Entrepreneur - Venture Capital alignment - a presentation to the Kauffman Foundation graduates.

1. VC – ENTREPRENEURALIGNMENTWhy Is It So Elusive? Jeff Bussgang General Partner Flybridge Capital Partners Kaufman Foundation July 15, 2010

2. Key Questions Can VCs and Entrepreneurs always be aligned or is misalignment inevitable? When is an “entrepreneur-friendly” stance the right approach? When is an “entrepreneur-unfriendly” stance the right approach? How to make sure there’s clarity and trust in the relationship, even with misalignment?

5. Ego

6. Pride

7. Become famous

8. Make money for shareholders

9. Make themselves money

11. Make themselves money

12. Ego and Pride

13. Make partner (“tenure”)

14. Build a successful firm

15. Raise the next fund

16. Peer recognition

18. Examples of Sources for Potential Misalignment Term sheet – economics, control, “clean terms” Follow-on Financing – Inside-Outside Dance Feedback – Paula Abdul vs. Simon Colwell; the trick behind good board management practices Transparency – respecting chain of command vs. direct contact with management team Exit – portfolio approach (VC) vs. portfolio of one (entrepreneur)

24. In the face of a tough conversation, VCs and Entrepreneurs often shy away

26. THANK YOU! Jeff Bussgang General Partner Flybridge Capital Partners Kaufman Foundation July 15, 2010