Upload
global-silicon-valley
View
284
Download
1
Embed Size (px)
Citation preview
2016 GSV Capital 3rd Annual Investor Day
June 1, 2016
Michael Moe, CFA Co-Founder, GSV @michaelmoe
GSV Capital (NASDAQ:GSVC)
Investors GSVC Investments
Public Growth - Ins!tu!onal - Individual - Family Office
2015 IN REVIEW
$54.2 Million Net Realized Gains
$2.76 Dividend
RIC APPROVAL
Investments in:
43 Net Promoter Score
Por!olio Companies
LESSONS LEARNED First 5 Years
1) Focus on emerging growth stage companies… Series B and beyond.
2) Don’t buy shares too close to the IPO.
3) We’re agnos!c between primary and secondary shares… but GSV has compe!!ve advantages in secondaries.
4) Avoid “lead” investments and make sure there are top ins!tu!onal investors involved.
5) Sell when you have an opportunity at a fair price.
6) Create unfair advantages through GSV ecosystem… a strong brand creates opportuni!es.
7) Being right on the fundamentals is more important than being perfect on valua!on.
8) Create our own research rather than relying on “experts” and pundits.
9) Short term market vola!lity creates long term investment opportunity.
10) It’s all about the PEOPLE. Great TEAMS find a way to win.
PORTFOLIO State of Play
47 Investments
Q1 Net Assets 2016
$243.1 Million
Q1 NAV 2016
$10.96 per share
100%+ Por!olio Growth Rate
2013 2014 2015E
104%145%
100%
6%
49%
11%26%
9%
Series ASeries BSeries CSeries D & LaterPublic
91% Investments B Round + Beyond
*Figures are based upon the fair value of each holding as of March 31, 2015, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to March 31, 2015. In either case, these values are divided by the net assets of GSV Capital as of March 31, 2015.
34%67%
PrimarySecondary
Primary vs. Secondary Investments
*Figures are based upon the fair value of each holding as of March 31, 2015, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to March 31, 2015. In either case, these values are divided by the net assets of GSV Capital as of March 31, 2015.
6%13%
33%
18%30%
Educa!on TechnologySocial/MobileCloud/Big DataMarketplacesSustainability
Por"olio Distribu!on by Sector
*Figures are based upon the fair value of each holding as of March 31, 2015, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to March 31, 2015. In either case, these values are divided by the net assets of GSV Capital as of March 31, 2015.
GSV Invests Alongside Leading VCs
4
8
12
8
4
856
*Number of Investments to date
Top 10 Posi!ons = 54% of Por"olio14.2%
5.9%
5.0%
4.4%
4.3%
4.3%
4.2%
4.1%
3.7%
3.7%
Realized Gains &
Losses 2015
Gains $64.6M
Losses $10.4M
Net $54.2M
IRR 31.7%Calculated based on full realized gains/losses that occurred in 2015, not including the par"al sales made in Twi#er ($40.2MM in net proceeds) and SugarCRM ($1.9MM in net proceeds) as GSV Capital s"ll hold both posi"ons.
$26.9 Million Realized Gain
40.9% IRR
$37.2 Million Realized Gain
65.1% IRR
Realized LossesTotus Solu!ons ($6,052,203)
DailyBreak ($2,854,204)rSmart ($1,264,160)
NewZoom ($260,476)TOTAL ($10,431,043)
$31 Million 2015 Investments
$10 Million 2015 Investment
$16.2 Million Fair Value, Q1 2016
100 Million Users
30 Million Subscribers
50% Younger than 27
Source: Company Disclosures
70% Reten"on of 2010
CustomersSource: Company Disclosures
$4 Million 2015 Investment
$5.4 Million Fair Value, Q1 2016
+
$2 Million 2015 Investment
$12 Million Fair Value, Q1 2016
$4 Million 2015 Investment
$14 Million Fair Value, Q1 2016
93 Million Americans Un-banked or
Under-banked
Source: FDIC
$2.5 Million 2015 Investment
$14.0 Million Fair Value, Q1 2016
$1 Billion Series F Led by GM
Global Alliance
$3.5 Million 2015 Investment
$6.9 Million Fair Value, Q1 2016
Supply & Demand
Annual IPOs: 1990 - 2000
406
Source: University of Florida (Professor Jay Ritter, Cordell Professor of Finance, 2016)
Annual IPOs: 2000 - 2015
111
406
Source: University of Florida (Professor Jay Ritter, Cordell Professor of Finance, 2016)
77 VC backed companies went public in 2015
3.1 Years Time to Mone"za"on
2000
10 Years Time to Mone"za"on
2015
3,200 Average number of
companies VC invested in 2001-2015
3,709 Companies Receiving VC
Investment in 2015
2,000+ VC-Backed Private
Companies with $100M+ Market Value
16,000
2,000
250
25
35,000 VC-Backed Companies
IPO Market Cap
<$100M Enterprise Value
>$1B Enterprise Value
1990s Today
$1.9 Trillion U.S. Corporate
Cash
Source: New York Times
More than India’s ENTIRE GDP
You could effec!vely purchase:
Technology Industry Rapidly Consolida!ng
2010-2015
504 M&A Transac!ons
Source: Capital IQ, GSV Asset Management
2010-2015
$112 Billion Transac!on Value
Source: Capital IQ, GSV Asset Management
U.S. Publicly Traded Stocks
Declining
Source: Wilshire Associates, GSV Asset Management (Note: Excluding Investment Funds and Trusts)
1997
Un!tled 1
7,313
U.S. Publicly Traded Stocks
Declining
Source: Wilshire Associates, GSV Asset Management (Note: Excluding Investment Funds and Trusts)
TODAY
Un!tled 1
3,700
7,313
Magic of Silicon Valley =Exponential Ideas
Auto Industry?
