Keynote presentation at the 2019 SBIR Tour addressing opportunity zones and their benefits for investors, entrepreneurs and local communities

1. OPPORTUNITY
ZONES – SBIR
ROADSHOW
2019
November 2019
Jeffrey Camp
Luck is What Happens when
Preparation Meets Opportunity
Seneca – Roman Philosopher

2. IF NOT NOW, WHEN?
139x
Web hosting performance
increase per $
for the average website
(last 20 years)
470%
Improvement in ROI
using agile vs. traditional
development methods
48 hours <1 min
Reduction in time
to authenticate a bank
account using Plaid
2.3 years 3 days
Time to reach 10M users
from launch for Facebook vs.
Pokemon Go – a 284x increase
Monetization
Lower startup costs are pervasive
Design, acquisition, and distribution costs
have decreased tremendously
Tech is permeating everywhere
Investments are spread across
media, energy, healthcare,
among other verticals

3. OPPORTUNITY ZONES
The Largest Investment Incentive Program in US Tax History
8,766 Zones located
in all US states and
territories:
Unlocking $6.5Trillion in
unrealized capital gains.
Compared to the US Avg.
o Twice the poverty rate;
o Two-thirds of the median
income;
o One-half the level of
education attainment;
o One-third higher
underemployment.
o 100% tax deferral on
realized capital gains
invested in an OZ.
o Reduce by 15% the tax on
realized capital gains
invested in an OZ.
o No tax on gains made
from investments in a
qualified Opportunity
Fund (QoF).

4. The founders bring the ideas and vision. No amount of money or
execution can overcome an idea that lacks vision.
Access to capital is
critical to most
growth companies
and new ventures.
Opportunity Zones
open a new avenue to
capital.
More new ventures
fail because of
poor execution
than due to a lack
of a good idea or
capital. Innovation
hubs, such as
Converge Miami,
located in
Opportunity Zone
give key operating
support to
entrepreneurs.
Successful Start-up
SuperiorExecution
InnovativeIdeas
AccesstoCapital
THE PILLARS OF ENTREPRENUERSHIP

5. A WIN-WIN OPPORTUNITY FOR ALL
Opportunity Zone
Properties and
Businesses
(OZP/B)
For Investors
o Significant Increase in
after-tax returns.
o Partial elimination of tax
that is already owed.
o Very flexible structure at
both the fund and
investment level.
For Local Communities
o Government support, e.g.
the SBIR Roadshow.
o “Gentrification” isn’t a
four-letter word.
o Creation of new “tech
hubs” like Converge Miami.
o Easy to set-up an
opportunity zone
business (OZB).
o Standout from the
crowd in the fight
for attention.
o Significant new source
of investor capital.
For Entrepreneurs

6. Good Things Come to Those Who Wait
A Time Line in the Development of Opportunity Zones
First IRS Guidance -
October 2018:
Second IRS Guidance
- April 2019:
Final IRS Guidance Expected – Dec. 2019?
Congress Passes the
Tax Reform and Jobs
Act- Jan 1, 2018:
The Act includes
Opportunity Zones
based on the bi-
partisan Investing in
Opportunity Act.
The Act had nearly 100
co-sponsors on both
sides of the aisle.
First introduced in a 2015
paper, Unlocking Private
Capital to Facilitate
Economic Growth.
IRS Approves Opportunity
Zones - June 2018:
State governors
submit a list of census
tracts for IRS approval
in a bottom’s up
selection process.
From this list, IRS
approved 8,767
Opportunity Zones.
The guidance
clarified key items of
the Act, but left many
important questions
unanswered.
Qualified Opportunity
Funds (QoFs) were
determined to be the
necessary vehicle for
making OZ
investments.
Provides clarify on several
key issues.
Safe harbors for Operating
Zone Businesses (OZB).
Rules for reinvestment and
rollover of capital in
realized investments.
Capital raising for QoFs
begins in earnest.

