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Capital for Business. Seed or angel capital. Venture Capital. Mezzanine or pre-IPO capital. IPO-capital. Profit. Big Profit. Breakeven. Start up losses. Accelerated Growth. Start up. Compelling Story. Maturity. Capital for Facebook.
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Capital for Business Seed or angel capital Venture Capital Mezzanine or pre-IPO capital IPO-capital Profit Big Profit Breakeven Start up losses Accelerated Growth Start up Compelling Story Maturity
Capital for Facebook Goldman Sachs (1%) $500m @ $50 b valuation (2011) - $1.5 b raised from investors – pre IPO stage Accel Partners (10%) $12.7 m @ $85 m valuation (2005) – early stage VC Peter Thiel (2.5%) $500k @ $5 m valuation (2004) - early stage angel Mark Zuckerberg (28%) $0 - Creator Established stage Matured and enduring stage Early/mid stage firm Start up Eduardo Saverin (4%) $tens of thousands –co founder Digital Sky (5.4%) $200 m @ $10 b valuation (2009) bought more in 2011 – Venture Cap Microsoft (1.6%) $240m @ $15.0 b valuation (2007) FB dropped in value 2007 to 2009 – Strategic partner & VC Retail investors (13%) $10 b @ $75 b valuation – 18 May 2012 – Post IPO stage
Entrepreneur Capital= Seed + Venture + Pre and Post IPO Investors Bank Lending Entrepreneur Capital (High Risk Ventures) (Low Risk Business Facilitations)
Backdoor Listing (Reverse Takeover) buys A Issue shares B C (Investors) Issue Shares $25 million valuation $12 million Valuation $15 million Valuation $3 million Valuation Investors ($10 million) Small listed shell Co. Successful Private Business Enlarged listed Co. Old Owners: A=3/25 (12%) New Owners: B=12/25 (48%) New Investors: C=10/25 (40%)
Global Assets under Management (US$ trillion) Assets under management, 2008 * Around one-third of private wealth is incorporated in conventional investment management Source: IFSL estimates