idcee v final_post

dealroom.co the future of capital raising

Finance 1.0

Sophisticated financier, connected, smart, worldly…

Finance 1.0

Finance 1.0

“A man generally has two reasons for doing a thing. One that sounds

good, and a real one.”

Finance 2.0

Finance 2.0

Big balance sheets, PhDs, Excel models, pitch books...

And excess…

Finance 2.0

Finance 3.0

Finance 3.0 §  Peer-to-peer §  Low cost operations §  Transparent pricing

Simplification Fragmentation

§  Less instutions §  Size of balance sheet

doesn’t matter §  Micro-funds

“No problem can be solved until it is reduced to some

simple form.”

dealroom.co

Capital market problems that need solving

Protection from crooks

Make the best investment decisions

dealroom.co

Capital market problems that need solving

x  Information asymmetry

x  Adverse selection x  Winner’s curse

Protection from crooks

Make the best investment decisions

dealroom.co

Capital market problems that need solving

ü  Screening tools

ü  Legal framework

ü Reporting standards

ü Reputation system

ü  Accountability

x  Information asymetry

x  Adverse selection x  Winner’s curse

ü  Incentives

Protection from crooks

Make the best investment decisions

dealroom.co

Tech investing:

Different models for different growth

stages

dealroom.co

Seed stage capital

dealroom.co

Seed stage capital

Source: Fundable..

60%

20% 7% 7% 5% 2%

personal savings &

credit

friends & family

venture capital

angel investors

banks crowd funding

dealroom.co

Seed stage capital

Source: Fundable..

60%

20% 7% 7% 5% 2%

personal savings &

credit

friends & family

venture capital

angel investors

banks crowd funding

$ % ?

dealroom.co

Seed stage capital

Source: Fundable..

60%

20% 7% 7% 5% 2%

personal savings &

credit

friends & family

venture capital

angel investors

banks crowd funding

$ % ?

x  Information asymetry

x  Adverse selection

dealroom.co

Seed stage capital

Source: Fundable..

60%

20% 7% 7% 5% 2%

personal savings &

credit

friends & family

venture capital

angel investors

banks crowd funding

$ % ?

“A man I do not trust could not get money from me on all the bonds in Christendom.”

dealroom.co

Growth capital

dealroom.co

Growth stage capital

LPs Asset managers, funds of funds, family offices, wealthy individuals

GPs Venture Capital funds

OLD

Investment opportunities

dealroom.co

Growth stage capital

LPs Asset managers, funds of funds, family offices, wealthy individuals

GPs Venture Capital funds

Investment opportunities

OLD NEW

Investment opportunities

Asset managers

Funds of funds

Entrepreneurs Mentors

Wealthy individuals

Lead investors

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Connecting founders with top venture capital funds of choice

dealroom.co

Historically, founders had two choices for fundraisings or exits

25

ü  Has a “rolodex”

ü  Transaction support

x  Extremely costly

x  Requires exclusivity

x  Black-box

x  Not data-driven

Do-it-Yourself Advisor

ü  Save on fees

ü  Directly in control

x  Limited network

x  No tactical advice

x  No support if process derails

x  Fair deal terms?

dealroom.co

All benefits of having an advisor, but more flexible and transparent

Do-it-Yourself

dealroom.co

Advisor

26

ü  Save on fees

ü  Directly in control

x  Limited network

x  No tactical advice

x  No support if

process derails

x  Fair deal terms?

ü  Full control

ü  Real-time transparency

ü  Select from the best funds

ü  Full advisory support

ü  Flexible terms

ü  Achieve market value

ü  Proven model

ü  Has a “rolodex”

ü  Transaction support

x  Extremely costly

x  Requires exclusivity

x  Black-box

x  Not data-driven

dealroom.co 27

A single private workspace from launch to completion

✓ Monitor investor interest & activity

✓ Streamline and simplify the

funding process

✓ Upload and share KPIs

securely

✓ Choose the best investors to work

with

dealroom.co 28

ü 1,137 funds

ü 244 super angels

ü most geographies

ü all growth stages

ü experience across sectors

ü high engagement

Investors

ü  13,500+ companies

ü  all industries

ü  all growth stages

ü  across Europe and beyond

Companies 754,000 tracking connections

14 completed fundraisings €5-10M median size

dealroom.co

dealroom.co

dealroom.co

Crowd-sourced data

Private and secure

Founders choose investors

Marketplace versus Data model

Marketplaces

ü  Positive network effects

ü  Transparency

x  Passive

x  Adverse selection

Data tools

x  Negative network effects

ü  Proprietary deal-flow

ü  Pro-active

ü  Identify winners

“Go as far as you can see. When you get there,

you'll be able to see farther.”

dealroom.co

dealroom.co

AMSTERDAM | BERLIN | LONDON

dealroom.co B.V. Bachstraat 15

1077 GE Amsterdam The Netherlands

team@dealroom.co