Venture Capital EEE 4653 Exam 1 OSU (Thomison)

Venture Capital EEE 4653 Exam 1 OSU (Thomison) "bottoms up" aggregate capital assessment - Proof of Concept $ 20K $ 500K Pre-Seed/Startup $ 100K $ 2,000K Seed $ 750K $11,250K Early Stage $ 0K $ 0K Growth $ 0K $ 0K TOTAL $ 870K $13,750K acquisition characteristics - -mid entrepreneurial -roll ups/consolidation -proven market/product fit -increased execution risk and complexity -incremental capital resources angel capital market - Fund vast majority pre-Seed/Seed stage equity capital investments Highly fragmented but is trending towards consolidation Predominantly local/regional focus but expanding geographic syndication Developing & applying early stage investment "best practices" Growing aggregate funding capacity per round angel group characteristics - -8.7M total #US accredited individuals -300K active angels -20K angels in angel groups -experienced (median years investing-9/median number of investments-10) -invest close to home and in area of expertise -focused on best practices -value add investors angel groups by region - 1. California- 19.8% 2. Great Lakes- 13% 3. New England- 11.5% 4. Texas- 11.4% 5. Southeast- 11% 6. New York- 10.7% 7. Mid Atlantic- 7.7% 8. Southwest- 6.6% 9. Northwest- 4.3% angel investor deals vs. venture capital deals in 2013 - angel investors- 71,000 deals venture capital- 4,050 deals angels provide _____% of outside equity for startups - 90! benefits of financial modeling - -identifies/highlights business decisions-creates baseline -accelerates pivots and/or modifications -living documents-aid to execution -greatly enhances interim capital funding initiatives capital funding/repayment - lo