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Differences Between Early and Late Stage Investments

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14
March 2016
Transcript
Page 1: Differences Between Early and Late Stage Investments

March 2016

Page 2: Differences Between Early and Late Stage Investments

2

Disclaimer

This presentation is confidential and may not be distributed, transmitted or otherwise communicated to others, in whole or in part, without the express consent of Jerusalem Global Pele Yoetz Ltd. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product or service, including interests in the fund. Unless otherwise noted, information included herein is presented as of the dates indicated and may differ from the terms and provisions respecting an investment in the fund which will be more fully set forth in the applicable corresponding agreements or such other applicable constituent governing documentation of the fund. This presentation is not complete and the information contained herein may change at any time without notice. Jerusalem Global does not have any responsibility to update the presentation to account for such changes. Jerusalem Global makes no representation or warranty, expressed or implied, with respect to the

accuracy, reasonableness, or completeness of any of the information contained herein, including, but not limited to, information obtained from third parties.The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. Investors should make an independent investigation of the investment described herein, including consulting their tax, legal, accounting or other advisors, about the matters discussed herein. Information contained herein may include information respecting prior investment performance of one or more investments. Information respecting prior performance, while a useful tool in evaluating the manager’s investment activities, is not necessarily indicative of actual results that may be achieved for unrealized investments. The realization of such performance is dependent upon many factors, many of which are beyond the

control of the managers. Further, there can be no assurance that the indicated valuations for unrealized investments accurately reflect the amounts for which the subject investments could be sold. Past performance is not indicative nor a guarantee of future returns. Certain information contained herein may be “forward-looking” in nature. Due to various risks and uncertainties, actual events or results or the actual performance of a Fund may differ materially from those reflected or contemplated in such forward-looking information. As such, undue reliance should not be placed on such information. Forward-looking statements may be identified by the use of terminology including, but not limited to, “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology.Additional information may be available upon request

Page 3: Differences Between Early and Late Stage Investments

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Understanding the difference between Israeli Early Stage investing and Later

Stage

Page 4: Differences Between Early and Late Stage Investments

Growth Belief CREDIBILIT

Y

VS

Early Stage

Page 5: Differences Between Early and Late Stage Investments

Belief Scale – Bridging the Gap Le

vel o

f Bel

ief Ashkenazi Jews

Sephardi Jews Entrepreneurs

Israeli Entrepreneurs

Venture Capitalists

Atheists

Islamic Jihadists

Mainstream Society

Social Pariah

Page 6: Differences Between Early and Late Stage Investments

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Early Stage investment only happens if the Venture

Capitalist can make the leap and believe in the vision of the

entrepreneur

Page 7: Differences Between Early and Late Stage Investments

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OK…so that is Early Stage…

What are we looking for in an exciting growth stage

company?

Page 8: Differences Between Early and Late Stage Investments

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Our Investment philosophy

Visionaries

Unique assets/IP

Clear exit path

Exceptional team

True market disruptors

Barriers to entry anddown-side protection

IPO potential or strong strategic value to acquirers

Invest in areasbefore they

become pervasive

technologies

Page 9: Differences Between Early and Late Stage Investments

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How do we react when a company wants us to invest because we are

“value add?”

Page 10: Differences Between Early and Late Stage Investments

The Groucho Marx Theory to investing in Growth Equity:

Good Companies Don’t Need Us…

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Building Credibility Good Companies do more DD on us than we do on them…

• Need to win over – Co-investors – Board members – Entrepreneurs

• DD they do on us – Bankers – Previous

Entrepreneurs – Old co-investors

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How to tell when is the right time to invest?

Page 13: Differences Between Early and Late Stage Investments

• Deep/defensible/unfair advantage

• Solves a big problem• Huge market potential • Strong Management Team • Proven LEADER

– Market share and position– Business model

• Hitting that “J” curve

Investment Goal min:

3x in 3 years

Page 14: Differences Between Early and Late Stage Investments

Thank you


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