The document discusses trends in the global venture capital market from 2009. It provides background on what venture capital is and the types of private equity investments. It then reviews the history of venture capital, tracing its growth from the 1940s to present day. Key periods discussed include the internet boom and bust and the most recent credit crisis. The document also outlines typical venture capital fund structures, sources of funds, investment and exit trends, and how the venture capital market has changed in recent years with decreased fundraising and investment levels.
Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010
Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.
Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.
The 1998 annual report provides financial highlights and discusses Goodyear's performance in 1998. It summarizes that net sales decreased but income from continuing operations increased compared to 1997. It outlines Goodyear's plans to form a major global alliance with Sumitomo Rubber Industries/Dunlop to become the largest tire company in the world. It also discusses Goodyear's investments in technology, facilities, and new product lines to strengthen its leadership position in the tire industry.
1) TIM reported strong growth in the third quarter of 2012, with total net revenues increasing 8.0% year-over-year and EBITDA growing 7.5%.
2) Key highlights included solid growth in data revenues and customers, as well as recovery in postpaid subscriber additions following the sales ban earlier in the year.
3) However, recent events such as the dropped call report and tax issues created challenges for TIM's image and reputation that may impact performance going forward if not adequately addressed.
The document discusses the JOBS Act and its implications. It provides an agenda that will discuss what the JOBS Act does, why Congress passed it, its implications for early and later stage startups, and allow for Q&A. Biographies of the speakers are also included.
This document is Textron's 1999 Annual Report. The key points are:
1) Textron achieved record financial results in 1999 with revenues increasing 20% to $11.6 billion and earnings per share increasing 51%.
2) Textron's four business segments - Aircraft, Automotive, Industrial, and Finance - saw strong growth and profitability in 1999.
3) Textron is focused on consistent growth through strategic investments, acquisitions, driving operational excellence, and leveraging e-business.
This document is a presentation from Patrick Kelleher, Chief Financial Officer of Raymond James, given on March 5, 2008. It summarizes Genworth Financial's 2007 financial performance, with operating EPS of $3.07 and operating ROE of 11-14%. It outlines Genworth's strategy of delivering financial security across different life stages. It also provides updates on priority growth opportunities in international markets and fee-based wealth management, as well as the U.S. mortgage insurance business and investment portfolio.
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...PeopleWorldwide Singapore
The document discusses how services will play a key role in driving Singapore's economic growth in 2010. It contains opinions from several business leaders who agree that as manufacturing declines, services such as financial services, IT, healthcare, tourism, and professional services will be important drivers of growth. As Singapore's economy becomes more reliant on services, businesses will need to focus on improving service quality and standards to remain competitive.
The document discusses trends in the global venture capital market from 2009. It provides background on what venture capital is and the types of private equity investments. It then reviews the history of venture capital, tracing its growth from the 1940s to present day. Key periods discussed include the internet boom and bust and the most recent credit crisis. The document also outlines typical venture capital fund structures, sources of funds, investment and exit trends, and how the venture capital market has changed in recent years with decreased fundraising and investment levels.
Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010
Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.
Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.
The 1998 annual report provides financial highlights and discusses Goodyear's performance in 1998. It summarizes that net sales decreased but income from continuing operations increased compared to 1997. It outlines Goodyear's plans to form a major global alliance with Sumitomo Rubber Industries/Dunlop to become the largest tire company in the world. It also discusses Goodyear's investments in technology, facilities, and new product lines to strengthen its leadership position in the tire industry.
1) TIM reported strong growth in the third quarter of 2012, with total net revenues increasing 8.0% year-over-year and EBITDA growing 7.5%.
2) Key highlights included solid growth in data revenues and customers, as well as recovery in postpaid subscriber additions following the sales ban earlier in the year.
3) However, recent events such as the dropped call report and tax issues created challenges for TIM's image and reputation that may impact performance going forward if not adequately addressed.
The document discusses the JOBS Act and its implications. It provides an agenda that will discuss what the JOBS Act does, why Congress passed it, its implications for early and later stage startups, and allow for Q&A. Biographies of the speakers are also included.
This document is Textron's 1999 Annual Report. The key points are:
1) Textron achieved record financial results in 1999 with revenues increasing 20% to $11.6 billion and earnings per share increasing 51%.
2) Textron's four business segments - Aircraft, Automotive, Industrial, and Finance - saw strong growth and profitability in 1999.
3) Textron is focused on consistent growth through strategic investments, acquisitions, driving operational excellence, and leveraging e-business.
This document is a presentation from Patrick Kelleher, Chief Financial Officer of Raymond James, given on March 5, 2008. It summarizes Genworth Financial's 2007 financial performance, with operating EPS of $3.07 and operating ROE of 11-14%. It outlines Genworth's strategy of delivering financial security across different life stages. It also provides updates on priority growth opportunities in international markets and fee-based wealth management, as well as the U.S. mortgage insurance business and investment portfolio.
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...PeopleWorldwide Singapore
The document discusses how services will play a key role in driving Singapore's economic growth in 2010. It contains opinions from several business leaders who agree that as manufacturing declines, services such as financial services, IT, healthcare, tourism, and professional services will be important drivers of growth. As Singapore's economy becomes more reliant on services, businesses will need to focus on improving service quality and standards to remain competitive.
