dealroom.co the future of capital raising
dealroom.co the future of capital raising
Finance 1.0
Sophisticated financier, connected, smart, worldly…
Finance 1.0
Finance 1.0
“A man generally has two reasons for doing a thing. One that sounds
good, and a real one.”
Finance 2.0
Finance 2.0
Big balance sheets, PhDs, Excel models, pitch books...
And excess…
Finance 2.0
Finance 3.0
Finance 3.0 § Peer-to-peer § Low cost operations § Transparent pricing
Simplification Fragmentation
§ Less instutions § Size of balance sheet
doesn’t matter § Micro-funds
“No problem can be solved until it is reduced to some
simple form.”
dealroom.co
Capital market problems that need solving
Protection from crooks
Make the best investment decisions
dealroom.co
Capital market problems that need solving
x Information asymmetry
x Adverse selection x Winner’s curse
Protection from crooks
Make the best investment decisions
dealroom.co
Capital market problems that need solving
ü Screening tools
ü Legal framework
ü Reporting standards
ü Reputation system
ü Accountability
x Information asymetry
x Adverse selection x Winner’s curse
ü Incentives
Protection from crooks
Make the best investment decisions
dealroom.co
Tech investing:
Different models for different growth
stages
dealroom.co
Seed stage capital
dealroom.co
Seed stage capital
Source: Fundable..
60%
20% 7% 7% 5% 2%
personal savings &
credit
friends & family
venture capital
angel investors
banks crowd funding
dealroom.co
Seed stage capital
Source: Fundable..
60%
20% 7% 7% 5% 2%
personal savings &
credit
friends & family
venture capital
angel investors
banks crowd funding
$ % ?
dealroom.co
Seed stage capital
Source: Fundable..
60%
20% 7% 7% 5% 2%
personal savings &
credit
friends & family
venture capital
angel investors
banks crowd funding
$ % ?
x Information asymetry
x Adverse selection
dealroom.co
Seed stage capital
Source: Fundable..
60%
20% 7% 7% 5% 2%
personal savings &
credit
friends & family
venture capital
angel investors
banks crowd funding
$ % ?
“A man I do not trust could not get money from me on all the bonds in Christendom.”
dealroom.co
Growth capital
dealroom.co
Growth stage capital
LPs Asset managers, funds of funds, family offices, wealthy individuals
GPs Venture Capital funds
OLD
Investment opportunities
dealroom.co
Growth stage capital
LPs Asset managers, funds of funds, family offices, wealthy individuals
GPs Venture Capital funds
Investment opportunities
OLD NEW
Investment opportunities
Asset managers
Funds of funds
Entrepreneurs Mentors
Wealthy individuals
Lead investors
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Connecting founders with top venture capital funds of choice
dealroom.co
Historically, founders had two choices for fundraisings or exits
25
ü Has a “rolodex”
ü Transaction support
x Extremely costly
x Requires exclusivity
x Black-box
x Not data-driven
Do-it-Yourself Advisor
ü Save on fees
ü Directly in control
x Limited network
x No tactical advice
x No support if process derails
x Fair deal terms?
dealroom.co
All benefits of having an advisor, but more flexible and transparent
Do-it-Yourself
dealroom.co
Advisor
26
ü Save on fees
ü Directly in control
x Limited network
x No tactical advice
x No support if
process derails
x Fair deal terms?
ü Full control
ü Real-time transparency
ü Select from the best funds
ü Full advisory support
ü Flexible terms
ü Achieve market value
ü Proven model
ü Has a “rolodex”
ü Transaction support
x Extremely costly
x Requires exclusivity
x Black-box
x Not data-driven
dealroom.co 27
A single private workspace from launch to completion
✓ Monitor investor interest & activity
✓ Streamline and simplify the
funding process
✓ Upload and share KPIs
securely
✓ Choose the best investors to work
with
dealroom.co 28
ü 1,137 funds
ü 244 super angels
ü most geographies
ü all growth stages
ü experience across sectors
ü high engagement
Investors
ü 13,500+ companies
ü all industries
ü all growth stages
ü across Europe and beyond
Companies 754,000 tracking connections
14 completed fundraisings €5-10M median size
dealroom.co
dealroom.co
dealroom.co
Crowd-sourced data
Private and secure
Founders choose investors
Marketplace versus Data model
Marketplaces
ü Positive network effects
ü Transparency
x Passive
x Adverse selection
Data tools
x Negative network effects
ü Proprietary deal-flow
ü Pro-active
ü Identify winners
“Go as far as you can see. When you get there,
you'll be able to see farther.”
dealroom.co
dealroom.co
AMSTERDAM | BERLIN | LONDON
dealroom.co B.V. Bachstraat 15
1077 GE Amsterdam The Netherlands