How to Raise Money in Utah

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How to Raise Money in Utah

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Transcript of How to Raise Money in Utah

Page 1: How to Raise Money in Utah

How to Raise Money in Utah

Page 2: How to Raise Money in Utah

Wayne Brown InstituteAccelerating Emerging Technology Company Success

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Cashtration (n.):

The act of starting a business, which renders the subject financially impotent for an indefinite period.

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What is the Wayne Brown Institute?

• A Non-Profit Venture Accelerator• A Network of 300 Venture Professionals

• Investor Lead Board of Trustees• Venture Events• “Best Practice” Analytical Tools

A Portal to the Investor Community

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Improving the Human Condition Through Technical Entrepreneurship

• Over $1.7 Billion in Private Equity

• Over 30,000 High Tech Jobs

• Over 1/2 are Minority, Women or Disadvantaged Entrepreneurs

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WBI Alumni

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Venture Capital is ReboundingMore Angel Groups ExistVC Moving Away from Early-StageValuations ReboundingInvestment Climate Similar to Mid to late ‘90’sNetworking is Key

Lack of Venture Quality Deal Flow

Money Raising Realities

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Attracting Investment

Fundraising 101

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FundingFunding Realities

• < 1 in 10 Start-ups obtain angel financing

• < 1 in 1000 Start-ups are VC-financed

• < 1 in 10,000 new companies go public

• < 1 in 10 angel deals see VC funding

• < 1 in 100 angel-funded companies go public

via IPOs

= 1 million start-ups each year, 100 IPOs

Source: Kauffman Foundation

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Investors Fund Things that Generate Revenue! (Harvest Opportunity)

Governments and 5 Fs Fund Technology (Create Opportunity).You Fund Your Education & Experience

Companies Fund Products

Know What You Want

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Strategies for Success

•Finish Your Technology

•Be a Company

•Create IP - Yesterday, Today and Tomorrow

•Make Products not Promises

•Sell Great Stuff to a Lot of Needy Customers

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Fundraising 101

Chase the Right Money

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Investment Risks

Technical

SBIR, Founders, Angels, Grants

Market

Angels, Early-Stage VC, Strategic Partner

Execution

VC, Strategic Partner

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Fundraising 101

If you want to be a Duck.

You need to Walk, Quack and Look Like a Duck

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High MarginsStrong IPSustainable Competitive AdvantageConfirmation of InterestAbility to BootstrapSalesLarge Rapidly Growing Market Venturing Expertise

The Ideal Deal

SBIR

Market Pull vs. Technology Push

Angels

VentureCapital

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Answer These Questions

• Your “Pain” proposition?• Large, growing market?• Sustainable competitive advantage?

• Sales?• Prior investment?• Platinum management team?• You want? I get? and When?

Venture Funding

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The failure to InnovateThe failure to Create ValueThe failure to Persist Over TimeThe failure to Maintain Economic ScarcityThe failure to Prevent the Appropriation of

Created ValueThe failure to Maintain Flexibility (in the face

of uncertainty and ambiguity)

Reasons Deals Fail

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WBI’s Approach to Business Evaluation

• Is It a Business?

• Can You Keep It?

• Can You Do It?

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Is there a New Combination?

•Identified Market Imperfection

•Resulting Profit Opportunity

•Utilized Market Imperfection

- Scientific

- Circumstantial

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4 Types of Entrepreneurial Discovery

Post-it Notes

Ford Assembly Line

Hydro Power

1. NewGood/ New

Quality

2. NewMethod ofProduction

3. Opening aNew Market

4. NewSource RawMaterials

5. Re-organize an

Industry Invention

Observation

. Invention II

Coordination

Micro-chip Ford AssemblyLine

Video Games SyntheticRubber

PersonalComputer

Post-it Notes Cultured Pearls Honda cycles-US

Persian Gulf Oil Fed-Ex

IndustrialDiamonds

DeBeersDiamonds

Rock Tumbler Hydro-ElectricPower

Sail Boards

Organic Fertilizer Bee Farming(Honey)

Heli-Skiing Reservoirs(snowmelt)

Wal-Mart

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How the Entrepreneur is Perceived by an Investor is Everything

An Ounce of Perception is Worth a Pound of

Performance

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Raising Money is a Contact Sport

Not a Spectator Sport

Fundraising 101

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Access to the Network!

The Most Important Fundraising Tool

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Specialized LawyersCertain Accounting FirmsHead Hunting FirmsKey Marketing CompaniesValue Added VendorsCertain Bankers and Non-Bank LendersInvestment Bankers/Advisors/Legal Finders

Seasoned Entrepreneurs5 Local Angel GroupsAssociations

16 Local Institutional 16 Local Institutional InvestorsInvestors

What is the Network?

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http://www.venturecapital.org

Submit Today!