This document provides an introduction to venture financing presented by Douglas Abrams. It summarizes Abrams' background working in venture capital and private equity. It then outlines key terms related to venture financing deals including business models, valuations, funding stages, and exits. The document discusses metrics that venture capitalists use to evaluate potential investments and make returns, such as internal rate of return. It also highlights elements that are typically included in venture financing agreements.
Expara's CEO, Mr. Douglas Abrams' Keynote speech at TechSauce held last Sunday 24 July, 2016 at Lotus Suite 5-6 Bangkok Convention Centre @Central World
Expara's CEO, Mr. Douglas Abrams' Keynote speech at TechSauce held last Sunday 24 July, 2016 at Lotus Suite 5-6 Bangkok Convention Centre @Central World
Venture Capital and the Finance of Innovation 2nd Edition Metrick Solutions M...ruwakyz
full download http://alibabadownload.com/product/venture-capital-and-the-finance-of-innovation-2nd-edition-metrick-solutions-manual/
Venture Capital and the Finance of Innovation 2nd Edition Metrick Solutions Manual
Things startups need to know if they want to raise capital from Silicon ValleyJeff Clavier
I used this deck in a keynote at the Kima Ventures portfolio day, in Paris (France) on Dec 9, 2013. Kima has a very large portfolio of investments, mostly located outside of the US. Founders often hope to raise capital in Silicon Valley over the course of their financing journey, and my goal was to draw their attention to the traps and pitfalls ahead of them.
Introduction to Business Angel Investing'Tomi Davies
This presentation is Based on the book “Angel Investing - The Gust Guide to Making Money & Having Fun Investing In Startups” by David S. Rose @davidsrose CEO of Gust and Founder of New York Angels angelinvesting.com
It is for a Masterclass designed for practising and potential business angels who want to understand the basics of angel investing. It is a comprehensive guide that walks students through every step of the way to becoming a successful angel investor.
The class exposes students to fundamental strategies and specific tools required to take full advantage of this rapidly growing asset class, from building your reputation as a smart investor, to negotiating fair deals and adding value to your portfolio of companies through to helping them implement smart exit strategies.
Angel Investing in Africa; Why it matters now!'Tomi Davies
Africa is the next, new and final frontier of globalization and the race to build the continent has already started with infrastructure.
Technology enabled services hold the key to Africa’s development and African’s MUST participate in the continent's development and resulting prosperity. Angel Investment syndicates and networks have the potential to become significant contributors (and beneficiaries) in the building of Africa. This presentation is my submission to the ABAN Investor Summit in DEMO Africa 2015 at the Eko Hotel in Lagos.
The Lagos Angel Network (LAN) as an example of how to create and angel investor group using the World Bank InfoDev Framework http://blogs.worldbank.org/psd/new-how-guide-creating-angel-investor-groups-emerging-and-frontier-markets
US Investors: From Early Stage to Series ADavid Shen
I gave this presentation in Oct 2014 at the Silicon Valley Innovation Center to a group of visiting Kazakh entrepreneurs. They wanted to know about US based investors and what they look for, and how to get investment from them.
Sasin Entrepreneurship October Sundowner
Topic: Venture capital in southeast Asia
Speaker: Douglas Abrams
Date: October 15, 2014
Time: 18:00-20:00
Place: Room 502, 5th floor, Sasin
Venture Capital and the Finance of Innovation 2nd Edition Metrick Solutions M...ruwakyz
full download http://alibabadownload.com/product/venture-capital-and-the-finance-of-innovation-2nd-edition-metrick-solutions-manual/
Venture Capital and the Finance of Innovation 2nd Edition Metrick Solutions Manual
Things startups need to know if they want to raise capital from Silicon ValleyJeff Clavier
I used this deck in a keynote at the Kima Ventures portfolio day, in Paris (France) on Dec 9, 2013. Kima has a very large portfolio of investments, mostly located outside of the US. Founders often hope to raise capital in Silicon Valley over the course of their financing journey, and my goal was to draw their attention to the traps and pitfalls ahead of them.
Introduction to Business Angel Investing'Tomi Davies
This presentation is Based on the book “Angel Investing - The Gust Guide to Making Money & Having Fun Investing In Startups” by David S. Rose @davidsrose CEO of Gust and Founder of New York Angels angelinvesting.com
It is for a Masterclass designed for practising and potential business angels who want to understand the basics of angel investing. It is a comprehensive guide that walks students through every step of the way to becoming a successful angel investor.
The class exposes students to fundamental strategies and specific tools required to take full advantage of this rapidly growing asset class, from building your reputation as a smart investor, to negotiating fair deals and adding value to your portfolio of companies through to helping them implement smart exit strategies.
Angel Investing in Africa; Why it matters now!'Tomi Davies
Africa is the next, new and final frontier of globalization and the race to build the continent has already started with infrastructure.
