2. Important
No+ce
C&P
Capital
LLP
and
Prosper
Cap7al
LLP
are
communica7ng
this
presenta7on
on
a
confiden7al
basis
only
to
a
limited
number
of
firms
authorised
by
the
Financial
Services
Authority
of
the
United
Kingdom
(the
"FSA")
for
the
sole
purpose
of
providing
informa7on
about
the
Early
Stage
Digital
Technology
Fund
(“The
Fund”).
Promo7on
of
an
investment
in
the
Partnership
is
regulated
under
the
Financial
Services
and
Markets
Act
2000
("FSMA")
and,
in
par7cular,
under
the
FSMA
(Financial
Promo7on)
Order
2005
(“FPO").
Accordingly,
this
presenta7on
is
being
communicated
to
persons
having
professional
experience
in
maSers
rela7ng
to
investments
who
are
"investment
professionals"
within
the
meaning
given
in
ar7cle
19
of
the
FPO
and
specifically
firms
authorised
by
the
FSA.
The
distribu7on
of
this
presenta7on
to
persons
who
are
not
investment
professionals
or
are
not
firms
authorised
by
the
FSA
is
unauthorised
and
contravenes
FSMA,
and
such
persons
should
not
act
or
rely
on
this
presenta7on
or
any
of
its
contents
for
any
purpose.
This
presenta7on
is
intended
to
be
a
brief
summary
overview
of
an
investment
in
the
Fund.
Any
recipient
of
this
presenta7on
must
read
this
presenta7on
in
conjunc7on
with
the
informa7on
memorandum
of
the
Partnership,
once
available,
which
sets
out
the
detailed
terms
and
risks
involved
in
inves7ng
in
a
business
of
this
nature
prior
to
any
decision
to
invest
being
made.
Any
projec7ons,
forecasts
and
es7mates
contained
in
this
presenta7on
are
forward-‐looking
statements
and
are
based
upon
certain
assump7ons
considered
by
the
Fund
to
be
reasonable.
Projec7ons
are
necessarily
specula7ve
in
nature
and
it
can
be
expected
that
some
or
all
of
the
assump7ons
underlying
the
projec7ons
will
not
materialise
or
will
vary
significantly
from
actual
results.
Accordingly,
the
projec7ons
are
only
an
es7mate.
Actual
results
may
vary
from
the
projec7ons
and
the
varia7ons
may
be
material.
Some
important
factors
that
could
cause
actual
results
to
differ
materially
from
those
in
any
forward-‐looking
statements
include
changes
in
interest
rates
and
market,
financial
or
legal
uncertain7es,
among
others.
Consequently,
the
inclusion
of
projec7ons
herein
should
not
be
regarded
as
a
representa7on
by
the
Fund
or
any
other
person
or
en7ty
of
the
results
that
will
actually
be
achieved
by
the
Fund.
This
presenta7on
should
not
be
construed
as
a
recommenda7on
or
as
legal,
tax
or
financial
advice
in
rela7on
to
the
subscrip7on,
purchase,
holding
or
disposi7on
of
shares
in
the
Fund.
Prospec7ve
investors
should
accordingly
consult
their
own
professional
advisers
3. Overview
What
Why
How
Who
Fees
Funnel
extract
4. overview
Target
fundraise:
£15m
Minimum
fundraise:
£10m
Minimum
investment:
£25,000
Maximum
investment:
£1,000,000
Target
return:
30%
IRR
Investment
term:
5
years
(with
the
op7on
of
a
further
two,
one
year
increments).
Closing
Date:
April
2013
Fund
Structure:
Discre7onary
EIS
porbolio
Investor
Repor7ng:
Investors
will
receive
a
quarterly
leSer
and
full
annual
report.
5. what
A
discre7onary
EIS
fund
inves7ng
in
early
stage
internet
companies,
ran
&
advised
by
successful
internet
entrepreneurs
and
experienced
investment
professionals.
A
fund
seeking
to
invest
in
the
value
created
by
disrup7ve
internet
technologies.
A
fund
that
is
using
historical
data
to
guide
an
investment
strategy
to
manage
downsize
risk,
while
leaving
an
opportunity
for
substan7al
returns.
In
fact,
a
target
IRR
of
30
over
5
years.
6. what
A
fund
that
draws
analogue
to
successful
US
‘micro-‐VC’
models
“[This
kind
of
fund]
want
to
reinvigorate
venture
capital
by
taking
it
back
to
its
roots,
when
firms
were
smaller,
more
nimble,
and
more
likely
to
help
startups
get
off
the
ground.”
–
Business
Week
“The
fact
that
start-‐ups
today
can
do
a
lot
with
so
much
less
capital
will
conCnue
to
put
pressure
on
VCs
to
look
at
smaller
investment
opportuniCes.”
