1. Getting Value from Investors
Nick Davidov

2. About myself
 Director and co-founder of iTech Capital
 CEO of Pult Group
 Chairman of AdCamp
 BoD member in IconText, Realweb, Apps4All, AppInTop
iTech portfolio:

3. Agenda
3
 Investments and investors classification
 What values do they bring?
 Searching for your perfect investor
 Funds’ lifecycle
 Approaching investors and marketing
 Q&A

4. Investor Classification
 Why do they invest?
 Financial Investors:
 Private Investors
 Institutional Private Equity
 Institutional Public Equity
 Strategic Investors
 Expansion
 Vertical Integration
 Horizontal Integration
 Diversification

5. Investment stages and investors classification
Investment stage Typical company
development
stage
Sources of funds Typical
investment size
for internet
companies*
Seed/pre-seed Idea/prototype Grants, incubators,
business angels,
FFF
$10-500k
Round-A First revenues Early VCs, business
angels
$500k-$5M
Round-B Expansion, rapid
growth, chasing
break-even point
VC funds $2M-$10M
Round-C Expansion, re-
structuring, first
M&A, growing
profits
Growth / Late stage
VCs
$5M-$50M
Round-D Pre-IPO stage Private Equity arms
of large public
investment funds
$50M+
Public IPO Everyone $200M+
Financial Investors, based on stage:

6. What values do financial investors bring?
 Outside view and experience
 Transparency, structure and overall liquidity
 Reputation and introductions
 Research and legal support
 Further investor marketing
 Oh and some money as well

7. Deal and funds lifecycle

8. Approaching and marketing your company
 Pitching anyone passing by - not for you.
 Do proper homework:
 Get your deck done nicely
 Choose possible investors by country and industry focus
 Filter by investment stage
 Take a look at their portfolio
 Ask someone to introduce, if impossible – track on
conferences, write an email “out of the blue”.
 Balance between an auction and a future zoo on your board.

9. 9
Q&A