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Notation II Pitch Deck

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The deck we used to raise Notation II in 2017.

Published in: Business

Notation II Pitch Deck

  1. 1. N O T A T I O N I I
  2. 2. OV ERV IE W WHO WE ARE FUND I: $8M "PRE-SEED" FUND I: WHAT WE LEARNED FUND II: $25M "FIRST-CHECK" CASE STUDIES NOTATION 2
  3. 3. ALEX LINESGENERAL PARTNER NICK CHIRLSGENERAL PARTNER Alex focuses on hard tech, infrastructure, and product at Notation. Alex is a software engineer with experience in distributed systems and scalability. He has been building products and companies in NY for over 10 years. Nick focuses on product, customer acquisition, and capital raising at Notation. Nick was previously Head of Seed Investing at betaworks, and led product for several betaworks projects as well as previous startups. NOTATION 3
  4. 4. WE ARE DEDICATED FIRST- CHECK INVESTORS IN TECHNICAL FOUNDING TEAMS BUILDING CAPITAL EFFICIENT INTERNET COMPANIES IN NYC. We've worked with dozens of founding teams at this very early stage and are uniquely positioned in NYC to help shepherd companies through this critical first year. 4NOTATION
  5. 5. WE ARE A GROWING NETWORK OF COMPANIES AND PARTNERS FOUNDERS SHARON GOLDBERG MARISSA EVANS JOEL WISHKOVSKY IAN OWNBEY ADAM FIELDS AVI KARNANI RO GUPTAMIRIAM ALTMAN ALANA BRANSTON PATRICK BURNS ZACH SHERMAN LAUREN LETO SELECTED ADVISORS ALEX CHUNG AMANDA PEYTON CHRISTINA D'AVIGNON ALEX RAINERTCAMILLE FOURNIER JON LAX JOSH ABRAMSON MATT HACKETT JAKE LEVINE 5NOTATION
  6. 6. TWO YEARS AGO WE NOTICED AN EARLY-STAGE FUNDING GAP IN THE NYC ECOSYSTEM: FUND I: $8M “PRE-SEED” PROOF OF CONCEPT ·· A new critical mass of real technical and design talent, with many founders spinning out of successful NYC startups to start their own. ·· The seed firms that launched 10 years ago were raising much larger funds and were no longer first institutional money in. ·· The NYC angel ecosystem was not keeping pace with Silicon Valley, creating funding gaps at the earliest stages. This is what we started calling "Pre-Seed." 6NOTATION FUND I
  7. 7. FUND I SUMMARY ·· We built a framework that we use to work with our portfolio companies and help them achieve first-year goals across tech, product, recruiting, and fundraising. ·· We built the beginnings of a powerful network of founders, advisors, and LPs in NYC. ·· We built a brand that is synonymous with “pre-seed” investing, stands for transparency and conviction, and is now a real asset to the firm. ·· We built the foundation of a long- term institutional firm. WE PROVED THAT WE CAN PARTNER WITH EXCEPTIONAL FOUNDING TEAMS, EARN MEANINGFUL OWNERSHIP, AND CONSISTENTLY HELP THEM GET TO INSTITUTIONAL SEED. 7NOTATION FUND I
  8. 8. $5 $4 $3 $2 $1 $0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 FUND I SUMMARY (Feb 2016) 20 # of Investments 9* Companies Raised Subsequent Seed Capital ($???M+ Total) $n Avg Initial Investment y% Avg Initial Ownership $x PRE Avg Implied Initial Valuation (in Millions) PORTFOLIOVALUE QUARTERS/YEARS FUND I COST FUND I FMV Company 1 (GMV) Company 2 (GMV) Company 3 (REV) Company 4 (REV) Notation Fund I data validates risk:reward ratio at the Pre-Seed stage. * Of the remaining 11 companies, 2 are no longer operating (1 acquihire, 1 dissolution) and 9 are more recent investments that have not yet gone back to market 8NOTATION FUND I
  9. 9. A FEW THINGS WE LEARNED ·· The pre-seed category includes a broad range of project stages, from pre-product to early customer and revenue traction. ·· We better understand pre-seed financing dynamics, and thus ideal portfolio construction and ownership targets for Fund II. ·· We know healthy partnerships require real care and we've put in the work. NOTATION FUND I 9
  10. 10. 180 135 90 45 0 2010 2011 2012 2013 2014 2015 2016 NYC ECOSYSTEM IN 2016 ·· NYC seed funds have moved up the capital stack in recent years, while the number of growth stage startups is accelerating. ·· "Pre-Seed" is now a well defined funding stage. ·· Notation was early to recognize this trend and thus well positioned to own this stage in NYC, even as more pre-seed funds come to market. FUNDSIZE ENIAC LERER VENTURES FOUNDER COLLECTIVE FIRST ROUND CAPITAL COLLABORATIVE FUND IA VENTURES THRIVE CAPITAL FORERUNNER ACTIVE PRE-SEED FIRMS NOTATION BOX GROUP 3KVC BROOKLYN BRIDGE VENTURES BETAWORKS PRECURSOR VC THE RISE OF NYC PRE-SEED The early-stage funding gap in nyc continues to grow while the angel ecosystem remains muted. SEED FUND GROWTH BLUE APRON CASPER CLASSPASS COMMONBOND DIGITALOCEAN GREENHOUSE SOFTWARE INVISION JET SEATGEEK ORCHARD PERCOLATE APPNEXUS ETSY ONDECK SHUTTERSTOCK SQUARESPACE TUMBLR KICKSTARTER MAKERBOT MONGODB VICE ZOCDOC WARBY PARKER STACK EXCHANGE FLATIRON HEALTH WEWORK SAILTHRU SHAPEWAYS BONOBOS BETTERMENT BUZZFEED COMPASS OSCAR HARRY'S GENIUS GENERAL ASSEMBLY HANDY DATADOG GIPHY JUSTWORKS MANAGED BY Q BARK & CO CODECADEMY DASHLANE DIA & CO GROVO NAMELY 10NOTATION FUND II
  11. 11. FUND II STRATEGY ·· Our dedicated first-check strategy is working, so we don't plan to change much other than right-size the fund for the opportunity set. ·· Continue to market ourselves as dedicated first-check investors focused on technical founding teams, primarily in NYC. ·· Continue to build out key parts of the long-term Notation foundation, including our brand, advisor group, and founder community. $25M Target fund size $400K Avg initial investment $750K Avg pre-seed round size 10% Target initial ownership 1:1 Follow-On Reserves: Approx 30 Investments 3 Year Investment period 11NOTATION FUND II
  12. 12. OUR FUTURE •• A new wave of VC funds are coming to market, and disrupting venture from below just like the seed firms did ten years ago. •• We believe the opportunity to be high conviction and true first money in is just as valuable as it was then. Notation is in the early days of building the firm that defines this new category, particularly in NYC where the first-check funding gap is most acute. •• Fund I is working so we’re doubling down on Fund II, and much longer-term as a partnership and a firm. We're looking to partner with others that share our long-term approach. 12NOTATION FUND II
  13. 13. N O T A T I O N NOTATION.VC
  14. 14. FUND I COMPANIES NOTATION 14

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