Technology enabled services hold the key to Africa’s development and African’s MUST participate in the continent's development and resulting prosperity. Angel Investment syndicates and networks have the potential to become significant contributors (and beneficiaries) in the building of Africa. This presentation is my submission to the ABAN Investor Summit in DEMO Africa 2015 at the Eko Hotel in Lagos.
The Lagos Angel Network (LAN) as an example of how to create and angel investor group using the World Bank InfoDev Framework http://blogs.worldbank.org/psd/new-how-guide-creating-angel-investor-groups-emerging-and-frontier-markets
US Investors: From Early Stage to Series ADavid Shen
I gave this presentation in Oct 2014 at the Silicon Valley Innovation Center to a group of visiting Kazakh entrepreneurs. They wanted to know about US based investors and what they look for, and how to get investment from them.
Sasin Entrepreneurship October Sundowner
Topic: Venture capital in southeast Asia
Speaker: Douglas Abrams
Date: October 15, 2014
Time: 18:00-20:00
Place: Room 502, 5th floor, Sasin
Top 50 de herramientas web para el aprendizajeFernández Gorka
Mediante un formulario se recogió la información sobre el conocimiento y uso de las diferentes herramientas web para el aprendizaje.
Se les pedía que marcasen: 0 las herramientas que no conozcas, 1 las que conozcas pero no uses o 2 las que utilizas.
La muestra se compone de 161 personas.
Esto supone una puntuación máxima de 322. Tomando esta cifra como máximo se construye el siguiente Ranking.
O νέος πρωτοποριακός τηλεοπτικός οδηγός της Nova είναι εδώ! Οι επισκέπτες του, ενημερώνονται γρήγορα και εύκολα, για το τι παίζει συνολικά στο τηλεοπτικό περιβάλλον!
Presentation by Davy Tollenaere at GABC 2013 about importing cost data into Google Analytics.
Important business data is everywhere: online and offline, in internal or external tools. But how do you gather all this information and combine them into useful insights? In this presentation, Davy shows you how to deal with different data sources by using Google Analytics.
SiliconAlley Startup Services for StartupsMiles Rose
SiliconAlley services for startups to accomplish milestones on both time and budget. SA provides reference customers, SMEs, capital, personnel, funding, development, business development.
"Introduction to 500 Startups" presentation will provide you a comprehensive overview of various activities that we do to promote startup ecosystem globally, discover best early stage companies and help them grow.
2016 small business forum crowdfunding 101 workshopCraig Asano
Oct 25, 2016, I delivered an hour Crowdfunding 101+ workshop at the 2016 Small Business Forum at the Metro Toronto Convention Center. This is an annual trade show hosted by Enterprise Toronto that attracts thousands of small businesses each year looking for funding, mentorship, tools, products and services to help them launch and grow. The presentation provides an overview of Crowdfunding markets, both regulated and non-regulated, case studies, deal characteristics to help startups and scaleups understand if Crowdfinance is right for their business. The deck also provides some insight into practical keys to success with planning, executing and following up on a crowdfunding campaign or investment round.
The Truth about Crowdfunding | Capital Advantage 2015CrowdfundSuite
Primer on Crowdfunding, How to Succeed, Myths and Truths for Entrepreneurs, Investors and Stakeholders. Crowdfunding will be a $35B sector in 2015 globally. Presentation from Capital Advantage 2015 event in Vancouver.
Exitround Asia - Echelon 2014 - Jacob MullinsJacob Mullins
Exitround CEO Jacob Mullins keynote at Echelon 2014 in Singapore, June 10 2014. Announcing Exitround Asia and looking at the current state of M&A activity and opportunity on a global level and how Asia compares.
GuideStar led the first revolution in nonprofit transparency by posting IRS Forms 990 online nearly two decades ago. That resulted in greater accountability in nonprofit practice and greater transparency in compensation, program effectiveness, and giving across the sector.
Now we’re helping to lead a second revolution. We want to expand the definition of transparency to be more timely, interactive, inclusive, and comprehensive.
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Douglas Abrams
About the facilitator
• Wharton MBA
• JP Morgan – Vice President
IB Technology, GM Internet Marketing
• Parallax Capital Mgmt – Co-founder and MD
Private Equity
• Extream Ventures – Co-founder and MD
S$20 million seed fund
• Expara – Founder and MD
IDM Ventures Incubator, advisory, training
• NUS – Adjunct Associate Professor, Business
School, Entrepreneurship, Sasin – Visiting
Professor, Venture Capital
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Douglas Abrams
2000 20152000 2002 2004 2006 2008 2010 2012 2014
Parallax
BANSEA
Expara
Sasin
EIDMV I Expara Thailand
Expara Malaysia
i4-X
NUS KIMBA Extream EIDMV II EV III
Expara timeline 2000-2015
3Overview of Expara
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Douglas Abrams
VC mindset
• Risk and return are highly correlated
• You cannot increase return without taking more risk
Return
Risk
Potential outcomes
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Douglas Abrams
Why invest in venture capital?
