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Introduction to Venture Capital EE 203 Stanford University March 6th, 2007 Will Price Hummer Winblad Venture Partners
Introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Is Venture Capital? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Long History!
Impact on Economy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Snapshot ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Private Equity Returns Over 20-Year Horizon   (by investor type; as of 3/31/05) The 20 year early stage risk premium is 9.4% versus S&P 500
Economics of VC Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Flavors of VCs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Structure of Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What do VC’s want ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Should Founders Expect: Reduce Prob. of Failure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Suggested Playbook ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Your Pitch:  10 Slides The audience most know in first minute what you do or they will tune out
Pat your head and rub your tummy…Hard to Do! ,[object Object],[object Object],[object Object],[object Object],[object Object]
What to Expect ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What to Consider ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Approaching VC’s ,[object Object],[object Object],[object Object],[object Object],[object Object]
Tips ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Resources ,[object Object],[object Object],[object Object],[object Object]
Hummer Winblad Venture Partners ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Hummer Winblad Highlights ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Q&A
History ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Commitments to U.S. Venture Funds Source: Venture Economics/NVCA
Growth of Active Firms *Source: Venture Source
Investment Level Surpasses 2005  Deal Flow and Equity into Venture-Backed Companies Amount Invested ($B) Number of Deals Source: Dow Jones VentureOne/Ernst &Young
IT Leads Deal Allocation Deal Flow Allocation by Industry Sector % of Total VC Rounds 27% 58% 11% 23% 13% 26% 57% 13% 61% 3% 10% 4% Source: Dow Jones VentureOne/Ernst &Young 5%
Bay Area Draws Most Investment Dollars Regional Investment in the United States 4Q’06 Source: Dow Jones VentureOne/Ernst &Young

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Introduction to Venture Capital

  • 1. Introduction to Venture Capital EE 203 Stanford University March 6th, 2007 Will Price Hummer Winblad Venture Partners
  • 2.
  • 3.
  • 5.
  • 6.
  • 7. Private Equity Returns Over 20-Year Horizon (by investor type; as of 3/31/05) The 20 year early stage risk premium is 9.4% versus S&P 500
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Q&A
  • 24.
  • 25.
  • 26. Commitments to U.S. Venture Funds Source: Venture Economics/NVCA
  • 27. Growth of Active Firms *Source: Venture Source
  • 28. Investment Level Surpasses 2005 Deal Flow and Equity into Venture-Backed Companies Amount Invested ($B) Number of Deals Source: Dow Jones VentureOne/Ernst &Young
  • 29. IT Leads Deal Allocation Deal Flow Allocation by Industry Sector % of Total VC Rounds 27% 58% 11% 23% 13% 26% 57% 13% 61% 3% 10% 4% Source: Dow Jones VentureOne/Ernst &Young 5%
  • 30. Bay Area Draws Most Investment Dollars Regional Investment in the United States 4Q’06 Source: Dow Jones VentureOne/Ernst &Young