3. Now, for the bad news… IT’S NYSE HERE! worrying about mortgage payments vactioning in war torn public markets spending their last dollar to hit a home run
4. The model’s not working… Fundraising Exits SOURCE: NVCA / Thompson Reuters Exit Poll SOURCE: NVCA / Thompson Reuters VC Fundraising Q3 more money is invested than value is created
5. So, let’s export it to China… Israel Canada China Europe India SOURCE: EE Times Asia Survey 12/07
6. Still, nobody’s making real money… EXIT VALUES < $50 MM $5 > $500 MM FAILURE ACCEPTABLE SUCCESS 1 / 100 1 / 1,000 1 / 10,000 MANAGEMENT Bonus ~10% Value ~15% Value INVESTORS 1x w/ lost time 3-10x >10x EMPLOYEES Nothing Bonuses Millionaires SUPPORT Lawyers $$$ Lawyers + Bankers Everyone < $50 MM $50-500 MM > $500 MM
9. It’s all about building companies… The Present Way The Right Way Goal Sell for $1 Billion Build a Great Company Selection Crazy Projections Crazy Ideas Valuation Arbitrary Ownership % Needs and Progress Assistance Fundraising Business Development