Ken Globerman of Global Group Ventures gave a presentation to Startup Camp in Berlin on March 16, 2012 about attracting investment. He discussed the investment continuum and stages from friends and family funding to later stage private equity. He also covered historical venture capital fund performance, the time value of money in startup investing, the challenges of a startup becoming one of the few successes out of hundreds of investments, and common exit strategies for investors. The presentation was meant to educate startups on understanding investors and the investment process.

1. GLOBAL
GROUP
V E N T U R E S
Venture Consulting / Private Equity Services
Show Me the Money!!!
Presentation to Startup Camp – Berlin
Ken Globerman
March 16, 2012

2. “INVESTORS!!! WE’RE LOOKING FOR
€500,000…”
http://www.youtube.com/watch?v=ZTFJocQBLyE

3. Ken Globerman
ken.globerman@globalgroupventures.com 3

4. GLOBAL GROUP Ventures
www.globalgroupventures.com
ken.globerman@globalgroupventures.com 4

5. Presentation Available
via Slideshare or Email
Follow me: http://www.slideshare.net/theglobe11
ken.globerman@globalgroupventures.com 5

6. Public Debt
Public Mkt
Secondary
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§ Income /
Dividend
producing
§ Mature / Stable
Investment Continuum 101
§ Conservative
Buyout Equity
Public Exit
(IPO)
§ Growth slowing
& maturing
§ Cash Flow
(EBITDA) positive
ken.globerman@globalgroupventures.com
§ May be Profitable
B/C/D Rounds
Early Private
Equity
§ Rev. generating
§ More rocket fuel
required !!!
§ Often still not
Profitable
A Round
Venture
Capital
§ Usually Revenue
Producing
§ Typically Cash
Flow Negative
§ Not Profitable
Seed Round
Investors § Company/
Angel Prototype formed
§ Maybe Revenue
Producing
Friends & Family
Crowd funding
Contests
§ Projects and
“Ideas” Stage

7. The Investment Cycle
Money Fund
Raised Managed
from LP by GP Fund
Investors Manager
Invest:
Exit: Sale/
Portfolio
IPO, Fund
Companies
Liquidated
Acquired
ken.globerman@globalgroupventures.com 7

9. Historical VC Fund Performance
Source: Publically available information, Sand Hill Econometrics and “Venture Capital and the Finance of Innovation”, Metrick/Yasuda.
ken.globerman@globalgroupventures.com 9

10. Time Value of MONEY!
Positive!
Cash Dividend Dividend Sale / Divest
Flows!
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Negative!
Invest Invest
1 st Round 2 nd Round Cash
Flows!
ken.globerman@globalgroupventures.com 10

11. Being the ONE in Three Hundred
ken.globerman@globalgroupventures.com 11

12. All Rights Reserved 12

13. 10-Year Total Value Multiples (TVM)
First Round Investment History
~75% DO NOT PAY OFF
TVM = Total Value Multiples
% Probability Distribution
Source: Publically available information, Sand Hill Econometrics and assumptions found in “Venture Capital and the Finance of
Innovation”, Metrick/Yasuda. Private transactional data with 10 years of life, initiated between 1990 and 2000, Assumes companies “still
private” after 10 years have failed.
ken.globerman@globalgroupventures.com 13

14. Lifestyle Business 10X Business

15. “The Money is Always Green, but No Two
Investors are Exactly Alike”
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16. The Term Sheet
“Your Price? My Terms”
ken.globerman@globalgroupventures.com 16

17. The Term Sheet
“Your Price? My Terms”
ken.globerman@globalgroupventures.com 17

18. WHAT KIND OF
BUSINESS DO
YOU ASPIRE
TO BE?

20. The Exit
ken.globerman@globalgroupventures.com 20

21. Final Thoughts
ken.globerman@globalgroupventures.com 21

22. Thank You! Questions?
Email: ken.globerman@globalgroupventures.com
Web: www.globalgroupventures.com
Facebook: www.facebook.com/globalgroupventures
Linked In: www.linkedin.com/in/kengloberman
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