Accessing Equity Capital: Practical & Legal Issues

Accessing Equity Capital: Practical & Legal Issues

Prepared for:

May 25, 2010 1

Is Equity Available?

2

Agenda

• Sources of Capital

• Trends in Venture Capital

• Art vs. Science

• Science

• Art

3

Sources of Capital

4

FF&A, Angels, VCs

5

Other Sources of Capital

• Customers• Suppliers• Distributors• Industry Participants• Economic Development• SBA• SBIR

6

Total U.S. VC Investment

7

Life Sciences VC Investment

8

How Much is Coming Out of Our Region?MN, ND, SD, WI, IA, NB

9

High Bar

10

How to Attract Capital

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4 Ps of Marketing

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4 Ps

• People

• Product

• Potential

• Predictability

• Product

• Price

• Place

• Promotion

Marketing Investing

16

So What Can you Change?

17

Increase Chance of Success

18

Network Early… Network Often..

19

Passion and Enthusiasm

• Steve Schussler– Passion– Persistence– Plan

20

Be Milestone Driven

21

Do What You Say

22

Innovation Pyramid

23

Rosabeth Moss Kanter, Harvard Business School professor

Just Another….

24

Bootstrapping

25

Financial / Market Analysis

26

Know Your Audience

27

Solve Explicit Need

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Understand Implicit Needs

• Client Business Model• Change Buyer Behavior• Structural Changes• Who loses a job

29www.sharondrewmorgen.com

Intellectual Property

• Blue vs. Red Ocean• Advantageous Position• Value of Technology

30

Communication Matters

31

Perception is Reality

32

Effort

“A great business person knows how to recognize insurmountable challenges

and thusly quit.  An entrepreneur doesn't have time to know what quit means.”

Lief Larson

33

Geology is the Study of Pressure and Time

“An ice age here, million years of mountain building

there. Geology is the study of pressure and time. That's all it

takes really, pressure, and time.”

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Rick BrimacombBrimacomb & Associates

[email protected]