Presentation given by Nikhil Kapur, Sr. Investment Manager, GREE Ventures on fundraising and venture capital raising tactics.

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GREE Ventures <> Plug & Play
June 7, 2017
Presentation by: Nikhil Kapur, Sr. Investment Manager
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About Me
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Source: Venture Pulse (2017)
2006
2010
2012
2015
2015

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About GREE Ventures
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One of the most active and earliest VCs in the Indonesian (and SEA) ecosystem
Fund Size: $67M (2016 vintage)
First Cheque Size: $0.5M to $1M (lead Seed round)
Preferred Sectors: B2C (Fintech, Healthtech, eCommerce)
PAR Value: 4 (8 Active companies, 2 Managers)
Strategy: Hyper-Active
Differentiation: Building a Small and Strong portfolio
Value-Add: Strategy, Fundraising, Operations, Hiring
Acquired AcquiredSeries C
Series D Series BSeed

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Not the best environment for fundraising
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Asia has seen an overall drop in early stage activity in last 3 quarters due to low
investor sentiments in China, even while late stage rounds remain few and large
Source: Venture Pulse (2017)

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Who needs VC money?
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Project your cash flows based on the problem you are solving and the market
opportunity, and only fundraise if you NEED it
t
CFO
Cash Flow Gap
Venture Financing
Venture Debt
Bootstrap

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How do VCs choose Startups?
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Most VCs have their own evaluation criteria, but usually revolves around the
following 5 areas: Team, Market, Business Model, Exit Opportunity, Round
Team
Market
Business ModelExit Opportunity
Round
Startup X

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How should Startups choose VCs?
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Startups should choose their VCs similar to how VCs choose startups
1. Active or Passive?
• Calculate Portfolio Activeness Ratio, using 5 as benchmark
PAR = Fund Portfolio Size/Fund Investment Professionals
• Investment Professionals background
2. Fund Fit
• Fund economics: 1/3 1/3 1/3 rule
• Past deals
• Risk Appetite
3. Feedback
• Portfolio Companies
• Ecosystem in general

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5 Things You Probably Never Thought VCs do
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These may or may not surprise you, but they are true,
at least for me

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1. VCs keenly observe Cofounder relationship
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We look for small little cues and facial expressions during the meetups with the
team to predict upcoming rifts between cofounders

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2. VCs have funnels just like you
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83
meetings
taken
16
companies
taken to
SS/Research
stage
2 companies
taken to DD
stage
0 investmentsPipeline
2 Seed12 Seed
4 Pre-A
Your task is not just to be a good company for a VC to look at but to be the best
company they would like to invest in

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3. VCs look at your Social Media
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Just donʼt be stupid…

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4. VCs calculate your unit economics themselves
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And 90% of the times it looks very different from what is presented in the deck

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5. VCs chart your trajectory before investing
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And they might just not tell you what the end goal is
Seed @ $3M Series A @10M Series B @40M
Exit @ 100M
2017 2018 2020
2022

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Other Sources
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Read these other blogs/books to understand VCs better
Brad Feld, Jason Mendelson
The Foundry Group
Fred Wilson
Union Square Ventures
Brad Feld
The Foundry Group
Mark Suster
Upfront Ventures

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Where to find Me?
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Best way to get in touch is through my blog. I ready and reply to every comment
on it. Else, email me and Iʼll get back to you in some time.
grayscale.vc
greeventures.com
Personal Blog
Website