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Dimension Mill Annual Presentation
- 1. Welcome to theinaugural conference!
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- 5. John Hamilton Mayor ofBloomington
- 6. John McDonald CEO ofClearObject
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- 8. The world’s biggesthospitality company owns no hotels. The world’s biggest retailer owns no stores. The world’s biggest distributor of content owns no content. The world’s biggest broadcaster owns no stations or towers. The world’s biggest car rental company owns no cars.
- 9. Here Comes theFourth Economy The new economy is based on data, and the source is everyday objects. Make Things automotive medical devices consumer electronics process Move Things transportation logistics retail distribution Grow Things agriculture food service processing biotech Data From All Things
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- 11. Eyes off theroad.
- 12. People all overthe world: Start a car train.
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- 16. Your room isready.
- 17. Humans: Unsafe at anyspeed.
- 18. The Internet ofPeople is Ending Mobile devices exist to make us smarter endpoints to the Internet. Proximity Ambient Light Camera (2) Accelerometer Gyroscope Compass Barometer Near Field Fingerprint Pressure
- 19. Hello, Cognitive Clouds Backto the future. Mainframe Primetime: 1960-1980 Centralized Client-Server Primetime: 1980-2000 Distributed Mobile-Cloud Primetime: 2000-2020 Centralized Edge Intelligence Primetime: 2020-2040 Distributed Now the role of the cloud is to learn from smart distributed devices.
- 20. Explosion of Softwarein Things Boeing 787 Dreamliner 6.5 million lines of code Lockheed Martin F22 Raptor 1.7 million lines of code 2017 Mercedes-Benz S550 20 million lines of code Now the role of the cloud is to learn from smart distributed devices.
- 21. Make Power by theHour • Wikipedia • bit.ly/2qMA1le
- 22. Move On Connected Diagnostics• Fleet Owner • bit.ly/2qWBm67
- 23. Grow Working the landand the Data • New York Times • nyti.ms/2pfS5Ep
- 24. #1#1#10 Make Things automotive medical devices consumerelectronics process Move Things transportation logistics retail distribution Grow Things agriculture food service processing biotech
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- 31. Oscar Moralez Founder ofVisionTech
- 32. Supporting Startups inIndiana Angel Investing 2017 Angel Investing Conference Dimension Mill November 30, 2017
- 33. 2 Oscar Moralez • BS,Medical Technology (Univ. of Texas Southwestern Med Center) • MBA (Univ. of Colorado) • Professional Experience (13 yrs) • Boulder Community Hospital, Boulder • Mayo Medical Laboratories, Rochester • Covance Laboratories, Indianapolis • Entrepreneur (>15 yrs) • 2014 - Present: VisionTech Partners (Founder & Managing Director) • 2008 – 2014: StepStone Business Partners (Founder & Managing Director) • 2002 – 2007: BioStorage Technologies (Founder and COO) • Raised ~$10 million in angel and venture capital • Acquired Dec 2015 for $127 million by Brooks Automation (NASDQ: BRKS) • Angel Investor (>10 yrs)
- 34. What is anAngel Investor • A “qualified” individual who invests capital in early stage businesses to help launch and support the company through its early development. • Invests for ownership “equity” or ”debt” in a company • Must meet Security Exchange Commissions (SEC) standards for “accredited investors” • earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR • has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). • https://www.sec.gov/files/ib_accreditedinvestors.pdf • Motivation for Investment • Philanthropic • Economic (Passive or Active) 3
- 35. 4 Where does themoney come from?
- 36. Capital Raise Amounts bySource Source: Angel Resource Institute 5
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- 39. • Formed in2009 • Largest Angel investor network in Indiana (100+ members) • Chapters • Indianapolis • Fort Wayne/Warsaw • Greater Lafayette (Purdue University) • Bloomington (Indiana University) • Angel BOM (IU Business of Medicine) • Accredited Investors • Diverse group (physicians, attorneys, financial, business leaders, entrepreneurs, academics, athletes, etc.) • Angel Capital Association (ACA) - certified angel group • Sector Focus: Information Technology, Life Sciences, Medical Devices, Agricultural Technology, Advanced Manufacturing Technology • Geographic Focus: Indiana / Midwest VisionTech Angels: Strength in Community! 8
- 40. VisionTech Angels Overview • Haveinvested ~$12 million in 29 companies • Average: 9-12 members per deal • Investment Average per member: ~$25,000 • Average deal range of $200K - $500K+ • Goal is 20X+ return in 5-7 years for each investment while exceeding industry average of 22%-27% IRR in portfolio return • Portfolio companies have gone on to raise over $200 million • Portfolio Strategy • 20+ companies per member 9
- 41. Individual Participation 10 • Accredited •Fees • Annual membership • Management fees (only on investments) • Carried Interest (only on profits) • Investment Options • Angel group (individual decisions) • Angel fund (investment committee) • Individual Investments • Case by case decision • Portfolio strategy • No minimum (typically not less than $5K per deal or $100K in 20 companies)
