HEC Business school Lecture / introduction to Venture Capital, entrepreneurial finance and technology companies
Professor Olivier Younes EXPEN / guest speaker christophe raynaud ISAI
Part I is about history of venture capital, general georges doriot, his investment in ken Olsen's DEC Digital Equipment Corporation, Entrepreneurship faculty at Harvard Business School, pionneers of silicon valley (fairchild semiconductor) and pionneers of venture capital (tom perkins, eugene kleiner, Arthur Rock, Don Valentine...)
2. WHO AM I TO SPEAK ?
HEC graduate (last millenium)
Entrepreneur…
- Chateauonline
- Netboussole
- Samaris
…Turned VC (dark side of the force)
- Saeed Amidi (Amidzad partner / plug&play tech center)
- Paris Business Angels
- ISAI
CONTACT : r a y n a u d @ i s a i . Fr / @chraynaud
3. WHAT WILL I BE TALKING ABOUT ?
What is Venture Capital History ?
What is an investment thesis ? What’s ISAI’s ?
How do VC/ISAI source/screen opportunities ?
What makes a great founder ?
8. FATHER OF VENTURE CAPITAL
FRENCH ENGINEER
HBS MBA 1922
FOUNDER OF INSEAD
FOUNDED AR&D in 1946
- $4M RAISED
- FIRST EVER PRIVATE EQUITY / VC FUND
> A FAIL FOR MORE THAN 10 YEARS UNTIL…
10. A $70K INVESTMENT
IN 1958…
…TURNED INTO A
$355M RETURN*
IN 1970
* INCLUDING A $2M LOAN ON TOP
OF THE INITIAL INVESTMENT
11. A $70K INVESTMENT
IN 1958…
…TURNED INTO A
$355M RETURN*
IN 1970
> 5000X MULTIPLE
> 100% IRR
* INCLUDING A $2M LOAN ON TOP
OF THE INITIAL INVESTMENT
12.
13. HBS ENTREPRENEURSHIP ALUMNI
DRAPER & JOHNSON (DGA)
PERKINS (KPCB)
- Compaq/Sun/AOL/Netscape/Google
ARTHUR ROCK (VENROCK)
- 3COM/APPLE/INTEL
- HELPED FAIRCHILD SEMICONDUCTOR
RAISE $1,5M
> BIRTH OF SILICON VALLEY
15. FAIRCHILD SEMICONDUCTOR ALUMNI
ROBERT NOYCE
& GORDON MOORE
(INTEL)
EUGENE KLEINER
(KPCB)
DON VALENTINE (SEQUOIA)
- ATARI/ORACLE/CISCO/YAHOO/YOUTUBE
> BIRTH OF VENTURE CAPITAL
21. … WITH HUGE SOCIAL/ECONOMIC IMPACT
21% OF U.S GDP
2.900.000.000.000 $ (Revenue of US Venture backed Cies)
80% OF JOBS CREATED
12.1 MILLION JOBS ( AT US Venture Bascked Cies)
24. MATURITY PHASE & RECENT TRENDS
CYCLES, WAVES & BUBBLES
BEER INDUSTRY ANALOGY
- BIG BRANDS / MICRO VC
ENTREPRENEURS’ FUND
BASICS STILL TRUE :
- US DOMINATED INDUSTRY
- HIT DRIVEN INDUSTRY