VC’s and Pitch Decks

Chris Cory:
• Senior Analyst, Venture Services, ventureLAB,
Genesis Team
• Entrepreneur – Financial Services, Digital Media
• Stockbroker, Merchant Banker
Private Placements, Reverse Take Overs
• Co-Founder Airium Performance $500,000 raised
• Co-Founder Pond Technologies Inc. $20+ Million
Raised to date. Listed TSX.V December
• Member, National Crowdfunding Association

Startup Funding

Angel vs. VCs

VC vs. Angel

VC By the Letters

VC: Rising Pre-Money Valuations

Institutional Seed Investors
• Ottawa, Toronto, Palo Alto,
• up to $500,000
• Prepare for next stage of funding – US
• Real Ventures, Montreal Toronto,
• 500,000 to $750,000
• Lead Series A round

VC Structure

How do VC’s make money?
• ‘2 & 20’
• 2 to 2.5% annual management fee on assets
• 20% ‘Carry’ on Profits
80% to the Limited Partners (investors)
20% to the General Partners (VC Firm)

VC Business Model
• “Power Law”
• 2 Huge winners
• 3 Break Even
• 5 Fail
• Exit expectations: Canada $100 Million, US $1
Billion
• Industry Focused
• Calculated Risk
• Invest in < than 1% of the deals they review

Implications
• Typical VC Portfolio - most of the returns are from
20% of the investments
• If a minimum respectable return for VC fund is 20%
per year then
• 10 year VC Fund needs to repay investors 6x their
investment
• Or 2 ‘winner’ investments must make 30x return
• (Or more Likely 1 investment: 100x and 1 10x)
• VC’s will almost certainly block an exit that returns
less than 10 to 30x their investment

Top 7 Reasons for VC Rejection
• Management Team
• Management Team
• Lack of Traction
• Competing Portfolio Company
• Too Late / Too Early
• Too Expensive
• Too Far away