Annual R&D Spend:
$7.2 Billion
Source: Company Disclosures
1060Auto Innova"on
Time
Valu
e
1060Tesla = Exponen!al Innova!on
Time
Valu
e
Why Invest in Leaders?
Winner Take All Economy
Value
Scale
10M Users
1.6B Users
Source: New York Times, GSV Asset Management
Value
Scale
21% Search
64% Search
Source: Yahoo Finance
Value
Scale
170M Users
1.1B Users
Source: YouTube, Vimeo
Value
Scale
$125M Revenue
$107B Revenue
Source: Yahoo Finance, Fortune
Source: Economic Policy Institute
CEO Compensa!on
$20
$5,015
$10,010
$15,005
$20,000
1970 1980 1990 2000 2010
Median Income $27K
303x
23x
Source: Forbes
Major League Baseball
$20
$1,140
$2,260
$3,380
$4,500
1970 1980 1990 2000 2010
Median Income $27K
MLB Salary $4.3M
Investment Theme
EDUCATION TECHNOLOGY
50%+ Low Income Students 2000: 4
56%
60%
63%
51%
Source: The Atlantic, Southern Education Foundation, New York Times
50%+ Low Income Students Today: 20
55%
51%59%
50% 68%
60%
61% 61%
65%
71%
58%
51%
50%52%
53%
58%60%58%
59%
51%
Source: The Atlantic, Southern Education Foundation, New York Times
40%+ Low Income Students Today: 39
55%
51%59%
50% 68%
60%
61% 61%
65%
71%
58%
51%
50%52%
53%
58%60%58%
59%
51%
49%
45%
47%
42%
40%
44%
48% 45%
40%49%
47%40%
48%
43%
46%43%
41%
42%
40%
Source: The Atlantic, Southern Education Foundation, New York Times
Low-Income Students 5x More Likely to
Drop out of High School
Source: American Psychological Association
Source: Bill & Melinda Gates Foundation, National Education Association
Dropouts 8x More Likely to
Go to Prison
Source: National Education Association
80% U.S. Prison Popula"on High School Dropouts
400
450
500
550
600
< $20K $40K - $60K $80K - $100K $120K - $140K $160K - $200K
Reading Math Wri!ng
SAT Scores and Family Income
Source: College Board
0%
19%
38%
56%
75%
No College Community College Compe!!ve Most Compe!!ve
Enrollment from Top Quar!leEnrollment from Bo#om Quar!le
Locked Out of Elite Colleges
Source: Pew Research Center
Income Quartile Graduate from CollegeTop 75%
Second 33%
Third 20%
Bottom 8%Source: Pew Research Center
70% of Poor Americans Never Make it to the Middle Class.
Move to Middle+ Stay Put
70%
30%
Source: Pew Research Center
Talent is equally distributed by zip
code…
but opportunity is not.
Educa!on Innova!on…
Time
Valu
e
?
…Exponen!al Opportunity
OPPORTUNITY GAP
Time
Valu
e
Weapons of Mass Instruction
KNEWTON Founded 2008
10+ Million Students
16+ Billion Recommenda"ons
CLEVER Founded 2012
20+ Million Users
COURSERA Founded 2012
18+ Million Students
Investment Theme
SUSTAINABILITY
$0
$20
$40
$60
$80
1977 1983 1989 1995 2001 2007 2013
Moore’s Law in Solar - Swanson’s Law
Solar Cost Declines = Grid Parity
Source: Bloomberg New Energy Finance
Time
Valu
e
Investment Theme
CLOUD + BIG DATA
History of Mankind to 2014
2014 to 2016<
Amount of Data Created
500+ Million Users
1.2 Billion Files Uploaded Daily
Source: Company Disclosures
150,000 Business Customers
Source: Company Disclosures
50% Programs
Watched Were Recommended
Source: Company Disclosures
50% Accuracy
Lung Cancer Diagnosis
Source: The Fourth Industrial Revolution (Klaus Schwab), FortuneSource: IBM
90% Accuracy
Lung Cancer Diagnosis
Source: The Fourth Industrial Revolution (Klaus Schwab), Fortune
$880 Million December 2015 Financing
Source: New York Times
$222 Million U.S. Military Contract Awarded in May
Source: Washington Technology
Investment Theme
Marketplaces
3x Ride Growth 2014-2015
Source: Forbes
11 Million Rides in April
Source: Forbes
5+ Million Members
Source: Company Disclosures
Investment Theme
Social / Mobile
100+ million usersSource: Company Disclosures
9,000 photos uploaded every second
Source: Company Disclosures
10 billion daily video viewsSource: Company Disclosures
Investment Theme
Virtual Reality
AR/VR Industry
$90 Million
$5.2 Billion
2014
2018
176% CAGR
Source: Statista
Lytro fact Lytro
Silicon Valley 3.0
1970
Personal Computer
Graphical User Interface
Computer Mouse
Ethernet
INSERT BETTER PHOTO
GSVlabsInnova!on
Pla#orm
Talent
Startups Corpora!ons
170+ Startups
$200+ Million Raised
GSVlabsEconomic
Model
Corporate Sponsorship
Educa!on Programs
Rent Events
+
Bangalore
Delhi
TOP 50 GLOBAL INNOVATION CENTERS