Seeking venture funding… what an investor looks for and  what to look for in an investor   A discussion of considerations ...
Planning to cover… <ul><li>How a VC fund works </li></ul><ul><li>Some background on ARCH Development Partners </li></ul><u...
Structure – how a fund works <ul><li>The Fund </li></ul><ul><ul><li>Fund raises money from institutional investors (LP’s) ...
Return - % returns based on age of fund for period ending 2003 (www.nvca.org)
Returns -  by Stage of Business $15-50M $3- 10M $1- $3M 250K-$1M Need 1.25X in 12 mos IRR 25% Late stage – mature business...
Return – multiples and IRR <ul><li>Homeruns (10x) </li></ul><ul><li>Singles/Doubles/Triples (1x<10x) </li></ul><ul><li>Str...
<ul><li>Background…ARCH Development Partners </li></ul><ul><li>Currently $32 million under management </li></ul><ul><ul><l...
Stage of investments Pre-Seed <ul><li>IP/Technology </li></ul><ul><li>Technologist / </li></ul><ul><li>founder/business de...
The ARCH Model <ul><li>Apply Time-tested Traditional VC Disciplines to: </li></ul><ul><ul><ul><li>Identify Platform Techno...
Inception  <ul><li>Product commercialization </li></ul><ul><li>Customers </li></ul><ul><li>Revenue </li></ul><ul><li>Space...
The “squeeze” perspective   <ul><li>At the early stages … it is about squeezing out enough risk so traditional corporate p...
What we want to see – MANAGEABLE RISK <ul><li>As we evaluate each of the foregoing we are considering the main types of ri...
Risk con’t <ul><ul><ul><ul><ul><li>    PROBABILITY </li></ul></ul></ul></ul></ul><ul><li>Sufficient capital 80% </li></ul>...
What we like to see - TYPE <ul><li>Science/innovation based company.  </li></ul><ul><li>Prefer university or corporate own...
What we like to see - STAGE <ul><li>Pre-business plan and management team is fine.  </li></ul><ul><li>We prefer to act as ...
What we like to see - $ REQ <ul><li>50k to 1 million needed for the purpose of squeezing risk out of the venture and posit...
What we like to see - MARKET <ul><li>The product(s) the company is proposing to develop should have a market of 200 millio...
What we like to see - IP <ul><li>The proposed product should be based on an appropriate proprietary position, preferably a...
What we like to see - MGMT <ul><li>If there are there already or if we need to recruit them: </li></ul><ul><ul><li>Product...
What we like to see - EXIT <ul><li>The company or proposed company should be one poised for an acquisition exit or in some...
What we like to see - RETURNS <ul><li>At exit it’s about how… </li></ul><ul><ul><li>many shares are we going to own. </li>...
Sources of these shares…of equity   <ul><li>In addition to acquiring equity as consideration for investing dollars in the ...
How much equity   <ul><li>Pre-money valuation + dollars invested = post money valuation </li></ul><ul><li>Equity ownership...
Term Sheet <ul><li>Financial Terms </li></ul><ul><li>Non-financial Terms </li></ul><ul><li>Equity Provisions </li></ul>
Terms to address the traditional ‘valuation gap’  <ul><li>Pre-money valuation </li></ul><ul><li>Financial tools </li></ul>...
Liquidation preferences <ul><li>These preferences allow certain investors, in the case or acquisition or liquidation, to g...
Warrants <ul><li>Another word for an option to purchase a security. The term is generally used for options provided by the...
Anti-dilution <ul><li>Price protections…if stock is sold, at a price less what the investor with anti-dilution protection ...
Vesting founders shares <ul><li>Incentive to keep founders with the company </li></ul><ul><li>“Earning back” the initial o...
Control via business decisions   <ul><li>Protective provisions </li></ul><ul><ul><li>May provide significant control of th...
Resources <ul><ul><li>Indiana Venture Center </li></ul></ul><ul><ul><ul><li>www.indianaventurecenter.org </li></ul></ul></...
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Seeking Funding by Teri Willey

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  • Questions you might ask a vc
  • One of the things that we consider in evaluating a start-up opportunity is the question of how we will squeeze out risk (or add value). When evaluating a start-up opportunity we ask how do we hit the most critical milestones, milestones that prove to us that we are on the right track, and do it with the least amount of money in the shortest period of time. Another way to state the objective is to be poised to raise the next round at an appropriate valuation. If you’ve invested too much without proving enough then you suffer a down round if you need to raise money.
