the lifecycle of an ourcrowd investment: following a company's progress from due diligence to...
Post on 14-Sep-2014
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This presentation came from a webinar we conducted February 4, 2014, entitled The Lifecycle of an OurCrowd Investment: Following a Company's Progress from Due Diligence to Investment (and Beyond). How OurCrowd chooses which early stage companies to invest in The tools we create for investors to do their own research What successful investors can do to maximize value AFTER an investment is made How our portfolio companies receive support from us in future investment roundsTRANSCRIPT
Lifecycle of an OurCrowd Investment Following a company’s progress from due diligence to
investment (and beyond)
Your hostsZack Miller, Investor Community David Stark, Investment Associate
DealflowCreating a quality network to
get access to the highest quality deals
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
How opportunities get to OurCrowd
• Submitted Deals vs. Surgical Targeting • Great source of referrals
• OC portfolio company CEOs • OC investors • Other members of the investment
community
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
OC’s 6 Investment Criteria
1. Great Team
2. Large market
3. Easy to understand
4. Traction
5. Sponsorship
6. A good deal
Due diligence
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
Doing deeper diligence• customer calls
• financial review
• 3rd party expert opinion (OC mentors)
• Human resource check
• Competitive analysis
• Market sizing
• More…
Term sheetsProtections and rights for
investors
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
Getting to terms with the term sheet
• While some things are subject to negotiation, there are certain rights and protections we try to make part of every deal:
• preferred shares
• preemptive rights
• anti-dilution rights
• process depends on whether we lead a deal or join a deal
Deal launch
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
Launching a deal for investors• Webinars
• OurTake
• Presentation
• Video
• Overview
• Team
• Road shows
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
You’ve clicked ‘I’m Interested’ — what next?
• Documentation
• Wiring instructions
• Closing paperwork
• Wire company money
* process obviously different if you’ve invested via our Portfolio RESERVE
Monitoring and Support
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
Monitoring and Support
• My Investments section of website
• Quarterly reporting
• Ongoing newsflow
• Events/Roadshows
• Crowdbuilding: Intros, Biz Dev, Hiring
• Educational events
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
How OC works to maximize the value of an investment
• Mentorship/Board Activity
• CEO Meetups/Education - help them to help themselves
• Media introduction and supportive guidance
• Strategic partnering
• Advice
Dealflow
Diligence
Term Sheet
Deal Launch
Monitoring
Portfolio Support
Subsequent rounds of investments
• Expectation that there may be follow-on investments
• Introduction to institutional investors that will help sustain company going forward
• Importance of participating: preventing dilution on the investments that matter
Signals!• Valuation step-up • New money • Institutional investors
3 ways for investors to
make moneyDividends M&A/IPO
Liquidation
OurCrowda better way to invest in Israeli startups
Funding the next generation of successful
startupsSince February 2013,
invested in over 30 startups !
OurCrowd and our community of investors have invested over $30 million in
these firms
Case study #1: Sight Diagnostics
Sight Diagnostics: a computer vision platform to test blood faster, cheaper,
and more accurately
Case study #2: Bizzabo
Software that makes event organizers more money by increasing engagement of
attendees
Sign up for our full dealflow at OurCrowd.com