Date post: | 13-Jun-2015 |
Category: |
Economy & Finance |
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www.freshtrackscap.com*@freshtrackscap
@VTCairnCross*[email protected]*www.linkedin.com/in/cairncross
Random Picture Page
FreshTracks Capital Overview
• Founded in 2000 • Based in Shelburne and
focused on investing in VT
• Raised 3 Funds (2001, 2007 & 2013)
• Invested in 26 portfolio companies
National VC trends mostly negative
• Only 205 Firms raised new money in 2013• 50% of VC Funds raised in 2013 went to 14 firms. • Dwindling pool of traditional venture capital nationally• Increased concentration in hands of a few big firms
National VC Industry Trends: Growth 1990 – 2000, Flat 2000 – 2007, Declining since 2007
What about the angels?
• $ Deployed is similar in comparing the two asset classes, however number of angel deals is 18X the number of VC deals!
History of “Venture Capital”
What About Vermont?
Hey, There’s a dot in Vermont!
VT VC Funding Compared to the Region
State Deals/MM population
U.S. Rank
VT 6.0 15
NH 5.0 21
ME 4.5 26
CT 14.4 8
MA 61.7 1
NY 17.0 6
RI 14.2 9 • Average $25MM of funding past 6 years, YTD Sept 2013 = $29MM
http://www.ssti.org/Digest/Tables/013013.xlsx
• In 2011 Vermont was 1st in dollars per capita basis
• VT was in the Top 10 twice in past 6 years for a dollars per capita
• VT in Top 10 once in past 6 years on deals per capita basis
Vermont VC Trends Remain Positive (PWC Data)
What about Vermont Angels?
• Assume same metrics as national (18 angel deals per 1 VC deal & approximately equal dollars)
• That would suggest 100 investments per year at an average of $250K round size.
• However, no measured statistics on angel investing exist in Vermont.
FreshTracks Capital Summary
• Raised 3 Funds from more than 75 discrete Limited Partners: – FTI, 2001 Vintage- $11MM– FTII, 2007 Vintage- $14MM– FTIII, 2013 Vintage- $10MM to date
• FreshTracks remains the only independent Vermont-based VC firm, while other sources of risk capital have launched over past 13 years: VSJF Flexible Capital Fund, Vermont Seed Capital Fund, etc.
FreshTracks Capital
• 26 Investments made since inception• 35% “seed stage”, 65% “early stage”• Focus on Vermont (75%+ of dollars invested in VT)• Industries including:
– Media– Software enabled– Advanced manufacturing– Health Care Information Technology– Consumer Products– Alternative Energy (not project finance)– Financial technologies
FreshTracks Capital’s Impact on VT
• On average every dollar FreshTracks invests in VT is leveraged by other investors at an 8:1 ratio
• ~450 employees at our current VT portfolio cos.
• Recent notable Vermont exits:
– EatingWell sold to Meredith Corporation (NYSE: MDP $2.2BN market cap). MDP has kept EWMG in VT, added jobs and built new office and test kitchen space
– NEHP sold to Sequel Industrial Products (now Critical Process Solutions). Company remains in VT & significantly grown employment base post acquisition.
VT Deal Flow & Investment Pace Accelerating
• FreshTracks III likely to take less than 12 months. 2 deals closed for FT3 so far in 4 months, 1 term sheet signed & 1 further term sheet issued.
• FreshTracks’ annual deal flow has grown 4X since 2000.
VT Entrepreneurial Resources Avail. Today (that did not exist when FreshTracks started)
Why We are Bullish on the VT Opportunity
• Take a page from Brad Feld’s “Startup Communities”. His thesis: – Entrepreneurs should lead the startup
community– Leaders must have a long term
commitment (~20 years)– Startup Community must be inclusive
of anyone who wants to participate– Community must have continual
activities that engage the entire entrepreneurial stack
How do we Stack Up?
• Increasing number of activities to engage the entrepreneurial stack
• Very inclusive community • FreshTracks & others have long
term vision• Entrepreneurs are beginning to lead
www.freshtrackscap.com*@freshtrackscap
@VTCairnCross*[email protected]*www.linkedin.com/in/cairncross