–
Greg
Foster
“This
‘boom’
in
seed
and
Micro-‐VC
acCvity
is
not
so
much
a
boom
as
it
is
a
seismic
shiI
in
how
technology
companies
will
be
founded
and
funded
for
the
forseeable
future
“–
Jonathan
Tower,
MD,
Citron
Capital
7. Source:
Mark
Suster,
GRP
Partners
“ The
State
of
The
Venture
Capital
Markets”
why
We
believe
that
certain
structural
changes
caused
by
internet-‐based
technologies
have
presented
unprecedented
opportunity
for
growth
from
a
rela7vely
small
capital
base.
8. ZocDoc
Company
LivingSocial
Zulily
Tumblr
AirBnB
Evernote
Dropbox
0
100
200
300
400
500
xMul+ple
Mul+ple
of
seed
value
for
select
tech
companies
<4
years
old
(source:
C&P
Research)
why
And
this
has
led,
for
some,
to
stellar
seed
returns.
13. 40
25
N
=
10,
y
=
gross
fund
mul7ple
35
N
=
10,
y
=
gross
fund
mul7ple
20
N
=
40,
y
=
gross
fund
mul7ple
30
25
15
20
~40%
chance
of
>6x
return
15
10
10
<10%
risk
of
<2x
return
5
40%
risk
of
<2x
return
5
<20%
risk
of
<3x
return
0
0
0%
20%
40%
60%
80%
100%
120%
0%
20%
40%
60%
80%
100%
120%
CDF
results
of
Monte-‐Carlo
simula7ons
on
fund
porbolios
of
n-‐companies
using
a
probability
distribu7on
imputed
from
The
Kauffman
Founda7on
Angel
Returns
Study
(Wiltbank
2007),
the
biggest
survey
of
Angel
returns
to-‐date.
Source:
Irving
Ebert
(Owner,
PurpleAngels)
&
C&P
Capital
Research
why
Because
angel
investments
exhibit
non-‐normal
distribu7on
curves,
risk
can
be
hedged
with
upside
poten7al
retained.
14. IRRs
for
VC-‐Backed
Companies
in
Selected
Industries,
2008-‐11
Sovware/Services
Internet
ecommerce
Internet
e-‐business
0.00
20.00
40.00
60.00
80.00
Source:
Cambridge
Associates
LLC
US
Venture
Capital
Index
and
Selected
Benchmark
Sta+s+cs
why
And
VC
should
see
solid
results
going
forward.
15. how
Tapping
into
our
mature
and
expansive
networks
to
generate
dealflow.
We
already
have
a
strong
funnel.
Using
published
term
sheets
&
standardised
legal
documents
By
being
‘public’:
blogging,
twee7ng
and
aSending
the
myriad
of
conferences
and
meetups.
We
too
will
seek
to
be
nimble,
hard
Paul
Singh,
500Ventures:
working
&
disrup7ve,
just
like
our
“Moneyball:
A
Quan7ta7ve
Approach
to
Angel
Inves7ng”
startups.
16. how
By
leading
~15-‐20
of
the
best
investments.
By
giving
that
~15-‐20
direct
opera7onal
and
board
level
support.
And
‘following’
or
‘silent
partner’
inves7ng
for
the
rest.
17. who
Fund
manager:
Prosper
Capital
LLP
Technology
Adviser:
C&P
Capital
LLP
Custodian:
Woodside
Securi7es
Audit
and
accounts:
Nyman
Libson
Paul
Solicitors
to
offer:
Davenport
Lyons
18. who
David
Hickson
–
Chief
Dylan
Collins
–
Chairman
Investment
Officer
Investment
CommiSee
David
Hickson
is
a
seasoned
digital
media/Internet
Dylan
Collins
is
one
of
the
most
experienced
online
veteran
and
entrepreneur.
gaming
entrepreneurs
in
Europe,
building
three
companies
with
three
successful
exits
over
the
last
decade.
He
was
commercial
&
legal
director
at
lastminute.com
PLC,
where
he
was
a
key
part
of
its
He
is
Execu7ve
Chairman
of
Fight
My
Monster
the
leading
£577m
exit
to
Travelocity
Europe
Limited.
online
game
for
boys
in
the
UK.
Head
of
Corporate
Development
at
mydeco.com
Dylan
is
also
an
angel
investor
in
several
Internet
and
where
he
raised
over
£12.5m
of
venture
capital,.
technology
companies
in
the
UK
and
Ireland.
Co-‐founder
and
Chief
Strategy
Officer
at
He
serves
as
Ambassador
to
the
Irish
Government’s
Tribesports.com
that
has
recently
announced
over
Interna7onal
Startup
Fund.
£2m
worth
of
venture
capital
and
has
seen
1200%
user
growth
since
January
‘12.
