Presentation delivered at the Radisson BLU in Warsaw - kicking off this one-day conference to SME's, investors and entrepreneurs.

1. GLOBAL
GROUP
V E N T U R E S
Venture Consulting / Private Equity Services
Forum Rynku Niepublicznego
(inwestycje a własność intelektualna)
- międzynarodowe spotkanie branży venture
capital
z udziałem przedsiębiorców the
Entrepreneurship from
Investment Perspective
Ken Globerman
11 grudnia 2012 November 27, 2012
rok
Hotel Radisson Blu, ul. Grzybowska 24 Warszawa

2. GLOBAL
GROUP
V E N T U R E S
Real value of the business
Venture Consulting / Private Equity Services
in the moment of expansion.
How to make a great step forward
and not lose control?
Entrepreneurship from the
Investment Perspective
Ken Globerman
GLOBAL GROUP Ventures
Ken Globerman
November 27, 2012
www.katalizatorinwestycji.pl

3. Presentation Available
http://www.slideshare.net/theglobe11
www.katalizatorinwestycji.pl

4. Introduction

5. A Developing Early-Stage Capital
Investment Eco-System in Poland
Ernst & Young ranks Poland 1st in Central Eastern Europe and 36th globally with regards
to “Investment Attractiveness” – suggesting a developing investment eco-system
Cultural
Differences
Law and
Exit
Corporate
Opportunity
Governance
Investment
Educational Eco-System
Talent Pool
System
Availability
Country
of
Source: Pitch Johnson Presentation and Risk Source: 2011 Ernst & Young, “Global
“Venture Capital & the Finance of Capital Venture Capital and Private Equity
Innovation” – Metrick/Yasuda Country Attractiveness Index”

6. Debt Capital
Public Equity
Follow-on
or Public
§ Income /
Dividend
Addressing an Investment Gap in Poland
producing
§ Mature / Stable
§ Conservative
Public Offering
Private Equity
Access to External Funding
or Initial
Buyout
§ Growth slowing
& maturing
§ Cash Flow
(EBITDA) positive
§ May be Profitable
B, C Rounds
Venture
Capital
§ Rev. generating
§ More rocket fuel
required !!!
§ Often still not
Profitable
A Round
Venture
Capital
§ Usually Revenue
Producing
§ Typically Cash
Flow Negative
§ Not Profitable
Seed Round § Company/
Angel
or Prototype formed
§ Maybe Revenue
“Bootstrapping” Producing
Incubators
Contests
§ Projects and
Grants
“Ideas” Stage

7. Going Global… Without Losing Control
Jerry Macguire: http://www.youtube.com/watch?v=ZTFJocQBLyE

8. Raising MONEY
The Investment Cycle
Money Fund
Raised from Managed by
LP GP Fund
Investors Manager
Invest:
Exit: Sale/
Portfolio
IPO, Fund
Companies
Liquidated
Acquired

10. Historical VC Fund Performance
Source: Publically available information, Sand Hill Econometrics and “Venture Capital and the Finance of Innovation”, Metrick/Yasuda.

11. All Rights Reserved 11

12. 10-Year Total Value Multiples (TVM)
First Round Investment History
~75% DO NOT PAY OFF
TVM = Total Value Multiples
% Probability Distribution
Source: Publically available information, Sand Hill Econometrics and assumptions found in “Venture Capital and the Finance of
Innovation”, Metrick/Yasuda. Private transactional data with 10 years of life, initiated between 1990 and 2000, Assumes companies “still
private” after 10 years have failed.

13. WHAT KIND OF
BUSINESS DO
YOU ASPIRE
TO BE?

14. Lifestyle Business 10X Business

15. Top 5 Things Investors
Care About

16. CASE STUDY: Jaromir Dzialo
Founder: Topicmarks FIRST EXTERNAL ANGEL
INVESTOR: ~200K CHF
-----
Management Relocation to
Started as outsourced PRODUCT PIVOT: Created California
Programmer Consultants product algorithm to
(first clients Switzerland) summarize search results
VC
A-ROUND:
Got attention from Copenhagen Winner Raised in
US film industry; built USA
digital advertising
integration system
2006
2007
2008
2009
2010
2011
2012
Jaro’s Lessons Learned!
• “Dominate the Niche” and “Bring us a 100x return story”
• “Get out of the Office; Talk to your customers”
• “Solid US investor connections? Not so fast…”

17. The Investor vs. The Entrepreneur
Investor’s Perspective Entrepreneur's Perspective
} Are we prepared to give up
part of our company?
} How committed are we?
} What aspirations do we
have? Lifestyle? 10x returns?
} Do we need financing? How
much? What for?
} Time horizon: ???

18. Recommended Reading

19. Final Thoughts

20. Dziękuję
Ken Globerman - dane kontaktowe:
Telephone: +48 798 234 447
E-mail : ken.globerman@globalgroupventures.com
LinkedIn: www.linkedin.com/in/kengloberman
www.katalizatorinwestycji.pl