  • One of the reasons we like this stage is that we can often capture reasonable terms, manage risk through milestone driven investments and sometimes it is easier to start from scratch than to fix an early stage company that was structured poorly from the beginning.
  • We love to work with experienced start-up company managers but are very willing to recruit management and work very closely with the company to move it forward. If the innovator/scientist does not have relevant business experience, then a willingness on their part to participate as a scientific/technical advisor and work closely with qualified management.
  • Which brings us to risk…
  • We’re address these questions in different ways as we address each risk and each evaluation criteria and return… How much equity can we get now and along the way. How much money do we have to raise to get to exit (dilution)
  • Angus talked about valuation of the equity. That is, do you take the equity now, or set a value on the license (equity instead of upfront cash of a certain amount) and the have it convert to stock at the next round valued by an outside party… These different origins of equity are often spelled out in the capitalization table. For example we have investments where the university is listed in the capitalization table with significant common shares for having formed the company originally. Another line for their equity inconsideration of the license. Another line for equity as a result of cash investment. Likewise, founding scientists may have equity as a result of compensation in stock through consulting agreements or through a share of the universities distribution. A member of management may have preferred shares because they have personally invested as well as their restricted shares as part of their vesting arrangement.
  • We’ve been talking about a few of the terms in an investment. The message is that a key consideration in evaluating a start-up opportunity is the terms that will be available to help us manage our risk and so forth. The final term I’ll talk about as it is an important one to understand: liquidation preferences. These preferences allow certain investors, in the case or acquisition or liquidation, to get their initial investment back (or multiples of it in the case of 1x or 2x liquidation preferences) before returns are shared ratably with the other share holders.
  • Fully diluted share capital The issued share capital of a company if all options and other rights to subscribe for shares are exercised.
  • Anti-dilution provisions can be for event (stock-splits, restructuring, etc.) or price protection. We’ll talk about price protection because this is more common at the start-up phase. Venture investors often choose convertible preferred stock, convertible debt or debt with warrants as their investment vehicle. This gives them a position which is senior to or &amp;quot;ahead of&amp;quot; the common stock if the company is sold or liquidated but also allows them to participate in the &amp;quot;upside&amp;quot; with the common stock if things take off. For example, assume the investors purchase Series A Convertible Preferred Stock at a price of $1.00 per share, which is initially convertible at the option of the investor into one share of common stock, a 1:1 conversion ratio. If the company subsequently issues stock at a price less than the initial $1.00 price paid by the investor then the conversion ratio is adjusted so that one share of Preferred Stock will be convertible to more than one share of common stock. The conversion formula adjustment is typically referred to as &amp;quot;antidilution protection&amp;quot; and there are two types: full ratchet adjustment and weighted average ratchet adjustment. Full ratchet is the most onerous from the Founder&apos;s viewpoint. If the company issues even one share of stock at a price below the price paid by the investors then the conversion price drops fully to that price. For example, assume the Founder owns 1,000,000 shares of common stock and the Investor purchases 1,000,000 shares of Convertible Preferred Stock at a price of $1.00 per share, which is convertible into common stock at that price ($1,000,000 initial purchase price divided by $1.00 conversion price equals 1,000,000 shares of common stock) so that each owns 50% of the company. Under a full ratchet if the company issues one share at a price of $0.10 then the conversion price becomes $0.10 and the Investor can then convert his 1,000,000 shares of Convertible Preferred Stock into 10,000,000 shares of common stock ($1,000,000 initial purchase price divided by $.10 conversion price) thereby resulting in the Founder owning 1/11th of the company and the Investor owning 10/11ths. Weighted average ratchet antidilution adjustment is better from the Founder&apos;s viewpoint. Although the formulae used differ in some ways, the basic approach is to adjust the conversion price to the average price received by the company for stock issuances taking into account the amount of money raised at different prices. A typical formula is as follows: NCP= (OB*OCP) + New$ OA where: NCP = New Conversion Price OB = Outstanding Shares Before Offering OCP = Old Conversion Price New$ = Amount Raised in Offering OA = Outstanding Shares After Offering
  • A very critical factor when we evaluate a start-up opportunity is CONTROL. We are often looking for control in decisions we think are critical to making a return based on our investment in a start-up. These types of control issues are often outlined in the term sheet and documents in various closing contracts. For example: “Consent of the holders of at least a majority of the Series A Preferred shall be required for any action that (i) alters or changes the rights, preferences or privileges of the Series A Preferred, (ii) increases or decreases the authorized number of shares of Common or Preferred Stock, (iii) creates (by reclassification or otherwise) any new class or series of shares having rights, preferences or privileges senior to or on a parity with the Series A Preferred, (iv) results in the redemption of any shares of Common Stock (other than pursuant to equity incentive agreements with service providers giving the Company the right to repurchase shares upon the termination of services), (v) results in any merger, other corporate reorganization, sale of control, or any transaction in which all or substantially all of the assets of the Company are sold, (vi) amends or waives any provision of the Company’s Articles of Incorporation or Bylaws, (vii) results in the payment or declaration of any dividend on any shares of Common or Preferred Stock (viii) results in the aggregate capital expenditures in any fiscal year to exceed $25,000, (ix) results in indebtedness for borrowed money (including, without limitation, capital lease obligations) outstanding at any time to exceed $25,000, or (x) results in the creation of a security interest on the assets of the Company, subject to certain ordinary course exceptions, (xi) engage in a relationship with another company to license or otherwise transfer all or partial ownership in intellectual property of the company, or (xii) the retention or termination of the Chief Executive Officer, President or Chief Scientific Officers.”
