Angel groups in South Africa - seminar at UCTRandolf Jorberg
Since uploading this presentation on angel investments in South Africa in 2011, I became an advisor and Angel Investor at Startup-Incubator Springlab. Please pitch your startup to Springlab, if you're looking for hands on investors and support!
http://springlab.co/
http://springlab.co/contact/
http://randolf.jorberg.com/2014/04/15/springlab-african-incubator/
Presentation by Craig Mullett from the Branison Group at the UCT Graduate School of Business in Cape Town.
The seminar focused on the research topic of bridging the missing middle in entrepreneurial finance in South Africa through developing angel investor networks. It gave an overview of the research on how these groups work in the USA as well as research ideas on how this could be done in South Africa.
TheFunded.com presentation on the state of venture capital delivered to Harvard Business School faculty in October 2008. See: <a href="http://www.altgate.com/blog/2008/11/venture-capital-is-broken.html">here</a>.
Angel groups in South Africa - seminar at UCTRandolf Jorberg
Since uploading this presentation on angel investments in South Africa in 2011, I became an advisor and Angel Investor at Startup-Incubator Springlab. Please pitch your startup to Springlab, if you're looking for hands on investors and support!
http://springlab.co/
http://springlab.co/contact/
http://randolf.jorberg.com/2014/04/15/springlab-african-incubator/
Presentation by Craig Mullett from the Branison Group at the UCT Graduate School of Business in Cape Town.
The seminar focused on the research topic of bridging the missing middle in entrepreneurial finance in South Africa through developing angel investor networks. It gave an overview of the research on how these groups work in the USA as well as research ideas on how this could be done in South Africa.
TheFunded.com presentation on the state of venture capital delivered to Harvard Business School faculty in October 2008. See: <a href="http://www.altgate.com/blog/2008/11/venture-capital-is-broken.html">here</a>.
Getting Your Venture "Game Ready" for FundingAndrew Tulchin
Triple bottom line efforts need capital. But securing this capital is often challenging, despite impactful value propositions and promising ROIs. Meanwhile, options for funding are expanding, creating a dizzying array of options for the entrepreneur. In this workshop, you’ll work with two experienced social enterprise funding advisors to get your efforts “game ready” for funding. You’ll learn how to package your venture to successfully raise the funds you need… and from the right type of capital source.
Analysis on an decade of data relating to start-up which would guide the budding start-ups towards the way of success and also provide them the right place for maximum funding.
The Netherlands is facing public sector cuts in a similar way to the Uk has already experienced. This presentation was given to a public sector conference in Utrecht focused on \’new financial mechanisms\’ and illustrating innovative models from the UK
Global Trends In Venture Capital 2007 Surveybwatson
“The outlook for the Canadian venture capital industry is bleak given its ecosystem is broken and there is no immediate solution at hand. The Canadian government and the domestic VC community must join forces to bring the industry back from the brink of collapse”
A presentation I did for a family foundation interested in adding impact investing to its strategies. Some content created in cooperation with the Impact Finance Center.
Investment Analyst Guy Wallace explores the fundamental principles of venture capital and the different pathways into the industry for Textbook Ventures.
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Social Finance and Impact Investing in CanadaKarim Harji
Presentation at OISE - November 21, 2012
• An overview of the state of social finance and impact investing across Canada
• An analysis of why Canada is well positioned to become a leader globally
• A participatory discussion on the key issues such as:
-- The perceived trade-offs between social impact vs. financial return;
--- How philanthropy can complement social finance;
--- Measurement of social value creation;
--- Legislation and public policy; and
--- Bridging silos between sectors and organizations.
Accelerating Impact Impact Investing & Innovative Financing for DevelopmentKarim Harji
The concept of innovative financing is a relatively recent addition to the development lexicon. Edward Jackson, a faculty member at the School of Public Policy and Administration at Carleton University, and Karim Harji, a co-founder and partner at Purpose Capital, will introduce the audience to innovative financing and impact investing through their report, Accelerating Impact: Achievements, Challenges and What’s Next in Building the Impact Investing Industry. The AKFC Seminars on Innovative Financing for Development, hosted by Aga Khan Foundation Canada in partnership with Carleton University’s School of Public Policy and Administration.