As of June 30, 2014. The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,508 U.S. venture capital funds (963
early stage, 165 late & expansion stage, 374 multi-stage and 6 venture debt funds), including fully liquidated partnerships, formed between 1981 and 2014. (1)Pooled end-to-end
return, net of fees, expenses, and carried interest.(2) 2007-2015 Sources: Cambridge Associates LLC, Barclays, Dow Jones Indexes, Frank Russell Company, Standard & Poor's,
Thomson Reuters Datastream, and Wilshire Associates, Inc
Case Shiller Real Estate Index 4.1
Expara IDM Ventures (2) 43.03
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Douglas Abrams
Impact of VC on a diversified portfolio
Private Equity and Strategic Asset Allocation. 2007 Ibbotson Associates
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SEA exit markets at an inflection point
Exit activity in SEA, especially in Singapore, exploded in 2013
• Increased investment in startups since 2007 is beginning to yield results
• Number of exits increased from 6 in 2010 to 20 in 2013
• Singapore alone has had 30 exits since 2007, 13 in 2013
• Value of exits increased from 51 MM in 2010 to 400 MM in 2013
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Douglas Abrams
Some recent exits
Company Country Acquiror Price Year
ZopIM Singapore Zendesk US$29.8MM 2014
Non-Stop Games Singapore King US$ 100MM 2014
sgCarMart Singapore SPH S$60 MM 2013
DS3 Singapore Gemalto S$50 MM est. 2013
Asian Food Channel Singapore Scripps Networks Undisclosed 2013
Reebonz Singapore MediaCorp and Existing investors S$250MM 2013
Yfind Singapore Ruckus Wireless Undisclosed 2013
Techsailor Singapore TO THE NEW Undisclosed 2013
travelmob Singapore HomeAway Undisclosed 2013
Catcha Digital Media Singapore Opt Inc Undisclosed 2013
GridBlaze Singapore Undisclosed Silicon Valley Startup Undisclosed 2013
Viki Singapore Rakuten US$200MM 2013
SGE Singapore Tech In Asia Undisclosed 2013
ThoughtBuzz India To The New Undisclosed 2013
AyoPay Indonesia MOL AccessPortal Undisclosed 2013
Tongue in Chic Malaysia PopDigital Undisclosed 2013
Ocision Malaysia Star Publication US$ 4.36MM 2013
Glamybox Vietnam VanityTrove Undisclosed 2013
PaymentLink Singapore Wirecard US$41.2MM 2013
Dealguru Singapore iBuy S$34.28 MM 2013
Buy Together Hong Kong iBuy S$21 MM 2013
Dealmates Malaysia iBuy S$10 MM 2013
PropertyGuru.com Singapore ImmobilienScout24 S$60 MM 2012
HungryGoWhere Singapore Singtel S$12 MM 2012
AdMax Network Singapore Komli Media Undisclosed 2012
TheMobileGamer Singapore Singtel US$1.5 MM 2012
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Douglas Abrams
Key elements for success
• Solving a painful problem for customers – Value proposition
• Developing an innovative product – Innovation
• Customers and competitors – Market identification and analysis
• Reaching customers – Marketing, sales and distribution strategy
• Competing when others enter - Sustainable competitive advantage
• Make money – Business model and financial plan
• Team – A team or B team
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Key venture finance terms
Business model
Financial projections
Valuation
Funding required and equity offered
Use of Proceeds
Exit Strategy and ROI
Cap table
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Company valuation methods
• Price to earnings (p/e)
• Dividend yield
• Multiple of book value
• Comparables
• Discounted Cash Flow (DCF)
• VC method
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Douglas Abrams
How much equity does the investor receive?
• Pre-money valuation
– Amount invested by VC ÷ (Agreed pre-money value of business
+ Amount invested by VC)
– $3MM pre + 1 MM VC = 25% VC equity
• Post-money valuation
– Amount invested by VC ÷ post-money valuation
– $4MM post = 25% VC equity
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Douglas Abrams
How do VCs make money?
• Trade sale – sell to
another company
• IPO – sell to the
public through listing
on an exchange
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Douglas Abrams
Stages and sources of funds
Founder’s
Capital
Seed/
Angel
Series
A, B, C
Mezzanine Pre-IPO IPO
VC hurdle rates 60-100% 40-60% 20% Why are these rates so high?
OM
F,F&F
Incubators
corporations
government
Customers, suppliers,
strategic partners
VCs, Banks for VC loans