NJTC Venture Fund Discussion

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New Jersey Technology Commercialization
Conference December 8, 2004
2
Agenda

• What is Venture Capital?
• Who is NJTC Venture Fund?
• What do VCs look for?
• Are you ready?
• Beyond the first meeting what to expect
• The Deal

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What is Venture Capital?

• Limited partnerships
• Equity investments
• Long term investors
• Value-added investors
• Generally focused on a specific area

4
Who is NJTC Venture Fund?

• New Jersey focus
• Seed through expansion stage
• Investing across all industries
• 80 million fund
• Networked Capital

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What do VCs look for?

• What is the problem?
• What has been done in the past to solve the
  problem? Why did it fail? Why are you
  different?
• Who will be running the company?
• Is there a deal that makes sense for everyone?

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Are you ready?

• Target your pitch
• Understand the costs of capital
• KNOW YOUR MARKET
• Consider alternative funding sources
• How baked is the technology?

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Beyond the first meeting

• References (customers, suppliers, management)
• Financial models
• Network contacts
• Syndicate-building

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The Deal

• Preferred stock
• Participation and liquidation preferences
• Anti-dilution
• Board seats and veto rights