My short presentation about the Apple Keynote, last week, before the passing of Steve Jobs. This presentation was done in my spanish class, Octuber 11th.
The document provides tips for effective communication and questioning techniques. It lists factors that influence communication like words, tone, feedback, body language, and environmental clues. It then discusses questioning techniques such as moving from general to specific questions, sticking to one topic, keeping questions brief and clear, and avoiding yes or no questions. Sample phrases are given to elicit more information like "What would this look like in a perfect world?" The document also provides suggestions for getting at unsaid information, like asking "What is important to you at this point?" and "How do you know?" The document is authored by Pamela A. Scott and copyrighted by Armstrong Scott Inc.
This document provides guidance on incorporating group work and technology tools into assignments using a transliteracy approach. It recommends using backward design, which involves first defining objectives, then determining appropriate activities and methods, and finally choosing an assessment. Some example activities are having students research topics using multiple media sources. The document also provides tips for facilitating group collaboration, such as using contracts, and for assessment, such as rubrics. Overall it aims to help instructors design effective assignments that build students' transliteracy skills.
The document summarizes student responses from an information literacy session about using iPads versus laptops for research. Most students (12) found laptops easier to use than iPads (9) due to being more comfortable with laptops. However, the majority (22) said they would use an iPad again for research due to it being fast, easy to use, and easily accessible. A few students (3) said they would not use an iPad again due to inability to print, type, or access certain features. Overall, students found iPads quick and simple but lacked some functions of laptops.
This document describes a Web 2.0 trading platform that provides a flexible, robust, and cloud-enabled trading experience. The platform integrates with multiple trading and content providers. It is built on a scalable framework that delivers streaming prices and social interactions to clients. The platform includes various trading and content widgets that are accessible via an open API. It is designed to provide cost savings and agility for startups while also handling market volatility for more established companies in the financial sector. However, some adoption barriers include regulatory compliance, latency, vendor lock-in, security, and verifying real cost savings. The suitability depends on factors like business models, risk appetite, and business processes.
This document provides guidance for instructors on incorporating group work and technology tools into assignments. It recommends using "backward design" by first defining objectives, then choosing activities and methods to achieve the objectives, and finally assessing student learning. The document discusses tools for collaboration and multimedia projects. It emphasizes scaffolding assignments, being aware of student resources, and getting help from librarians to design effective transliteracy assignments.
Indentifying Redox Steady States In Lake Sedimentsmaryhingst
The document discusses a study that aimed to identify historical periods of redox equilibrium in lake sediments by analyzing vertical profiles of redox-sensitive metals. Sediment cores from Elk Lake were analyzed for concentrations of manganese, uranium, molybdenum, arsenic, and iron. The results showed the metals followed the expected redox pattern near the surface but lacked distinct patterns at depth, possibly due to chemical changes over time erasing the initial pattern. Improving the study would require thinner sediment sections and pore water analysis to better preserve and identify historical redox conditions.
The document outlines the NVCA's 4-pillar plan to restore liquidity in the US venture capital industry. Pillar I focuses on strengthening the VC ecosystem by promoting partnerships between VCs, investment banks, accounting firms, and other stakeholders. Pillar II aims to enhance liquidity paths for portfolio companies through new private market platforms and global financing options. Pillar III recommends tax incentives to stimulate IPOs. Pillar IV suggests regulatory changes to reduce barriers for small companies going public.
The document outlines a 4-pillar plan by the National Venture Capital Association (NVCA) to restore liquidity in the US venture capital industry in the wake of the financial crisis and IPO drought. Pillar I calls for strengthening ecosystem partnerships between venture capital firms, entrepreneurs, investment banks, accounting firms, law firms and others. Pillar II proposes enhancing liquidity paths for venture-backed companies through mechanisms like boutique investment banks and the reemergence of smaller IPOs. Pillar III involves tax incentives to encourage investment. Pillar IV relates to tailored regulation. The plan aims to revive the venture capital industry and fuel job creation and innovation.
NVCA: Restoring Liquidity to US Venture Capital - Apr09kellywalters
The document outlines a 4-pillar plan by the National Venture Capital Association (NVCA) to restore liquidity in the US venture capital industry in the wake of the financial crisis and IPO drought. Pillar I calls for strengthening ecosystem partnerships between venture capital firms, entrepreneurs, investment banks, accounting firms, law firms and others. Pillar II proposes enhancing liquidity paths for venture-backed companies through mechanisms like boutique investment banks and the reemergence of smaller IPOs. Pillar III involves tax incentives to encourage investment. Pillar IV relates to tailored regulation. The plan aims to revive the venture capital industry and fuel job creation and innovation.
This document discusses recommendations from an IPO Task Force to address the decline in initial public offerings (IPOs) of emerging growth companies in the United States. It summarizes that IPOs have declined significantly in the last 15 years, reducing an important pathway for innovation and job creation. The task force identifies challenges such as increased regulation that raises costs, a channel focus on high-volume trading over investing, and weak links to investor demand. It proposes four recommendations - create a new category of emerging growth company with scaled regulation to increase supply; improve availability of information to investors; educate issuers on working with banks; and provide a tax incentive for individuals to buy and hold IPO shares to incentivize demand.
