TOFI Oct. 20, 2015 Fundraising: Scheschuk

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GLOBALIVE CAPITAL

FOUNDER INSTITUTE

Bootstrapping and Fundraising

October 20, 2015

CONFIDENTIAL 1



CONFIDENTIAL 2

OPERATORS AND INVESTORS



CONFIDENTIAL

EXECUTIVE SUMMARY

3

Globalive Capital is the investment company of Anthony Lacavera, Brice

Scheschuk, Simon Lockie and David Roff (“Lacavera”, “Scheschuk”, “Lockie”, “Roff”, collectively the “Principals”)

Globalive was founded in 1998 by Lacavera with no capital. The Principals have

grown the equity value of Globalive Capital to ~$115 million

Each Principal has approximately 20 years operating and investing experience,

complementary skill sets and have worked together for most of their careers

Principals founded and manage(d) five substantial operating companies: WIND

Mobile ($500M revenue, $60M EBITDA), Globalive Communications ($120M

revenue*, $23M EBITDA*), Enunciate Conferencing (sold to Premiere Global for

$30 million), Pragmatic Solutions ($10M revenue, $2M EBITDA), Brock View

Rentals ($8M property portfolio)

Principals have raised in excess of $2 billion (debt and equity), invested in > 50

funds and companies and completed numerous M&A transactions. Experience

across credit, private and public markets. Global relationships

Globalive has an active portfolio that includes fast growing telecommunications

services, real estate, funds and direct investments

Principals have many successful exits and have recycled capital to build equity

value

* At peak in 2007

HISTORY

OPERATORS /

INVESTORS

ACTIVE



CONFIDENTIAL

TEAM

4

Anthony Lacavera is the founder and Chairman of Globalive Capital

Previous: CEO of WIND Mobile and Globalive Communications

Widely recognized Canadian entrepreneur and investor

Numerous awards including CEO of the Year, Top 40 Under 40, 50 Most Influential Torontonians

Brice Scheschuk, CPA, CA is the CEO of Globalive Capital

Previous: CFO (Finance, HR, Procurement and Supply Chain) of WIND Mobile and Globalive Communications

Previous: Corporate Controller at Leitch Technology and Audit / Consulting at PricewaterhouseCoopers

Simon Lockie, LL.B. is the CLO of Globalive Capital

Previous: CRO (Regulatory) of WIND Mobile and Globalive Communications

Previous: Partner at Davies Ward Philips & Vineberg

David Roff, CPA, CA is the CIO of Globalive Capital

CFO of Brock View Rentals

Previous: Audit / Consulting at Pricewaterhouse Coopers

GLOBALIVE PRINCIPALS SERVE ON NUMEROUS BOARDS AND HAVE A

LONGSTANDING REPUTATION FOR MENTORING EXTREPRENEURS



CONFIDENTIAL

RELEVANCE

5

“

see it as the responsibility of every successful entrepreneur to act as a mentor and coach

for the next generation of entrepreneurs.”

- Steve Case

Three things a founder should focus on:

Idea / strategy

People Capital

Raising capital efficiently will make or break your business.

Every deal is unique. My presentation contains numerous examples from deals in which we

have invested. I hope it is helpful.



CONFIDENTIAL

BOOTSTRAPPING (1 OF 2)

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With certain exceptions (e.g. WIND Mobile, consumer receivables, large infrastructure, etc.), I

believe wholeheartedly in bootstrapping.

Limiting capital limits dilution (within reason as you often need to accelerate growth at the

right time and this is the delicate balance). Equity is as precious as your time and health.

Bootstrapping is a state of mind that should pervade a start-up – survival, free money, cheap

in everything EXCEPT traction to carefully planned milestones.



CONFIDENTIAL

BOOTSTRAPPING (2 OF 2)

7

Idea Product

2.0

Product

1.0

Product

3.0

Sales /

Marketing

Prelim

Local /

Global

Traction

Initial

S / M

Traction

BOOTSTRAP

(STARVE, LOCAL)

Product

Sales / Marketing

SEED, A, B, C, ETC.

(ACCELERATE, GLOBAL)



CONFIDENTIAL

EARLY CAPITAL - $5K - $50K

8

Bootstrap is family, friends, free / advantaged money. Outlier – early customer traction,

prepaid contracts, pilots.

Family / friends – make sure you can still join Christmas dinner if something goes wrong. Be

honest and take money in good faith, full disclosure and within the other

person’s

means.

