Artemis Ventures, LLC 1999 1

Christine ComafordManaging Director

Warp Speed: Investing in Internet Time

Artemis Ventures, LLC 1999 2

Bio

Engineer, entrepreneur, venture catalyst, VC 5x entrepreneur, 2 IPOs, 3 M&A, $100

million raised in last 5 years Seed stage VC fund specializing in business

to business software/services 1 other partner, Kimball Atwood

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Agenda

How to screen deals faster

How to make investments faster

How to grow companies faster Q & A

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Rapid Deal Screening

DANGER: Avoid cycle-suckers!Determine investment criteria and post on

site Encourage entrepreneurs to pre-screen

themselves

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Screening Criteria

Team (incomplete is ok, but SME is key)Market (are there multiple multi-billion

markets they are chasing?)Stage (is concept ok or is pre-beta

required?)Referral source (who from and shameless

name drop or true relationship?)

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Via Web Site

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Via Screening Sheet

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Rapid Screening Tips

Funnel to pipeline in 24 hoursClear calendar for rapid due diligence if

need beMake sure CEO is:

Execution-oriented Humble, listener, not OVER-confident Opportunistic Has focused vision

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Rapid Investing

DANGER: Invest now, due diligence laterOnce screened, either invest or bail – avoid

bridge loans!!!Use standard, fair term sheets – let

entrepreneur see template in advanceSet valuation expectations upfront – can be

very revealing

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Deal Flow Workflow

1.0Investment OpportunitiesCollection & Distribution

2.0

Initial Screening

3.0

Preliminary Investigation

4.0

Due Diligence

Email

Mail

Phone

Referral

Bio, Exec.Summary,Biz Plan

6.0

Rejection

Phone

5.0

Deal Finalization

Email

Investment ofInterest

Potential Investment

Investment

Rejects Rejects

Rejects

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Assessment Scorecards

Team Revenue Model Market Technology Summary Standard due diligence and interview forms

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Rapid Investment Tips

Have 2 attorneys: High profile general attorney Fast moving, deal-oriented attorney

Term sheet doesn’t mean tons more due diligence – give one with 90%+ confidence

If your gut is uncertain, move on!

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Rapid Company Building

DANGER: VCs and CEOS can be slackers…

You Need: Killer Team (always be in recruiting mode for all types of team members!)

Killer Buzz (work it, baby!) Killer Velocity (pull personal favors… often

often often)

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Rapid Company Building Tips

Monthly sessions with board Alternate board meetings and working sessions Each board member should leave with follow

up items VCs should provide “office hours”, do special

projects

Velocity requires the right CEO

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Have and Live By Values Add Massive Value Make and Keep Commitments Take Ownership Respect One Another Be Positive Seek Balance

- Artemis Ventures Values, version 1.1

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Do/Does You/Your Portfolio Have These?

Right market Right product/service Right timing Right info Right priority Right connections Right team

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The Net-Net

Minimize Risk Maximize Return

What Are You Doing To Ensure These?

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Christine ComafordManaging Director

Thank You!