LightCastle takes a look at the role of NGOs/NPOs in Impact Investment and how they can make a change in the journey of budding SMEs and small businesses.
Tech Cocktail_2012 startup accelerator reportEugene Kim
20-page startup accelerator report that outlines five key factors for startups to consider when choosing an accelerator. Accelerators offer entrepreneurs a chance to spend several months intensely focused on their product and business – fueled by funding and mentorship, and often in shared office space – before pitching in front of investors at “demo day.”
Topics discussed include: Does location matter? Which programs are more hands-on? Which ones have the biggest networks? The report also includes a list of 70 accelerators around the country.
Getting Your Venture "Game Ready" for FundingAndrew Tulchin
Triple bottom line efforts need capital. But securing this capital is often challenging, despite impactful value propositions and promising ROIs. Meanwhile, options for funding are expanding, creating a dizzying array of options for the entrepreneur. In this workshop, you’ll work with two experienced social enterprise funding advisors to get your efforts “game ready” for funding. You’ll learn how to package your venture to successfully raise the funds you need… and from the right type of capital source.
Analysis on an decade of data relating to start-up which would guide the budding start-ups towards the way of success and also provide them the right place for maximum funding.
The Netherlands is facing public sector cuts in a similar way to the Uk has already experienced. This presentation was given to a public sector conference in Utrecht focused on \’new financial mechanisms\’ and illustrating innovative models from the UK
Global Trends In Venture Capital 2007 Surveybwatson
“The outlook for the Canadian venture capital industry is bleak given its ecosystem is broken and there is no immediate solution at hand. The Canadian government and the domestic VC community must join forces to bring the industry back from the brink of collapse”
A presentation I did for a family foundation interested in adding impact investing to its strategies. Some content created in cooperation with the Impact Finance Center.
Investment Analyst Guy Wallace explores the fundamental principles of venture capital and the different pathways into the industry for Textbook Ventures.
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
Social Finance and Impact Investing in CanadaKarim Harji
Presentation at OISE - November 21, 2012
• An overview of the state of social finance and impact investing across Canada
• An analysis of why Canada is well positioned to become a leader globally
• A participatory discussion on the key issues such as:
-- The perceived trade-offs between social impact vs. financial return;
--- How philanthropy can complement social finance;
--- Measurement of social value creation;
--- Legislation and public policy; and
--- Bridging silos between sectors and organizations.
Accelerating Impact Impact Investing & Innovative Financing for DevelopmentKarim Harji
The concept of innovative financing is a relatively recent addition to the development lexicon. Edward Jackson, a faculty member at the School of Public Policy and Administration at Carleton University, and Karim Harji, a co-founder and partner at Purpose Capital, will introduce the audience to innovative financing and impact investing through their report, Accelerating Impact: Achievements, Challenges and What’s Next in Building the Impact Investing Industry. The AKFC Seminars on Innovative Financing for Development, hosted by Aga Khan Foundation Canada in partnership with Carleton University’s School of Public Policy and Administration.
LightCastle takes a look at the role of NGOs/NPOs in Impact Investment and how they can make a change in the journey of budding SMEs and small businesses.
Tech Cocktail_2012 startup accelerator reportEugene Kim
20-page startup accelerator report that outlines five key factors for startups to consider when choosing an accelerator. Accelerators offer entrepreneurs a chance to spend several months intensely focused on their product and business – fueled by funding and mentorship, and often in shared office space – before pitching in front of investors at “demo day.”
Topics discussed include: Does location matter? Which programs are more hands-on? Which ones have the biggest networks? The report also includes a list of 70 accelerators around the country.
A Seed/Startup Venture Fund & Collaboration Community working with, supporting and compensating Incubators, Universities and Economic Development Agencies
Social Impact Ventures and Raising Capital: B Corporations and the Social Ven...MaRS Discovery District
There is a growing belief that businesses must do more than create value for shareholders. Non-profits and government cannot address current and future societal and environmental challenges without corporate involvement. If you are a startup looking to create value beyond profit, then you will want to learn about Certified B Corporations. This new type of corporation uses the power of business to solve social and environmental challenges. These types of certifications are ideal for raising capital from socially conscious investors.
