{ "docId": "019f6b8f-647e-71dd-b7de-32a98058d495", "docSlug": "jarvis-slingshot-venture-fund", "documentTitle": "Slingshot Venture Fund", "authorId": "slingshot-venture-fund", "authorName": null, "documentKindSlug": "pitchdeck", "documentKindLabel": "Pitch deck", "sourceTypeSlug": "vc_research", "sourceTypeLabel": "VC research", "presentationDate": null, "orientation": null, "aspectRatio": null, "pageNumber": 15, "pageCount": 17, "prevPage": 14, "nextPage": 16, "slideType": "appendix_disclosure", "function": "other", "density": "overcrowded", "nDataPoints": 4, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019f6b8f-647e-71dd-b7de-32a98058d495/15", "deckHref": "/decks/019f6b8f-647e-71dd-b7de-32a98058d495", "deckJsonHref": "/decks/019f6b8f-647e-71dd-b7de-32a98058d495.json", "deckAnchorHref": "/decks/019f6b8f-647e-71dd-b7de-32a98058d495#slide-15", "components": [ { "bbox": { "h": 0.045, "w": 0.236, "x": 0.118, "y": 0.158 }, "kind": "list", "text": "Early Stage VC Investing is Risky", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "610355bb-5e87-4bed-a255-b4af4df2d2af", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.125, "x": 0.387, "y": 0.158 }, "kind": "list", "text": "General Risks", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9e8a58c3-607b-4e3e-b242-d82311f0a46f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.145, "x": 0.667, "y": 0.158 }, "kind": "list", "text": "Risk Mitigation", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba640a7f-4fcd-4e14-b552-5e51563e1197", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.25, "x": 0.667, "y": 0.228 }, "kind": "list", "text": "The Fund employs a number of risk mitigation techniques including: Leveraging the deal screening and processing capabilities and broad industry experience of Slingshot management/ mentors. Standardising term sheets. Board representation on investee companies or observer rights. Process driven investment process. Investment committee investment review and potential veto. Pro-rata rights for future investment rounds. Portfolio diversification with 25-30 investee companies ranging across size and sector. Spreading investment timing of deals over 5 year period.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f868b892-ee7e-49d6-bb8e-ec44e34c554e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.118, "y": 0.228 }, "kind": "paragraph", "text": "Early stage VC investing is risky. A US academic study of Angel investments in November, 2007 (\"Returns to Angel Investors in Groups\" - Wiltbank & Boeker) found that Angels lose some or all of their money in 52 % of their investments because the companies go out of business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3503912b-14b6-4d27-be3f-8d0d64b4cb84", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.25, "x": 0.118, "y": 0.568 }, "kind": "paragraph", "text": "Early stage VC investments bear high risk and are usually subject to dilution from future investment rounds. As such, they require a high return on investment.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "71e2e5d7-655b-4794-96de-ae5d941e9b9b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.387, "y": 0.228 }, "kind": "paragraph", "text": "No assurance of investment return can be given to Investors. The return on investment will depend on the success of the Fund's investments and there can be no assurance that any or all of the Fund's investments will be successful in generating the target returns.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "727f3489-5d63-4f9f-a0d3-3c7bd14bc39e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.25, "x": 0.387, "y": 0.678 }, "kind": "paragraph", "text": "Investments should be considered only by sophisticated or professional investors who understand the nature and extent of the risk.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "85338afd-2f43-4bd8-9795-579c5638eed8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.387, "y": 0.528 }, "kind": "paragraph", "text": "General economic conditions (including interest rates, exchange rates and underlying inflation in Australia and internationally) may affect the Fund's activities. These may impact on financing costs (both in respect of the operation of companies and to potential purchasers of the companies) and the state of the market for stock exchange floats.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8853d24d-130f-4d8e-aff9-c5af9e69ed7f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.118, "y": 0.658 }, "kind": "paragraph", "text": "Since a large percentage of early stage VC investments are lost completely when early stage companies fail, experienced investors seek investments that have the potential to return at least >10x their original investment within 5 years, through a defined exit strategy, such as plans for an initial public offering or an acquisition.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a65fd3b9-30d1-4bc4-b20c-cfbdce685e10", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.118, "y": 0.398 }, "kind": "paragraph", "text": "The most sophisticated early stage investors make at least 15 investments in order to make a return on their investment, counting on one or two to provide nearly all of their return. This structure of portfolio returns is similar to that experienced by venture capital funds.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "be46e575-b0b5-46a7-b1f1-c1e61ff2d9a6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.25, "x": 0.387, "y": 0.378 }, "kind": "paragraph", "text": "The Fund will invest in early-stage and expanding companies that may not have consistent sales or income. They may also have difficulty attracting management and employees with the right mix of skills and expertise, especially at the various stages in their life cycles when different abilities are required.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fb0dff4e-1232-498a-bee4-ae6c58132828", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.315, "x": 0.167, "y": 0.085 }, "kind": "title", "text": "Risk Factors & Mitigation", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6acb8263-4ae3-47e8-a6de-c4041b5dab3c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "List presentation", "slug": "list-presentation", "agent": null, "layer": "slide", "matchId": "5e7a1ee6-d907-445d-b117-c2e8bf5e982d", "evidence": "list/bullet: The Fund employs a number of risk mitigation techniques including: Leveraging the deal screening and processing capabilities and broad industry experience of Slingshot management/ mentors.", "confidence": 0.6 } ], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }