Money chasing deals? The impact of fund in#ows on private equity ...
Ideas Chasing Money Vs. Money Chasing Ideas
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FUSE Marketing Group June, 2011
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This year at the NXNE conference, FUSE Holding's Inc., discussed different methods of funding your business, and the advantages/disadvantages they both have. FUSE also discusses how and why they invested in some technolgy companies
Transcript of Ideas Chasing Money Vs. Money Chasing Ideas
FUSE Marketing GroupJune, 2011
Baris KaradoganCEO Hip Digital & Venture Capitalist
Vs
IdeasChasing
Money
Garo KeresteciCEO FUSE Holdings & Industry Angel
Money Chasing
Ideas
www.hipdigital.com
FINDFILTER
EVALUATE INVEST
Baris Karadogan
A Great VC PitchJune, 2011
Hip Digital Venture backed silicon valley technology company Offices in five locations in North America 2500+ online programs, reaching 250M consumers Deliver proven ROI in all engagement metrics 85% of our customers renew for additional programs
Background CEO of Hip Digital 10 years in Venture Capital/Private Equity Fuse Capital U.S. Venture Partners Stanford Graduate School of Business 3Com/USRobotics Stanford Electrical Engineering Recent Exits
Like.com, Spectralinear, Beceem, Redline
Topic For The Day
How to pitch to VC’s
The questions you have to ask yourself
Format Of This Presentation
14 Key slides, and what each should say.
Example Right Answers
“What is the VC is thinking?”
Mission Statement
One liner about the company
“Social Rewards Platform”
“Why should I be interested in this?”
Market
How big is it? How is it growing?
$100B online marketing spend Rewards and promotions are a growing
piece.
“Can I build a billion dollar company?”
Problem
How big is the customer’s problem?
Traditional advertising getting less effective No good way to engage constituents on
“Can I get good gross margins?”
Solution To Problem
What is your unique solution?
Digital Content Rewards on Facebook Use content to engage consumers
“Why hasn’t anybody done this before?”
Team
Name Experience
Team has done it before
“Would I bet my children’s future on them?”
Technology
What is the key technology? Is it defensible?
Promotional Pricing Analytics Self-serve backend
“Will it take 1 or 5 years to do it?”
Customers
Who is paying for the product?
Fortune 500 companies 2500+ promotions reaching 250M people
“Does the value proposition hold water?”
Per Customer Economics
Most Important Slide… Universal across all businesses
What will customers pay? What is the cost of goods? What are costs to acquire customer? What are costs to service customer? What is churn?
“What’s a customer worth?”
Go To Market
How do you get in front of the customer?
Direct, agencies, and now online
“How will the channel affect the company?”
Milestones
When is beta, when is product ready?
This round will get us to $50M/yr in revenues
“Where will this financing get me? Can I exit or get a step up?”
Financials
Income Statement, Balance Sheet, CF
Our numbers are realistic even if they are off by 2x.
“Are these numbers credible?”
Competition
2x2 matrix Most important variables in the axes
It will take 3 years for others to catch up.
“Does this team understand their competition?”
Financing History
How much money raised to date? What are you raising now?
We’ve been frugal and will continue to be so.
“Who are these investors? Do I trust them?”
Why This VC?
Why do you want this investor?
You can help us with xyz relationships.
“Flattery will get you anywhere!”
CONTACT US
Baris Karadogan
CEO800 Menlo Ave, Ste 220
Menlo Park CA, 94025
650-325-9600
www.hipdigitalmedia.com
CONTACT US
Baris Karadogan
CEO800 Menlo Ave, Ste 220
Menlo Park CA, 94025
650-325-9600
www.hipdigitalmedia.com
FUSE Marketing Group
FUSE Marketing Group awarded as one the Top 50 Best Small and Medium Employers in Canada
for 2009 & 2010
2003 - 2011
Infrastructure:
Digital Talent
TrainingWork Environment
Experiential Forte
www.promotionalcurrency.com www.hipdigital.com
www.quizative.com
www.fusehealth.com
www.softgravity.com
Ideas
Ideas we invest in
Filter
1 + 1 = 3
PASSIONACHIEVEMENT
INTEGRITYCOURAGE
COLLABORATION
Common Lessons Learned
FIND
VC:
• Deals come to them
Angel:
• Seek opps related to our existing businesses
FILTER
VC:
• Potential $, investing themes
Angel:
• Same, plus strategic fit
EVALUATE
VC:
• Rigorous due diligence around the $, technology, people
Angel:
• Same plus 1+1=3, work together over some period
INVEST
VC:
• Preferred shares, board control, significant and/or majority share
Angel:
• 50/50, some controls built into deal