  • Seeking Funding by Teri Willey

    1. 1. Seeking venture funding… what an investor looks for and what to look for in an investor A discussion of considerations from a pre-seed and seed investor perspective… August 25 and October 13, 2005 Teri F. Willey, Managing Partner ARCH Development Partners [email_address]
    2. 2. Planning to cover… <ul><li>How a VC fund works </li></ul><ul><li>Some background on ARCH Development Partners </li></ul><ul><li>What investors like to see (and what you might look for in investors) </li></ul><ul><li>Risk and Return </li></ul><ul><li>Term Sheet Tango </li></ul><ul><li>Resources </li></ul>
    3. 3. Structure – how a fund works <ul><li>The Fund </li></ul><ul><ul><li>Fund raises money from institutional investors (LP’s) </li></ul></ul><ul><ul><ul><li>University endowments, pension funds, insurance companies, corporate venture funds, wealthy individuals </li></ul></ul></ul><ul><ul><li>Fund may range from $30M - 400M, $1-$10M per LP </li></ul></ul><ul><ul><li>Fund lasts 10 years. First 3-4 years initial investments, then follow-on investments and exits. </li></ul></ul><ul><ul><li>Multiple Funds may be managed concurrently </li></ul></ul><ul><li>The Partnership </li></ul><ul><ul><li>20% carry. (For a $100M fund, all gains over $100M get split 80/20 with investors/fund managers) </li></ul></ul><ul><li>The Management Company </li></ul><ul><ul><li>2-3% fees per year. (2% fee on $100M is $2M year) </li></ul></ul>
    4. 4. Return - % returns based on age of fund for period ending 2003 (www.nvca.org)
    5. 5. Returns - by Stage of Business $15-50M $3- 10M $1- $3M 250K-$1M Need 1.25X in 12 mos IRR 25% Late stage – mature business Need 3X in 2-3 years IRR 40% Venture Series B – Sales Expansion Need 5 X in 3-4 years IRR 50% Venture Series A – Revenue - paying Customers Need 10X in 5 years IRR 70+% Seed stage – developing product
    6. 6. Return – multiples and IRR <ul><li>Homeruns (10x) </li></ul><ul><li>Singles/Doubles/Triples (1x<10x) </li></ul><ul><li>Strikeouts (<1x) </li></ul><ul><li>Multiple: $exited/on $invested </li></ul><ul><li>IRR: timing to exit from the first investment </li></ul><ul><li>Note: 2.5X for a 20% IRR, 5X for a 40% IRR </li></ul>
    7. 7. <ul><li>Background…ARCH Development Partners </li></ul><ul><li>Currently $32 million under management </li></ul><ul><ul><li>LP’s: Universities, Foundations, Banks, Corporations, and Hospitals </li></ul></ul><ul><li>Strategy: </li></ul><ul><ul><li>Strategically partner with communities to create start-ups </li></ul></ul><ul><ul><li>Current partners: Kalamazoo, Peoria, Lafayette, Cincinnati, St. Louis </li></ul></ul><ul><ul><li>Make “pre-seed” investments ($50,000 to $1,000,000) </li></ul></ul><ul><ul><li>Syndicate deals with other early-stage investors, e.g. angels </li></ul></ul><ul><ul><li>Structure deals for optimal early exits </li></ul></ul><ul><li>Primary Deal Sources: University and Corporate spin-outs </li></ul><ul><li>Investments: Biotechnology, Information Technology </li></ul><ul><li>Geographic Focus: Upper Midwest: IN, IL, MI, OH </li></ul><ul><li>General Partners: Experienced investors and entrepreneurs </li></ul>
    8. 8. Stage of investments Pre-Seed <ul><li>IP/Technology </li></ul><ul><li>Technologist / </li></ul><ul><li>founder/business development </li></ul><ul><li><$500K </li></ul><ul><li>Identifying technology via relationships </li></ul><ul><li>Determining commercial viability </li></ul><ul><li>Accessing rights/Recruiting CEO </li></ul>Seed Early Stage Mid-Stage Exit Description Team $ Needed Keys to Success <ul><li>Product-in-development </li></ul><ul><li>Plus first senior mgmt team member </li></ul><ul><li>$250K to $1M </li></ul><ul><li>Finding development partners </li></ul><ul><li>Developing business strategy </li></ul><ul><li>Recruiting BOD & SAB </li></ul><ul><li>Product at beta clients </li></ul><ul><li>Senior mgmt team formation </li></ul><ul><li>$1M to $5M </li></ul><ul><li>Growing the sales pipeline </li></ul><ul><li>BOD and SAB in place </li></ul><ul><li>Full customer pipeline </li></ul><ul><li>Senior mgmt team in place </li></ul><ul><li>$2M to $20M </li></ul><ul><li>Managing growth </li></ul><ul><li>Becoming profitable </li></ul><ul><li>Identifying exits </li></ul>Focus <ul><li>Business Expansion </li></ul><ul><li>Public Markets </li></ul>
