Welcome to the Evisors Webinar

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Venture Capital Overviewfeaturing

Phil Strazzulla

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Agenda

BioWhat is VC?Industry TrendsRecruitment for a

job in VCQ&A

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There are many routes to VC, here was mine:

-NYU (BS Finance)-Harris Williams (Tech M&A)-OpenSky Project (NYC based eCommerce Startup)-Family Equity Partners (Search Fund)

“I am a better investor because I am a businessman and I am a better

businessman because I am an

investor.” - Warren Buffett

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Quick Bessemer Overview

• Oldest VC in US – founded in 1911• $4 Billion under management• 108 IPOs• LinkedIn, Yelp, Pinterest,

Skype, Staples, diapers.com…• 5 Offices Globally• 50 Investment Professionals• Checks from $50k - $50 mm• Industry Agnostic

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Venture Capitalists – what do we do?

• Give money to entrepreneurs in exchange for equity

• “Add Value”– Help raise money– Help hire– Think about strategy– Introduce to our network (BD,

customers)– Help raise money again– Position for M&A and IPO

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Look for really big opportunities

• 30% of our investments go to $0• We need a few 10x returns to make up for it

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Venture Capital – The Industry

• There are lots of funds– Geographic, stage, industry

focuses• There are even more angels

– Angel/early stage bubble• But, it’s a shrinking industry…

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The Walking Dead

Source: Pitchbook

1998 1999 2000 2001 2002 2003 2004 2005 2006

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%22%

13%

4%

12%

-11%

-3%-9%

-12%

PE VC FoF Mezz All

Net

IRR

(%) S

ince

Ince

ption

As of 3/31/2010

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Culture

• Sense of Humor: – bvp.com/anti-portfolio

• Jeans and facial hair• “Intellectually honest”• An actual open door policy• Curious• No jerks• Invest in great companies,

smartly

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The Anti-Portfolio

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What a junior VC does

• Source deals

• Talk to hundreds of CEOs a year

• Lots of research on areas of personal/firm-wide interest

• Network with bankers, industry experts

• Diligence companies

• Find great companies, and then dig in

• Will this be a good investment?

• Learn/Cool Stuff

• Work with great entrepreneurs/CEOs, investors

• VCIC, NYU Speaking, boats, ping pong, breakfast

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Why do VC early in your career?

• Exposure to lots of companies and the latest trends

• Work with former and current entrepreneurs

• See what works• See what doesn’t work• Grow your network• Because you like it

– Pick the right type of fund – big differences in early vs. growth vs. PE

– Pick the right culture– Pick the right brand– Pick the right job – Sourcing vs. portfolio vs.

diligence

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The Recruiting Cycle

VCs rarely use headhunters, they rely on relationships to find deals, and employees – much different from PE.

-Networking-Standing out-Positioning yourself

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The interview process

The classic question: What are your goals, why VC?

How would you value xyz company? What questions would you ask before investing

your own personal capital?

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Q&A

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Questions & Answers

Question 1:

Do you need software skills to be a venture capitalist?

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Questions & Answers

Question 2:

What is the typical background of a venture capitalist?

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Questions & Answers

Question 3:

What signals tell you a certain startup company would be a great investment?

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Questions & Answers

Question 4:

When an entrepreneur is pitching to you, how much do you focus on the business plan vs. the pitch?

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Questions & Answers

Question 5:

Why do you think a company like FedEx would get rejected 5 times by Bessemer?

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Questions & Answers

Question 6:

What are job prospects like in other parts of the world compared to Silicon Valley?

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Questions & Answers

Question 7:

What firms would you recommend applying to for undergrads and graduate students?

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Questions & Answers

Question 8:

Are there distinct evaluation metrics applicants should be aware of in preparing for their interviews?

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Questions & Answers

Question 9:

What differentiates a serial entrepreneur from a venture capitalist?

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Thanks for Joining & Good Luck!

Book your session with Phil at: http://www.evisors.com/expert/1981

Contact info: phil.strazzulla@gmail.com

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