Why should investors consider early-
stage technology start-ups?
By investing early, investors can get
much larger positions than if they
waited until Series B or Series C
financing. With our ownership range of
15-30 percent, this makes a big differ-
ence on the back end as you get closer
to a liquidity event. Our target cash-on-
cash multiple for early-stage companies
is a minimum of ten times within seven
years. Large venture funds competing
for access to later rounds of financing
cannot generally get that kind of return.
What type of companies do you look
for? Where?
While we are based in San Francisco
and very active in the Bay Area, we also
look at other technology centers in
Western North America – from Vancou-
ver down to San Diego and east to
Denver. There is a great deal of start-up
activity in these markets and valuations
are more attractive. By having a
Shoreline Venture Partner on the ground
in each area, we learn about opportuni-
ties early and can act quickly.
Our focus is on enterprise software and
medical technology, and our team of
Venture Partners and Advisors has been
active in these sectors for decades.
They know what types of companies are
a good fit for us, and they perform a
significant amount of due diligence
before even suggesting we look at
prospective investments. We also have
a network of founders we have been
following for years. This is how we get
to see things first.
What are the advantages of co-
investing with a small fund?
Small funds are more nimble in the
decision-making process and are not
slowed down by large bureaucratic
structures. In a small fund, opportuni-
ties can be seized as they arise and, on
the flip side, an investment can be
stopped if a company is not doing well.
Large funds may hold on to faltering
companies, continuing to put money
into a venture that is probably not going
to make it. Often, the middle manager
in a larger fund may not be willing to
admit defeat because performance
compensation is based on the portfolio
remaining intact. Small funds can more
quickly focus their resources on the
winners.
What risk should investors be
aware of? What risk mitigation
strategies would you propose?
The potential for the high reward of
venture capital investing does come
with risk. There is the risk of the
portfolio company failing and lack of
liquidity is an issue. Portfolio companies
are exposed to the same economic cycle
risks as all other companies but are
more sensitive to them, particularly in
the early growth stages when they are
completely reliant on new business
coming in the door.
Managing the risk takes an experienced
team and a good investment structure.
First, deal selection is key. The better
the quality of the investment, the lower
the risk profile. Look at the investment
team, their experience and track record.
Two, do not overpay. Three is the co-
investment piece. That reduces the risk
for limited partners as they can indi-
vidually take bigger positions in portfolio
companies that are pretty obviously
going to be successful and they can do
it in later growth financing rounds. We
recommend investors co-invest once the
portfolio has matured a bit and the
winners have become more obvious.
A smaller
fund gets
you flexibility,
attention, and
performance

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For more information please send an email to press@marcusevanscy.com or visit
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Elite Summit 2017
www.elitesummit.com
Private Wealth Management Summit Fall 2017
www.privatewealthsummit.com
About Shoreline Venture Management LLC
Shoreline Venture Management is a nimble venture capital firm that has been investing in enterprise software and medical
technology start-ups since 2001. Based in San-Francisco, we are active in the Bay Area and other western technology centres from
San Diego to Vancouver, BC.
Led by our two Co-Founders, Shoreline’s highly experienced team of nine professionals includes an active network of venture
partners and advisors who are industry specialists, operational leaders and technologists. Our network is a prized source of deal
flow that gives Shoreline first look access to new investment opportunities.
We are focused on enterprise software and medical technology, not including biotechnology. We begin our investment process at
the Series Seed or Series A, take sizable positions and can participate throughout all rounds of funding.
Through our LP co-investment fund, we offer investors the ability to participate in parallel with the primary fund on a no-fee/carry
basis. Our core LP’s are family offices and this component of our strategy has proven to be highly effective in increasing over-all
net returns.
www.shorelineventures.com
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http://events.marcusevans-events.com/investment2017-peter-craddock
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