NJTC Venture Fund

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NJTC Venture Fund
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Agenda

• NJTC Venture Fund Overview
• Sources of Non-VC Capital
• Navigating the Venture Process

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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

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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

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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

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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

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Portfolio Profile

• Initial investment 300K to 2M
• Reserve capital for two future rounds
• No company gt 15 of fund
• 15-25 companies

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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

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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

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Cant 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

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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, SM)
• Leading service providers
• 120 events annually

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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

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NJTC Executive Network

• Joe Allegra CEO, Princeton Softech
• Mel Baiada Bluestone, HP acqd 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 acqd
• Bill McHale CEO, NASDAQ DSET
• Greg Olsen CEO, Sensors Unlimited

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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

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Contact Us

• Submit business summary online
• www.njtcvc.com
• 856-787-9700