UpState Venture Association of New York

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UVANY Mission Statement

• The Upstate Venture Association of New York is an
  organization of venture capital firms and others
  sharing the common goals of advancing the number,
  scale and quality of angel, seed, venture and
  private equity capital investments across
• New York State.

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UVANY-Basis of a Deal Community
Angel Investors
Seed Capital
Venture Capital
Private Equity
Economic Development Industrial Development
Agencies
Legal-Accounting-Banks-Commercial
Finance Investment Bankers-Intermediaries-Consulta
nts
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UVANY Focus

• Raise the level of awareness of capital available
  to upstate
• Raise the level of understanding of angel, seed,
  venture and private equity
• Provide forums where capital providers, those
  looking for capital, advisors, and other
  interested parties can meet.

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• Raising Capital in Upstate New York Five
  Success Stories

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Raising Capital in Central New York Five
Success Stories

• Advion BioSciences, Inc.
• Ithaca, NY
• John Nozell, Executive VP CFO

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Raising Capital in Central New York Five
Success Stories

• USA Datanet
• Syracuse, NY
• David Montanaro, President

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Raising Capital in Central New York Five
Success Stories

• Monarch Machine Tools
• Cortland, NY
• Mark Quinn, President of Monarch
• Scott Murphy, Advantage Capital

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Raising Capital in Central New York Five
Success Stories

• Terakete
• Syracuse, NY
• Mac Cummings, President, CEO

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Raising Capital in Central New York Five
Success Stories

• UStec
• Rochester, NY (Victor, NY)
• Lynn Hartrick, CEO

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• Entrepreneurs Minute

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Basis for Growing Deal Community

• University Research Expenditures Each Year
• 1.2 billion
• Among five universities
• Cornell
• SUNY Research Foundation
• University of Buffalo
• University of Rochester
• Rochester Institute of Technology

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Commercialization PotentialLevel of Research
Activity at Universities

• Our total regional RD expenditures have grown
  to over 1B
• Where are the commercializable technologies /
  start-ups?
• Are there latent high-tech ideas could be basis
  for startup companies?
• Can we possibly do some deeper mining at
  universities?

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Basis for Growing Deal Community

• New York State Common Retirement Fund investing
  in Upstate Funds
• Supporter of upstate equity funds
• Funded/funding 10 funds
• Over 250 million placed to date

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Basis for Growing Deal Community

• New Upstate Capital-Last 3 years
• Albany
• FA Technology Ventures
• High Peaks Venture Partners
• Adirondack Venture Fund
• TS Capital

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Basis for A Growing Deal Community

• New Upstate Capital-Last 3 years
• Syracuse
• Exponential Business Development/Newtek Capital
• Onondaga Venture Capital Fund

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Basis for A Growing Deal Community

• New Upstate Capital-Last 3 years
• Rochester/Ithaca
• Cephas Capital Partners
• DeltaPoint Capital
• Genesis Fund
• Trillium Group
• University Seed Fund
• Monroe Fund
• Lakefront Partners II
• Cayuga Venture Fund
• Angel Community

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Basis for A Growing Deal Community

• New Upstate Capital-Last 3 years
• Buffalo
• Rand Capital Corp.
• Summer Street Capital Partners
• First Wave
• Western New York Technology Fund
• Angel Community

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Basis for Growing Deal Community

• New Upstate Capital-Last 3 years
• CAPCO Funds
• Advantage Capital Partners
• Enhanced Capital Partners
• NYCIC
• Stonehenge Capital Corp.

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Basis for Growing Deal Community

• Additional funds interested in Upstate
• Brook Venture Partners-Boston
• Easton-Hunt Capital Partners- NYC
• Ascend Capital Venture Group-NYC
• Founders Equity-NYC
• HSBC Capital-NYC
• Resilience Capital Partners-Cleveland
• RoyNat Capital-Cleveland

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Deal Communitys Opportunities

• Angel, Seed, Venture Opportunities
• Need for funding
• Need legal advisors
• Need accounting advisors
• Need entrepreneurial talent
• Need banking facilities

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The Need for Seed Capital
Summer Street, Delta Point Partners, FA
Technology Partners
Rand Capital, Trillium Group, High Peaks Venture
Partners
University Technology Partners
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Technology Investments of Total U.S. Investments
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Seed Stage vs. All Alternative Asset Classes
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Seed v. First Round Investment in 2000
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Deals by Investment Stage
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Deal Communitys Opportunities

