Playford Capital

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Playford Capital

• Kickstart your
• high growth
• ICT company

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Overview

• What is Venture Capital?
• How much money is there?
• 10 Top Tips
• 10 Top Lies of Entrepreneurs
• The Relationship

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Playford Capital
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Enhancement for desktop spatial software
website performance application
Document management software
Online customer employee survey tool
automated warehouse management system
Educational Multimedia Software
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Online B2B marketplaces
E-commerce ordering solution for SMEs
Internet-enabled online learning solutions
export documentation software
Internet streaming solution
Portable time tracking device
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Medical paging system
Image Analysis Software
Virtual world games platform
Asset Tracking Software
Web-based competency assessment tool
Microwave telecommunications modem
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Playford Capital
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Playford Capital
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What are Venture Capitalists?

• Investors in Private Equity
• Accept about one in 70 proposals
• Work on a portfolio basis
• only one or two in 10 will be very successful
• In early stage investments, look for
• People
• Market
• Product

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Where are Venture Capitalists?

• Trade Association www.avcal.com.au
• Venture Capital guide available at
  www.vcjournal.com.au
• The major VCs in Australia are located in Sydney

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Venture Capitalists Stay at Home
VC Journal Data on allocation of 1.064b invested
FY01
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and Look for Technology
VC Journal Data FY01 - by value
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10 Top Tips

• Get the basics right
• - the who why how
• Validate
• - talk to customers
• Great people partners
• - use their networks
• Its not just technology
• - build a better mousetrap
• How much do you want
• - how it will be spent

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10 Top Tips

• Keep it simple
• - even your dog understands
• Its all about selling
• - and sell like an American
• Choose the right investor
• - its like marriage
• Plan to survive
• - happiness isa positive cashflow
• Just Do It

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10 Top Lies of Entrepreneurs

• Our projections are conservative
• Gartner forecasts our market to be US50b
• EDS will sign our deal next week
• Key employees will join us
• We have no competition

Kawasaki, CEO of Garage.com, quoted in Harvard
Business Review January 2001
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10 Top Lies of Entrepreneurs

• We need a non disclosure agreement
• Microsoft is too slow to be a threat
• Were glad the TechWreck occurred
• Our patents make our business defensible
• All we need is 1 of the market

Kawasaki, CEO of Garage.com, quoted in Harvard
Business Review January 2001
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Before the Deal

• Proposal Investment Memorandum
• MOU Term Sheet - valuation, deal structure
• Due Diligence
• Syndication
• Final Presentation
• Investment Contract Subscription Agreement

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After the Deal

• Driving management to meet targets
• Board seat
• Adding value
• Want their money back after 3-5 years
• Willing to force an exit
• Willing to shut down the company

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Conclusion