Raising Capital Crowdfunding to Venture Capital

Faysal A. Sohail General Partner CMEA Capital

December 16th 2013 Amman. Jordan

CMEA VI Venture Portfolio Progress Macro Trends

$$$ Future of Venture Capital

n Pivoting

Crowdfunding

Frontier Markets

Funding Sources

Crowdfunding

IPO Debt

Angels

F&F&F Grants

VC

Mezzanine

All Money is not equal!

CMEA VI Portfolio Progress Crowdfunding

CMEA VI Portfolio Progress Crowdfunding Platforms

Donation $ Sell your Future! $$$$

Equity $$$

Lending $$

Reward & Royalty $

CMEA VI Portfolio Progress Crowdfunding Platforms

Donation Based (Kickstarter, Indiegogo, )

Feel good. Non-profit activity

Rewards/Royalty Based (Kickstarter,

Product pre-sales, % of profit

Lending Based (Somolend, Lending Tree, )

ROI, lower cost than banks

Equity Based (Crowdfund, ..

SEC will allow based on Jobs act

Future Earnings Based (Upstart, )

Algorithms to determine your future value

CMEA VI Portfolio Progress Crowdfunding Trends

Equity based
90 day waiting window by SEC

Vertical Platforms (Quirky, Appbackr,)

Mobile Apps, Culinary, Hardware, Arts,

Social
Customers and supporters

CMEA VI Portfolio Progress Venture Capital

Venture Capital Trends What VCs look for in deals VC Terms Common mistakes by Entrepreneurs

CMEA VI Portfolio Progress Technology/Energy Sector

Trends
Big Data as Driver!
Cloud

Is Hardware Dead?

Semiconductors, Systems

Comms, Solar, Wind, Battery

Mobile

Cloud storage Security Social Bandwidth

Age of Robotics!

SaaS/PaaS/IaaS Rules

Industrial

Consumer

Healthcare

Military

CMEA VI Portfolio Progress Venture Trends Continued

Storage, AI computing, Big Data, Security => Information Low cost hardware!

Indoor location, smart automation Personal health IT

CMEA Portfolio Progress WhatVI We Look for in Deals

A+ teams!
Large, growing, underserved markets Reasonable capital requirements Ability to execute quickly

Passion!!! not just greed!!!!

CMEA VI Portfolio Progress Valuations

Angel/F&F led convertible bridge notes Not to exceed valuation with a discount Revenue and EDIBA multiples Discount to IPO or M&A

Multiple Term Sheets are Key

CMEA VI Portfolio Progress Other Terms

Liquidation Preferences
Options Pool (Pre or Post) Board Seats Protective Provisions

Pre Money is not end all!!

CMEA VI Portfolio Progress Common Mistakes

Fail to explain the big picture Incomplete team

Get hung up on valuation Dont target the right VC!

CMEA VI Portfolio Progress (Startup Additional Thoughts

of You)

Life & careers are in permanent beta Court serendipity & good randomness

Life & careers are in permanent beta Embrace risk, it will find you anyway!
we

Power of the network

Manage your own brand!

Raising Capital Crowdfunding to Venture Capital

Faysal A. Sohail General Partner CMEA Capital
December 16th 2013 Amman. Jordan