© 2009 Simon Olson

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Overview of Draper Fisher Jurvetson

DFJ Core Funds:

–  $3.5 billion committed since 1985 –  400+ portfolio companies –  DFJ Growth Fund (2006) for late stage –  11 investing partners; 27 investment

professionals

DFJ Global Network:

–  16 Network Funds on four continents –  150 professionals –  $3.2B capital, 650 companies

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The DFJ Global Network covers 70% of the World’s GDP

Brazil

Russia (and CIS)

China

Western Europe

South Korea

Vietnam

USA

India Israel

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DFJ is a leader in the industry

DFJ RANKED IN THE TOP 10 GLOBAL VCs

AMONG A 1000 FIRMS

1. Draper Fisher Jurvetson 2. Sequoia Capital 3. Accel Partners 4.  Intel Capital 5. First Round Capital 6. Dag Ventures 7. New Enterprise Associates 8. Kleiner Perkins Caufield & Byers 9. Benchmark Capital

The Top 100 Networked Venture

Capitalists

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  Draper Triangle Ventures is a uniquely positioned seed and early stage venture capital firm that invests in and builds world leading technology companies

  Pittsburgh based Midwest fund of Draper Fisher Jurvetson

  $125MM under Management across 2 Funds

  Headquarters in Pittsburgh, offices in Cincinnati and Cleveland

  Exploit the advantages of a national fund investing in areas outside of Silicon Valley and Boston

  Five investments in early stage Ohio-based Companies from Fund II

  First Round, Lead Investor- Initial investments from $500,000-$2MM

  Focused investing across technology and industry sectors

  Partner with great entrepreneurs and company creators

  Leverage expertise, experience and networks of DFJ Funds

Mission  

West  Capital  Advisors  co-­‐manages  strategic  venture  funds  on  an  outsourced  basis  for  corpora9ons  and  manages  a  co-­‐investment  fund  for  high  net  worth  

individuals.    Retainer-­‐based  services  are  offered  to  investors  

seeking  to  leverage  the  firm’s  exper9se  and  network  without  commiCng  to  a  dedicated  fund  manager.  

Generating Attractive Deal Flow

•  Investments into private companies are typically broken into stages: –  Seed/Angel Funding – True start-ups, funding only idea, no customers /

employees / operations. Zero revenue, only costs. –  Venture Capital – Proven product/service within a small market, but large

potential, need to augment management and scale operations, historical revenues but negative operating profit. Designated Series A, B,… depending on stage. Minority investments.

–  Growth Equity – Company has developed a regional or national client base, operations have scaled, at or slightly above break-even. Outside investors seek 15-49% ownership.

–  Buyouts / Majority Recaps – Owners have built mature, successful businesses. Seeking to monetize inherent value for estate planning or retirement purposes. Outside investors seek 51-100% ownership

•  West Capital targets investment opportunities in the Venture Capital stage.

Opportunity - Funding Gap •  Seed stage

–  Angel networks have become better established (very small, early stage, seed deals)

–  Large amount of government money and effort has gone into early stage companies through organizations like CincyTech

–  Almost every major city has similar organization creating increased quality early stage deal flow

•  Venture Capital –  Reduced allocation from traditional LPs –  Industry contraction (fewer funds) –  Narrow investment criteria

•  Expansion Stage / Buy Out –  Dominant private equity focus –  Strategic buyers (corporations) have large cash balances on balance sheet –  Sellers market – elevated valuations/multiples

•  Rapid growth of community public/private accelerators - developed portfolios actively looking for follow on investment.