The document discusses right-sizing the U.S. venture capital industry. It argues that the industry is currently too large given poor returns in recent years. The size of the industry grew rapidly in the late 1990s, but performance has stagnated since. Returns have failed to exceed public market indices over 5 and 10 year periods. Additionally, the core information technology sector that drove past success is now mature with lower capital needs. For the industry to improve returns, its size likely needs to shrink through reduced commitments from limited partners.
The document discusses the current state and future of the U.S. venture capital industry. It argues that while venture capital has played an important role in financing growth companies, its importance is often overstated. Venture capital represents only a small fraction of startup financing. The performance of the venture capital industry has also stagnated in recent years, with 5-year and 10-year returns not significantly outperforming public markets. For the industry to remain viable and continue supporting entrepreneurs, it will need to improve its returns going forward.
The document discusses private equity, including venture capital and leveraged buyouts. It defines private equity and provides examples of different types of investments. The document makes the case that private equity can outperform public markets over the long term while providing diversification. However, private equity also involves higher risk and lower liquidity than public investments. The document suggests that pension funds should consider allocating 5-10% of their equities to private equity and discusses various ways to invest, such as directly, through private equity managers, or funds of funds. It questions whether new investors have missed opportunities in private equity given consolidation in Europe and high valuations in some regions.
This document contains a summary of lessons learned from starting and growing 10 different ventures over 25 years. Some key points include:
1) Entrepreneurs love ideas but hate risk, yet find ways to move projects forward.
2) Creating new markets is incredibly difficult.
3) Focus on solving real problems that people are willing to pay to fix.
4) Take funding opportunities when available since ventures take longer and cost more than expected.
5) Have a plan B since success is not guaranteed.
The document also includes a quiz question about revenue growth projections starting at $150k in the first year at either 20% or 30% annual growth rates over 30 years.
Private company secondary markets january 2012 - markum breakfastJason Jones
The private company secondary market has grown significantly in recent years as more companies stay private longer. This market allows investors to purchase shares of private companies from existing shareholders. The growth of this market is helping to address the widening "IPO gap" as companies mature before going public. Secondary investors provide liquidity to shareholders of late-stage private companies and help relieve pressure for companies who face constraints on the traditional IPO path. The legal framework around private share trading is also developing to further support this growing market.
Analyst call presentation on etsy workday quora july 18 2012Kris Tuttle
This presentation discusses positioning private companies for public markets. It provides an overview of the company advisory services of SoundView Technology Group and their experience advising companies through private funding rounds and IPOs. It then analyzes the positioning, business models, ecosystems, and valuation factors for several prominent private tech companies that may be considering going public. The presentation aims to provide information and analysis to help these companies optimize their strategies as they transition to operating as public entities.
The Canadian GIC market is valued at just under $900 billion in Q1 2009. Chartered banks hold the largest share at 67% of funds, while credit unions and trust companies hold 25% and 7% respectively. On average, GIC volumes have grown 5% per year. Individuals hold 57% of outstanding balances compared to 43% for businesses. Distribution is key to success in the GIC market, with large investment dealers and independent brokers driving most origination. Rates are generally not the main competitive driver, as customers prioritize insured status, brand, and advisor recommendations over rates. New entrants may consider differentiated strategies around distribution channels, product features, or rates/commissions.
090420 a new financial order - 114 page abridged version for financial marketsSuzanne Duncan
This document summarizes the findings of an 18-month study on the future of the financial markets industry. Key findings include:
1) Financial sophistication has outpaced the industry's ability to manage risks and unintended consequences.
2) Both government and industry must work together to balance financial stability and healthy innovation.
3) Firms face an identity crisis and must solve how to generate sustainable value rather than relying on past opaque practices.
My short presentation about the Apple Keynote, last week, before the passing of Steve Jobs. This presentation was done in my spanish class, Octuber 11th.
The document provides tips for effective communication and questioning techniques. It lists factors that influence communication like words, tone, feedback, body language, and environmental clues. It then discusses questioning techniques such as moving from general to specific questions, sticking to one topic, keeping questions brief and clear, and avoiding yes or no questions. Sample phrases are given to elicit more information like "What would this look like in a perfect world?" The document also provides suggestions for getting at unsaid information, like asking "What is important to you at this point?" and "How do you know?" The document is authored by Pamela A. Scott and copyrighted by Armstrong Scott Inc.
This document provides guidance on incorporating group work and technology tools into assignments using a transliteracy approach. It recommends using backward design, which involves first defining objectives, then determining appropriate activities and methods, and finally choosing an assessment. Some example activities are having students research topics using multiple media sources. The document also provides tips for facilitating group collaboration, such as using contracts, and for assessment, such as rubrics. Overall it aims to help instructors design effective assignments that build students' transliteracy skills.
The document summarizes student responses from an information literacy session about using iPads versus laptops for research. Most students (12) found laptops easier to use than iPads (9) due to being more comfortable with laptops. However, the majority (22) said they would use an iPad again for research due to it being fast, easy to use, and easily accessible. A few students (3) said they would not use an iPad again due to inability to print, type, or access certain features. Overall, students found iPads quick and simple but lacked some functions of laptops.
