University State Private Equity

1
University State Private Equity
2
Bluegrass Angels Organization

• 51 local and UK alumni accredited investors
• Early Stage - Prototype, pre-revenue, first round
• University Business Development
• Business Plans Presentation
• Grants/Private Equity/Forgivable Loans
• Patents, Licensing and Community Business
• Incubators and Research Park
• Bluegrass Angel Venture Fund
• Companion Fund to Angels Investors
• University State Participation in Equity
• Angel Network
• 6 Regional Angel Organizations
• Agreement on Deal Terms

3
Public Private Investment Lifecycle
FirstInstitutional Investor
Angel Investors
ProfitableCompany
State/ FederalFunds
Founders Incubators
Market Development
First Customer
Prototype
Research
Idea
4
Initial Valuation Screen

• Strength of Management Team
• Experience in this industry
• CEO experience and ego
• Scientific and technology personnel reputation
• Trustworthiness
• Experience as an Entrepreneur
• Product or Service
• Business Model and Sales Channels
• Ability to Compete
• Early Stage of Business

• Size of Investment Round
• Return on Investment in 5 years
• Ownership Opportunity
• Type of Offering
• Exit Strategy in 5 years
• Quality of business plan / presentation
• Revenue Potential in 5 years

5
Value Added

• Technology Infrastructure Business
  Capital
• Development Support Vision
  Strategy

Scientist Experts Patents Prototype
Business Services Manufacturing Space Custome
rs
Strategy Vision Management Legal Accounting
Venture Community Growth Exit Wealth
6
Investment Process

• Screening committee
• Company presentation (20 min Q A)
• Poll members for potential interest
• 1-2 hour meeting with company
• Only members with interest attend
• Feedback to company
• Background checks on management team
• Independent assessment of technology
• Market research and competitive analysis
• Discussion with potential customers/partners
• Negotiation of term sheet by lead angels
• Commitments from BGA members
• Preparation of legal documents
• Circulation of subscription agreement

Pre-meeting Initial Screen Evaluation Follow-up
Meetings Due Diligence Investment
7
Presenting Business Proposals

• Concise statement of the business
• Market analysis and opportunity
• Competitors
• Product protection
• Business Model
• Financial Pro Formas
• Deal Terms