Lessons for Investors and Companies on How to Increase the Hit Rate from the First Contact to Successfully Closed Deal - Presentation by Yoram Wijngaarde, Founder & CEO of Dealroom.co at the NOAH 2013 Conference in London, Old Billingsgate on the 13th of November 2013.
5. Venture Capital has been an
underperforming asset classes
70%
60%
50%
40%
Median IRR
Mean IRR
30%
20%
10%
0%
(10%)
Source: Kauffman Foundation study, May 2012.
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7. Scouting for deal opportunities
takes up more time than it should
Venture
Capital
51%
scouting for
deals
Source: Dealroom estimates.
Public
Markets
80%
analysis
dealroom.co
8. Less than
hit ratio from initial contact to
successfully closed deal
Source: Dealroom survey.
dealroom.co
11. These are VC’s most used tools to
discover new companies
News sites
56%
LinkedIn
28%
Google Alerts
11%
Other
33%
0%
Source: Dealroom survey.
10%
20%
30%
40%
50%
60%
dealroom.co
12. How VCs establish new contact
with founders
Email (cold)
50%
Intro
50%
Cold call
33%
LinkedIn
33%
Conferences
17%
Other
6%
0%
Source: Dealroom survey.
10%
20%
30%
40%
50%
60%
dealroom.co
13. How is this perceived by
founders and CEOs ?
dealroom.co
14. Either too much, or way too little.
And usually at the wrong time
Never
33%
Rarely
25%
Monthly
25%
Weekly
17%
0%
Source: Dealroom survey.
5%
10%
15%
20%
25%
30%
35%
dealroom.co
16. The typical VC deal
pipeline
Desktop research
Preliminary info sharing
Commercial
due diligence
Confirmatory
due
diligence
Closing
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17. The typical VC deal
pipeline
Desktop research
dealroom
Preliminary info sharing
Commercial
due diligence
Confirmatory
due
diligence
Closing
Source: Dealroom survey.
dealroom.co
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19. Build a tracking list of companies
you want to keep an eye on
“5M paying
users
reached”
“Series A
funding
completed”
“We just hired
a VP of Sales”
“Opened
San Francisco
office to cover U.S.”
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20. Dealroom covers all investment
stages from seed to late growth
mature stage
late growth
stage
seed stage
Note: based on Dealroom methodology.
early growth
stage
dealroom.co
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21. Secure dealroom to disclose nonpublic info with selected parties
dealroom.co
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22. Many benefits for
founders and CEOs
More control over information outflow
Build a well-informed investor following
Optimize timing of deals & shorter duration
Better deal terms
Saving big on deal-related fees
dealroom.co