© vSpring Capital, 7/15/04 All Rights Reserved. July 15, 2004 Introduction to vSpring Mike...
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Transcript of © vSpring Capital, 7/15/04 All Rights Reserved. July 15, 2004 Introduction to vSpring Mike...
© vSpring Capital, 7/15/04 All Rights Reserved.
July 15, 2004
Introduction to vSpringMike Connolly
2 © vSpring Capital, March 26, 2004 All Rights Reserved.
Firm Overview
Offices: Salt Lake City, Los Alamos
Fund I: $120M, established in 2000• Top quartile performance• 24 portfolio companies• 3 exits to date (2 acquisitions, 1
IPO)• several others profitable / poised for
exit
Fund II: $150M target• beginning to invest• final close this fall
3 © vSpring Capital, March 26, 2004 All Rights Reserved.
"Typical" deal profile
Early-stage Focus: IT & life sciences
• but will consider promising opportunities in any area, e.g. energy, nanotech, security, communications
Region: 75% of deals within Utah or NM Lead investor
• recruit strong co-investors for funding continuum Pre-money valuation < $6M (typical, but varies widely) Initial investment of $1-2M and ownership >20% (" " " ")
• will make smaller seed investments in select cases• deploy $4-6M over life of deal (i.e. prior to exit)
4 © vSpring Capital, March 26, 2004 All Rights Reserved.
How do we assess an opportunity?
Market• Large market size and market pain• Pros/cons of each competing solutions -- available or under
dvlpt Management
• Passionate entrepreneur -- experienced or coach-able• We can help recruit other key players
Technology• Risk that it will work vs. investment required to find out• Strength of proprietary position
Financial• Attractive valuation• Ability to attract quality co-investors as needed/appropriate
5 © vSpring Capital, March 26, 2004 All Rights Reserved.
New Mexico activities
Los Alamos office opened 8/03 by vSpring founder Paul Ahlstrom and associate Clarke Miyasaki• Mike Connolly assumed primary responsibility
in 5/04 (continue to be assisted by Paul/Clarke) 2 NM investments to date
• Exagen Diagnostics -- $5.4M round 1/04– prognostic cancer tests using genomic markers
• Protalex -- led $12.7M round 9/03– therapeutic drugs for autoimmune disease
• additional opportunities in diligence
6 © vSpring Capital, March 26, 2004 All Rights Reserved.
The vSpring Team
Extensive start-up / operating experience
Strong and broad industry relationships Deep domain knowledge Stable team with successful history of
working together High ratio of professionals to funds
under management• Individual attention to companies
7 © vSpring Capital, March 26, 2004 All Rights Reserved.
Directors/Principal are successful serial entrepreneurs
Paul Ahlstrom Founder/CEO of Knowlix -- acq'd by Peregrine Systems
Chair of Utah Technology AllianceEd Ekstrom Founder of Cericor -- acq'd by HP
Intel VP; Chairman of Utah IT Assoc.Dinesh Patel Cofounder/CEO of TheraTech -- acq'd by Watson
PharmCofounder/Chair of Salus Therapeutics -- acq'd by Genta
Scott Petty COO of Zuka Juice -- acq'd by Jamba JuiceBain & Co.
Greg Warnock Founded Precision Data Link -- acq'd by Profit Recovery
Founder of Advion BioScience, Texsem LabsMike Connolly
8 © vSpring Capital, March 26, 2004 All Rights Reserved.
Mike Connolly, Principal in New Mexico office
Experience• Cofounded 7 biomedical companies worth >$400M
– Novacept acquired for $325M– Cohesion acquired for $40M
• Tech Commercialization Executive at Los Alamos Nat'l Lab– Founded Tech Mat Fund -- an internal “venture” fund to mature
early-stage Lab technologies with strong commercial potential• Navy officer (Lt. Commander) for 7 years• Taught physics at U.S. Naval Academy for 3 years• Licensed Professional Engineer (P.E.)
Education• Stanford MBA, M.I.T. MSME, Naval Academy BSME
9 © vSpring Capital, March 26, 2004 All Rights Reserved.
Strong support team of investment professionals
JD Gardner, Associate• Goldman Sachs, McKinsey, Harvard
MBA Clarke Miyasaki, Associate
• Ford Motors, Freeport, Connect2.com Gavin Christensen, Associate
• Monitor Group, Fidelity Investments Ken Krull, Associate
• Knowlix, Folio, Trend Micro Matt Hoffman, Analyst Dennis Wood, Director of Human Capital
• Diestel Group, Prince Perelson & Assoc. David Anderson, CFO
• Ernst & Young, CFO of 3 prior cos.
10 © vSpring Capital, March 26, 2004 All Rights Reserved.
Utah market in 1990’s
• Few early-stage investments; disconnected angel community
• Unsophisticated entrepreneurs .
• Lack of qualified management .
• Infrastructure gaps, e.g. legal
• Not leveraging research institutions
• Need for community development
vSpring contribution
Partners brought deep experience in both operations & angel investing
Active mentoring of entrepreneurs throughout investment process
Hired top recruiter in Utah to assist portfolio companies
Recruited Wilson Sonsini to Utah
Partners experienced in tech transfer
Aided UTA, et. al. reg'l dvlpt orgs
Emerging Markets: Utah in 1990s ~ NM in 2000s
11 © vSpring Capital, March 26, 2004 All Rights Reserved.
Portfolio value-add: management recruiting
17 senior execs (CEO, CTO, CFO)
17 vice presidents 10 other company
positions 12 board of directors
12 © vSpring Capital, March 26, 2004 All Rights Reserved.
Portfolio value-add: co-investor network
13 © vSpring Capital, March 26, 2004 All Rights Reserved.
For more info
www.vspring.com
1200 Trinity Drive, Suite 420 (in Los Alamos National Bank
bldg.)Los Alamos, NM 87544 tel: 505.663.4030 fax: 505.663.4034
Mike Connolly [email protected]