NJTC Venture Fund Agenda NJTC Venture Fund Overview

708 views

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
708
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
12
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

NJTC Venture Fund Agenda NJTC Venture Fund Overview

  1. 1. NJTC Venture Fund
  2. 2. Agenda <ul><li>NJTC Venture Fund Overview </li></ul><ul><li>Sources of Non-VC Capital </li></ul><ul><li>Navigating the Venture Process </li></ul>
  3. 3. Summary Benefits <ul><li>New Jersey-focused, early stage </li></ul><ul><li>Enable local working relationships </li></ul><ul><li>Recruiting, vendors, service providers, capital </li></ul><ul><li>Strategic partnering with large NJTC members </li></ul><ul><li>Successful CEO as second director </li></ul><ul><li>Partnered with top capital sources: LPs, other VCs </li></ul>
  4. 4. Early Stage Investment Strategy <ul><li>Target: Concept through $5M revenue </li></ul><ul><li>Most will have completed product development or demonstrated their service </li></ul><ul><li>Seed funding may be provided for unique concepts </li></ul><ul><li>Broad range of technologies </li></ul>
  5. 5. Sources of Non-VC Capital <ul><li>SBIR and Federal research </li></ul><ul><li>NJ Commission on Science & Technology: $250K, non-equity </li></ul><ul><li>NJ EDA: $500K, very favorable debt </li></ul><ul><li>Customer-financed development </li></ul><ul><li>Angels </li></ul><ul><li>Friends and family </li></ul><ul><li>Credit cards and vendor financing </li></ul>
  6. 6. Financing Continuum <ul><li>Government </li></ul><ul><ul><li>NJ Commission on Science and Technology </li></ul></ul><ul><ul><li>NJ Economic Development Authority </li></ul></ul><ul><li>Early Stage </li></ul><ul><ul><li>NJTC Venture Fund, Kemper Ventures, Early Stage Enterprises, Cardinal Ventures, Base Camp Ventures, MAVF </li></ul></ul><ul><li>Expansion and Later Stage </li></ul><ul><ul><li>Edison Venture Fund, LLR, TDH </li></ul></ul><ul><li>IPO </li></ul><ul><ul><li>Public Investors </li></ul></ul>
  7. 7. Portfolio Profile <ul><li>Initial investment: $300K to $2M </li></ul><ul><li>Reserve capital for two future rounds </li></ul><ul><li>No company > 15% of fund </li></ul><ul><li>15-25 companies </li></ul>
  8. 8. The Process <ul><li>Submit summary at www.njtcvc.com </li></ul><ul><li>Call the next week to discuss </li></ul><ul><li>Meet several times over 10-12 weeks </li></ul><ul><li>Provide details about market, partners, customers, financials </li></ul><ul><li>Time consuming </li></ul><ul><li>Use your advisors to streamline </li></ul>
  9. 9. “Pre-Sales” Market Validation <ul><li>Prior success in relevant industry </li></ul><ul><li>Others on management and sales team contribute relationships </li></ul><ul><li>Unbiased industry experts corroborate market need </li></ul><ul><li>Beta customers </li></ul>
  10. 10. Can’t Afford a Management Team? <ul><li>Pursue angel and non-institutional funding while building team </li></ul><ul><li>In meantime, obtain functional skills through: </li></ul><ul><ul><li>Rely on Board expertise </li></ul></ul><ul><ul><li>Hire part-time CFO </li></ul></ul><ul><ul><li>Impose on angel investors for their expertise </li></ul></ul><ul><ul><li>Form an Advisory Board (e.g. Anacom) </li></ul></ul><ul><ul><li>Use SCORE </li></ul></ul>
  11. 11. NJTC Background <ul><li>Founded 1997 </li></ul><ul><li>Over 1,000 member companies </li></ul><ul><li>From start-ups to conglomerates </li></ul><ul><li>Industry and functional networks (i.e., IT, biotech, communications, electronics, CFO, S&M) </li></ul><ul><li>Leading service providers </li></ul><ul><li>120 events annually </li></ul>
  12. 12. NJTC Plays Integral Role <ul><li>Diligence </li></ul><ul><li>Recruiting </li></ul><ul><li>Marketing & technology partnering </li></ul><ul><li>Vendor and service provider referrals </li></ul><ul><li>Board of Directors and advisors </li></ul><ul><li>Promotion of companies </li></ul><ul><li>Exits: acquirers, investment banks </li></ul>
  13. 13. NJTC Executive Network <ul><li>Joe Allegra – CEO, Princeton Softech </li></ul><ul><li>Mel Baiada – Bluestone, HP acq’d $450M </li></ul><ul><li>John Bailye – CEO, Dendrite ($1B+ market cap) </li></ul><ul><li>Jim Carnes – CEO, Sarnoff Corp. </li></ul><ul><li>John Cusick – CEO, Primestar ($1B + value) </li></ul><ul><li>Ralph Faison – VP, Lucent Technologies </li></ul><ul><li>Will Mayhall – CEO, PFS, State Street Bank acq’d </li></ul><ul><li>Bill McHale – CEO, NASDAQ: DSET </li></ul><ul><li>Greg Olsen – CEO, Sensors Unlimited </li></ul>
  14. 14. Lessons Learned <ul><li>Sales cycle is always longer </li></ul><ul><li>Strong market need can compensate for immature sales effort </li></ul><ul><li>Focus tightly despite appeal of nearby opportunities </li></ul><ul><li>Raising money usually comes from someone you know or a strong referral </li></ul>
  15. 15. Contact Us <ul><li>Submit business summary online </li></ul><ul><li>www.njtcvc.com </li></ul><ul><li>856-787-9700 </li></ul>

×