Scott Technology Center

Ken Moreano

Executive Director

Financing Entrepreneurship in Today’s Environment

FUNDING

Sourceso Founder, Family, & Friendso Angelso Fund/Syndicationo VCo Not for Profitso Co-Working Incubatoro “Jump Start” / “Tryout”

TODAY’S ENVIRONMENT

Strategic: Pain Points

Matching: Partner Matching

Leverage: Syndication

Infrastructure: Subsidy

VALUATION CONSIDERATIONS

A valuation considers many factors:o Milestones o Industry o Economic climateo Management & Board of Directorso Market and competitorso Barriers to entryo Proprietary technologyo Strategic relationshipso Cost structure and financial face

VALUATION

Start-Ups (What we are seeing)o $300k-$500k (some at $1M-$3M)o Company worth $1Mo Raise of $500k o Post-money value is $1.5Mo $500k investment provides 33%

ownership

VALUATION

Silicon Alley Insider: Valuation Indexo SAI 25 LIVE! – Guess work based on VC

financing, financial performance, growth rate and market share & size.Facebook valued at $15B after MSFT investment of $240M. Index currently @ $9B

o Various Methodso Very subjective at Start-Up & Early Stage

RATE OF RETURN

Start-Up35-50%

Later Stage25-35%