New Markets Venture Partners
New Markets Venture Partners
March 2008 Mark Grovic, General Partner [email protected]
New Markets Venture Partners
New Markets – Our Profile
Deep and Experienced Investment Team 15 year venture investment history in US and International markets 3 partners with extensive experience in early stage investing $25 million Fund I, raising $60 million Fund II Investment Strategy Lead or co-lead investor in 70% of portfolio companies Focus on early stage technology and business services Work with strong syndicate investors East Coast geographic focus Active Investment Approach Focus on strong management teams Board Seat or Observer Seat on all investments Regular contact with management team
New Markets Venture Partners
Management Team Don Spero, General Partner & Co-Founder
21 yrs operator (CEO, Fusion Sys), 10 yrs VC & Angel (Spero QS, NMVP) Ph.D., Columbia, B.S., Cornell
Mark Grovic, General Partner & Co-Founder
15 yrs VC (NMVP, Baltic SEF, SEAF, Templeton, Calvert) J.D., Georgetown, Grad work finance/acctg, Pace/GWU, B.A., UC-Berkeley
Robb Doub, General Partner
14 yrs VC (NMVP, Baltic SEF, SEAF, Calvert) M.B.A., Georgetown, B.A., Vermont
Frank Bonsal, III, Partner 7 yrs VC & Advisory (Bonsal Cap & Education Cap), 14 yrs ED practitioner
M.B.A. / M.Ed., Vanderbilt, B.A., New Hampshire
Rajesh Rai, Partner & Co-Founder
5 yrs VC (NMVP), 5 yrs operator (GE, Kirloskar, Career Plan) M.B.A., Maryland, M.S., IIFT, India, B.S., REC Suratkal, India
Frank Bonsal, Jr., Special Partner
30 yrs VC & Angel (Co-Founder, NEA & Red Abbey VP), 15 yrs I-Banking (Alex Brown) A.B., Princeton
CONFIDENTIAL
3
New Markets
New Markets – Portfolio Companies
Venture Partners
Enterprise Software
Wireless Tech
Medical Devices
Web Services
New Markets Venture Partners
Investment Strategy: Equity & Exit Gap EQUITY GAP
Top-Performing VC Funds Moved Up-Market in 2006
Valhalla ($260M), Updata ($200M), Novak Biddle ($227M), Columbia ($560M), JMI ($600M), NEA ($2.5B)
$60M exit is 10X more common than $200M+ exit Strong Investment Demand in $1-$5 million range
Early Stage ≠ Seed Stage or Start Up
20 Yr early stage VC returns = 36% IRR for top quartile
Fund Returns
10yr 20 yr
Early VC
38%
21%
Balanced VC
17%
15%
Later Stage VC
9%
14%
Buyouts
9%
13%
Mezzanine
6%
8%
All Priv. Equity 11%
14%
NASDAQ
7%
11%
S&P 500
8%
10%
Source: Thomson Financial / NVCA
Alpha not Beta NMVP mostly immune to public market volatility and PE credit crunch Our Approach: Invest in high growth companies, build and sell to strategic buyers
Easy credit evaporates & so does buyout frenzy. (NY Times, 7/27/07)
CONFIDENTIAL
5
New Markets Venture Partners
Investment Strategy: East Coast Focus
Region in Top Three for Returns
Mid-Atlantic VC Fund IRR consistently ranks top three in thirty U.S. markets Region
3 year
5 Year
10 Year
No. California Mid-Atlantic New England
24.8 27.3 12.5
48.9 45.7 23.8
35.6 31.8 27.7
Source: Mid-Atlantic Venture Association
Source: National Science Foundation, 2006
Access to Rich I.P. in Region
60% of NMVP Technology from University or Federal Labs Active University Partnerships University of Maryland System Johns Hopkins University University of North Carolina University of Pennsylvania Columbia University
CONFIDENTIAL
Regional R&D Spend ($4.2B) >3X Stanford + MIT, whereas VC Spend