This document describes a Web 2.0 trading platform that provides a flexible, robust, and cloud-enabled trading experience. The platform integrates with multiple trading and content providers. It is built on a scalable framework that delivers streaming prices and social interactions to clients. The platform includes various trading and content widgets that are accessible via an open API. It is designed to provide cost savings and agility for startups while also handling market volatility for more established companies in the financial sector. However, some adoption barriers include regulatory compliance, latency, vendor lock-in, security, and verifying real cost savings. The suitability depends on factors like business models, risk appetite, and business processes.
This document provides guidance for instructors on incorporating group work and technology tools into assignments. It recommends using "backward design" by first defining objectives, then choosing activities and methods to achieve the objectives, and finally assessing student learning. The document discusses tools for collaboration and multimedia projects. It emphasizes scaffolding assignments, being aware of student resources, and getting help from librarians to design effective transliteracy assignments.
Indentifying Redox Steady States In Lake Sedimentsmaryhingst
The document discusses a study that aimed to identify historical periods of redox equilibrium in lake sediments by analyzing vertical profiles of redox-sensitive metals. Sediment cores from Elk Lake were analyzed for concentrations of manganese, uranium, molybdenum, arsenic, and iron. The results showed the metals followed the expected redox pattern near the surface but lacked distinct patterns at depth, possibly due to chemical changes over time erasing the initial pattern. Improving the study would require thinner sediment sections and pore water analysis to better preserve and identify historical redox conditions.
The document outlines the NVCA's 4-pillar plan to restore liquidity in the US venture capital industry. Pillar I focuses on strengthening the VC ecosystem by promoting partnerships between VCs, investment banks, accounting firms, and other stakeholders. Pillar II aims to enhance liquidity paths for portfolio companies through new private market platforms and global financing options. Pillar III recommends tax incentives to stimulate IPOs. Pillar IV suggests regulatory changes to reduce barriers for small companies going public.
The document outlines a 4-pillar plan by the National Venture Capital Association (NVCA) to restore liquidity in the US venture capital industry in the wake of the financial crisis and IPO drought. Pillar I calls for strengthening ecosystem partnerships between venture capital firms, entrepreneurs, investment banks, accounting firms, law firms and others. Pillar II proposes enhancing liquidity paths for venture-backed companies through mechanisms like boutique investment banks and the reemergence of smaller IPOs. Pillar III involves tax incentives to encourage investment. Pillar IV relates to tailored regulation. The plan aims to revive the venture capital industry and fuel job creation and innovation.
NVCA: Restoring Liquidity to US Venture Capital - Apr09kellywalters
The document outlines a 4-pillar plan by the National Venture Capital Association (NVCA) to restore liquidity in the US venture capital industry in the wake of the financial crisis and IPO drought. Pillar I calls for strengthening ecosystem partnerships between venture capital firms, entrepreneurs, investment banks, accounting firms, law firms and others. Pillar II proposes enhancing liquidity paths for venture-backed companies through mechanisms like boutique investment banks and the reemergence of smaller IPOs. Pillar III involves tax incentives to encourage investment. Pillar IV relates to tailored regulation. The plan aims to revive the venture capital industry and fuel job creation and innovation.
This document discusses recommendations from an IPO Task Force to address the decline in initial public offerings (IPOs) of emerging growth companies in the United States. It summarizes that IPOs have declined significantly in the last 15 years, reducing an important pathway for innovation and job creation. The task force identifies challenges such as increased regulation that raises costs, a channel focus on high-volume trading over investing, and weak links to investor demand. It proposes four recommendations - create a new category of emerging growth company with scaled regulation to increase supply; improve availability of information to investors; educate issuers on working with banks; and provide a tax incentive for individuals to buy and hold IPO shares to incentivize demand.
The document discusses right-sizing the U.S. venture capital industry. It argues that the industry is currently too large given poor returns in recent years. The size of the industry grew rapidly in the late 1990s, but performance has stagnated since. Returns have failed to exceed public market indices over 5 and 10 year periods. Additionally, the core information technology sector that drove past success is now mature with lower capital needs. For the industry to improve returns, its size likely needs to shrink through reduced commitments from limited partners.
The document discusses the current state and future of the U.S. venture capital industry. It argues that while venture capital has played an important role in financing growth companies, its importance is often overstated. Venture capital represents only a small fraction of startup financing. The performance of the venture capital industry has also stagnated in recent years, with 5-year and 10-year returns not significantly outperforming public markets. For the industry to remain viable and continue supporting entrepreneurs, it will need to improve its returns going forward.
The document discusses private equity, including venture capital and leveraged buyouts. It defines private equity and provides examples of different types of investments. The document makes the case that private equity can outperform public markets over the long term while providing diversification. However, private equity also involves higher risk and lower liquidity than public investments. The document suggests that pension funds should consider allocating 5-10% of their equities to private equity and discusses various ways to invest, such as directly, through private equity managers, or funds of funds. It questions whether new investors have missed opportunities in private equity given consolidation in Europe and high valuations in some regions.
This document contains a summary of lessons learned from starting and growing 10 different ventures over 25 years. Some key points include:
1) Entrepreneurs love ideas but hate risk, yet find ways to move projects forward.
2) Creating new markets is incredibly difficult.
3) Focus on solving real problems that people are willing to pay to fix.
