[PREMONEY 2014] Scale Venture Partners >> Kate Mitchell, "The Fundraising Trenches: How I Closed A $300M Fund In 92 Days"

1Confidential – Trade Secret

Kate Mitchell, Scale Venture Partners, @KateDMitchellPre-Money Conference June 27, 2014

The Fundraising Trenches:How We Closed a $300M Fund…Faster Than We Expected

@KateDMitchell

Just Mastering the Game

• Fund I - Captive

• Fund II – Captive Spinout

• Fund III – 1st Raise 2008/9

• Fund IV – May 2013

@KateDMitchell

The ViewFrom Fund IV

@KateDMitchell

The View Towards Fund V

@KateDMitchell

Environment

@KateDMitchell

Venture FundraisingIndustry Becoming Right Sized

$120B

20

60

700

300

500

100

# ofFunds

VCCapital Raised

($B)

VC Capital Raised

# of Funds

Source: Thomson Reuters and NVCANote: 2012YTD denotes Q1 2012

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

1Q

20

14

@KateDMitchell

The Last 5 Years…

Venture Raised: $92.5B

@KateDMitchell

The Last 5 Years…

Venture Raised: $92B

Venture Invested: $133B

The “Overhang” OfUnfunded CommitmentsIs Gone

@KateDMitchell

“Survivability is thrivability. You have to be alive to win”

»Early VC lesson

@KateDMitchell

Lessons LearnedFrom Entrepreneurs

@KateDMitchell

Lessons LearnedFrom Funding Entrepreneurs

@KateDMitchell

Understand Product/Market Fit

• Clear Strategy• Fit on Investing Continuum• Ability To Deliver Cash Multiples• Test The Market

@KateDMitchell

Know Your Customer

• Mission• Appetite • Investing “Map”• Purchase History• Process

@KateDMitchell

Best CEOs Develop New Sources of Capital

…Years Before Needing It

@KateDMitchell

Build Customer Relationship

• Contact Builds Trust

• Knowledge Reduces Risk

• Do What You Say You Do?

• Transparent @ Failures & Success?

• LPs Have Pattern Recognition – Listen!

@KateDMitchell

Invest In Your Product Launch

• Data

• Process

• People

• Message

@KateDMitchell

ScaleVP Knows Scaling

BeforeInvesting

After Investing

@KateDMitchell

@KateDMitchell

92 Days…

• Newest Relationship – 3 Years Old

• Diligence Completed...Not Started

• Beneficiary of LP Concentration

• Never Assumed Success

• Honest About Process

@KateDMitchell

93rd Day…

• Focus on Delivering Product: $$$

• Continue Relations For Next Raise

@KateDMitchell

22Confidential

Kate MitchellScale Venture Partners

www.scalevp.com (650)378-6000

kate@scalevp.com@KateDMitchell