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Seed-Stage InvestingA Totally Different Ballgame

Starter Fluid,SM L.P.Robert von Goeben, Managing Director

415.504.9610rvg@starterfluid.com

SM

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Robert von GoebenRobert von Goeben

• Managing Director – Starter Fluid, L.P.– One of few institutionally backed seed funds

• Founder Redleaf Ventures– One of first Internet-only funds

• Geffen Records – Head of Internet/Online activities

• Author – The VC Comic Strip – http://www.thevc.com

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Starter Fluid Deal SpecsStarter Fluid Deal Specs

• SF Initial Investment: $100-500K in Series A of up to $2M or bridge

• SF Total Investment: up to $3M• Valuation: Under $10, usually under $6M• Board: Board of Advisors, BOD observer• Standard Terms: Right to pro-rata, • Market Segments: Enterprise

software/services, software infrastructure

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Evaluating OpportunitiesEvaluating Opportunities

• “Team, market, product”

• Do we respect and like the CEO?

• Gut feeling for opportunity?

• Can we help, is it in our area?

• Can we get it more funding?

• It it a true “seed deal”?

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Starter Fluid vs. VCsStarter Fluid vs. VCs

Seed VC

• Customer Interest • Customer Validation

• Short-term upround funding • Long-term upround funding

• Incomplete team • Complete team

• Minority investor in round • Majority investor in round

• 5-20% ownership • 20+% ownership

• Board of Advisors • Board of Directors

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Role in CompanyRole in Company

• Act very much like quality angel

• Assist in recruiting

• Help make industry contacts

• Develop sales/marketing strategy

• Intros for next round