4) Take funding opportunities when available since ventures take longer and cost more than expected.
5) Have a plan B since success is not guaranteed.
The document also includes a quiz question about revenue growth projections starting at $150k in the first year at either 20% or 30% annual growth rates over 30 years.
Private company secondary markets january 2012 - markum breakfastJason Jones
The private company secondary market has grown significantly in recent years as more companies stay private longer. This market allows investors to purchase shares of private companies from existing shareholders. The growth of this market is helping to address the widening "IPO gap" as companies mature before going public. Secondary investors provide liquidity to shareholders of late-stage private companies and help relieve pressure for companies who face constraints on the traditional IPO path. The legal framework around private share trading is also developing to further support this growing market.
Analyst call presentation on etsy workday quora july 18 2012Kris Tuttle
This presentation discusses positioning private companies for public markets. It provides an overview of the company advisory services of SoundView Technology Group and their experience advising companies through private funding rounds and IPOs. It then analyzes the positioning, business models, ecosystems, and valuation factors for several prominent private tech companies that may be considering going public. The presentation aims to provide information and analysis to help these companies optimize their strategies as they transition to operating as public entities.
The Canadian GIC market is valued at just under $900 billion in Q1 2009. Chartered banks hold the largest share at 67% of funds, while credit unions and trust companies hold 25% and 7% respectively. On average, GIC volumes have grown 5% per year. Individuals hold 57% of outstanding balances compared to 43% for businesses. Distribution is key to success in the GIC market, with large investment dealers and independent brokers driving most origination. Rates are generally not the main competitive driver, as customers prioritize insured status, brand, and advisor recommendations over rates. New entrants may consider differentiated strategies around distribution channels, product features, or rates/commissions.
090420 a new financial order - 114 page abridged version for financial marketsSuzanne Duncan
This document summarizes the findings of an 18-month study on the future of the financial markets industry. Key findings include:
1) Financial sophistication has outpaced the industry's ability to manage risks and unintended consequences.
2) Both government and industry must work together to balance financial stability and healthy innovation.
3) Firms face an identity crisis and must solve how to generate sustainable value rather than relying on past opaque practices.
Strategic Innovation: Coming to an Industry Near YouBrian Christian
The document discusses strategic innovation for industries. It defines strategic innovation as new offerings that stretch a company's risk levels but do not break the company. The document urges readers to care about strategic innovation because many industries are in flux, making them ripe for disruption, and corporate turnover is accelerating as companies fail to innovate strategically. Finally, it provides guidance on how to achieve strategic innovation through clearly defining starting and end points, developing design principles, and designing a discovery process.
Digital Media: A driver for economic growthDelvinia
Adam Froman's lunchtime keynote at the Emerging Leaders Network Summit, discussing the work he has been doing with Ryerson University to help understand the potential for digital media and to examine what the next evolution of university supported, industry led, centre of excellence would look like
An initiative of the Toronto City Summit Alliance, the Emerging Leaders Network (ELN) is a group of 100+ emerging leaders who have been identified as city-building leaders. On Tuesday April 7th, the ELN held it’s inaugural Summit, an all-day working session where we will examine pressing issues facing the region. The theme was Why Not Here? The Emerging Leaders Network Ideas for Toronto.
Marco Kamiya New Orleans SMEs And Financing Organization of American States OEAMarco Kamiya
This document discusses financing challenges for small and medium enterprises (SMEs) and new firms in Latin America. It notes that SMEs in the region do not grow as much as they could due to low availability of financing for startups and expansions. Financial markets in Latin America also lag behind markets in emerging Asian countries in terms of development and size relative to GDP. Access to capital remains a major obstacle for SMEs and new firms seeking to grow in Latin America.
Rebuilding the ipo on ramp-final slide-shareMatthew Stotts
The document discusses recommendations from the IPO Task Force to improve access to capital for emerging growth companies through the IPO market. It finds that regulatory changes aimed at large companies have unintentionally increased costs for emerging companies, reduced information available to investors about them, and shifted capital markets focus away from emerging companies. The Task Force's four recommendations are: 1) Create a regulatory "on-ramp" allowing more time for emerging companies to comply with regulations; 2) Improve information flow to investors before and after IPOs; 3) Create an IPO tax incentive; and 4) Educate industry on emerging companies. The goal is to restore the IPO market's role in facilitating job growth.
The document discusses sustainable competitiveness and how networks enable connectivity and global competitiveness. It talks about how networks are becoming the platform for all forms of communication and IT, and how this network transformation is changing the way people work, live, play and learn. The network is enabling new business models focused on productivity and growth.
(GCF2010)Sustainable Competiveness Network Enables Connectivity, Global Compe...