    9. 9. The ARCH Model <ul><li>Apply Time-tested Traditional VC Disciplines to: </li></ul><ul><ul><ul><li>Identify Platform Technologies </li></ul></ul></ul><ul><ul><ul><li>Create Patent Strategy </li></ul></ul></ul><ul><ul><ul><li>Recruit the CEO </li></ul></ul></ul><ul><ul><ul><li>Identify and Quantify the Market </li></ul></ul></ul><ul><ul><ul><li>Create the Business Model </li></ul></ul></ul><ul><ul><ul><li>Recruit BOD and SAB </li></ul></ul></ul><ul><ul><ul><li>Raise $$$ </li></ul></ul></ul><ul><ul><ul><li>Manage to Milestones </li></ul></ul></ul>
    10. 10. Inception <ul><li>Product commercialization </li></ul><ul><li>Customers </li></ul><ul><li>Revenue </li></ul><ul><li>Space to grow </li></ul><ul><li>Next round funding </li></ul><ul><li>Updated Advisory board and BOD </li></ul><ul><li>Recruiting and hiring </li></ul><ul><li>Organizational structure </li></ul><ul><li>Compensation planning </li></ul><ul><li>Staffing models </li></ul><ul><li>Culture building </li></ul><ul><li>Incorporation </li></ul><ul><li>Office space </li></ul><ul><li>Payroll and benefits </li></ul><ul><li>Accounting </li></ul><ul><li>IT and telephone </li></ul><ul><li>Advisory board and BOD </li></ul><ul><li>Managing Licensor relationship </li></ul><ul><li>Technology due diligence </li></ul><ul><li>Business plan creation </li></ul><ul><li>Patent and IP protection </li></ul><ul><li>Finding and closing initial financing </li></ul><ul><li>Consultation/ liaison on university policy </li></ul><ul><ul><li>Marketing/PR </li></ul></ul><ul><ul><li>Financial model and pricing </li></ul></ul><ul><ul><li>Business development </li></ul></ul><ul><ul><li>Operations processes </li></ul></ul><ul><ul><li>Product development </li></ul></ul>Groundwork Interim management Talent Toward independence Accelerating New Business Growth
    11. 11. The “squeeze” perspective <ul><li>At the early stages … it is about squeezing out enough risk so traditional corporate partners and investors can participate. We think about how you can facilitate: </li></ul><ul><ul><li>hitting the most critical milestone's) </li></ul></ul><ul><ul><li>in the least amount of time </li></ul></ul><ul><ul><li>with the least amount of money </li></ul></ul><ul><ul><ul><li>light initial capitalization </li></ul></ul></ul><ul><ul><ul><li>management compensated w/stock </li></ul></ul></ul><ul><ul><ul><li>use non-dilutive funds </li></ul></ul></ul><ul><ul><ul><li>outsource </li></ul></ul></ul><ul><ul><ul><li>exit strategy flexibility </li></ul></ul></ul>
    12. 12. What we want to see – MANAGEABLE RISK <ul><li>As we evaluate each of the foregoing we are considering the main types of risk, if they are manageable and if so how they will be managed: </li></ul><ul><ul><li>IP </li></ul></ul><ul><ul><li>Market </li></ul></ul><ul><ul><li>Technical </li></ul></ul><ul><ul><li>Financing </li></ul></ul><ul><ul><li>Management </li></ul></ul>
    13. 13. Risk con’t <ul><ul><ul><ul><ul><li> PROBABILITY </li></ul></ul></ul></ul></ul><ul><li>Sufficient capital 80% </li></ul><ul><li>Management is capable and focused 80% </li></ul><ul><li>Product development goes as planned 80% </li></ul><ul><li>Production and component sourcing goes as planned 80% </li></ul><ul><li>Competitors behave as expected 80% </li></ul><ul><li>Customers want the product 80% </li></ul><ul><li>Pricing is forecast correctly 80% </li></ul><ul><li>Patents are issued and are enforceable 80% </li></ul><ul><li>Combined probability of success 17% </li></ul><ul><ul><ul><ul><ul><li>Harvard Business Review November-December 1998 </li></ul></ul></ul></ul></ul>