7. OZB is a business or trade that
meets the following criteria:
o 70% of the tangible property owned or
leased is OZP.
o At least 50% of the entity’s gross income is
derived from the conduct of the business.
o A substantial portion of intangible
property is used in the conduct of the
business.
o <5% of property value is attributable to
non-qualified financial assets (excl.
18mths of working capital).
o Can not conduct certain “sin” businesses
WHAT QUALFIES AS AN INVESTABLE ASSET?
Opportunity Zone Business (OZB)Opportunity Zone Property (OZP)
Opportunity Zone Property must
meet the following criteria:
o Acquired after Dec. 31, 2017.
o EITHER (a) the original use of the property
in the zone commences with the
investment or (b) the investor
substantially improves the property; and
o During the holding period substantially all
of the use of the property is in the OZ.
Substantial improvement to OZP
o Within 30mths of acquisition of a OZP,
investors must invest, including soft costs,
an amount at least equal to the original
acquisition value excluding land value.

8. QUALIFIED OPPORTUNITY FUND: STRUCTURE
Taxpayer 1 Taxpayer 2
Qualified Opportunity Fund
(Partnership or Corporation)
Qualified Business
(Partnership or Corporation)
• 90% Requirement
that funds be
invested in
Opportunity Zone
property or
businesses.
• 50% of greater of
total income in QOZ
• 40% of intangibles
used in business
• Not too much
cash/securities
• No sin businesses

9. AN OPPORTUNITY FOR INVESTORS
Significantly Higher After-tax returns
* 10yr return calculated using the most recent 10yr US Venture Capital Index annual IRR net to limited partners of 10.6%.
Source: Cambridge Assoc.
$1,000
$2,536*
Value of principal left to
invest post-tax IF not
invested in a QOF
$1,772*
Initial Capital Gain rolled
into a Qualified
Opportunity Fund
43%
Increase
in Total
Value to
Paid in
Capital
Through
QOF
Investing
10 Years
10 Years
Post-Tax Total Value – Long Term
Capital Gains Comparison
$762
Post-Tax
Investment Value
Without the Benefit
of Opportunity Zone
Tax Incentives
Post-Tax
Investment Value
With the Benefit of
Opportunity Zone
Tax Incentives

10. LT Capital Gain
Taxes Paid on
Realized Gain IF not
Invested in a QOF
$1M
$762k
After Tax
Capital
$238K LT
CG Tax
5 Years
$1M
10% Reduction in
Basis After 5yr QOF
Holding Reduces
Capital Gains Tax
$214K
7 Years
15% Reduction in
Basis After 7yr QOF
Holding Reduces
Capital Gains Tax
$786k
After Tax
Capital
$1M
Long-term capital gains are reduced in basis
by 10% after 5yrs and 15% after 7yrs for a +5%
increase in after-tax principal.
Short-term capital gains are reduced in
basis by 10% after 5yrs and 15% after 7yrs for a
+10% increase in after-tax principal.
ST Capital Gain
Taxes Paid on
Realized Gain IF not
Invested in a QOF
$1M
$653k
After Tax
Capital
7 Years
$1M
10% Reduction in
Basis After 5yr QOF
Holding Reduces
Capital Gains Tax
5 Years
15% Reduction in
Basis After 7yr QOF
Holding Reduces
Capital Gains Tax
$633k
After Tax
Capital
$592k
After Tax
Capital
$1M
$408K CG
Tax
$367K CG
Tax$347K CG
Tax
AN OPPORTUNITY FOR INVESTORS
Benefits of Deferred and Lower Tax Basis
Long-term and/or short term capital gains can be invested in a QOF for deferred and reduced tax
benefits. The tax deferral allows the investor to keep more of their gains to be reinvested, while the
reduction in tax lowers their liability overall.
$798k
After Tax
Capital
$202K

11. VENTURE CAPITAL TO MAKE THE NEXT BIG MOVE
UMiami’s ‘Cane Angel Network is a
program designed to shape the
investment environment for UM start-
ups in Opportunity Zones.
Opportunity Zones Activity
VCs have limited understanding of
Opportunity Zones, but that is changing:
o New regulations make opportunity zones
much more attractive to venture capital.
o Opportunity Zone businesses will be in high
demand from VCs as they look to
capitalize on the new tax rules.
o A focused programs like UMiami’s Cane
Angel Network encourage UM-related
start-ups into its OZ campus. This will be a
key differentiator in fund raising.
Opportunity Zones – Venture CapitalOpportunity Zones – Real Estate
Real Estate Investors were early to
understand opportunity zones:
o Miami metro-area sales of
development sites in 1Q2019:
• +45% YoY to $238.3M WITHIN
Opportunity Zones; but
• Down YoY outside of
Opportunity Zones.
Miami is one of the best OZ
areas in the country
o Urban Institute ranked 41% of Miami’s
opportunity zones ranked 8 or higher
on a 1-10 scale for investment interest,
compared to 28% for all opportunity
zones nationwide.