NVCA 4-Pillar Plan
1. NVCA 4-Pillar Plan to Restore Liquidity
in the U.S. Venture Capital Industry
April 29/30, 2009
Dixon Doll
DCM Co-Founder and General Partner, NVCA Chairman
Mark Heesen
NVCA President
1
2. Reinvigorating Liquidity in the U.S. VC Industry
The Background The Situation The Solution
Liquidity Challenges
●
Job Creation
Lack of IPOs Is
●
Harmful to Job Innovation
Creation and Overall
Economy I II III IV
Ecosystem Enhanced Taxation Regulation
Partners Liquidity
Comprehensive
● Paths
Review of VC
Ecosystem Is Required
to Reinvigorate Our VC Industry U.S. Government
Industry (once
Financial Crisis & IPO
Markets Stabilize)
Drought Revealed
Systemic Issues
2
3. Venture Capital Fuels Job Creation
VC-Backed Companies 92% of Job Growth
Create Jobs Faster Occurs Post-IPO
Employment CAGR (2006 – 2008) VC-Backed Company Employment Growth
97% 94% 88% 76% 92%
Pre-IPO Post-IPO
12.1M Jobs Created
Sources: Left: Global Insight, 2009
Right: NVCA, Global Insight and Survey of Top 136 VC-Based Companies That Went Public 1970–2005
3
5. Dramatic Decline in IPOs in the 2000’s
Number of Venture-Based IPOs vs. M&A Exits
2000s
1990s
1,776 392 IPOs M&A
IPOs M&A
13% 87%
56% 44%
IPOs IPOs
(’01 – ’08)
(’92 – ’00)
Lack of IPOs Is Harmful to Job Creation and Economy
Source: Thomson Reuters/NVCA
5
6. IPOs in Decline This Decade
Number and Value of Venture-Backed IPOs in the U.S.
Number of IPOs
IPO Value ($B)
* Base Year 1998 = 100
Sources: Qatalyst Partners, Securities Data Company (All U.S. venture-backed IPOs of > $10MM
from 1978 through 1991)
Dow Jones VentureSource (All U.S. venture-backed IPOs from 1992 through December 31, 2008)
6
7. The Recent Realities of Venture-Backed M&As
and IPOs
Longer Time to IPO and M&A
Median Age at IPO
4.5 9.6
Years Years
1998 2008
Median Age at M&A
3 6.5
Years Years
2008
1998
Source: Thomson Reuters, Dow Jones VentureSource
7
8. The Death of the Under $50M IPO
100
90
Transactions Raising $50M+
80
70
60
Percent of
50
Total IPOs
40
30
20
Transactions Raising Less Than $50M
10
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
80% of IPOs 20% of IPOs
Smaller than $50M Smaller than $50M
*Data Includes Corporate IPOs as of 10/31/08. (Excludes Funds, REITs, SPACs and LPs).
Source: Dealogic, Capital Markets Advisory Partners
8
9. NVCA 4-Pillar Plan to Restore Liquidity in the
U.S. Venture Capital Industry
Job Creation
Innovation
I III
II IV
Ecosystem Tax
Enhanced Regulation
Partners Incentives
Liquidity
Paths
VC Industry U.S. Government
9
10. NVCA Plan: Pillar I – Ecosystem Partners
Job Creation
I-Banks
Innovation
VC Firms Buy Side
Ecosystem
I III
II IV
Partners
Entrepreneurs Exchanges Ecosystem Tax
Enhanced Regulation
Partners Incentives
Liquidity
Paths
Accounting
Law Firms
Firms
VC Industry U.S. Government
10
11. I
A Vacuum Exists for Small, Medium-Size Company IPOs
Implicit Post-IPO Company Valuation
($MM)
Boutique banks needed to
help cover unserved areas
$500
Would You Consider a
Boutique I-Bank To Be the
$400 Lead Book Runner for
Going Public on a U.S.
Stock Exchange?*
$300
NO MAN’S LAND
$200 32% 32%
No Not Sure
36%
$100 Yes
IPOs not
Appropriate
$0 * Source: DCM Analysis /
$25 $50 $75 $100 Survey of Venture-Backed
Companies, 2009 –
Size of IPO Offering ($MM)1 Participants (N) = 108
21st Century Versions of “4 Horsemen” Required
: Assuming 25% of Company Sold in IPO
1
11
12. Major I-Banks and Big 4 Accounting Firms I
Dominate U.S. IPOs
Recent VC-Backed IPOs
Nov. 2007 Feb. 2009
IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
I-Bank
at IPO
Audit Firm
at IPO
Investment Bank Audit Firm
IPO Managed by Major I-Banks Traditional Big 4
IPO Co-Managed by Boutique and Major I-Banks Traditional Non-Big 4
IPO Managed by Boutique Bank Only
15 Out of 21 Recent IPOs Led by Major I-Banks
and Big 4 Accounting Firms
Source: NVCA, Thomson Reuters
12
13. I
Accounting Firms Examined More Closely
NVCA Recommends Use of New Terminology “The Global Six” in
Describing Major International Accounting Organizations Qualified to
Support Venture-Backed Portfolio Companies
The Global Six
Deloitte LLP KPMG LLP
● ●
Ernst & Young LLP PricewaterhouseCoopers LLP
● ●
Grant Thornton LLP BDO Seidman LLP
● ●
Recent Research Performed by Capital Markets Advisory Partners
(an Independent Advisory Firm) and Validated by the Above Six Firms, Shows
All Six Organizations Have Created Global Accounting Networks Operating in
More than 90 Countries Worldwide.*
* Source: “Which Audit Firms are Accepted by Wall Street?