    14. 14. What we like to see - TYPE <ul><li>Science/innovation based company. </li></ul><ul><li>Prefer university or corporate owned intellectual property as the basis for the spin out (vs independent inventor). </li></ul><ul><li>Biomedical, biotechnology, pharmaceutical, bioinformatics, information technology, wireless, internet infrastructure. </li></ul>
    15. 15. What we like to see - STAGE <ul><li>Pre-business plan and management team is fine. </li></ul><ul><li>We prefer to act as founders at this stage, assist with company formation and management and board recruitment and the acquiring the necessary intellectual property rights. </li></ul>
    16. 16. What we like to see - $ REQ <ul><li>50k to 1 million needed for the purpose of squeezing risk out of the venture and positioning it for further investment or revenue generation. </li></ul><ul><li>20-50 million total to get to exit. </li></ul><ul><li>Realistic expectations regarding valuation, that is what the investment buys in ownership and control </li></ul>
    17. 17. What we like to see - MARKET <ul><li>The product(s) the company is proposing to develop should have a market of 200 million or more (that is the company’s sales are expected to be 200 million or more annually in a reasonable time after product launch) </li></ul><ul><li>Understanding of the commercialization strategy and competitive advantage. </li></ul><ul><ul><li>Clear and realistic idea of who and what the competition is and how the idea will reach the market in the form of a product. </li></ul></ul><ul><ul><li>Know where the pain is that this product addresses and where a the incentives are to adopt the new product (the value proposition). </li></ul></ul>
    18. 18. What we like to see - IP <ul><li>The proposed product should be based on an appropriate proprietary position, preferably a strong patent position or the real potential for one. </li></ul><ul><li>This includes understanding freedom to operate issues and determining that they are clearly addressed or reasonably manageable. </li></ul>
    19. 19. What we like to see - MGMT <ul><li>If there are there already or if we need to recruit them: </li></ul><ul><ul><li>Product development experience and operating experience (fund raising a plus). </li></ul></ul><ul><ul><li>Reasonable compensation expectations. </li></ul></ul><ul><ul><li>Chemistry with the founding scientists/innovators. </li></ul></ul><ul><ul><li>Early stage company experience </li></ul></ul><ul><ul><li>Network </li></ul></ul>
    20. 20. What we like to see - EXIT <ul><li>The company or proposed company should be one poised for an acquisition exit or in some cases an IPO exit. </li></ul><ul><li>Pre-seed and seed stage investors like ARCH may lean toward an acquisition exit as it is consistent with our model (and the only choice when the window is closed) and hence towards deals in industries in which M&A is the favored transaction. </li></ul>
    21. 21. What we like to see - RETURNS <ul><li>At exit it’s about how… </li></ul><ul><ul><li>many shares are we going to own. </li></ul></ul><ul><ul><li>much do we invest to get there. </li></ul></ul><ul><ul><li>much to others invest to get there. </li></ul></ul><ul><ul><li>long will it take us to get there. </li></ul></ul><ul><ul><li>much will they be worth at exit. </li></ul></ul>
    22. 22. Sources of these shares…of equity <ul><li>In addition to acquiring equity as consideration for investing dollars in the company (usually preferred) equity may also be obtained… </li></ul><ul><ul><li>As consideration for the technology license (common or preferred) </li></ul></ul><ul><ul><li>As consideration for forming the company or providing services (sweat equity – usually common) </li></ul></ul><ul><ul><li>As compensation (options for common or restricted stock) </li></ul></ul>
