EnterpriseEquityVentureCapitalGroupBobMcGowan-Smyth（一）.pptVIP

Enterprise Equity Venture Capital Enterprise Equity Venture CapitalInvestment General Partnerof The AIB Seed Capital FundEnterprise Acceleration Centre Limerick8th Dec 2008 AIB Seed Capital Fund €30 million fund Fund commenced 1st July 2007 Initial investment size up to €500,000 Total lifetime investment €1,500,000 First Institutional Investor No Property, Retail, Leisure Frank Walsh Enterprise Equity Venture Capital Investment Banker – San Fransicso Business Development Advisor – CIS Consultant – Dublin (Own Business) Venture Capitalist – Dublin Custom Fit Golf – Cork (Own Business) Venture Capitalist – Cork Timeline Mutual Agreement to Proceed Agree Terms Term-sheet SSA other docs Closing Deal Metrics - Size How much money should you raise? As much as you need As much as you can Promoter participation Other participation Deal Metrics - Price How to value your early-stage company? Negotiated not derived Risk/Reward Dilution/Shareholding Market conditions ESOP Deal Metrics - Instrument Ordinary Shares Simple Unifying Preference/Preferred Liquidation preference “double dip” Anti-dilution Ratchet – Performance based Voting/board representation Converts On Further Investment On Multiple of Future Revenue On Exit Valuation Term Sheet Commercial Issues Deal Economics Governance Issues Board Representation Keyman Insurance Employment Contracts Shareholder/Business Changes Good/Bad Leaver Cost Issues Management Fee Arrangement Fee Deal Fees Commitment Fee Legal Representation Experience Institutional investment Bandwidth Partner/solicitor Price Fixed Consistent with opposition Strict Instruction Commercial view The legal Process – 5 pages to 500 pages SSA Articles Disclosure letter Legal Due Diligence Financial Due Diligence Employment contracts Third Party Contracts IP Evaluation Deal Gestation Only bad things happen here! Market conditions MAC Deal bound Business neglect Relationship deterioration Inappropriate financial activity Deal