12. OPPORTUNITY FUNDS ARE BEING LAUNCHED
Fund Raising is
Accelerating:
And focus is
Expanding.
o Real estate was the
initial focus of QoFs,
with 40% of dedicated
funds in this area.
o IRS guidance for
investments in OZ
businesses only came
in mid-2019. Interest in
this investment
segment is increasing.
54%
40%
5%
QoFs by Investment Focus
Sept. 2019
Mixed Real Estate Businesses
Source: Novogradac
o 25% increase Month-
on-Month in funds
raised in Sept. 2019.
o Year-end final IRS
guidance will drive
fund growth higher.
FLEXIBLE FUND STRUCTURES

13. Meet One Safe Harbor
o Converge Miami is located in
an Opportunity Zone at 1951
NW 7th Ave. Miami FL 33136.
o Check a mapping tool such as:
https://www.cims.cdfifund.gov/
preparation
o Meet at least one of the three
safe harbor tests that qualify
for an OZB.
A SIMPLE STRATEGY
Identify Relevant
Opportunity Zone Funds
Prepare Your Pitch
for Investors
o Look for investors with
experience in your
market.
o Investors should provide
more than just capital,
find those who can also
can provide strategic
guidance and a strong
network of contacts.
o Opportunity funds,
particularly those focused
on businesses, will be
looking for investments.
o https://www.novoco.com/
resource-
centers/opportunity-
zone-resource-
center/opportunity-
funds-listing
AN OPPORTUNITY FOR ENTREPRENEURS

14. AN OPORTUNIYTY FOR ENTREPRENEURS
ESTABLISHING AN OPPORTUNITY ZONE BUSINESS IS SIMPLE
50% Gross Income Test
o Qualified opportunity zone
business must derive at least 50%
of its gross income from active
conduct of trade or business "in
the qualified opportunity zone"
o New safe harbors
• Services performed in the
zone (by hours)
• Services performed in the
zone (by amount paid)
• Management and key
employees are located in
the zone
Working Capital Safe Harbor
o Extended to operating
businesses
o Extension for delays
attributable to waiting for
government action
o Multiple 31 month-periods
Intangible Assets
o 40% of intangible property
must be used in the active
conduct of a trade or business
in the opportunity zone

15. GETTING PREPARED FOR VC MEETINGS
Starting with the Basics
Key Materials to Prepare
o The Elevator Pitch: Have a 1-3 paragraph
description of what problem you’re
addressing, your solution and who the key
management are. This can be emailed easily
to hook interest.
o Your Executive Summary: A 1-3-page high
level description of your company with the
key highlights from your presentation.
o The Presentation: 15+/- pages hitting on all
the key points of your market, product, team
and strategy.
o The Financial Model: There is one thing I can
tell you about your model, it’ll be wrong. Focus
on Key Performance Indicators (KPIs) and
drivers of the business. Follow Occam’s Razor
- the fewer inputs the more likely the output
will be correct.
The Thiel Template for
VC Presentations
o Problem
o Solution
o Market
o Product
o Traction
o Team
o Competition
o Financials
o Amount being raised