A Reference Guide by Capital Markets Advisory Partners, 2009, Version 1.0
13
14. I
NVCA Promoting Alternate Ecosystem Partners
Investment Banks Accounting Firms
NVCA Organizing Workshops NVCA Meeting with “Global Six”
● ●
With Boutique Banks and Large Accounting Firms to Discuss
Facilitate I-Banks to Identify and Address Needs of VC-backed Companies
Needs of Emerging Growth and Ways To Provide Better
Companies Worldwide Support
NVCA Encourages Joint Book NVCA Encourages Obtaining
● ●
Running (Major Bank and Bids From Global Six and Non-
Encourage Boutique Bank Partnership) with Global Six Accounting Firms as
Fee Sharing as a Desirable Desirable Practice in IPO
Practice Planning
NVCA Actions Can Create More Competitive Ecosystem
14
15. I
Other Ecosystem Partner Recommendations
I-Banks and VCs need to cultivate and
●
nurture new buyers / funds
specializing in venture IPOs
Accounting Firms encouraged to
●
provide lower-cost services to IPO
candidate portfolio companies
15
16. NVCA Plan: Pillar II – Enhanced Liquidity Paths
Job Creation
Innovation
I II III IV
Ecosystem Enhanced Tax Regulation
Partners Liquidity Incentives
Paths
VC Industry U.S. Government
16
17. II
Current Liquidity Mechanisms
Public
Sellers Current I-Banks Market Buyers
(Portfolio Companies)
(Institutional/Strategic)
Too Many Public Market Jitters
Restricted Analyst and
● ●
●
Companies Below I-Banker Collaboration Short Selling Increases
●
Critical Mass Market Volatility
Undergoing Massive
●
Too Few Organizational Changes
●
Minimum Bite Size
●
Transformative
Due Diligence Burden
Companies ●
Distribution System Is Broken
17
18. II
Enhanced Liquidity Mechanisms
In Addition to Major I-Banks we Need Innovative Boutique Banks
●
Serving Emerging Growth Companies
Use of New Private Market Platforms
●
– InsideVenture
– PORTAL Alliance (NASDAQ) Enhancements
– SecondMarket
– Xchange
– Other
Additional Use of Global Financing / Fundraising and International
●
Stock Exchanges
18
19. Enhanced Liquidity Mechanisms – Example
II
Public
Sellers New Liquidity Platforms Market Buyers
(Portfolio Companies)
(Institutional/Strategic)
VC-Backed Private Market Platform
●
Access to Long- Pre-Screened Deal Flow
● ●
Enforced Membership Criteria
●
Term Investors Efficient Due Diligence
●
Last Round of Financing $20-200MM
–
Accelerated Fund
●
Increased Visibility
Seeking to Go Public in 6-18 Months
– ●
Raising In-House Vetting Process,
●
Including Company Information
Portal, Conferences
New Platforms Will Increase VC Ecosystem Liquidity
19
20. NVCA Enhanced Liquidity II
Mechanism Recommendations
II. Portfolio Companies III. Pro-Active M&A
I. Liquidity Platforms
• Raise Rounds From • Venture Firms
• Venture Firms
Global Financing Encouraged to Pro-
Encouraged to Use
Sources actively Explore M&A
Enhanced Liquidity
Roll-Up of Smaller
Mechanisms Such as • Explore Global M&A
Portfolio Companies
InsideVenture and • Explore IPOs on Intl.
to Achieve IPO
Others Stock Exchanges
Critical Mass
• Consider Longer Lock-
Ups to Increase
Demand for Venture-
Backed IPOs
20
21. NVCA Plan: Pillar III – Tax Incentives
Job Creation
Innovation
I II III IV
Ecosystem Enhanced Tax Regulation
Partners Liquidity Incentives
Paths
VC Industry U.S. Government
21
22. III
NVCA Pro-Growth Taxation Recommendations
New Preserve
Adopt New Tax Incentive to
●
Keep Long-Term Capital Gains Tax
●
Stimulate IPOs Rate Globally Competitive
One Time Only
–
Preserve Meaningful Differential
●
10% Capital Gains Tax Rate for IPO Between Ordinary Income and
–
Purchaser and Investors Long-Term Capital Gains Tax Rates
Only Applicable for Holding Periods >
–
Promote Tax Incentives for Venture
●
2-3 Years
Capital Investments of Certain
Consider a Longer Holding Period for Types and Sizes (e.g. Cleantech,
●
Long-Term Capital Gains Life Sciences)
Special IPO Program Will
Increase Government Revenues
22
23. NVCA Plan: Pillar IV – Regulation
Job Creation
Innovation
I II III IV
Ecosystem Enhanced Tax Regulation
Partners Liquidity Incentives
Paths
VC Industry U.S. Government
23
24. IV
Barriers to Going Public on U.S. Stock Exchanges
Exit Route Preference Top 3 Barriers to Going Public
# of Responses Answered as a Top 3 Issue
and Expectation
(Participants = 108)
(n=108)
Compliance Requirements
(Sarbanes-Oxley, Audit, Governance)
M&A
Increased Volatility in the Public Markets
M&A Better Alternative
(Faster Process, More Liquidity)
Investment-Banking Related Issues (Analyst
Coverage, Requires High Rev Threshold)