• Large number of 5-75MM companies
• Many are candidates for transactions.
• Growth Capital
• Management buy-outs
• Generational change
• Divestiture/Acquisition
• Recapitalization
• Turnaround
• Sale/Buy-out

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Upstate Opportunities-Summarized

• Upstate has an array of investment opportunities
• New equity funds
• Existing funds are raising new funds
• New Funds tend to be larger
• Non-resident fund investing in upstate
• Upstate has the advisor base
• UVANYs mission is to advance VC/private
  equity

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UVANY Board of Directors

• Gary Hull, Summer Street Capital
  Partners President
• Bela Musits, High Peaks Venture Partners Vice
  Pres.
• John Cococcia, FA Technology Ventures Treasurer
• Monty Estes, Genesis Fund LP Secretary
• Dennis DeLeo, Trillium Group, LLC
• Dirk Sonneborn, Exponential/Newtek
• David Waterman, Delta Point Capital Management,
  LLC

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UVANY Membership

• Regular Membership
• Associate Membership

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Upstate Venture Association of New York, Inc.

• Bob Buckley
• Executive Director
• 385 Jordan Road
• Troy, NY 12180
• Phone [phone]
• Fax [phone]
• Email bob_at_uvany.com
• Website www.uvany.com

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• Other Developmental
• Forces at Work in
• Upstate New York

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Pre Seed Workshops

• University of Rochester
• Rochester Institute of Technology
• University of Buffalo
• Cornell University
• Others in planning stages

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New York State Initiatives

• Comptrollers investments
• Centers of Excellence in
• Bioinformatics (Buffalo)
• Environmental Services (Syracuse)
• Infotonics (Greater Rochester)
• Nanoelectronic (Albany)
• Wireless Internet Information Technology
  (Stoney Brook)
• Capco Program

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New York State Initiatives (cont)

• Excell NY Programs
• Star Centers eight centers
• CAT Centers 14 centers
• ARC Centers five centers
• Science and Technology Law Centers - Syracuse
  Law School
• NYSTAR
• Technology Transfer Incentive Program
• Small Business Technology Investment Fund

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University Based Efforts

• Cornells EPE Program
• University of Rochesters Entrepreneurship
  Programs
• University of Buffalos Entrepreneurship Programs
• Rochester Institute of Technology's
  Entrepreneurship Programs and Incubator
• UNYTECH 03, 04, 05
• Syracuse University Science Tech Law Center
• SUNY Research Foundation

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Upstate New York University Offices of Tech
Transfer

• STOR University of Buffalo
• OTT University of Rochester River Campus
• OTT University of Rochester Medical Center
• OTT Rochester Institute of Technology
• CCTEC Cornell University
• OTT Syracuse University
• OTT SUNY Binghamton
• OTT SUNY Albany
• OTT SUNY Research Foundation

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• 64 Campuses
• 410,000 students
• 6,600 fields of study

RF, Central Office
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Local Efforts

• GRE
• High Tech Rochester
• High Tech Business Council
• Incubators
• Colleges Universities
• Monroe County Economic Development (Rocco
  DiGiovanni)
• New York State Economic Development (Jack
  Kinnicutt)
• City of Rochester Economic Development Department
  (Fashun Ku)
• Entrepreneurs and Angels

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Local Efforts

• Rochester Business Alliance
• RDDC
• Rump Group
• CGR
• Digital Rochester
• eBusiness Association
• COMIDA
• Rochester Venture Capital Association
• RIPN

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• The best way to predict the
• future is to create it
• Dr. Peter F. Drucker

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Before the Negotiations
What Entrepreneurs Need to Know About Seed and
Early Stage Venture Capital
A White Paper Primarily for Entrepreneurs in
Upstate New York Judith J. Albers, Ph.D.
Trillium Group February 2005
G          R           0
500 Linden Oaks 585-383-5680 www.trillium-group.co
m
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J. Montieth Estes

• Jaeckle Fleischmann Mugel, LLP
• 190 Linden Oaks
• Rochester, New York 14625-2812
• Telephone [phone]
• Facsimile 585.899.2931
• E-mail mestes_at_jaeckle.com