    23. 23. How much equity <ul><li>Pre-money valuation + dollars invested = post money valuation </li></ul><ul><li>Equity ownership equals dollars invested divided by the post money valuation…or does it?! </li></ul><ul><li>Equity ownership on a fully-diluted basis </li></ul>
    24. 24. Term Sheet <ul><li>Financial Terms </li></ul><ul><li>Non-financial Terms </li></ul><ul><li>Equity Provisions </li></ul>
    25. 25. Terms to address the traditional ‘valuation gap’ <ul><li>Pre-money valuation </li></ul><ul><li>Financial tools </li></ul><ul><ul><li>Liquidation preferences </li></ul></ul><ul><ul><li>Warrants </li></ul></ul><ul><ul><li>Dividends </li></ul></ul><ul><li>Incentive based tools </li></ul><ul><ul><li>Price controls aka ratchet mechanisms </li></ul></ul><ul><ul><li>Preemptive rights </li></ul></ul><ul><ul><li>Performance based incentives </li></ul></ul><ul><ul><li>Management options </li></ul></ul><ul><ul><li>Vesting founders shares </li></ul></ul><ul><li>Terms to address managing risk via control </li></ul><ul><ul><li>Board representation </li></ul></ul><ul><ul><li>Class voting </li></ul></ul><ul><ul><li>Voting the option pool </li></ul></ul><ul><ul><li>Protective provisions </li></ul></ul>
    26. 26. Liquidation preferences <ul><li>These preferences allow certain investors, in the case or acquisition or liquidation, to get their initial investment back (or multiples of it in the case of 2x or 3x liquidation preferences) before returns are shared ratably with the other share holders. </li></ul>
    27. 27. Warrants <ul><li>Another word for an option to purchase a security. The term is generally used for options provided by the company to outside investors (as distinct from officers, employees, etc.) </li></ul><ul><li>Contract which covers time frame during which the investor can convert the warrants and the price they can convert/buy stock </li></ul><ul><li>Sometimes used with or without interest on convertible bridge loans and can be based on a percent of the bridge </li></ul><ul><li>This can be a cashless transaction if the warrants are converted at exit </li></ul><ul><li>Taken into consideration when determining a fully diluted share price </li></ul>
    28. 28. Anti-dilution <ul><li>Price protections…if stock is sold, at a price less what the investor with anti-dilution protection paid for it, the lower price is applied to the conversion formula </li></ul><ul><ul><li>Full-ratchet </li></ul></ul><ul><ul><li>Weighted average </li></ul></ul><ul><li>Preemptive rights…the right of the investor to acquire new securities issued by the company to the extent necessary to maintain its percentage interest on an as converted basis) </li></ul>
    29. 29. Vesting founders shares <ul><li>Incentive to keep founders with the company </li></ul><ul><li>“Earning back” the initial ownership in the company over time or against milestones </li></ul>
    30. 30. Control via business decisions <ul><li>Protective provisions </li></ul><ul><ul><li>May provide significant control of the investors even if they do not own a majority of the company. </li></ul></ul><ul><ul><li>Outlines which decisions require approval of the investors (which class of investors, percent, etc.) </li></ul></ul><ul><li>Board representation </li></ul><ul><ul><li>Investors my require one or more board seats </li></ul></ul>
    31. 31. Resources <ul><ul><li>Indiana Venture Center </li></ul></ul><ul><ul><ul><li>www.indianaventurecenter.org </li></ul></ul></ul><ul><ul><li>Indiana Seed Fund I. LLC (ISF) </li></ul></ul><ul><ul><ul><li>www.biocrossroads.com/entrepreneur/isf.htm </li></ul></ul></ul><ul><ul><li>Model documents and industry overview </li></ul></ul><ul><ul><ul><li>www.nvca.org </li></ul></ul></ul><ul><ul><li>More course work </li></ul></ul><ul><ul><ul><li>www.vcinstitute.org </li></ul></ul></ul>
    32. 32. OPEN CHANNEL SOFTWARE
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