The Equity Spectrum
David Kirkpatrick
Fueling Growth for Florida’s Economy and Companies
Durham, NC 919.530.1177 New York, NY 212.209.3042 www.sjfund.com
Getting Ready for Equity™ Disney Entrepreneur Center Orlando, FL July 23, 2008 >
Raising Equity – In Good Company? Fannie Mae, Freddie Mac Merrill Lynch, National City Bank, RBS Google, Yahoo, Federal Express Intel, Genentech, Microsoft, Home Depot
•Freddie commits to raising $5.5 bln in capital •Mortgage giant registers with the SEC; limited interest from investors seen •Last update: 5:37 p.m. EDT July 18, 2008 •SAN FRANCISCO (MarketWatch) -- Freddie Mac committed on Friday to raising $5.5 billion in capital and said it has registered with the Securities and Exchange Commission.
2
© 2008 SJF Advisory Services
Venture Capital Impact on Economy
3
Š 2008 SJF Advisory Services
VC: 0.2% GDP INVESTED INTO 17.6% GDP IN REVENUES
4
© 2008 SJF Advisory Services
VC BACKED COMPANIES EMPLOY 300,000+ IN FLORIDA AND HAVE $74b+ IN REVENUEÆ
5
© 2008 SJF Advisory Services
The Equity Spectrum – From Individuals to Companies
PUBLIC COMPANY COMPARABLES
www.privateequitycouncil.org/studiesresearch/
7
Š 2008 SJF Advisory Services
FLORIDA – THIRD HIGHEST STATE ALLOCATION TO P.E. Florida State Board of Administration manages $123B of which 3% is allocated to private equity, or $3.3B, with a target allocation of $6.1B as of a 2007 survey. Private Equity Council
www.sbafla.com
LIFECYCLE OF VENTURE CAPITAL FUNDS
•http://www.capman.com/En/AboutCapMan/PrivateEquityInvestments/Privateequityfunds/
10
© 2008 SJF Advisory Services
FLORIDA: 6% OF U.S. POPULATION, 2% OF VC INVESTMENT PricewaterhouseCoopers/National Venture Capital Association MoneyTree(tm) Report Investment Amount Year-Qtr
All
Florida
# of Deals %Florida
All
Florida
% Florida
1995-1
$
1,704,471,700
$
77,346,200
4.54%
497
16
3.22%
1996-1
$
2,414,445,200
$
101,367,000
4.20%
573
10
1.75%
1997-1
$
3,047,368,500
$
189,476,900
6.22%
759
18
2.37%
1998-1
$
4,118,197,500
$
159,593,000
3.88%
847
21
2.48%
1999-1
$
6,611,857,400
$
191,228,000
2.89%
916
29
3.17%
2000-1
$ 28,386,227,800
$
1,002,016,300
3.53%
2128
49
2.30%
2001-1
$ 12,826,312,300
$
249,641,000
1.95%
1285
31
2.41%
2003-1
$
4,301,414,100
$
57,472,000
1.34%
693
12
1.73%
2004-1
$
5,277,910,400
$
128,645,800
2.44%
711
19
2.67%
2005-1
$
5,054,231,500
$
98,356,900
1.95%
726
16
2.20%
2006-1
$
6,406,574,500
$
37,306,000
0.58%
871
12
1.38%
2007-1
$
7,502,944,400
$
162,029,800
2.16%
861
14
1.63%
2008-1
$
7,142,004,900
$
115,500,100
1.62%
922
8
0.87%
Average
11
Š 2008 SJF Advisory Services
2.36%
Average
2.06%
THE EQUITY OPPORTUNITY IN FLORIDA Leading allocation of pension funds to private equity and venture capital Strong entrepreneurial climate Underserved by venture capital firms Excellent universities and technology commercialization potential Access to international markets Ahead of demographic trends for the USA
12
© 2008 SJF Advisory Services
David Kirkpatrick
THANK YOU! Durham, NC 919.530.1177 New York, NY 212.209.3042 www.sjfund.com
Getting Ready for Equity™ Disney Entrepreneur Center Orlando, FL July 23, 2008
Resources: www.nvca.org www.privateequitycouncil.org www.pwcmoneytree.com www.sbafla.com www.evca.eu >