Stacey Brenner

stacey.brenner@gmail.com

The Value of Investor Relations

Human capital is the underlying and primary

internal driver in ensuring success

Contents

• Market Environment

• Value Added

• Qualifications and Background

1

Rebound in VC Returns

2

6%

7%

8%

9%

10%

11%

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14

Ten-Year Rolling Horizon IRRs

Venture Capital NASDAQ S&P 500

Source: Cambridge Associates Benchmark Data.

Record Year for Venture Exits

3

$21.8$24.3

$43.1

$17.0$14.3

$25.1

$34.5

$44.2

$28.0

$61.3

407435

474

429

374

611

550 539

474

570

100

200

300

400

500

600

700

$0

$10

$20

$30

$40

$50

$60

$70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

To

tal D

ea

ls (

#)

To

tal C

ap

ital ($

B)

US VC Exits by Year

IPOs M&A Total Capital ($B) Total Deals (#)

Source: Thomson Reuters/NVCA.:

Surge in Venture Distributions

4

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14

Cum

ula

tive

Su

rplu

s (

$B

)

Qu

art

erly C

ap

ita

l ($

B)

In The Past Ten Quarters, VC Distributions Have Exceeded Contributions By Over $20B

LP Contributions LP Distributions Cumulative Surplus

Source: Cambridge Associates LLC.

Banner Year for Fundraising

5

Source: Thomson Reuters/NVCA.

$30.1

$31.1

$29.5

$25.1

$16.1

$13.3

$19.0

$19.1

$17.7

$29.8

233 236 236

213

161175

191

218207

254

0

50

100

150

200

250

$0

$5

$10

$15

$20

$25

$30

$35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

VC Fundraising by Year

Capital Raised ($B) # of Funds Closed

Established Managers Maintain Dominance

6Source: Preqin VC Fundraising Data 2014.

$10.8

$5.9

$8.0

$4.5

$1.9

$1.1

710

23

29 28

76

0

10

20

30

40

50

60

70

80

$0

$2

$4

$6

$8

$10

$12

$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M

# o

f F

un

ds

Cap

ital R

ais

ed

($B

)

Aggregate Capital ($B) # of Funds

Competition for Capital is High

7Source: 2015 Preqin Global Private Equity & Venture Capital Report.

1,5611,619

1,845

1,9902,081

2,235$699

$607

$758$721 $733

$793

$0

$200

$400

$600

$800

500

1,000

1,500

2,000

2,500

2010 2011 2012 2013 2014 2015

Cap

ital $

($B

)

# o

f F

un

ds

2,235 PE Funds Seeking $793B of Capital

# of Funds Aggregate Capital Sought ($B)

LPs are Overwhelmed

• Flood of PPMs is straining LP bandwidth in

terms of human resources and capital

• Bar for new relationships is particularly high

8

Conclusion

• Outlook for 2015 is promising

• Investor appetite is strong, but the market

is saturated with offerings

• LPs have capital, but their resources are

strained

• High valuations and record fundraising

raises concerns about future performance

– beware of mean reversion9

Value of Investor Relations

10

Demand for IR Resources

• Demand for dedicated/experienced

resources driven by:

– Competitive fundraising environment

– Increased demand for reporting, transparency

and communications

– Importance of a sustained and focused effort

– Desire to leverage partners time

11

Improves profitability

Leverages partners time

Enhances relationships

ValueAdded

• Provides more time

leverage for senior

investment team

• Builds long-term

proprietary relationships

• Reduces need for

expensive placement

agents

Value Proposition

12

Skate to Where the Puck is Going

• Need for focused and consistent

communication

• Requirements not limited to 3-5 year

fundraising cycle

13

Goals

• Strengthen existing relationships

• Tap new sources of LT capital

Solidify core LP base

Cultivate new relationships

Qualify & screen target investors

Broaden global reach

Expand marquee names

14

Ongoing Responsibilities

• Promote proactive approach to client service

• Maintain strong relationships with LPs & advisors

• Oversee timely and appropriate communications

• Organize annual and advisory board meetings

• Manage investor and prospect database

• Manage website, online presence, and PR

• Serve as a source of market intelligence

• Foster company culture & common goals15

Fundraising

• Take leadership role in fundraising

• Prepare offering memorandum and marketing

documents

• Facilitate fund commitments from existing LPs

• Identify and expand investor base

• Oversee due diligence meetings, information

requests and survey responses

• Negotiate terms of LP agreements

16

Background & Qualifications

17

Professional Background

1989 1991 1997 2010

Investment

BankingStart-Up/

Entrepreneur

Financial

Consulting

Investment

Management

Venture

Capital

1986

Stacey Brenner

18

Experience & Credentials

1986

Morgan Stanley TriPyramid

Structures

Cambridge

Associates

Shott Capital

SSgA

• IPOs

• Mergers &

acquisitions

• Restructurings

• Fundraising

• Business

creation

• Finance/accounti

ng

• Investment

consulting

• Asset allocation

• Manager

selection

• Business

development/mar

keting

• Client service

• Strategic

management

Activitie

sS

kill

s • Financial analysis

• Transaction

Execution

• Critical thinking

• Business

management

• Financial

management

• Financial market

knowledge

• Presentation

skills

• Research

• Time mgmt.

• Sales/marketing

• Planning &

organization

development

• Network

development

1989 1991 1997 2010

Flagship Ventures

New Venture Partners

• Fundraising

• Investor relations

• Strategic

planning

• Research

• Venture industry

knowledge

• Marketing

• Communications

• Sales/Marketing

Stacey Brenner19

Personal Qualifications

• Deep knowledge of the private equity industry

• Extensive LP contacts and relationships

• Presence and stature

• Keen intellect and quick study

• Energy, enthusiasm and a strong desire to make

a difference

• Team player with high degree of integrity and

professionalism

Stacey Brenner 20