- 42. • Deal Flow…………………………………………………………………………………………….…….. •400+ applications reviewed each year • 50-75 selected for screening each year • 12-15 selected each year for presentation to angel group • 4-6 new investments per year • 5-10 follow on investments per year • Presentations to Angel Chapters……………………………………………………………….. • 6 x per year • 12-15 companies • Due Diligence • Team / Analysts / Angels / Network / Syndicate • Comprehensive • Objective • Average 4 weeks • Publish Due Diligence report to all members; Capital Call • Close Transaction…………………………………………………………………………………….…. • Single purpose entity for investment • Portfolio Management • VisionTech Partners VisionTech Angels Investment Process 11 1-2 Months 1-2 Months Total: 2-4 Months
- 43. Investment Criteria 12 • Stage •Pre revenue has to be compelling (team, technology, market) • Early commercialization (beta, pilot, etc.) • Greater than $250K in annual revenue • Market Size • Greater than $250 million (addressable) • Pre-Money Valuation • Less than $6 million • Size of Round • Typically between $1 - $2 million • Preferred Equity or Convertible Debt • Do Not invest in common stock offerings • 10-20% equity ownership position • Investment protection rights • Liquidation preference / anti-dilution / pro rata participation on future rounds – “follow on” • Potential for 20-30X or more ROI
- 44. Our track record… Formedin 2009 (StepStone) 5 chapters (statewide) 100+ angel investor s 29 portfolio companies $12+ million in private capital from VTA Portfolio companies have raised over $200 million in “outside” capital after VTA investment 6 Exits 6 Exits through 2017 (1) Company lost all (2) Companies returned partial capital (less than total invested) (3) Companies returned more than total invested (profit) 13
- 45. 14 Contact: Oscar Moralez, ManagingDirector omoralez@visiontech-partners.com Ben Pidgeon, Executive Director bpidgeon@visiontech-partners.com
- 46. Kristin Cooper CEO ofThe Startup Ladies
- 47. Why do weneed to GROW startup and investor pipelines simultaneously? How do we do it?
- 48. Chapters: Indianapolis/2014, TerreHaute/2016, and Bloomington in 2018
- 49. MISSION: The Startup Ladiesis a membership organization that identifies, educates, connects, and increases investment in women entrepreneurs starting up and scaling businesses.
- 50. How do TheStartup Ladies increase the # of scalable startups and 1st time investors? •We create community through our Meetups which allow attendees to connect with experienced executives and fellow budding entrepreneurs. •We educate first-time founders through "Startup Study Halls" and first-time funders through "Startup Investing 101" programming. •We increase investment in women-owned companies by hosting pitch events, educating new investors, and making connections between founders and angel investors. •We believe that diversity is a competitive advantage. Anyone (men included) who has a passion for startups and investing is invited to become a member and participate in our programs and events.
- 51. After speaking withhundreds of founders, this is what we know for sure: • Many founders to do not have “friends or family” who can afford to write checks for $5,000-$50,000. • One their biggest obstacles to proving out their concept is securing funding. • The lack of prepared and trained “friends and family” investors prevents viable products from going to market.
- 52. As of theend of 2016: • According to Spectrem Group's Market Insights Report 2017, there was a record 10.8 million millionaires nationwide. • That's more than ever before and marks a 400,000 person increase from the previous year. • 9.4 million individuals with net worth between $1M - $5M • 1.3 million individuals had a net worth between $5M - $25M • 156,000 households had more than $25M in net worth *Spectrem Group is a consulting and market research firm in the wealth management and retirement industries. There are MILLIONS of prospective investors in the US
- 53. There is noshortage of funding in the US. There is an insufficient number of properly trained and connected angel investors.
- 54. How do wegrow the number of “friends & family” investors? • Monthly conversations about: how equity works, how to evaluate business plans and risk, what is an exit strategy, how to support the founder, and the legal and tax responsibilities of an investor. • Facilitated by: angel investors, attorneys, university professors, and accountants who are experts in the field of investing in startups. • Build relationships with founders through quarterly “Founders & Funders” events.
- 55. Why do weneed to build a pipeline of startups and angel investors simultaneously? • Every day, new founders are identifying new problems and offering new solutions. They need funding to scale. • If trusting relationships are established between founders and funders, it will be easier to raise money when needed. • Chaos in the marketplace creates opportunity. Founders and funders need to be prepared and trained to take advantage of time sensitive opportunities.
- 56. Invest in ProblemsWorth Solving
- 57. Impact Investing Investments madeinto companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.
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- 60. Think BIG 1. Whydo you want to invest in a startup? Make $, solve a problem, impact humanity, leave a legacy? 2. What industries interest you? 3. How much can you afford to invest? 4. Choose an organization to become an active member. 5. Set a goal to make 1 investment by the end of 2018.
- 61. It’s your legacy. Whatwill you invest in now so that Earth is a better place when you’re long gone?
- 62. Join the movement. Becomea member.
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- 64. v v Chris LaMothe CEO ofElevate Ventures John Thompson CEO of Thompson Distribution + IEDC Board Member
- 65. v v Ellie Symes The BeeCorp Mike Trotzke Cheddar v Erik Robinson Sintact Medical
- 66. Thank you forattending!