投资者增值

Page/ 1 Page/ 2IntroductionThe term "Value-Add" is frequently invoked by venture capitalists, sometimes in earnest and othertimes with a hint of irony (cue👏👏👏). However, for startups, selecting the right investor is a criticaldecision with far-reaching consequences.Whereas the Dealroom Power Law Ranking measures investorsʼ ability to source & pick Power LawOutcomes, this report explores observable differences between investors when it comes to helpingstartups building & financing at the early stages.This report aims to answer the following question: what key characteristics define value-addinvestors, based on objectively observable metrics?Although the actual effort and effectiveness ofValue-Add are challenging to quantify directly, it's possible to measure its desired outcomes.This report represents a preliminary assessment. We welcome your feedback and insights to refine ourmethodology: support@dealroom.co Page/ 3With $54 trillion of newenterprise value fromVC-backed companies in thelast 50 years, understandingthe journey to building globaltech champions clearlymatters Page/ 5and morePower Law Top 100 by DealroomFlow of new VC firms peryearPool of active investorsCorrespondingly, venture capital is also a top 1% asset class (aka “access class”)The #100th rankedinvestor has invested in 2Power Law Outcomes,both at SeedThe #1st ranked investorhas invested in 17 PowerLaw Outcomes, of which13 at seed and 3 atSeries A±250new first-timeinvesting entities(EMEA only)10Kactive in EMEAsince 20191,570with at least onePower LawOutcome408with at least onePower LawOutcomefrom Seed stage±50first-time funds(EMEA only)100%16%4%100(top 1%)Plus, flow of newglobal investors Page/ 6Weʼve spent the last 6years using data to builda more objectiveunderstanding of theserepeat Power LawinvestorsExtremely skewed field of investorswhich have been able to source theseoutliers companies early in theirdevelopment. Massive differenceseven within the top 50.Power Law Ranking »next edition coming soon Page/ 7In this report, however, we aim toquantify investor value-add,especially the building andfinancing aspect of being aseed-stage VC investorBuilding1. Number ofSeed Investments2. Conversionto Series A Financing4. Quantity offollow-on capital 3. Quality offollow-on capital Page/ 8Measure the number ofStandardized Seed roundsbetween 2015 and 2021Measures being “in the arena”available to support startupsand being consistentCutoff in 2021 to have at least 3years to measure follow-onactivityConversion from Seed round toSeries A (standardized)Measures ability to build andsupport during crucial initialstagesCompanies that haveconverted within 3 years fromstandardised Seed to Series AShare of follow-on capitalraised from top quality SeriesA+ investors with a track recordof building big outcomesHere, "Top quality follow-oninvestor" means the investor isin the top 5% of the GlobalPower Law ranking (excludingseed investors in this context).Total follow-on capital raisedper companyAbility to help finance at SeriesA and beyondNo time cut-offStandardization based on Journey to Series A methodology.1. Number of SeedInvestments2. Conversionto Series A3. Quality of follow-oncapital4. Quantity offollow-on capitalBuildingFinancingMethodology: we compared ±800 seed investors in EMEA startups across thesefour objective & observable metrics Page/ 9Major differences in Seed toSeries A conversion ratesThe leading 5% convert 63% of their seedinvestments to Series A, with the bestexceeding 75%. Startups backed by theseinvestors are 4.5x more likely to advancecompared to those in the bottom quartile.This disparity is driven by multiple factors:superior deal access, stronger selection,active value-add support, and topfounders gravitating toward investors withproven track records.Source:Dealroom.co. Page/ 10And the top quality 5% consistently outperforms on all four metrics, doing moredeals, raising larger follow-on capital from higher quality investorsSource:Dealroom.co. Page/ 11Source:Dealroom.co.And the same top seed investors are consistently more likely to lead the round, convert tolarger rounds, convert sooner and have far more experience in raising follow-on capital Page/ 12Raising the bar:50 Value-AddSeed InvestorsShown in alphabetical order, these50 investors—representing the top5% of funds analyzed—haveconsistently outperformed basedon four key Value-Add metrics.Use these benchmarks to identifyinvestors who donʼt just fund, butactively help build high-growthcompanies. Page/ 13Conclusions for Capital Allocators (LPs, Policymakers, Institutions)There are justified calls for more capital to flow into venture capital, and initiatives are already underway tomake this happen. However, capital allocation is just as important as capital availability. More funding alonewonʼt drive stronger outcomes—it must flow to the right investors.Our analysis highlights that venture capital operates under Power Laws, with only a small subset of investorsconsiste