March 2008 Mark Grovic, General Partner [email protected]
New Markets Venture Partners
New Markets – Our Profile
Deep and Experienced Investment Team 15 year venture investment history in US and International markets 3 partners with extensive experience in early stage investing $25 million Fund I, raising $60 million Fund II Investment Strategy Lead or co-lead investor in 70% of portfolio companies Focus on early stage technology and business services Work with strong syndicate investors East Coast geographic focus Active Investment Approach Focus on strong management teams Board Seat or Observer Seat on all investments Regular contact with management team
New Markets Venture Partners
Management Team Don Spero, General Partner & Co-Founder
21 yrs operator (CEO, Fusion Sys), 10 yrs VC & Angel (Spero QS, NMVP) Ph.D., Columbia, B.S., Cornell
Mark Grovic, General Partner & Co-Founder
15 yrs VC (NMVP, Baltic SEF, SEAF, Templeton, Calvert) J.D., Georgetown, Grad work finance/acctg, Pace/GWU, B.A., UC-Berkeley
Robb Doub, General Partner
14 yrs VC (NMVP, Baltic SEF, SEAF, Calvert) M.B.A., Georgetown, B.A., Vermont
Frank Bonsal, III, Partner 7 yrs VC & Advisory (Bonsal Cap & Education Cap), 14 yrs ED practitioner
M.B.A. / M.Ed., Vanderbilt, B.A., New Hampshire
Rajesh Rai, Partner & Co-Founder
5 yrs VC (NMVP), 5 yrs operator (GE, Kirloskar, Career Plan) M.B.A., Maryland, M.S., IIFT, India, B.S., REC Suratkal, India
Frank Bonsal, Jr., Special Partner
30 yrs VC & Angel (Co-Founder, NEA & Red Abbey VP), 15 yrs I-Banking (Alex Brown) A.B., Princeton
CONFIDENTIAL
3
New Markets
New Markets – Portfolio Companies
Venture Partners
Enterprise Software
Wireless Tech
Medical Devices
Web Services
New Markets Venture Partners
Investment Strategy: Equity & Exit Gap EQUITY GAP
Top-Performing VC Funds Moved Up-Market in 2006
Valhalla ($260M), Updata ($200M), Novak Biddle ($227M), Columbia ($560M), JMI ($600M), NEA ($2.5B)
$60M exit is 10X more common than $200M+ exit Strong Investment Demand in $1-$5 million range
Early Stage ≠ Seed Stage or Start Up
20 Yr early stage VC returns = 36% IRR for top quartile
Fund Returns
10yr 20 yr
Early VC
38%
21%
Balanced VC
17%
15%
Later Stage VC
9%
14%
Buyouts
9%
13%
Mezzanine
6%
8%
All Priv. Equity 11%
14%
NASDAQ
7%
11%
S&P 500
8%
10%
Source: Thomson Financial / NVCA
Alpha not Beta NMVP mostly immune to public market volatility and PE credit crunch Our Approach: Invest in high growth companies, build and sell to strategic buyers
Easy credit evaporates & so does buyout frenzy. (NY Times, 7/27/07)
CONFIDENTIAL
5
New Markets Venture Partners
Investment Strategy: East Coast Focus
Region in Top Three for Returns
Mid-Atlantic VC Fund IRR consistently ranks top three in thirty U.S. markets Region
3 year
5 Year
10 Year
No. California Mid-Atlantic New England
24.8 27.3 12.5
48.9 45.7 23.8
35.6 31.8 27.7
Source: Mid-Atlantic Venture Association
Source: National Science Foundation, 2006
Access to Rich I.P. in Region
60% of NMVP Technology from University or Federal Labs Active University Partnerships University of Maryland System Johns Hopkins University University of North Carolina University of Pennsylvania Columbia University
CONFIDENTIAL
Regional R&D Spend ($4.2B) >3X Stanford + MIT, whereas VC Spend
