Afin310 Lecture 5
FIN310 - Venture Capital - Investing in early stage growth companies – Lecture 1
Brendon Blacker
Monday 24 March
Introduction to your guest lecturer
Brendon Blacker
Vice President
Macquarie Capital Sydney
STRICTLY CONFIDENTIAL
2
Agenda
Lecture 1 – Monday 24 March 2014
1. Introduction to Macquarie Capital
Lecture 2 – Monday 31 March 2014
— Review questions
— Quick recap
2. Introduction to venture capital
— What is venture capital? How does it work?
3. Investing in early-stage growth companies (continued)
— Who are the main players globally and in Australia?
— What do venture capitalists look for in an investment?
— And… the difference between venture capital and private equity
— How do they make investment decisions?
3. Investing in early-stage growth companies
— What do venture capitalists look for in an investment? — How do they make investment decisions?
— How do they execute on deals?
— How do they execute on deals?
4. Advanced topics in venture capital
— Product – market – team debate
— Getting to product / market fit
— Network externalities
— One and two-sided markets
Appendix 1. About the assignment
Appendix 2. Suggestions for further reading
STRICTLY CONFIDENTIAL
3
Introduction to Macquarie Capital
STRICTLY CONFIDENTIAL
1
4
Introduction to Macquarie Capital
Macquarie’s technology investment team has established a strong track record of investing in growth companies over the past decade
—Achieved outstanding returns with over 25 investments in growth companies
—Broad geographic focus, with key focus on Australia, China and Germany
—Approach based on active engagement and partnering with entrepreneurs during their company’s growth phase
—Direct balance sheet investments rather than via a fund
Target investments – growth companies
Target investments in the range of $5 million to $50 million
Aim to achieve minimum 3x returns on investments
Average investment period is 3 years
Very selective; not a portfolio approach
“Helping
Brendon Blacker
Monday 24 March
Introduction to your guest lecturer
Brendon Blacker
Vice President
Macquarie Capital Sydney
STRICTLY CONFIDENTIAL
2
Agenda
Lecture 1 – Monday 24 March 2014
1. Introduction to Macquarie Capital
Lecture 2 – Monday 31 March 2014
— Review questions
— Quick recap
2. Introduction to venture capital
— What is venture capital? How does it work?
3. Investing in early-stage growth companies (continued)
— Who are the main players globally and in Australia?
— What do venture capitalists look for in an investment?
— And… the difference between venture capital and private equity
— How do they make investment decisions?
3. Investing in early-stage growth companies
— What do venture capitalists look for in an investment? — How do they make investment decisions?
— How do they execute on deals?
— How do they execute on deals?
4. Advanced topics in venture capital
— Product – market – team debate
— Getting to product / market fit
— Network externalities
— One and two-sided markets
Appendix 1. About the assignment
Appendix 2. Suggestions for further reading
STRICTLY CONFIDENTIAL
3
Introduction to Macquarie Capital
STRICTLY CONFIDENTIAL
1
4
Introduction to Macquarie Capital
Macquarie’s technology investment team has established a strong track record of investing in growth companies over the past decade
—Achieved outstanding returns with over 25 investments in growth companies
—Broad geographic focus, with key focus on Australia, China and Germany
—Approach based on active engagement and partnering with entrepreneurs during their company’s growth phase
—Direct balance sheet investments rather than via a fund
Target investments – growth companies
Target investments in the range of $5 million to $50 million
Aim to achieve minimum 3x returns on investments
Average investment period is 3 years
Very selective; not a portfolio approach
“Helping