An Introduction to the World of Venture Capitalism

@pasanpr Pasan Premaratne An Introduction to the World of Venture
Capitalism

Entrepreneur Venture Capitalist Lawyer

@pasanpr Entrepreneur •Main player •Always be involved!!!!

@pasanpr Lawyer •Lawyer should understand VC financing

@pasanpr Venture Capitalist •Venture capital firms are quite complicated •Organizational
structure varies from company to company

@pasanpr Venture Capitalist

Managing Director (MD)/General Partner (GP) Principals/Directors Associates Analysts

@pasanpr Venture Capitalist •Venture partners •Entrepreneurs in residence

@pasanpr Angel Investors •Seed Stage •Accredited investors •Super angels •Micro
VC

@pasanpr Raising Money •The Amount •Homework •Finding the right VC
•Working with a lead VC •Closing

@pasanpr The Amount •Be ready with an amount •Don’t focus
on financial models •Don’t ask for more than you need

@pasanpr Homework •Short description •Executive summary •Presentation The Minimum

@pasanpr Homework •Business Plan •30 page document •Market details •Product
information •Customer segments and target •Strategy •Team •Financials

@pasanpr Homework •Detailed Financial Models •Assumptions underlying revenue •Cash consumption
•Managing expenses

@pasanpr Homework •Demo •Emotional interest •Easier to explain •Straight to
the point

@pasanpr Finding the right VC •Introductions and networking •Understand the
VC •Do your homework

@pasanpr Finding the right VC

@pasanpr Lead VC •Goal: Find a lead VC •Gauging interest
•Deciphering the clues

@pasanpr Closing the deal •Signing the term sheet •Signing any
other documents •Cash!

Questions? @pasanpr

Pasan Premaratne