Global Corporate Venturing’s Post

The US is seen as one of the most successful ecosystems for VC investing, and is often seen as an example of how to set terms for commercialising university spinouts. As part of Global University Venturing series on how universities approach equity stakes in #spinouts, we take a look at how US universities use low equity stakes to attract VC investment while royalties and non-dilutive shares ensure #techtransfer offices get a payout from the companies they help to commercialise: https://lnkd.in/e8D6fM3C

⌽ Oxford Innovation Finance will present its latest selection of innovative start-up & early-stage companies at its upcoming OION Showcase event on 13 March 2024. The online event will showcase up to 10 companies as they each present their solutions to an audience of specialist Angel Investors. 💰 If you’re a company seeking investment and interested in pitching at a future OION Showcase event, register here: https://lnkd.in/eYnYVepW 👼 If you’re an investor interested in accessing the innovative ecosystem of Oxford Innovation Finance through its angel network, register here: https://lnkd.in/ep8s6kk2 If you are interested in investing in the Oxford Innovation EIS Growth Fund which provides access to a diverse selection of high-quality and high-growth early-stage companies from across the UK, and has its first close on 30th April 2024, visit our website where you’ll find all the relevant information. CAPITAL AT RISK - Don’t invest unless you’re prepared to lose all the money you invest. #oxfordinnovationfinance #oion #angelinvesting #angelinvestors #earlystage #nextgeneration #scienceandtechnology

🤖 Below the 𝘼𝙄 𝙎𝙪𝙢𝙢𝙖𝙧𝙮 of this research, which surveyed 885 VCs to understand how they make decisions across 8 areas. Sep. 2016. 𝗗𝗲𝗮𝗹 𝗦𝗼𝘂𝗿𝗰𝗶𝗻𝗴: Most deals come through VCs' networks. Over 30% are generated through professional networks, 20% referred by other investors, and 30% proactively self-generated. Only 10% are inbound from entrepreneurs. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗦𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻: The management team is the most important factor, cited by 95% of VCs and ranked most important by 47%. Business model, product, market and industry are important but secondary to team. 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻: Exit potential is the top factor in setting valuations. Only 20% of VCs use DCF methods; most rely on cash-on-cash return multiples and IRR hurdles. 91% think unicorns are overvalued. 𝗗𝗲𝗮𝗹 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: VCs are inflexible on pro-rata rights, liquidation preferences, and anti-dilution but will negotiate on option pool, dividends and redemption rights. Syndication is common. 𝗩𝗮𝗹𝘂𝗲-𝗔𝗱𝗱: VCs interact frequently with portfolio companies and provide strategic guidance (87%), hiring help (58%), customer connections (69%), and operational guidance (65%). 𝗘𝘅𝗶𝘁𝘀: Deal selection is viewed as the most important driver of returns (49%), followed by value-added (27%) and deal sourcing (23%). The management team is the top factor in deal success or failure. 𝗩𝗖 𝗙𝗶𝗿𝗺 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: The average VC firm has 14 employees and 5 senior partners. Partners specialize and are compensated based both on fund and individual success. 𝗟𝗣 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀: VCs believe LPs care most about absolute returns (cash-on-cash and IRR). 93% of VCs expect to outperform public markets. 𝘐𝘯 𝘴𝘶𝘮𝘮𝘢𝘳𝘺, 𝘝𝘊𝘴 𝘳𝘦𝘭𝘺 𝘩𝘦𝘢𝘷𝘪𝘭𝘺 𝘰𝘯 𝘵𝘩𝘦𝘪𝘳 𝘯𝘦𝘵𝘸𝘰𝘳𝘬𝘴 𝘧𝘰𝘳 𝘥𝘦𝘢𝘭 𝘴𝘰𝘶𝘳𝘤𝘪𝘯𝘨, 𝘱𝘳𝘪𝘰𝘳𝘪𝘵𝘪𝘻𝘦 𝘵𝘩𝘦 𝘵𝘦𝘢𝘮 𝘪𝘯 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘴𝘦𝘭𝘦𝘤𝘵𝘪𝘰𝘯, 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵 𝘱𝘰𝘴𝘵-𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘴𝘶𝘱𝘱𝘰𝘳𝘵, 𝘢𝘯𝘥 𝘴𝘩𝘢𝘳𝘦 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘤𝘴 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘪𝘯𝘥𝘪𝘷𝘪𝘥𝘶𝘢𝘭 𝘢𝘯𝘥 𝘧𝘪𝘳𝘮 𝘴𝘶𝘤𝘤𝘦𝘴𝘴. #VCs #DecisionMaking #Research

The US is often held up as an example of a robust VC ecosystem. This extends to university #spinout investing where low equity stakes taken by US universities in the companies they help to commercialise helps to make these spinouts more investable. Here is more on how it is done: https://lnkd.in/e2JUuyzp

📣 27th June 10.30-11.30 CET, Thursday, Session 9 of the program of Swiss China Business Academy (SCBA 2023-2024). "The access to local capitals in China " with 4 VC/PE panelists. 👉 For new comers, registering here for a joining link: https://lnkd.in/gACGassT 👉 Key takeaways in Session 9: The access to local capitals in China  -China’s venture capital ecosystem -Capital sources: corporates, PE, venture capital, government guidance funds -The investment themes and activities of Chinese industrial investors and venture capital -Key trends in the Venture Capital market in China -How to obtain financial supports from government initiated funds

We are pleased to share that our research paper titled "Australian IPOs and US Venture Capital: Different Structures for Similar Early-stage Funding "- has been published in the "Journal of Accounting Literature: on 2 January 2024 In this research, we examine the reasons for the divergence between ASX IPO and US venture capital systems (and their supporting ecosystems), and attempt to bridge the broad differences in funding sources for early-stage capital between both countries. Terry Marsh & Kylie Gilbey, (2024), Australian initial public offerings and US venture capital: different structures for similar early-stage funding?", Vol 46, No.1., pp105-120. DOI 10,1108/JAL-12-2022-0137 https://lnkd.in/gYFmk2Zh

How Do Venture Capitalists Make Decisions A foundational 64-Page study that surveyed 850 VCs at 681 firms to learn how they make decisions across eight key areas: • Deal Sourcing • Investment Selection • Valuation • Deal Structure • Post-Investment Value-Add • Exits • Internal Organization of Firms • Relationships with Limited Partners "In this paper, we seek to better understand what Venture Capitalists (VCs) do and, potentially, why they have been successful. We do so by surveying almost nine-hundred VCs and asking how they make decisions about their investments and portfolios. We also explore cross-sectional variation in VC practices across industry, stage, geography and past success." Download full report here https://lnkd.in/gnYshuhw

How Do Venture Capitalists Make Decisions A foundational 64-Page study that surveyed 850 VCs at 681 firms to learn how they make decisions across eight key areas: •Deal Sourcing •Investment Selection •Valuation •Deal Structure •Post-Investment Value-Add •Exits •Internal Organization of Firms •Relationships with Limited Partners "In this paper, we seek to better understand what Venture Capitalists (VCs) do and, potentially, why they have been successful. We do so by surveying almost nine-hundred VCs and asking how they make decisions about their investments and portfolios. We also explore cross-sectional variation in VC practices across industry, stage, geography and past success." Check my X account for more insights: https://lnkd.in/dzQewdDa

Knowing the audience is a competitive edge if you wish to draw in investors for your business. This resource could provide you with tools to create your own template for a pitch deck for example.