16. Execution Plan
o Traction: Here is where your KPIs come in if
they tell a good story. Focus on growth in the
key metrics that you think drive the business.
Listen to investors on what they think drive
value.
o Your Team: This is your key slide, don’t be shy.
Why can your team do this? What experience
or credentials make them the “right” team.
Play to your strengths.
o The Competition: Trust me, there is
competition out there. Position yourself in the
market and differentiate yourself from others.
o The Financials: Let me repeat, your model will
be wrong, but it provides business direction
and fundamentals. 3yrs is usually sufficient.
Know how much you need to raise in funding.
THE THIEL TEMPLATE FOR VC PRESENTATIONS
Starting with the Basics
The Opportunity
o The Problem: Articulate ONE painful problem
that the investor can understand from either
personal or business experience as needing
to be addressed.
o Your Solution: How does it address the
problem? Can it scale? You’re not alone, so
why your solution? Be clear and concise.
o The Market: <$1B markets are tough, bigger is
better. Are you inventing a market or
disrupting one? Graphs help show the market,
it’s growth and you.
o Your Product: Here is where you can show
that you’ve got Demo products are great.
Discuss the stage of development and what is
needed to bring it to market.

17. LOCAL COMMUNITIES BENEFIT
Opportunity Zones Benefit Local Communities
“Overall, we find
that gentrification
creates some
important benefits
for original
resident adults
and children and
few observable
harms.”
U.S Federal Reserve
July 2019.
Significant Miami private
activity in OZs that
benefit local
communities. Examples
just THIS MONTH include:
Approval of The Gallery
on the River, a mid-rise
building including
affordable housing.
$126M acquisition in
Opa Locka of a mixed-
use property.
"Opportunity Zones will only
be a positive force in low-
income communities if
paired with responsible
investing principles,"
Kresge Foundation
CEO Rip Rapson in
announcing its $22M
anchor investment
in two opportunity
zone funds.
Oct 2019, a joint gov’t-
private initiative for 300
affordable housing units
announced in Florida that
must meet three criteria:
Proximity to an
opportunity Zone;
Within a half-mile of
an existing or future
Brightline/Tri-Rail
station; and
Proximity to a
Community
Redevelopment
Area (CRA).

18. MIAMI: THE REGIONAL INNOVATION HUB
The University of Miami’s offers excellent resources for
entrepreneurs:
o UM Office of Technology Transfer
o The Launch Pad
o Converge Miami
o ‘Cane Angel Network
o Coulter Center for Translational Research
South Florida is the Best Place in America to Start a Business:
o Florida was home to three of the Top-10 cities in America to start
a business, with Miami ranked #3 in the country.
o Florida had the highest rate of new businesses started in the
country as a percent of the population, and was in the top five in
jobs created per new business.
o With 68 Opportunity Zones, Miami is one of the best markets for
Opportunity Zone investors which will help support the start-up
ecosystem.

19. Designated
Opportunity Zone
Converge Miami: 1951 NW
7th Ave. Miami FL. 33136
MIAMI: THE REGIONAL INNOVATION HUB
University of Miami’s ‘Cane Angel Network is
leading the nation in its support for start-ups
by facilitating investments and providing
technology, entrepreneurship and
infrastructure.
University of Miami’s Converge Miami
operates as a innovation hub to support
next generation development. Converge
Miami is located in an Opportunity Zone.
The University of Miami, whose main campus is
located less than a mile from two Opportunity
Zones, is in a position, working with Opportunity
Zone investors, to enhance and promote
development in its own backyard.

20. University of Miami leads in shaping Miami’s start-up ecosystem.
ARE YOU READY TO MAKE YOUR OWN LUCK?
Access to
Capital
Innovative
Ideas
Superior
Execution
o Cane Angel Network,
o Private Angel investors,
o America’s Seed Fund (SBIR)
o Opportunity Funds,
o Traditional RE/VC Funds,
o Philanthropic Investors
o Converge Miami,
o IT and technology hub,
o Networking opportunities,
o Talent pool and hiring,
o Marketing and social
media presence.
o Flex and permanent
space, able to
support growth,
o Mentoring and
talent development,
o Providing growth
and development in
the local
community.
• UMiami provides key
resources for
entrepreneurs to access
capital:
• Entrepreneurs need all the
advantages to succeed.
But the ideas come from
themselves.
• “If you play solo you will
always lose to a team” Reid
Hoffman.
• The Cane Corridor

21. THANK YOU
Opportunity Zone
Properties and
Businesses
(OZP/B)
Jeffrey Camp
https://jcventurecap.com/jeffrey-camp/
For Entrepreneurs