Accolades:
He
is
a
partner
at
C&P
Capital
LLP
Finalist
in
last
year’s
Ernst
&
Young
Entrepreneur
of
the
Year
He
sat
on
the
Jury
Panel
at
the
Tech
Entrepreneurs
Winner
Irish
Internet
Associa7on
‘Internet
Hero’
Week
with
Jimmy
Wales,
founder
of
Wikipedia.
award
19. who
Paul
Thompson
–
Fund
James
Cox
–
Investment
Manager
Director
In
2006
Paul
founded
Prosper
Capital
to
provide
regulated
status
James
is
a
Founding
Partner
of
C&P
Capital.
James
and
authorisa7on
to
companies
in
the
media
and
technology
started
his
career
working
for
an
ins7tu7onal
sector,
also
aiding
in
capital
raising
under
EIS
regula7on.
equity
trading
company
and
was
then
headhunted
Prior
to
this
he
worked
at
Dover
Street
Capital,
which
to
set
up
an
equity
deriva7ves
desk
at
Cornhill
specialised
in
tax
based
products.
Capital.
Having
successfully
set
up
the
equity
desk,
James
then
set
up
their
Managed
FX
trading
In1993
Paul
founded
the
Capital
Exchange,
a
web
based
desk.
James
was
then
in
turn
solely
responsible
for
business
portal
for
entrepreneurs
and
investors,
which
exited
to
raising
capital
for
both
the
Equity
and
FX
Desks;
Evolu7on
Capital
in
1999.
during
James’
7me
at
Cornhill
Capital
he
raised
in
excess
of
£30m.
From
1987
to
1992
Paul
was
a
partner
at
Cygnus
Venture
Partners,
a
venture
capital
firm
which
invested
in
biotech
and
James
then
co-‐founded
Xenfin
FX,
part
of
the
technology
start-‐ups
including
Axis
Shield,
Bio
Compa7bles
and
Deltex.
Xenfin
Group,
a
Foreign
Exchange
brokerage
that
currently
trades
in
excess
of
$25bn
of
Foreign
Paul
received
his
MBA
from
Bradford
University
in
1980
having
Exchange
per
month.
Xenfin
FX
was
an
FX
already
qualified
as
a
member
of
the
Ins7tute
of
Chartered
advisory
business
covering
a
range
of
clients
Accountants.
including
Asset
Managers,
Family
Offices
and
Hedge
Funds.
20. who
David
CoSerell
–
Investment
Peter
Rose
–
Investment
CommiSee
CommiSee
David
CoSerell
has
successfully
Partner
at
C-‐View,
C-‐View
currently
built
up
a
number
of
IT
sovware
manages
in
excess
of
$250m.
and
services
businesses
from
early
Ex-‐CIO
of
a
quoted
hedge
fund
(In
stages
through
to
mature
and
managing
approximately
$2.5bn.
successful
business
models.
Ex-‐Director
of
Research
at
Ivy
Asset
ACT
Financial
Systems
(became
a
Management,controlled
$15bn
of
subsidiary
of
Misys)
,
DST
investments.
InternaConal,
Advent,
Cresta,
and
Trading
experience
-‐
mul7
strategy
SQS
.
hedge
fund
(MBS
Ltd.)
and
long/
short
for
Close
Bros
Risk
management
experience
–Bear
Stearns
21. who
David
Kelly
–
Special
Advisor
COO/VP
Opera7ons
at
ebay
COO
of
lasminute.com
Director
at
Amazon,
Founder/CEO
of
mydeco.com
SVP/Managing
Director
of
Rackspace
–
the
US
hos7ng
and
cloud
plaborm
–
during
a
7me
it
put
on
$5
billion
of
market
cap.
22. fees
Establishment
costs
5%
of
aggregate
Subscrip7ons
to
the
Fund,
from
which
will
be
seSled
all
establishment
costs
(including
professional
fees
and
prin7ng
costs)
and
commissions
due
to
independent
third
party
intermediaries),
including
a
fee
to
the
Manager
and
Technology
Adviser.
Annual
costs
2.5%
of
aggregate
Subscrip7ons
to
the
Fund,
from
which
will
be
paid
a
fee
of
0.25%
of
aggregate
Subscrip7ons
to
the
Manager,
a
fee
of
0.2%
of
aggregate
Subscrip7ons
to
the
Custodian,
with
the
balance
to
the
Technology
Adviser.
The
transac7on
costs
in
rela7on
to
each
investment
will
be
met
out
of
the
annual
fee,
although
in
some
cases
may
be
met
by
the
Investee
Companies.
23. fees
Performance
fee
A
performance
fee
shall
be
payable
to
the
Technology
Adviser
on
realisa7on
of
the
assets
of
the
Fund.
The
performance
fee
shall
be
calculated
as
percentage
of
the
surplus
available
for
distribu7on
to
Investors
aver
realisa7on
of
Fund
assets,
calculated
aver
the
return
to
the
Investors
of
their
aggregate
Subscrip7ons,
(“Surplus”)
as
follows:
