Transcript
How to Raise Money in Utah
Wayne Brown InstituteAccelerating Emerging Technology Company Success
Cashtration (n.):
The act of starting a business, which renders the subject financially impotent for an indefinite period.
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
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
WBI Alumni
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
Attracting Investment
Fundraising 101
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
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
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
Fundraising 101
Chase the Right Money
Investment Risks
Technical
SBIR, Founders, Angels, Grants
Market
Angels, Early-Stage VC, Strategic Partner
Execution
VC, Strategic Partner
Fundraising 101
If you want to be a Duck.
You need to Walk, Quack and Look Like a Duck
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
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
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
WBI’s Approach to Business Evaluation
• Is It a Business?
• Can You Keep It?
• Can You Do It?
Is there a New Combination?
•Identified Market Imperfection
•Resulting Profit Opportunity
•Utilized Market Imperfection
- Scientific
- Circumstantial
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
How the Entrepreneur is Perceived by an Investor is Everything
An Ounce of Perception is Worth a Pound of
Performance
Raising Money is a Contact Sport
Not a Spectator Sport
Fundraising 101
Access to the Network!
The Most Important Fundraising Tool
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?
http://www.venturecapital.org
Submit Today!
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