OVP Venture Partners

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OVP Venture Partners

• Raising Venture Capital
• In The Pacific Northwest

Gerry Langeler langeler_at_ovp.com 11/16/2002
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So, Who Is OVP?

• OVP Goal 1982 to 2002 Establish Leadership In
  PNW
  
• Early Stage, 75 PNW, Lead Co-lead 75 deals
  done
  
• Partner Background Key Domain Operating
  Experience
  
• Chad Waite 1987 Gerry Langeler 1992 Bill Miller
  1997 Dave Chen 2000
  
• Industry Focus Narrowed As Domain Expertise
  Built
  
• Software, Communications, Services
• Bench Strength Key Skills To Leverage GPs
• Dick Strayer - Organizational Development 1997
  Lucinda Stewart - Principal 2001, Pen Goodale -
  Research Mgr. 2001
  
• Results Mission Accomplished
• Established clear regional leadership
• 22 IPOs plus major acquisitions - with excellent
  returns

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OVP Going ForwardOVP VI - 185M

• Top Tier LPs
• Oregon PERS, Washington PERS, CALPERS (Grove
  Street), Verizon, Nationwide, Western Metal, Dow
  Chemical, Meyer Trust, Endowments
  
• Two investments made to date 15 to go
• Intelligent Results Seattle
• Max-Viz Portland
• Lead or Co-lead every deal. On the board.
  Hands-on.
  
• Series A, pre-revenue
• 1M - 5M first check, 8M - 10M total over
  time
  

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Pacific Northwest Passages(the state of the
state, by state)

• Seattle (and Spokane)
• Wireless is early - not over, Web services is
  even earlier. Network infrastructure is there,
  customers are not
  
• Portland
• Eclectic. Coming Intel network architecture is an
  opportunity.
  
• Vancouver, BC
• Interesting technology. Management? Whistler
  condo helps!
  
• Boise
• Simmering, worth watching.

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Border Crossings(or why Washington VCs are
scarce in Oregon)

• Its the economy, stupid
• Eclectic does not equal electric no hot space
  here, yet
  
• Lots of Seattle Funds, but fewer funds
• Chicken and egg
• Name the last great company started in Oregon
• Name the last great VC investment in an Oregon
  company
  
• There are 3-4 times the good deals in WA than in
  OR
  
• Do you know the way to San Jose? They do.
• Local presence matters

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So, Whats Not To Like?(or how to get OVPs
attention)

• A great team - with deep domain and execution
  expertise
  
• A huge market - ready for fundamental change
• A hard problem - that few can solve
• A real need - that is visionary but not
  missionary
  
• A business model that recognizes how your
  industry works
  
• A realistic goal a commitment to achievement
• A set of prospects who will validate your
  mission
  
• An elevator pitch the ability to tell a crisp
  story
  

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So, Whats Missing?(or what you dont need
contrary to myth)

• An introduction
• A complete business plan
• A complete team
• A finished product
• A sale
• A customer reference
• A strategic partner
• An investment banker or money raiser
• But the lower your track record the more these
  help
  

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So, Like Whats NOT?(or how to lower your
chances with OVP)

• Weve got half our Series A done with angels. You
  want in?
  
• Weve finished our Series A with angels and/or
  small VCs. Would you like you to look at the
  Series B?
  
• Were aiming to raise XM but wed take more at a
  higher valuation.
  
• All well ever need is the Series A.
• I am the founder, therefore I am the CEO.
• We have no competition.
• Were looking to close in 30 days.
• Our business plan is conservative.

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Summary

• Now is a great time to start a company
• Now is a great time to approach VCs
• Now is a great time to get a company funded
• Now is a great time to hire A talent
• Now is a great time to develop products
• Great companies are built in times like these

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OVP Active Portfolio