Post on 22-Sep-2014
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Welcome to the Evisors Webinar
Visit us online at www.evisors.com
Venture Capital Overviewfeaturing
Phil Strazzulla
Hosted by: Career Advisors on Demand..com/webinars
Agenda
BioWhat is VC?Industry TrendsRecruitment for a
job in VCQ&A
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There are many routes to VC, here was mine:
-NYU (BS Finance)-Harris Williams (Tech M&A)-OpenSky Project (NYC based eCommerce Startup)-Family Equity Partners (Search Fund)
“I am a better investor because I am a businessman and I am a better
businessman because I am an
investor.” - Warren Buffett
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Quick Bessemer Overview
• Oldest VC in US – founded in 1911• $4 Billion under management• 108 IPOs• LinkedIn, Yelp, Pinterest,
Skype, Staples, diapers.com…• 5 Offices Globally• 50 Investment Professionals• Checks from $50k - $50 mm• Industry Agnostic
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Venture Capitalists – what do we do?
• Give money to entrepreneurs in exchange for equity
• “Add Value”– Help raise money– Help hire– Think about strategy– Introduce to our network (BD,
customers)– Help raise money again– Position for M&A and IPO
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Look for really big opportunities
• 30% of our investments go to $0• We need a few 10x returns to make up for it
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Venture Capital – The Industry
• There are lots of funds– Geographic, stage, industry
focuses• There are even more angels
– Angel/early stage bubble• But, it’s a shrinking industry…
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The Walking Dead
Source: Pitchbook
1998 1999 2000 2001 2002 2003 2004 2005 2006
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%22%
13%
4%
12%
-11%
-3%-9%
-12%
PE VC FoF Mezz All
Net
IRR
(%) S
ince
Ince
ption
As of 3/31/2010
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Culture
• Sense of Humor: – bvp.com/anti-portfolio
• Jeans and facial hair• “Intellectually honest”• An actual open door policy• Curious• No jerks• Invest in great companies,
smartly
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The Anti-Portfolio
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What a junior VC does
• Source deals
• Talk to hundreds of CEOs a year
• Lots of research on areas of personal/firm-wide interest
• Network with bankers, industry experts
• Diligence companies
• Find great companies, and then dig in
• Will this be a good investment?
• Learn/Cool Stuff
• Work with great entrepreneurs/CEOs, investors
• VCIC, NYU Speaking, boats, ping pong, breakfast
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Why do VC early in your career?
• Exposure to lots of companies and the latest trends
• Work with former and current entrepreneurs
• See what works• See what doesn’t work• Grow your network• Because you like it
– Pick the right type of fund – big differences in early vs. growth vs. PE
– Pick the right culture– Pick the right brand– Pick the right job – Sourcing vs. portfolio vs.
diligence
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The Recruiting Cycle
VCs rarely use headhunters, they rely on relationships to find deals, and employees – much different from PE.
-Networking-Standing out-Positioning yourself
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The interview process
The classic question: What are your goals, why VC?
How would you value xyz company? What questions would you ask before investing
your own personal capital?
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Q&A
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Questions & Answers
Question 1:
Do you need software skills to be a venture capitalist?
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Questions & Answers
Question 2:
What is the typical background of a venture capitalist?
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Questions & Answers
Question 3:
What signals tell you a certain startup company would be a great investment?
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Questions & Answers
Question 4:
When an entrepreneur is pitching to you, how much do you focus on the business plan vs. the pitch?
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Questions & Answers
Question 5:
Why do you think a company like FedEx would get rejected 5 times by Bessemer?
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Questions & Answers
Question 6:
What are job prospects like in other parts of the world compared to Silicon Valley?
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Questions & Answers
Question 7:
What firms would you recommend applying to for undergrads and graduate students?
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Questions & Answers
Question 8:
Are there distinct evaluation metrics applicants should be aware of in preparing for their interviews?
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Questions & Answers
Question 9:
What differentiates a serial entrepreneur from a venture capitalist?
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Thanks for Joining & Good Luck!
Book your session with Phil at: http://www.evisors.com/expert/1981
Contact info: phil.strazzulla@gmail.com
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