Ryan CEO English Seminar-Day 3

W. Ryan Huddleston

[email protected]+82-10-5533-3042Blog: http://ryanceoseminar.blogspot.com

English CEO Seminar

Day 3: September 5th, 2011

Topic: VC/Cultural Differences

mailto:[email protected]

http://ryanceoseminar.blogspot.com/

Copyright @Ryan Huddleston, http://ryanceoseminar.blogspot.com

Seminar Curriculum

5 Part English Seminar Part 1: 8/22/11 Part 2: 8/29/11 Part 3: 9/05/11 Part 4: 9/19/11 Part 5: 9/26/11

Class Hours: 7:00-9:00pm Location: Nulikum Square


Seminar Focus

1.Elevator Pitch

2.Presenting Effectively to Venture Capitalists

3.Learning Cultural Differences

4.Increased Ability to Freely Talk in English


Day 3 Focus

1. Work on Elevator Pitch: Market, Advantage

2. Venture Capitalist Roles

3. Venture Capital/Business Differences

4. Foreign Investor Difficulties

5. IR Timeline


SmugMug Elevator Pitch


Elevator Pitch Structure

1. Yourself 2. Company 3. Team 4. Market 5. Advantage 6. Profits 7. Conclusion

5 W’s1. WHAT is your company?2. WHAT does your COMPANY

do?3. WHO does your company

do it for?4. WHY do they care?5. WHY is your company

DIFFERENT?


Korean ‘Graveyard’

Labor Unions

‘Graveyard’ of foreign firms

Ticket Monster’s Daniel Shin: Korea’s Uniqueness comes from 2 Factors:

Timing

Barriers to Entry

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What is a Venture Capitalist?

More than just high risk investment…

1. Strategic (growth assistance)

2. Interpersonal

3. Support (management assistance, monitoring)

Maximizing value for portfolio company

Then…getting reward through IPO/M&A


Venture Capitalist Time Spent

Directors and Monitors

Recruiting Managers

Acting as Consultants

Business Selection

0% 5% 10% 15% 20% 25% 30%

VC Roles

Venture Capital Differences

American

Venture investing companies Investment for

return

Potential high early stage investments Staged financing

Bigger venture funds More pension

funds/insurance companies

Korean

Mainly group or corporation based (Ex: Samsung Group) Investment in

business related partner

Generally less investment and lower early stage investments

Smaller venture funds

Venture Capital Differences

American

Control and Oversight are more important More partners,

frequently attend board meetings

Less companies per VC More time spent

monitoring funds in portfolio

Korean

More selection and funding based (hands off) More fund

assistance focused (finding and investing)

More companies per VC

Some more ‘loan’ based (payback required)

Presentation Differences

American

Few bullet points, info on the slides

Mostly images, headlines

Focus: the presenter

Korean

Lots of bullets, information on the slides

Like a book Focus: the

PowerPoint


Foreign Investment Difficulties (Investor POV)

Harder for VCs to find you Meetings are less frequent Different Laws Differences in Business Cultures Exit Strategies Many other issues; banking, accounting, tax

Main Point:

Don’t assume foreign investors understand investment in Korea


Foreign Investment

• Begun spending more abroad• Almost 60%

investing outside of the country

• Dixon Doll, founder of DCM, an Asia-focused venture firm:• Asian countries:

advantages over the U.S. in technology

• Well trained, reasonably priced engineers

• Know how to build local services • “Local talent, local

markets”


Foreign Investment

• Most important sectors• Cloud

computing• Social media• Software• Healthcare

services

• Investing abroad?• 57% will

increase investments in next 5 years


Venture Capital Cycle

Raising a Venture Fund

Investing, Monitor-ing, Adding Value to Firms

Exiting and Provid-ing Return to In-vestors


IR Timeline

1st Investing Event

2nd Investing Event

3rd Investing Event

Bridging Investment

Pre investment

Post and Pre Inv.

Post and Pre Inv.

Planning how to sell your company to the next stage of investors: • Elevator pitch• Presentation• Added confidence from prior

investment


Element Bars (Investment)


After Class Assignment

1. Finish the Profits and Conclusion Sections of the English Elevator Pitch

- Email the parts before the next class- [email protected]

2. Preview of next class:- Elevator Pitch- Elevator Pitch Presentation/Discussion- VC Feedback

Economy & Finance

Ryan CEO English Seminar-Day 3