idcee 2014: the future of investing: how has the fundraising system changed - yoram wijngaarde...
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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
Lower costs Fragmentation
“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 asymetry
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
$ % ?
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
“A man I do not trust could not get money from me on all the bonds in Christendom.”
dealroom.co
Historically, founders had two choices for fundraisings or exits
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dealroom.co
Historically, founders had two choices for fundraisings or exits
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Do-it-Yourself
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
Historically, founders had two choices for fundraisings or exits
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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
We deliver all the benefits of an advisor without the onerous terms
Do-it-Yourself
dealroom.co
Advisor
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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 Track-record
ü Has a “rolodex”
ü Transaction support
x Extremely costly
x Requires exclusivity
x Black-box
x Not data-driven
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A single private workspace from launch to completion
dealroom.co 29
A single private workspace from launch to completion
✓ Upload and share KPIs
securely
dealroom.co 30
A single private workspace from launch to completion
✓ Upload and share KPIs
securely
✓ Choose the best investors to work
with
dealroom.co 31
A single private workspace from launch to completion
✓ Monitor investor interest & activity
✓ Upload and share KPIs
securely
✓ Choose the best investors to work
with
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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
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Connecting technology companies with venture capital
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Investors Companies
dealroom.co
dealroom.co 35
ü 1,137 funds
ü 244 super angels
ü most geographies
ü all growth stages
ü experience across sectors
ü high engagement
Investors Companies
dealroom.co
dealroom.co 36
ü 1,137 funds
ü 244 super angels
ü most geographies
ü all growth stages
ü experience across sectors
ü high engagement
Investors
ü 15,000+ companies
ü all industries
ü all growth stages
ü across Europe and beyond
Companies
dealroom.co
dealroom.co 37
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 350,000 tracking connections
dealroom.co
dealroom.co 38
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 350,000 tracking connections
14 completed fundraisings €5-10M median size
dealroom.co
“Go as far as you can see. When you get there,
you'll be able to see farther.”
dealroom.co
dealroom.co
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1077 GE Amsterdam The Netherlands