The role of venture capital in building business

1
(No Transcript)
2
The role of venture capital in building business

• Adam Quarry
• A presentation to HKVCA Conference
• Hong Kong, 16 September 2002
• www.3i.com

3
Summary views

• VCs are business builders...
• but performance is not always consistent

• Successful VCs will get better at adding value...

the key will be to focus on business
development
4
3i research on value add

• What does value add mean to VC backed companies?
• How would companies like VCs to add value?
• Sample of 458 VC backed companies in Europe, Asia
  Pacific and Asia
• Conducted second half of 2001

5
Adding value the customer benefits hierarchy
Ranking
6
Post-buyout performance
Post-buyout increases in turnover and EBIT in
comparison to competitors respondents
perceptions.
Source CMBOR/EVCA
7
Most important VC contribution
Source CMBOR/EVCA
8
Conclusions

• Demand for VCs to be business builders
• Evidence that VCs deliver value add
• Business development is the key value add

9
thank you

• For further information visit our website
  www.3i.com