venture capital 101 - the good, the bad and the ugly

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THE GOOD, THE BAD AND THE UGLY AN INTRODUCTION TO VENTURE CAPITAL July 22, 2015

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Page 1: Venture Capital 101 - The Good, The Bad And The Ugly

THE GOOD, THE BAD AND THE UGLY AN INTRODUCTION TO VENTURE CAPITAL July 22, 2015

Page 2: Venture Capital 101 - The Good, The Bad And The Ugly

STRICTLY CONFIDENTIAL | TRADE SECRET 2GRANITE VENTURES LLC

First…Nuts and Bolts

§  Venture Capital here, and elsewhere §  Partnerships…some flat, some hierarchical §  “Tech” vs. Life Sciences §  Deal sourcing §  Rounds and structure

§  The Old World: Series A-Z §  The New World: 4 rounds before Series A

§  Process §  Board seats and portfolio management §  Realizations

§  IPO §  M&A §  Other?

Page 3: Venture Capital 101 - The Good, The Bad And The Ugly

STRICTLY CONFIDENTIAL | TRADE SECRET 3GRANITE VENTURES LLC

The Good

§  Capital across all stages of company growth §  Comfortable with lots of risk…maybe §  Aligned with the needs and aspirations of entrepreneurs…hopefully §  Long term investors…some more, some less

Page 4: Venture Capital 101 - The Good, The Bad And The Ugly

STRICTLY CONFIDENTIAL | TRADE SECRET 4GRANITE VENTURES LLC

The Bad

§  Economics of venture capital §  Where does our money come from? §  What drives success for a VC? §  What makes a successful VC?

§  Venture is a hits driven business…now more than ever §  What you see isn’t always what you get

Page 5: Venture Capital 101 - The Good, The Bad And The Ugly

STRICTLY CONFIDENTIAL | TRADE SECRET 5GRANITE VENTURES LLC

The Ugly

§  Management changes §  Board alignment…or not §  Time horizons §  Changing of the guard §  Keep going or throw in the towel?

Page 6: Venture Capital 101 - The Good, The Bad And The Ugly

STRICTLY CONFIDENTIAL | TRADE SECRET 6GRANITE VENTURES LLC

Parting Shots

§  Stakes are high…there’s a bag of gold out there somewhere §  Entrepreneurs need to survive and thrive in a harsh environment §  Better find the right partners!