NOAH Conference 2013

dealroom 13 November, 2013

dealroom.co

How can you discover new tech companies?

dealroom.co

As a Venture Capital fund, how to manage deal-flow?

dealroom.co

For Sale For founders, a discreet

way to test market appetite?

dealroom.co

Discover, track, connect, share data.

dealroom.co

Venture Capital has been an underperforming asset classes

Source: Kauffman Foundation study, May 2012. 6

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

Median IRR

Mean IRR

dealroom.co

Survey conducted with VCs left some clues.

dealroom.co Source: Dealroom estimates.

VCs spend 51% of their time scouting for opportunities

80% diligence &

analysis

51% scouting for deals

Public Markets

Venture Capital

dealroom.co

hit ratio from initial contact to successfully closed deal

5% Less than

Source: Dealroom survey.

dealroom.co

What’s wrong with the other 95% ?

Source: Dealroom survey.

dealroom.co Source: Dealroom survey.

basic stuff

“too small” “too big”

“not enough growth”

“too early” “too late”

“wrong geography”

dealroom.co

VC’s still mostly use low-tech tools to discover new companies

56%

28%

11%

33%

0% 10% 20% 30% 40% 50% 60%

News sites

LinkedIn

Google Alerts

Other

Source: Dealroom survey.

dealroom.co

50%

50%

33%

33%

17%

6%

0% 10% 20% 30% 40% 50% 60%

Email (cold)

Intro

Cold call

LinkedIn

Conferences

Other

How VCs establish new contact with founders

Source: Dealroom survey.

dealroom.co

How is this perceived by founders and CEOs ?

dealroom.co

Founders are approached by VCs too much, or too little.

And usually at the wrong time

33%

25%

25%

17%

0% 5% 10% 15% 20% 25% 30% 35%

Never

Rarely

Monthly

Weekly

Source: Dealroom survey.

dealroom.co

Is there a more efficient way?

dealroom.co

The typical VC deal pipeline

17

Closing

Confirmatory due

diligence

Desktop research

Commercial due diligence

Preliminary info sharing

dealroom.co 18 Source: Dealroom survey.

Closing

Confirmatory due

diligence

dealroom Desktop research

Commercial due diligence

Preliminary info sharing

The typical VC deal pipeline

dealroom.co

Build a tracking list of companies you want to keep an eye on

19

“Opened San Francisco

office to cover U.S.”

“We just hired a VP of Sales”

“Series A funding

completed”

“5M paying

users reached”

dealroom.co

Dealroom covers all investment stages from seed to late growth

20

seed stage

early growth stage

late growth stage

mature stage

Note: based on Dealroom methodology.

dealroom.co

Secure dealroom to disclose non-public info with selected parties

21

dealroom.co

Many benefits for founders and CEOs

ü  More control over information outflow

ü  Build a well-informed investor following

ü  Optimize timing of deals & shorter duration

ü  Better deal terms

ü Saving big on deal-related fees

dealroom.co

400 funds & investors

2,000 companies

dealroom.co

tracking connections

12,000 Within two weeks

dealroom.co

tracking connections

65,000 Today

dealroom.co

Thank you! team@dealroom.co