NJTC Venture Fund

Agenda

• NJTC Venture Fund Overview

• Sources of Non-VC Capital

• Navigating the Venture Process

Summary Benefits

• New Jersey-focused, early stage• Enable local working relationships• Recruiting, vendors, service providers, capital• Strategic partnering with large NJTC members • Successful CEO as second director• Partnered with top capital sources: LPs, other

VCs

Early Stage Investment Strategy

• Target: Concept through $5M revenue

• Most will have completed product development or demonstrated their service

• Seed funding may be provided for unique concepts

• Broad range of technologies

Sources of Non-VC Capital

• SBIR and Federal research• NJ Commission on Science & Technology:

$250K, non-equity• NJ EDA: $500K, very favorable debt• Customer-financed development• Angels• Friends and family• Credit cards and vendor financing

Financing Continuum

• Government

NJ Commission on Science and Technology

NJ Economic Development Authority

• Early Stage

NJTC Venture Fund, Kemper Ventures, Early Stage Enterprises, Cardinal Ventures, Base Camp Ventures, MAVF

• Expansion and Later Stage

Edison Venture Fund, LLR, TDH

• IPO

Public Investors

Portfolio Profile

• Initial investment: $300K to $2M

• Reserve capital for two future rounds

• No company > 15% of fund

• 15-25 companies

The Process

• Submit summary at www.njtcvc.com

• Call the next week to discuss

• Meet several times over 10-12 weeks

• Provide details about market, partners, customers, financials

• Time consuming

• Use your advisors to streamline

“Pre-Sales” Market Validation

• Prior success in relevant industry

• Others on management and sales team contribute relationships

• Unbiased industry experts corroborate market need

• Beta customers

Can’t Afford a Management Team?

• Pursue angel and non-institutional funding while building team

• In meantime, obtain functional skills through:

Rely on Board expertise

Hire part-time CFO

Impose on angel investors for their expertise

Form an Advisory Board (e.g. Anacom)

Use SCORE

NJTC Background

• Founded 1997• Over 1,000 member companies• From start-ups to conglomerates• Industry and functional networks (i.e., IT,

biotech, communications, electronics, CFO, S&M)

• Leading service providers• 120 events annually

NJTC Plays Integral Role

• Diligence• Recruiting• Marketing & technology partnering• Vendor and service provider referrals• Board of Directors and advisors• Promotion of companies• Exits: acquirers, investment banks

NJTC Executive Network

• Joe Allegra – CEO, Princeton Softech

• Mel Baiada – Bluestone, HP acq’d $450M

• John Bailye – CEO, Dendrite ($1B+ market cap)

• Jim Carnes – CEO, Sarnoff Corp.

• John Cusick – CEO, Primestar ($1B + value)

• Ralph Faison – VP, Lucent Technologies

• Will Mayhall – CEO, PFS, State Street Bank acq’d

• Bill McHale – CEO, NASDAQ: DSET

• Greg Olsen – CEO, Sensors Unlimited

Lessons Learned

• Sales cycle is always longer

• Strong market need can compensate for immature sales effort

• Focus tightly despite appeal of nearby opportunities

• Raising money usually comes from someone you know or a strong referral

Contact Us

• Submit business summary online

• www.njtcvc.com

• 856-787-9700