Brook Venture Partners

1
Brook Venture Partners
Venture To Investment
April 5, 2008
B r o o k V e n t u r e P a r t n e r s , L L
C 3 0 1 E d g e w a t e r P l a c e , S u i t
e 4 2 5 W a k e f i e l d , M A 0 1 8 8 0
( 7 8 1 ) 2 9 5 4 0 0 0
2
Lifecycle of Financing

• Angel --gt Early Stage --gt
  Expansion Stage
• 100,000-1M 250,000-1.5M 1M - 5M
• --- Catamount Fund Brook
  Venture Fund II
• --- Federal St. Capital
  Federal St. Capital
• The Catamount Fund should be of Greatest Interest
  to This Group, but I will Highlight our Other
  Funding Sources

3
Early Stage Financing (250,000-1.5 Million)

• Federal Street Capital, Inc. - (Since 1998)
• - Targeting Individual Investors (more than 200
  Invested with us) - - Financings 500,000-1.5
  Million
• - Operating since 1998 - Done 2 dozen private
  placements
• - fee-based Fund Raising among Group of our
  National Investors
• - Not industry specific
• - Revenue Generating, high and low tech
  companies
• Status
• - Currently Undertaking Three Fundraisings
• - Adding 1-2 Project Managers over next Quarter
• Example
• - Affordable Interior Systems Invested 1.1M
  as part of 4 raised
• - Company sold 9 years later for 95 Million

4
Early Stage Financing (250,000-1.5 Million)

• Catamount Fund (NEW)
• - Contemplated Fund Size 15-30 Million
• - Investing 250,000-1.5 Million based on
  Milestones
• - Launch Date Q3 or Q4, 2008
• - Focus in on University-based IP
• - UVM will be First Partner, 3-4 Others to be
  Included
• - VEDA to offer Vermont Investors some Tax
  Credits
• - Focus in Healthcare, med-tech, and some
  Information Tech
• - Revenue stage Companies
• - New England, New York (Upstate NYC)
• Status
• - Should begin Looking at Companies in Late Q3
  or Q4
• Example Vybion, A Company based in Rochester,
  NY, licensing biotech technology from University
  of Rochester. Would have been Excellent
  Candidate for This Fund

5
Expansion Stage Financing (1-5M)

• Brook Venture Fund II (Since 2002)
• - 100 Million Fund
• - Launched 2001
• - Focus in on Medical Technology and
  Information Technology
• - Fund is an SBIC Licensee of the Small
  Business Administration
• - Focus is on Expansion Stage Companies with
  small profit generating ability
• - New England, East Coast down to Virginia or
  North Carolina
• - VEDA is an investor
• Status
• - Currently about 50 invested
• Portfolio Companies
• - Repromedix, Wandrian, Really Strategies,
  Mobile Medical (VT), Daybreak (VT), Certica,
  RockBlocks, HistoRx

6
Expansion Stage Financing (205,000-1M)

• Bridge Capital Partners (New)
• - Focus is on Companies needing funds to bridge
  to another round of Financing, get through a
  product introduction, etc. when valuations
  higher,
• - Focus is on Revenue Stage companies at or
  near Profitability
• - 1-3 Year Interest Bearing Loans with Warrants
  or stock, either Repayable or Converts into next
  Equity Financing
• Status
• - We Should begin Looking at Companies in Q3.
• Example Bioscan, Inc., Washington, which in the
  absence of the Fund we did a one-off Financing by
  forming a special purpose fund
• - We placed 1M to enable the Company to
  Introduce New Products, Bridging them to a 6M
  Venture Financing 2 Years Later With Fletcher
  Spaight and Ironwood Capital (and Brook Fund II),
  and a key partnership with Philips

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There is Money Out there . . .

• Dont Raise Money Unprepared
• - Commit the Same level of Effort as you are
  (or plan on) spending for marketing your
  Companys Products/Services . . . . No less!
• - Develop a Good Business Plan to Run the
  Business on
• - Develop a Good Fundraising Document to Raise
  Capital
• - Do a targeted Search for the Right Investor
• - See The Perfect Executive Summary on our
  website
• -- www.brookventure.com under Artlcles tab
• -- Lots of tips, suggestions, for raising
  capital