Lessons for Investors and Companies on How to Increase the Hit Rate from the First Contact to Successfully Closed Deal - Presentation by Yoram Wijngaarde, Founder & CEO of Dealroom.co at the NOAH 2013 Conference in London, Old Billingsgate on the 13th of November 2013.

1. NOAH Conference 2013
dealroom
13 November, 2013

2. How do you discover new
tech companies?
dealroom.co

3. For Sale
How to know the market
appetite for a business?
dealroom.co

4. Discover, track,
connect, share data.
dealroom.co

5. Venture Capital has been an
underperforming asset classes
70%
60%
50%
40%
Median IRR
Mean IRR
30%
20%
10%
0%
(10%)
Source: Kauffman Foundation study, May 2012.
dealroom.co
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6. Survey with VC
professionals….
dealroom.co

7. Scouting for deal opportunities
takes up more time than it should
Venture
Capital
51%
scouting for
deals
Source: Dealroom estimates.
Public
Markets
80%
analysis
dealroom.co

8. Less than
hit ratio from initial contact to
successfully closed deal
Source: Dealroom survey.
dealroom.co

9. What’s wrong with
the other 95% ?
Source: Dealroom survey.
dealroom.co

10. “too small”
“too late”
basic
stuff
“wrong
geography”
Source: Dealroom survey.
“too big”
“too early”
“not enough
growth”
dealroom.co

11. These are VC’s most used tools to
discover new companies
News sites
56%
LinkedIn
28%
Google Alerts
11%
Other
33%
0%
Source: Dealroom survey.
10%
20%
30%
40%
50%
60%
dealroom.co

12. How VCs establish new contact
with founders
Email (cold)
50%
Intro
50%
Cold call
33%
LinkedIn
33%
Conferences
17%
Other
6%
0%
Source: Dealroom survey.
10%
20%
30%
40%
50%
60%
dealroom.co

13. How is this perceived by
founders and CEOs ?
dealroom.co

14. Either too much, or way too little.
And usually at the wrong time
Never
33%
Rarely
25%
Monthly
25%
Weekly
17%
0%
Source: Dealroom survey.
5%
10%
15%
20%
25%
30%
35%
dealroom.co

15. Is there a more efficient
way?
dealroom.co

16. The typical VC deal
pipeline
Desktop research
Preliminary info sharing
Commercial
due diligence
Confirmatory
due
diligence
Closing
dealroom.co
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17. The typical VC deal
pipeline
Desktop research
dealroom
Preliminary info sharing
Commercial
due diligence
Confirmatory
due
diligence
Closing
Source: Dealroom survey.
dealroom.co
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18. dealroom.co

19. Build a tracking list of companies
you want to keep an eye on
“5M paying
users
reached”
“Series A
funding
completed”
“We just hired
a VP of Sales”
“Opened
San Francisco
office to cover U.S.”
dealroom.co
19

20. Dealroom covers all investment
stages from seed to late growth
mature stage
late growth
stage
seed stage
Note: based on Dealroom methodology.
early growth
stage
dealroom.co
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21. Secure dealroom to disclose nonpublic info with selected parties
dealroom.co
21

22. Many benefits for
founders and CEOs
 More control over information outflow
 Build a well-informed investor following
 Optimize timing of deals & shorter duration
 Better deal terms
Saving big on deal-related fees
dealroom.co

23. 400 funds
& investors
2,000 companies
dealroom.co

24. Within two weeks
12,000
tracking connections
dealroom.co

25. Today
65,000
tracking connections
dealroom.co

26. Thank you!
team@dealroom.co
dealroom.co