Look for free / advantaged money, space, infrastructure (grants, FedDev, IAF, SRED, BDC

notes, other government, university) tailored to your venture (e.g. MARS, Hatchery, Creative

Destruction, The Next 36, Y Combinator, Highline, FounderFuel, etc.).

Leave no stone unturned but bring it back to strategic where possible, in particular with free

/ advantaged money.



CONFIDENTIAL

ANGELS - $50K - $1M

9

Angels can be more strategic and sophisticated than bootstrap capital. First round find

angels that add strategic value (relevant expertise) and can spend the time.

We have invested multiple times because a trusted, strategic co-investor invested before or

beside us and is spending substantial time on the deal (and vice versa).

Individual angels are more interesting as you move out of the bootstrap phase. Angel

networks (which are sometimes quite painful) can be useful for larger raises or meeting

individual angels. Get to angels through networking and referrals – get your name out there.

Outlier – venture debt (Espresso Capital, etc.).



CONFIDENTIAL

OTHER

10

Stages of capital (valuation will synchronize) should be defined by specifically quantifiable

milestones.

Milestones should move very quickly from product to customer. I would never invest without

a well defined and reasonably developed Product 1.0. What to do if you miss milestones?

Let me tell you about WIND Mobile…

As my buddy Dan Shimmerman says, “ on’t really care about product. Sales and marketing

are where deals are won or lost.”

Pitching for capital is an art and a science involving networking and presentation skills. I

have a separate pitch presentation that I am happy to share. Watch Steve Jobs launching

the first iPhone for the ultimate pitch



CONFIDENTIAL

DEAL 1 - SURFEASY

11

Secured Browser / Private VPN / IP Masking

BACKGROUND

FINANCING PROGRESSION

Mantella Venture Partners

Comerica venture debt

MARS IAF

SRED

Two angel rounds

Customers – TV shopping networks

Exit to Opera



CONFIDENTIAL

DEAL 2 - SCENEDOC

12

Cloud based CSI technology for field investigation using mobile tools

BACKGROUND


Friends and family including in-kind for sales and finance

Early angel round with Tim Lett (highly strategic, SaaS expert)

Angel round

MARS IAF

Motorola Ventures / iGan Partners



CONFIDENTIAL

DEAL 3 – PRAGMATIC SOLUTIONS

13

Collaboration, digital media, events

BACKGROUND


Wholesale deal with Globalive for telecom infrastructure and finance support

Two angel loans with a revenue royalty that eventually converted to equity

Credit facility from Bank of Montreal





CONFIDENTIAL

DEAL 5 – BROCKVIEW RENTALS

15

Real estate (student and single family)

BACKGROUND


Family funding from operator, remainder Globalive principals

Personal guarantees for mortgages

Property management contract for operator



CONFIDENTIAL

DEAL 6 – URTHECAST, SLYCE, VOGOGO, TRACE, HOW

16

Business concepts originated and accelerated by Business Instincts Group

Satellite, imagery, image search, bitcoin, drones, wound care

BACKGROUND


Two angel rounds at formulaic increasing values

Go public transaction with CPC (RTO) and equity / debt financing as required thereafter



CONFIDENTIAL

DEAL 7 – PITCHPOINT SOLUTIONS

17

Compliance solutions for U.S. mortgage banks

BACKGROUND


Multiple angel rounds

SRED

Venture capital round

Venture debt round



CONFIDENTIAL

DEAL 8 – MILL STREET BREWERY

18

Craft brewery with pubs

BACKGROUND


Multiple angel rounds – danger of infrastructure

Bank lines of credit

Exit to Labatt / AB InBev



CONFIDENTIAL

DEAL 9 – TOUCHBISTRO

19

Tablet-based point of sale solutions for restaurants

BACKGROUND


Multiple angel rounds

Venture capital Series A



CONFIDENTIAL

DEAL 10 – GLOBALIVE COMMUNICATIONS

20

Telecom services

Consumer – Yak

Business / Hospitality - OneConnect

BACKGROUND


Two angel rounds plus a secondary

Divested tucked in divisions to generate liquidity

Senior secured bank facility to acquire Yak



CONFIDENTIAL

DEAL 11 – WIND MOBILE

21

New entrant, facilities base wireless

BACKGROUND


Strategic foreign investor – Orascom / VimpelCom

Equipment suppliers – Alcatel-Lucent, Huawei / ICBC, Nokia / Providence / Tennenbaum

/ ING

Equity recap and treasury – West Face, Tennenbaum, Guffey, Serruya, Hui

Private debt – Canyon Partners Bank / ECA facilities

Documents

TOFI Oct. 20, 2015 Fundraising: Scheschuk