Join us as Joyce Sou, Manager of B Corporations and Social Impact Metrics at the MaRS Centre for Impact Investing, discusses how Social Venture Connection (SVX) is helping capital flow for social impact ventures.
Participants will learn about the following:
What is impact investing?
What is a B Corporation?
How does SVX help B Corporations get investment?
Many entrepreneurs – social, triple bottom line or otherwise – do not avail themselves of all potential capital sources when seeking funding to grow or scale, limiting prospects to cash flow their initiatives. This seminar explores a range of options for funding: external in the marketplace, internal within an organization, new ideas and classics not to overlook.
Impact Grid is a project to harness the potential offered by blockchain and other emerging technologies to design a transparent, secure and decentralized platform for Impact Investing.
How to Convert Community Stakeholders to Impact InvestorsTechSoup
Mission-driven organizations can now raise capital in alignment with their values. Changes in securities laws, new intermediaries, and new financial tech (fintech) solutions make it easier for organizations to engage their supporters, both wealthy and not, as impact investors.
This session, led by expert John Katovich, Co-Founder of Cutting Edge Capital and Principal of Bequia Securities, will feature an overview of new fundraising strategies that deepen community engagement while raising revenue.
This session will also introduce SVX.US, based on the Canadian impact investing marketplace launching in the U.S. in partnership with Bequia Securities and its first offering, TechSoup. This session will serve as a useful case study for new ways to raise capital from your community.
Is Impact Investing a Good Strategy for your Organization?TechSoup
By now, you've probably heard the term "impact investing." But what does impact investing mean for nonprofits, and how are they using it? In this 60-minute webinar, Will Jacobsen, senior director of strategic investments and investor relations at Kiva Capital, and Ken Tsunoda, vice president of development at TechSoup, will talk about these topics:
- What impact investing means for nonprofits
- The pros and cons of impact investing
- How nonprofits can participate in impact investing
- How Kiva and TechSoup are using impact investing, and other use cases
- Finding the right strategic partnerships in a highly regulated field
- Resources and takeaways to help you get started
SiG@MaRS hosted a recap of the inaugural Social Capital (SoCap) Markets Conference held in October 2008 in San Francisco. Kerri Golden, Karim Harji, Michael Lewkowitz and Allyson Hewitt discussed the event, recent developments in the Social Finance marketspace, and the relevance of SoCap for Ontario and Canada.
ODA for Capacity Building in the Social Enterprise- and the SME-Sector in IndiaMartin Vogelsang PhD
Based on my long-standing experience as impact investor in India I would like to suggest that Official Development Assistance (ODA) coming into the country is disbursed more strongly towards capacity building (training, education) and supporting the incubation of viable social enterprises and inclusive businesses catering to the “Base-of-the-Pyramid”. Investing into this area of the Indian economy would not only help alleviate to poverty and at least partly solve some of the grave environmental problems the country is facing. Such an initiative could also help India’s corporate sector become more engaged in creating and scaling innovative solutions in the areas of technology or financial services that could open up new markets for them.
4. Where connections spark growth.
2013 Venture Industry Overview
• Total VC Capital Invested increased but Deal Flow fell slightly in 2013.
• VCs invested $34 Billion in 2013 - the 3rd Highest Level in 10 years.
• Overall Deal Flow dipped by 15% from 2012 to 2013.
$19.7
$22.6
$25.0
$31.4
$33.2
$23.0
$26.9
$38.4
$34.1
$34.0
2,049
2,344
2,532
3,233
3,459
3,037
3,579
4,431
4,804
4,067
0
1,000
2,000
3,000
4,000
5,000
6,000
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Capital Invested ($B) # of Deals Closed
U.S. VC Deal Flow
5. Where connections spark growth.
U.S. VC Deals by Stage
• Investments by Stage have Evolved Over Time as Focus on Seed Stage has Increased.
• Early Stage Financings fell from 59% of VC Deal Flow in 2005 to 44% in 2013.
• Angel/Seed Financings increased from 5% to 27% of Total Deal Flow in the same period.
