Latest Trends in Deal Terms

Transcript

1. Latest Trends in Deal Terms (Beyond the Mirage)

2. Agenda The Statistics The Anecdotes New Developments

3. The Statistics

4. 2013: US$ 600k 2012: US$ 600k 2011: US$ 610k US

   Median Round Size (angel & angel groups only) Source: 2013 HALO Report, US data only

5. 2013: US$ 931k 2012: US$ 857k 2011: US$ 950k US

   Mean Round Size (angel & angel groups only) Source: 2013 HALO Report, US data only

6. 2013: US$ 1.7mln 2012: US$ 1.5mln 2011: US$ 1.5mln US

   Median Seed Round Size (angels & funds co-investing) Source: 2013 HALO Report, US data only

7. 2013: US$ 2.5mln 2012: US$ 2.4mln 2011: US$ 2.4mln US

   Mean Seed Round Size (angels & funds co-investing) Source: 2013 HALO Report, US data only

8. 75th %ile: US$ 5mln Average: US$ 3.7mln 25th %ile: US$

   2mln Pre-Money Valuation (4Q13 Global, AngelList) Source: AngelList

9. 75th %ile: US$ 6mln Average: US$ 4.7mln 25th %ile: US$

   3mln Pre-Money Valuation (4Q13 Silicon Valley, AngelList) Source: AngelList

10. Internet: 38.5% ↑ Healthcare: 19.6% ↓ Mobile: 16.2% ↑ US

    2013 Sector Trends (% of total deals) Source: 2013 HALO Report, US data only

11. Seed(s): 30% Series A: 37% Series B: 16% When Do

    Exits Happen? (rounds before exits) Source: 2013 HALO Report, US data only

12. The Anecdotes

13. Equity vs. convertible The Anecdotes

14. Lead vs. no lead The Anecdotes

15. Liquidation preference The Anecdotes

16. Option pool & vesting The Anecdotes

17. Board of directors The Anecdotes

18. Pro-rata The Anecdotes

19. Bridge vs. second seed The Anecdotes

20. New Developments

21. New Developments AngelList

22. New Developments SAFE

23. New Developments Equity crowdfunding

24. “Nothing is so firmly believed as that which we least

    know.” - Michel de Montaigne tytusm@frescoca.com