Financing Your Business A Venture Debt Perspective

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Financing Your Business A Venture Debt
Perspective

• Damon Kirchmeier
• Managing Director
• UTFC Financing Solutions

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Venture Debt

• What is it?
• It is an investment made by a venture capitalist
  in the form of debt rather than equity.
• Venture debt is an investment in the management
  team and business model rather than collateral
  and operating history.

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Why Venture Debt?

• It Doesnt Always Fit
• Relatively Inexpensive
• Preserve Equity
• Nobody Else is Interested

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What do we look for?

• Management, Management, Management
• Management has a stake in company
• Some relevant experience helps
• All facets are covered especially marketing
• Advisory boards can fill in the blanks

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What Else?

• Good Product
• Solves a real problem
• Competitive advantage
• IP protection
• Good Market
• Large/Growing/New
• Can be reached economically

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Other Considerations

• Deal size and industry match
• Partners in the deal
• Fall back boot-strap financing plan if necessary

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What should you look for?

• A VC is your partner
• (whether you like it or not)
• make sure it is a partnership you want
• Look for the right fit
• make sure your goals are aligned
• personalities do matter

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UTFC Portfolio Companies
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How to Contact Us

• Phone - [phone]
• Email Damon_at_utfc.com
• Internet www.utfc.com
• Address
• InnoVentures
• 699 East South Temple, Suite 220
• Salt Lake City, UT 84102