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Web.Start  Zagreb May 2008
BIO SNAPSHOT – YOAV ANDREW LEITERSDORF ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MOVOTA LTD. – 18 MONTHS FROM INVESTMENT TO EXIT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MOVOTA LTD. – PRODUCTS AND CUSTOMERS
EXCHANGEPATH LTD. – 2.8 YEARS FROM INVESTMENT TO EXIT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PROBLEMS WITH TODAY’S EARLY-STAGE VENTURE CAPITAL ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Is early stage venture capital in trouble?  Is there another way?
EARLY EXITS APPEALING TO FOUNDERS – LESS CAPITAL AND DILUTION REQUIRED Microsoft ,  Google ,  Yahoo!  &  AOL  acquired 57 companies Q1 ’07 to Q1 ‘08 (inc.), vast majority of which are valued at under $100MM or “value undisclosed” Motivation for the founders? Lower  probability of $200MM exit owning 5%-10% of the company  in 5-7 yrs  Higher  probability of $50MM exit owning 40%-60% of the company  in 2-3 yrs  OPTION A OPTION B * Note YL Ventures typically invests 1 year after the start Founders’ Share = $15MM Founders’ Share = $25MM Date Company Acquirer Price Funding Comments 17 Apr ‘08 Sphere  AOL Undisc $4MM 3 years* start to exit 28 Feb ‘08 Yadata (Israel) Microsoft $25MM $2.5MM 1.5 years* start to exit 5 Feb ‘08 Foxytunes (Israel)  Yahoo! $40MM <$1MM 3 years* start to exit 4 Feb ‘08 Goowy  AOL Undisc <$1MM 4 years* start to exit 12 Dec '07 Multimap (UK) Microsoft $50MM $6MM $25MM went to founder 9 Dec ‘05 Del.icio.us Yahoo! $30MM Undisc 2 years* start to exit 20 Mar ‘05 Flickr Yahoo! $40MM <$1MM 3 years* start to exit
INTRODUCING: THE YL VENTURES ( “Y LV ” ) WAY ,[object Object],[object Object],[object Object],[object Object],[object Object],Time  (and capital) Enterprise Value 5+ Years ~24 Months Hyper Growth Venture Chasm Home Run 1-2 per Portfolio Most YLV deals exit here Some YLV exits YLV investment
YLV EXIT STRATEGY Start Early Exit  Aptly ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Earn Out Period Sourcing & Negotiations Q-1 t 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q-2 Risk Control Stage Expansion Stage – deployments, US presence, more features Management Earn Out – acquirer synergies, revenue growth Bridge Funding Stage $ Invested:   $500K-$1MM  $500K- $1M  $500K  $ Exit: $20MM-$80MM
YLV SOURCING STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sectors Geography Technology Management R&D Finances Exit Blog scanning : primary deal sourcing strategy (monthly funnel routine) The firm’s researchers scan blogs and databases Associate and analyst filter 100’s of opportunities Managing Partner authorizes sending ‘ radar emails’ out to several companies Interested companies submit documentation Best prospects invited to a meeting Best of the best start due diligence
SUMMARY ,[object Object],[object Object],[object Object],[object Object],[object Object],More at  www.YLVentures.com Refer start-ups to  [email_address] Yoav Andrew Leitersdorf Managing Partner

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Yoav Leitersdof: Early Stage Venture Investments

  • 1. Web.Start Zagreb May 2008
  • 2.
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  • 4. MOVOTA LTD. – PRODUCTS AND CUSTOMERS
  • 5.
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  • 7. EARLY EXITS APPEALING TO FOUNDERS – LESS CAPITAL AND DILUTION REQUIRED Microsoft , Google , Yahoo! & AOL acquired 57 companies Q1 ’07 to Q1 ‘08 (inc.), vast majority of which are valued at under $100MM or “value undisclosed” Motivation for the founders? Lower probability of $200MM exit owning 5%-10% of the company in 5-7 yrs Higher probability of $50MM exit owning 40%-60% of the company in 2-3 yrs OPTION A OPTION B * Note YL Ventures typically invests 1 year after the start Founders’ Share = $15MM Founders’ Share = $25MM Date Company Acquirer Price Funding Comments 17 Apr ‘08 Sphere AOL Undisc $4MM 3 years* start to exit 28 Feb ‘08 Yadata (Israel) Microsoft $25MM $2.5MM 1.5 years* start to exit 5 Feb ‘08 Foxytunes (Israel) Yahoo! $40MM <$1MM 3 years* start to exit 4 Feb ‘08 Goowy AOL Undisc <$1MM 4 years* start to exit 12 Dec '07 Multimap (UK) Microsoft $50MM $6MM $25MM went to founder 9 Dec ‘05 Del.icio.us Yahoo! $30MM Undisc 2 years* start to exit 20 Mar ‘05 Flickr Yahoo! $40MM <$1MM 3 years* start to exit
  • 8.
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  • 11.