• Angel/Seed Financings accounted for $9.2B of the overall $34B in VC financing in 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Seed/Angel Early Stage Late Stage
U.S. VC Deals by Stage
6. Where connections spark growth.
VC Investments by Sector
• The healthcare share of total venture capital investments was 19%—
the lowest proportion since 2001.
• Hopeful uptick in exits and fundings in Q4 2013.
31%
32%
38%
21%
10%
6%
9%
9%
13%
24%
25%
19%
2%
5%
3%
14%
20%
21%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2004
2009
2013
Software Non-Software IT Commercial Services Healthcare Energy Other
US VC Deals by Sector
7. Where connections spark growth.
7
Cintrifuse Early Stage Venture Capital
Fund I, LLC
Performance Review
9. Where connections spark growth.
9
Fund I Highlights
• Total of $450M in Capital Under Management
• 44 companies
• ~150% average portfolio growth
Underlying Funds
• $51.1 million in committed capital
• 4 funds under management
• 8% called
• ~ One new fund per quarter
• Focus on early stage venture…
• …In technology, life sciences, consumer, energy
Cintrifuse Fund I
10. Where connections spark growth.
Underlying Funds
Location: Cincinnati, OH
Stage: Series A/B
Investment focus: B2B Software,
Medical Devices
Location: Los Angeles, CA
Stage: Seed/Series A/B
Investment focus: Software,
Distribution, Financial Services, Digital
Media
Location: Boston, MA
Stage: Seed/Series A/B
Investment Focus: SaaS, Cloud,
Mobile,, Technology-enabled service,
Digital Media
Location: Houston, TX
Stage: Seed/Series A
Investment Focus: Software,
Ecommerce, Bioscience,
Manufacturing, Energy
11. Where connections spark growth.
Fund Summary
$ Millions
$4.1
$2.3
$1.7
$0.3
$0.1
$3.3
$1.5
$0.3
$1.0
$1.2$1.2
$1.1
$1.2$1.2
$40.0 $40.0
$51.1 $51.1 $51.1
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Q4 '13Q3 '13Q2 '13Q1 '13Q4 '12
Paid in Capital Capital Drawn by Underlying Funds Residual Value Total Value Commi ed Capital
12. Where connections spark growth.
Portfolio Distribution
$ Amount
GeographyIndustry
# of Companies
Consumer
13%
Technology
83%
Life
Sciences
5%
Consumer
11%
Technology
80%
Life
Sciences
9%
West
41%
South
18%
Northeast
20%
Midwest
20%
West
53%
South
4%
Northeast
32%
Midwest
11%
13. Where connections spark growth.
Growing Activity with VCs
2
4
8
3 3
5
6
14
17
20
25
0
5
10
15
20
25
30
0
1
2
3
4
5
6
7
8
9
Nov '13 Dec '13 Jan '14 Feb '14 Mar '14 Apr '14
Cincinna Immersion Days
Immersion Days Monthly Cumula ve
15. Where connections spark growth.
To create a global destination
where entrepreneurs’ dreams
are realized.
For the Fund:
Build an Effective Early Stage
Venture Network
Mission
16. Where connections spark growth.
16
Attract, Engage, Invest
16
VCs Corporations
STARTUPS
Deal Flow
Due Diligence
17. Where connections spark growth.
17
Timeline
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
$40M
First
Close
$11M 2nd
Close
Sarah
Anderson
Joins
Acquired
2013 was a year of foundation building
18. Where connections spark growth.
18
Ripple Effect
Seed Early Late
Engaging with more than 200 Funds
19. Where connections spark growth.
19
Engagement Scorecard
ACTIVITY DESCRIPTION
Dealflow to
Members
Number of companies brought to Strategic LPs aligned with interests. Potential
for relationships such as beta test, customer, joint venture or investor.
Advisory
Boards/Ment
orships
Participation in mentoring, advisory and committee roles for a) LPs, b) startups,
c) research organizations, and d) industry/corporations.
Events
Participation, sponsoring and contributing thought leadership throughout the
year in events such as annual conference, Demo Day, Office Hours, etc.
