hec inside venture capital part 1 by @chraynaud
TRANSCRIPT
INSIDE VENTURE CAPITAL February 2016
Christophe Raynaud – Managing Partner & Cofounder
WHO AM I TO SPEAK ?
HEC graduate (last millenium)
Entrepreneur… - Chateauonline
- Netboussole
- Samaris
…Turned VC (dark side of the force) - Saeed Amidi (Amidzad partner / plug&play tech center)
- Paris Business Angels
- ISAI
CONTACT : r a y n a u d @ i s a i . Fr / @chraynaud
WHAT WILL I BE TALKING ABOUT ?
What is Venture Capital History ?
What is an investment thesis ? What’s ISAI’s ?
How do VC/ISAI source/screen opportunities ?
What makes a great founder ?
WARNING
NO BULLSHIT RULE
NOT THE TRUTH, JUST MY OWN EXPERIENCE
HISTORY OF VENTURE CAPITAL
GENERAL DORIOT
FATHER OF VENTURE CAPITAL
FRENCH ENGINEER
HBS MBA 1922
FOUNDER OF INSEAD
FOUNDED AR&D in 1946 - $4M RAISED
- FIRST EVER PRIVATE EQUITY / VC FUND
> A FAIL FOR MORE THAN 10 YEARS UNTIL…
A $70K INVESTMENT IN 1958…
A $70K INVESTMENT IN 1958…
…TURNED INTO A $355M RETURN*
IN 1970
* INCLUDING A $2M LOAN ON TOP OF THE INITIAL INVESTMENT
A $70K INVESTMENT IN 1958…
…TURNED INTO A $355M RETURN*
IN 1970
> 5000X MULTIPLE > 100% IRR
* INCLUDING A $2M LOAN ON TOP OF THE INITIAL INVESTMENT
HBS ENTREPRENEURSHIP ALUMNI
DRAPER & JOHNSON (DGA)
PERKINS (KPCB) - Compaq/Sun/AOL/Netscape/Google
ARTHUR ROCK (VENROCK) - 3COM/APPLE/INTEL
- HELPED FAIRCHILD SEMICONDUCTOR
RAISE $1,5M
> BIRTH OF SILICON VALLEY
FROM 1957 TRAITOROUS
EIGHT
TO
1st TRILLION $ STARTUP
FAIRCHILD SEMICONDUCTOR ALUMNI
ROBERT NOYCE
& GORDON MOORE (INTEL)
EUGENE KLEINER (KPCB)
DON VALENTINE (SEQUOIA) - ATARI/ORACLE/CISCO/YAHOO/YOUTUBE
> BIRTH OF VENTURE CAPITAL
RISE OF AN INDUSTRY
RISE OF AN INDUSTRY
RISE OF AN INDUSTRY 99000
… GIVING BIRTH TO MANY WORLD-WIDE Cies
… GIVING BIRTH TO MANY NEW INDUSTRIES
… WITH HUGE SOCIAL/ECONOMIC IMPACT
21% OF U.S GDP 2.900.000.000.000 $ (Revenue of US Venture backed Cies)
80% OF JOBS CREATED 12.1 MILLION JOBS ( AT US Venture Bascked Cies)
THANK YOU GEORGES
VENTURE CAPITAL NOWADAYS
MATURITY PHASE & RECENT TRENDS
CYCLES, WAVES & BUBBLES
BEER INDUSTRY ANALOGY - BIG BRANDS / MICRO VC
ENTREPRENEURS’ FUND
BASICS STILL TRUE : - US DOMINATED INDUSTRY - HIT DRIVEN INDUSTRY
SUSTAINABLE VALUE CREATION IN THE US
SOURCE QUILVEST VENTURE
HYPER CONCENTRATION OF PROFITS
SOURCE QUILVEST VENTURE
CYCLES AFFECT RETURNS
SOURCE QUILVEST VENTURE
VERY POOR RETURNS IN FRANCE
THE US JUGGERNAUT
SOURCE QUILVEST VENTURE
MORE RETURNS, MORE MONEY
SOURCE QUILVEST VENTURE
0%
20%
40%
60%
80%
100%
4Q03 2Q04 4Q04 2Q05 4Q05 2Q06 4Q06
Other
Business,
Consumer,
Retail
IT
Healthcare
I.T IS CLEARLY THE DOMINANT SECTOR
SOURCE NVCA
# of Active VC Firms
0
200
400
600
800
1000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
# of Active VC Firms*
GROWTH OF ACTIVE VC FIRMS
SOURCE NVCA
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
TECH BOOM or TECH BUBBLE ?
SOURCE UPFRONTVC / MARK SUSTER
Download slides on twitter/chraynaud