Transaction Costs of Going Public (Legal,
Banker Fees, Non-Compliance Related Costs)
IPO
Higher Perceived Litigation Risk from
U.S. Investor Base
Other
Current Regulation Has a Major Impact on How
Emerging Companies Consider their Exit Route
Source: DCM Analysis/Survey of Venture-Backed Companies, 2009
24
25. IV
Uncoordinated Regulations Severely Harm
Small Companies
Regulations Original Intent Unintended Impact
Reduce Fraud Prohibitively Expensive for Small Companies
● ●
Sarbanes Restore Confidence Extended Time to IPO
● ●
Oxley M&A More Attractive
●
Eliminate I-Bank Conflict Sell Side Analyst Exodus
● ●
“Spitzer of Interest Reduced Analyst Coverage and
●
Decree” Aftermarket Support
Equal Information Access Communication Gap Grows Between Small
● ●
Reg. Fair for All Investors Caps and Potential Buyers
Disclosure
Faster Development of Restrictions Limit Usefulness
● ●
Rule 144A Private Placements
Regulations Need Updating to Eliminate
Unintended Consequences
25
26. IV
NVCA Recommendations for Regulatory Changes
Pre-IPO Post-IPO Private Placement
• 144A – Expand Definitions of
• Permit À La Carte • Suspend Minimum Market Cap
Qualified Institutional Buyers
Disclosure System Requirements
• 144A – Relax Requisite Holding
• Permit Confidential • Prohibit Short Sales of Newly
Periods and Volume
Registration Filings Issued Company Shares for at
Restrictions
Least 12 Months
• Phase in SOX 404
• NASDAQ/Portal Alliance – Open
Requirement For Small • Expand Usage of Form S-3 to
It Up to Private Companies and
Companies Enable Offerings Beginning 90
Accredited Investors
Days Post IPO
• Permit Research Analysts to
Better Collaborate with Both • Eliminate Restrictions on Use of
the Issuer and Investment S-3 for Certain Primary Offerings
Bankers During the IPO of Non-accelerated Filers
Process • Revise Requirement
• Relax Financial Statement for Obtaining Shareholder
Requirements Approval to Sell Securities Below
Market or Book Value
• Educate CFOs on Reg FD
Restrictions and Allowances
NVCA Requests Full SEC Review of Recent Laws
to Streamline Small Company IPO Process
26
27. NVCA 4-Pillar Plan Summary
Job Creation • Request Full SEC Regulatory
• Stimulate Ecosystem
Review to Streamline Small
Competition : I-banks
Innovation Company IPO Process
(Majors/Boutiques), Law
• Eliminate Harmful Spitzer
Firms, Acctg. Firms
Settlement Provisions
(Global Six - Lower
• Relax SOX 404 Compliance
Costs)
I II III IV Restrictions and Permit
• Encouraging Joint Book
Optional Extended Lock-ups
Running with Shared Ecosystem Enhanced Tax Regulation
• Expand usability of NASDAQ
Economics Partners Liquidity Incentives
PORTAL Alliance to private
Paths
• Cultivate New Buyers /
companies and accredited
Funds for IPOs
investors
VC Industry U.S. Government
• Adopt New Tax Incentive to Stimulate IPOs:
• Use New Platforms for Linking Buyers and Sellers
One Time Only
(Like InsideVenture)
• Keep Long-Term Capital Gains Rate Competitive
• Encourage Use of Global Funding Sources for New
Rounds, M&A and IPOs • Promote Tax Credits for VC Investments of Certain
Types/Sizes (e.g. Cleantech)
• Utilize Pro-Active M&A to Achieve Critical Mass
• Consider Longer Holding Period for Long-Term capital Gains
27
28. NVCA Expresses Its Appreciation
Harry W. Kellogg, Jr., Silicon Valley Bank
The NVCA Board of Directors ●
●
Stan Lapidus, Helicos
Hassan Ahmad, Sonus Networks ●
●
Bob McCooey NASDAQ
Mike Brooks, Venrock ●
●
Michael Millman, JP Morgan
Stuart Cable, Goodwin Procter ●
●
Chuck Newhall, NEA
James L. Callinan, RS Investments ●
●
Duncan Niederauer, NYSE Euronext
Frank Currie, Partner, Davis Polk & Wardwell ●
●
Sandy Robertson, Robertson Stephens
Scott Cutler, NYSE Euronext ●
●
James D. Robinson III, RRE Ventures
Ash Dahod, Starent Networks ●
●
Bill Schnoor, Goodwin Procter
Mona DeFrawi, InsideVenture ●
●
Antoinette Schoar, MIT
Paul Deninger, Jefferies & Co. ●
●
Larry Sonsini, Wilson Sonsini Goodrich & Rosati
Susan Page Estes, Global VC Coverage, UBS ●
●
AG David Topper, JP Morgan
●
Irwin Federman, USVP
●
Brian Truesdale, Deutsche Bank
●
Leslie Wolff Golden, Ridgewood Capital
●
David Weild, Markets Advisory Partners
●
Bob Grady, The Carlyle Group
●
Thom Weisel, Thomas Weisel Partners
●
Bill Hambrecht, W.R. Hambrecht + Co.
●
Rian Wren, Neutral Tandem
●
Felda Hardymon, Harvard Business School
●
Thanks to DCM, Highland Capital Partners, the NYSE
and Wilson Sonsini for their generosity in hosting the
Blue Ribbon dinners
28