Education/Cu
rriculum
Introduce content and programs for delivering education for startups and
entrepreneurs.
Media
Engagement
Social Media, Tweeting, Blogging, other press and statements about Cintrifuse
Presence Maintain a staffed office and/or partner-level activity in the region.
Direct
Investment
Activity in sourcing deals from the region and other regional investors, includes
startups met with, diligenced as well as actual investment.
Reporting
Provide timely, accurate reports on regional activity, invested capital, jobs and
other information as may be requested
20. Where connections spark growth.
$1.0
$2.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Invested Capital
Outside Region Local Investments
20
Economic Multiplier
Capital invested
outside region =
$2.74M
4 companies =
$6.85M combined
Per $1 invested outside the region, $2.5 has been
returned
21. Where connections spark growth.
21
Goals for 2014
Close the Fund.
Invest in 3 to 4 additional funds.
Link the Underlying Fund portfolios more directly
with our strategic investors
LEAP Innovation Days
Venture Liaison Program.
Track and monitor the activity of funds coming
the region to optimize fund performance and
remain consistent with our mission.
$9B invested in the VC asset class by LPs in Q1 2014…as compared to $17 to $20 (annual) in last few years. Most of which into a few larger funds
$9.5B invested into companies, showing an increase again in Q1 for a $36B rate, up slightly from 2012 and 2013
VC Investment Exits in 2013 indicate great promise for the year ahead
Over 1,800 Investor Exits in 2013, including 107 IPOs.
Median Exit Size was $60M, up from $50.6M in 2012.
IPO Exits doubled from 2013 to account for 15% of all VC Exits. Corporate Acquisitions and
Notable IPOs
Twitter: IPO in 2/2013, Market Cap at Year End of $18.10B (Internet).
Zoetis: IPO in 11/2013, Market Cap at Year End of $15.38B (Pharmaceuticals).
Companies are raising capital earlier and are expected to have more substantial results before they get to later stage rounds
Median Seed Stage Round Size rose 15% from $1.3M (2012) to $1.5M (2013).
Median Pre-Money Valuation hit all-time high of $5.1M in 2013.
Most Active VC Investors of 2013 - Incubators are among top-tier VC Investors.
500 Startups (150 Companies backed), Andreessen Horowitz (97), Google Ventures (81), Intel Capital (72), Y Combinator (71).
VC Deals show growing importance of Angel/Series Stage Investing.
VCs invested $6.6 billion into 778 Life Sciences deals in 2013, compared to $6.7 billion in 800 deals in 2012. Decrease of 1% in dollars and 3% in deals.
Target is $60M – over 1/3 of this is confirmed. Working on nailing down the rest. Closing is planned for June 30
Our structure helps us de-risk and accelerate. Would be virtually impossible for a fund to do this on their own. B/c we chose to embed this in the non-profit, it is truly break through. But we need all parts to be successful.
Early in the development of Cintrifuse it was debated whether to invest the capital directly into Cincinnati-based companies, or rather into a network of venture firms.
The Fund of Fund model is sowing signs that it works and is the right model to fuel activity.
It is because it leverages:
Capital
Talent/Experience
Networks
Power Law of Participation
Reduces Risks
Leads to higher engagement.
Our first investment
Latest Round TOTAL
Ahalogy Hyde Park $3.10 $4.80
LISNR Progress, Jump $2.20 $3.10
Donde Mercury, Chicago $1.00 $1.20
SQRL Hyde Park $0.55 $0.55
$6.85 $9.65
Total Capital Called $4.60 $4.601.52.10
Capital Deployed (less mgt fee) $3.85 $3.851.82.5
Capital Deployed Outside Region2.742.74 2.5 3.5
Our first investment
Latest Round TOTAL
Ahalogy Hyde Park $3.10 $4.80
LISNR Progress, Jump $2.20 $3.10
Donde Mercury, Chicago $1.00 $1.20
SQRL Hyde Park $0.55 $0.55
$6.85 $9.65
Total Capital Called $4.60 $4.601.52.10
Capital Deployed (less mgt fee) $3.85 $3.851.82.5
Capital Deployed Outside Region2.742.74 2.5 3.5