Post on 17-Jul-2015
CONFIDENTIAL 2
• Established in 2000 with operations in London, Palo Alto and Berlin
• 60+ years of combined investment experience
• €239 million raised across 3 funds, investment in over 50 companies since 2000
DN is an early-stage and growth technology investor with top quartile performance
• 2012 vintage
Fund 3€144m raised
• 2008 vintageFund 2€47.5m
• 2001 vintageFund 1€47.5m
Portfolio HighlightsExit Highlights
Seed investment
CONFIDENTIAL 3
DN is a leading investor in consumer and enterprise technology across Europe and the US
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& Joe Lonsdale
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Before starting… ALIGN OBJECTIVES
Three VERY different types of Venture Capital
Scientific Discovery
[example – Magnetic resonance imaging]
Capital Appreciation
[use – bail out underfunded pension plans]
Cocktail Party Conversation
[Snapchat, Twitter, Facebook]
How to Create a Vibrant Venture Capital Ecosystem
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(1) Role of government
Don’t: Provide direct funding to start-ups
Do: Fund really, REALLY hard problems for Universities to solve
Required Reading:Secret History of Silicon Valley by Steve Blankhttp://steveblank.com/secret-history/
How to Create a Vibrant Venture Capital Ecosystem
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(2) Role of tax authorities
Don’t: Provide tax breaks for general start up investing
Do: Reduce capital gains for entrepreneurs, particularly if they do another start-up
Defer capital gains tax for serial investors
How to Create a Vibrant Venture Capital Ecosystem
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(3) Role of employment laws
Don’t: Change the law to make it easier to be an entrepreneur
Do: Change the law to make it easier to hire and fire fast
How to Create a Vibrant Venture Capital Ecosystem
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(4) Role of universities
Don’t: Encourage professors to leave to do start-ups
Teach theory of entrepreneurship from non practitioners
Do: Encourage Graduate Students to start companies
Facilitate IP transfer
Encourage professors to consult for start-ups
Required Reading:Notes from Peter Thiel’s 2012 course at Stanfordhttp://blakemasters.com/peter-thiels-cs183-startup
How to Create a Vibrant Venture Capital Ecosystem
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(5) Role of lawyers
Don’t: Focus on protecting down-side
Do: Focus on finding ways to get things done fast
How to Create a Vibrant Venture Capital Ecosystem
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(6) Role of first time founders
Don’t: Take wild risks
Consciously decide to be an entrepreneur
Do: Start a business that other people think are risky but that you can make less risky
Something to solve what keeps you up at night
How to Create a Vibrant Venture Capital Ecosystem
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(7) Role of successful founders
Don’t: Try to be an angel investor
(at least not immediately)
Do: Encourage your best lieutenants to set up new companies
Give back to the community through teaching
How to Create a Vibrant Venture Capital Ecosystem
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(8) Role of large enterprises
Don’t: Change your business processes for “Intrepreneurship” or “20% time”
Do: Encourage your most entrepreneurial employees to LEAVE (for now…)
Acquire based on strategic importance not financial multiples
How to Create a Vibrant Venture Capital Ecosystem
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(9) Role of acquirers
Don’t: Acquire businesses to enter new geographies
Do: Acquire businesses to enter new markets
Encourage your corporate development team to work with (or eventually join) investment firms
How to Create a Vibrant Venture Capital Ecosystem
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(10) Role of investors / venture capital firms
Don’t: Hire people from buyout firms, accounting firms or public investors
Do: Hire from industry: engineers turned product managers turned leaders
How to Create a Vibrant Venture Capital Ecosystem
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Five general comments
• Don’t be afraid to do a “copycat” business… but do improve on what is already there
• Three part role of the Venture Capitalist, regardless of geography:
• Build ties across geographies – most of the acquirers will NOT be domestic
• Think like the next person up and down the food chain:
• Have fun, always be learning, and like who you see in the mirror
How to Create a Vibrant Venture Capital Ecosystem
Customer Entrepreneur VCLimited Partner
Capital Source
Selection Anointment Governance
CONFIDENTIAL
Contacts
Authorised and Regulated by the Financial Conduct Authority
DN Capital (US) Inc.
2882 Sand Hill Road, Suite 210Menlo Park, CA 94025
United States of AmericaTel: +1 650 561 9300
info@dncapital.com www.dncapital.com
Nenad MarovacManaging Partner
Tel: +44 (0)20 7340 1602 nenad@dncapital.com
Steve Schlenker
Managing PartnerTel: +1 650 561 9300 steve@dncapital.com
DN Capital (UK) LLP
2 Queen Anne’s Gate BuildingsDartmouth StreetLondon SW1H 9BPUnited Kingdom
Tel: +44 20 7340 1600Fax: +44 20 7340 1601
The information above is issued by DN Capital (UK) LLP which is authorised and regulated in the United Kingdom by the Financial Conduct Authority. It does not constitute an offer for limited partnership interests in DNCapital – Global Venture Capital III, LP (“GVC III”). For full particulars of GVC III, prospective investors should refer to the private placement memorandum related thereto (the “PPM”). The contents above are incomplete andabbreviated, more detailed information is set out in the PPM, which may be made available to qualified investors upon request.