Hemisphere Capital Presentation at Show Me The Money London 2015 #TMUMoney
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Show Me the Money TechMeetups 16 April 2015 London Ma< Rothman, Managing Partner
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Transcript of Hemisphere Capital Presentation at Show Me The Money London 2015 #TMUMoney
Show Me the Money
TechMeetups 16 April 2015
London
Ma< Rothman, Managing Partner
Overview
• Hemisphere • Funding strategy • Investor selecGon • PresentaGon • Terms • Timetable
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• Investment and advisory • Focus on plaIorms • Growth stage • InternaGonal expansion • PorIolio of six companies • Raised capital in San Francisco, New York & London over the past 13 years.
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• Funding strategy is as important as product or markeGng strategy – Rules of the Raise • Raise more than you think you need • Raise it when you don’t need it • Raise it from people who bring more than money
– Friends, family, experGse
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Source: © DJX VentureSource
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
2009 2010 2011 2012 2013
US: Average Deal Size (2009-‐2013) ($M)
Seed Round First Round Second Round Later Stage
Linear (Seed Round) Linear (First Round) Linear (Second Round) Linear (Later Stage)
$3.71
$0.76
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Source: © DJX VentureSource
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
2009 2010 2011 2012 2013
Europe: Average Deal Size (2009-‐2013) ($M)
Seed Round First Round Second Round Later Stage
Seed Round First Round Second Round Later Stage
Linear (Seed Round) Linear (First Round) Linear (Second Round) Linear (Later Stage)
$2.26
$
$3$ $0.34
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$0.34
Source: © DJX VentureSource
Average deal size 2009-‐2013
Europe US Difference
Seed Round $0.58 $0.82 -‐29.9%
First Round $2.79 $4.48 -‐37.7%
Second Round $5.63 $8.24 -‐31.6%
Later Stage $11.52 $15.19 -‐24.2%
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London VC Investment
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Total of 106 deals in 2014 Six of 10 firms are London and/or US NoGon – solely B2B Northzone – solely Scandinavia
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Q1 2015 £682 million, a 66% increase over the same period last year. In 2014, London-‐based companies received $1.4 billion, with $795.2 million coming from US based investors • Farfetch: $86 million raised at $1 billion valuaGon • Shazam: $30 million at $1 billion • Improbable: $20 million at $100 million • Blippar: $45 million
The US money is aimed at growth stage and internaGonal (US) roll-‐out
Select investors – Stage, HNW (SEIS/EIS), VCT, strategic – With industry or sector knowledge – Round ‘sweet spot’ – A network of customers and execuGves – Experience as entrepreneurs – Investment track record – Geography: UK, US, Europe – ParGcipate in the next round – Who they co-‐invest with
• Advisors & Governance 13
PresentaHon – Focus on a single business line – Address business objecGons upfront • Revenues, markeGng, opportunity size
– “Show don’t tell” – Pitch by analogy: examples that amplify/validate – Concept vs Data driven (vision vs numbers) – It will be all about execuHon risk
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• Opportunity size: TAM, pipeline – Customers/users: how many, how long? Quotes
• Team: history, skills, talent • Risks • CompeGGve landscape: idenGfy USP • Metrics: measure success – Users, partners, growth, revenues, profits – If you can’t measure it, you can’t manage it
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• Product pipeline – Where is it now? Milestones
• GTM – ExecuGon, experience, holes
• Financials: paperwork – Reasonable assumpGons – Comparables
• Use of Funds • Recap the focus, forecast and funding needs
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Terms • ValuaGon – the market decides • Series/round • Leaders & followers • SyndicaGon • ConverGble debt • Warrants/opGons • Founders shares
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Timetable • 90 days • Due diligence: legal and financial – Cap table – Customer contracts – Employees
• Legals • Closing • Next round – valuaGon appreciaGon
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Ma< Rothman, managing partner ma<@hemispherecapital.com
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