Accessing Equity Capital: Practical & Legal Issues

Prepared for:

May 25, 2010 1

Is Equity Available?

2

Agenda

• Sources of Capital

• Trends in Venture Capital

• Art vs. Science

• Science

• Art

3

Sources of Capital

4

FF&A, Angels, VCs

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Other Sources of Capital

• Customers• Suppliers• Distributors• Industry Participants• Economic Development• SBA• SBIR

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Total U.S. VC Investment

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Life Sciences VC Investment

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How Much is Coming Out of Our Region?MN, ND, SD, WI, IA, NB

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High Bar

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How to Attract Capital

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4 Ps of Marketing

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4 Ps

• People

• Product

• Potential

• Predictability

• Product

• Price

• Place

• Promotion

Marketing Investing

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So What Can you Change?

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Increase Chance of Success

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Network Early… Network Often..

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Passion and Enthusiasm

• Steve Schussler– Passion– Persistence– Plan

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Be Milestone Driven

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Do What You Say

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Innovation Pyramid

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Rosabeth Moss Kanter, Harvard Business School professor

Just Another….

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Bootstrapping

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Financial / Market Analysis

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Know Your Audience

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Solve Explicit Need

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Understand Implicit Needs

• Client Business Model• Change Buyer Behavior• Structural Changes• Who loses a job

29www.sharondrewmorgen.com

Intellectual Property

• Blue vs. Red Ocean• Advantageous Position• Value of Technology

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Communication Matters

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Perception is Reality

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Effort

“A great business person knows how to recognize insurmountable challenges

and thusly quit.  An entrepreneur doesn't have time to know what quit means.”

Lief Larson

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Geology is the Study of Pressure and Time

“An ice age here, million years of mountain building

there. Geology is the study of pressure and time. That's all it

takes really, pressure, and time.”

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Rick BrimacombBrimacomb & Associates

612.803.3169rick@brimacomb.comwww.brimacomb.com