How to Raise Money in Utah

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  • This shows the probability of getting funded. Exit strategies drive investment and in today’s relatively weak IPO market we’re seeing maybe 100 venture backed companies going public this year. That’s on an annual base of nearly a million businesses being started in this country every year.
  • How to Raise Money in Utah

    1. 1. How to Raise Money in Utah
    2. 2. Wayne Brown Institute Accelerating Emerging Technology Company Success
    3. 3. Cashtration (n.): The act of starting a business, which renders the subject financially impotent for an indefinite period.
    4. 4. <ul><li>What is the Wayne Brown Institute? </li></ul><ul><li>A Non-Profit Venture Accelerator </li></ul><ul><li>A Network of 300 Venture Professionals </li></ul><ul><li>Investor Lead Board of Trustees </li></ul><ul><li>Venture Events </li></ul><ul><li>“Best Practice” Analytical Tools </li></ul><ul><li>A Portal to the Investor Community </li></ul>
    5. 5. <ul><li>Improving the Human Condition Through Technical Entrepreneurship </li></ul><ul><li>Over $1.7 Billion in Private Equity </li></ul><ul><li>Over 30,000 High Tech Jobs </li></ul><ul><li>Over 1/2 are Minority, Women or Disadvantaged Entrepreneurs </li></ul>
    6. 6. <ul><li>WBI Alumni </li></ul>
    7. 7. <ul><li>Venture Capital is Rebounding </li></ul><ul><li>More Angel Groups Exist </li></ul><ul><li>VC Moving Away from Early-Stage </li></ul><ul><li>Valuations Rebounding </li></ul><ul><li>Investment Climate Similar to Mid to late ‘90’s </li></ul><ul><li>Networking is Key </li></ul>Lack of Venture Quality Deal Flow Money Raising Realities
    8. 8. Attracting Investment Fundraising 101
    9. 9. Funding Realities <ul><li>< 1 in 10 Start-ups obtain angel financing </li></ul><ul><li>< 1 in 1000 Start-ups are VC-financed </li></ul><ul><li>< 1 in 10,000 new companies go public </li></ul><ul><li>< 1 in 10 angel deals see VC funding </li></ul><ul><li>< 1 in 100 angel-funded companies go public </li></ul><ul><li>via IPOs </li></ul><ul><li>= 1 million start-ups each year, 100 IPOs </li></ul><ul><li>Source: Kauffman Foundation </li></ul>
    10. 10. 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
    11. 11. Strategies for Success <ul><li>Finish Your Technology </li></ul><ul><li>Be a Company </li></ul><ul><li>Create IP - Yesterday, Today and Tomorrow </li></ul><ul><li>Make Products not Promises </li></ul><ul><li>Sell Great Stuff to a Lot of Needy Customers </li></ul>
    12. 12. Fundraising 101 Chase the Right Money
    13. 13. Investment Risks <ul><li>Technical </li></ul><ul><ul><li>SBIR, Founders, Angels, Grants </li></ul></ul><ul><li>Market </li></ul><ul><ul><li>Angels, Early-Stage VC, Strategic Partner </li></ul></ul><ul><li>Execution </li></ul><ul><ul><li>VC, Strategic Partner </li></ul></ul>
    14. 14. Fundraising 101 If you want to be a Duck. You need to Walk, Quack and Look Like a Duck
    15. 15. <ul><li>High Margins </li></ul><ul><li>Strong IP </li></ul><ul><li>Sustainable Competitive Advantage </li></ul><ul><li>Confirmation of Interest </li></ul><ul><li>Ability to Bootstrap </li></ul><ul><li>Sales </li></ul><ul><li>Large Rapidly Growing Market </li></ul><ul><li>Venturing Expertise </li></ul>The Ideal Deal SBIR Market Pull vs. Technology Push Angels Venture Capital
    16. 16. Answer These Questions <ul><li>Your “Pain” proposition? </li></ul><ul><li>Large, growing market? </li></ul><ul><li>Sustainable competitive advantage? </li></ul><ul><li>Sales? </li></ul><ul><li>Prior investment? </li></ul><ul><li>Platinum management team? </li></ul><ul><li>You want? I get? and When? </li></ul>Venture Funding
    17. 17. <ul><ul><ul><li> The failure to Innovate </li></ul></ul></ul><ul><ul><ul><li> The failure to Create Value </li></ul></ul></ul><ul><ul><ul><li> The failure to Persist Over Time </li></ul></ul></ul><ul><ul><ul><li> The failure to Maintain Economic Scarcity </li></ul></ul></ul><ul><ul><ul><li> The failure to Prevent the Appropriation of Created Value </li></ul></ul></ul><ul><ul><ul><li> The failure to Maintain Flexibility (in the face of uncertainty and ambiguity) </li></ul></ul></ul>Reasons Deals Fail
    18. 18. <ul><li>WBI’s Approach to Business Evaluation </li></ul><ul><li>Is It a Business? </li></ul><ul><li>Can You Keep It? </li></ul><ul><li>Can You Do It? </li></ul>
    19. 19. Is there a New Combination? <ul><li>Identified Market Imperfection </li></ul><ul><li>Resulting Profit Opportunity </li></ul><ul><li>Utilized Market Imperfection </li></ul><ul><ul><li>- Scientific </li></ul></ul><ul><ul><li>- Circumstantial </li></ul></ul>
    20. 20. 4 Types of Entrepreneurial Discovery Post-it Notes Ford Assembly Line Hydro Power
    21. 21. <ul><li>How the Entrepreneur is Perceived by an Investor is Everything </li></ul>An Ounce of Perception is Worth a Pound of Performance
    22. 22. Raising Money is a Contact Sport Not a Spectator Sport Fundraising 101
    23. 24. <ul><li>Access to the Network! </li></ul>The Most Important Fundraising Tool
    24. 25. <ul><li>Specialized Lawyers </li></ul><ul><li>Certain Accounting Firms </li></ul><ul><li>Head Hunting Firms </li></ul><ul><li>Key Marketing Companies </li></ul><ul><li>Value Added Vendors </li></ul><ul><li>Certain Bankers and Non-Bank Lenders </li></ul><ul><li>Investment Bankers/Advisors/Legal Finders </li></ul><ul><li>Seasoned Entrepreneurs </li></ul><ul><li>5 Local Angel Groups </li></ul><ul><li>Associations </li></ul>16 Local Institutional Investors What is the Network?
    25. 26. http://www.venturecapital.org Submit Today!

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