copyright © 2013 nc idea carolina innovations seminar attracting investors through winning grants...

Copyright © 2013 NC IDEA

Carolina Innovations SeminarAttracting Investors through Winning Grants

February 7, 2013

Our Ecosystem

IDEA Fund Partners

Groundwork

NC IDEA

Copyright © 2013 NC IDEA

Groundwork Labs

• Everything you would expect from an accelerator program:– Space … in a great startup environment– Advice … specific to the team’s needs: pitch, plan, prototype, financials– Mentors and advisors … specific to the team’s background– Connections … Angels, resources, etc.– Except: No funding and no equity stake; 3 month rolling opportunity

(not a 3 month fixed program)

• 23 teams have completed program since beginning of 2012– 3 NC IDEA grant recipients; 5 grant finalists– 3 seed financings; 2 other grant recipients– 6 shipped product/MVP; 2 secured co-founders

Copyright © 2013 NC IDEA

NC IDEA

MissionTo foster economic development in North Carolina by helping

young startups commercialize their innovations

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• Grant Program began in Spring 2006• Over $2.7M awarded to 72 companies• Two cycles per year (Spring and Fall); 15th cycle opens Monday• Targeted toward high-tech startups in NC• Award up to $50K per recipient• Leverage regional resources to enhance the chance of success• Grant recipients have gone on to raise over $42M in equity funding

IDEA Fund Partners

• One of the most active early stage investors in the SE– $30M AUM seed and early stage VC fund (software, med devices, IP-

focused technologies)– Investing out of $12M 2007 vintage, top quartile fund– 14 investments to date; 4 NC IDEA grant recipients

• Experienced team– 30+ years combined VC experience (2 funds, 21 investments)

• Unique process– Affiliated venture fund to NC IDEA; manage grant program

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Great Timing

NC IDEA Spring 2013 Grant Cycle opens this Monday, February 11th

*Register for our February 12th webinar to learn more*

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Grant Process

• Outreach• Referral Network• • Office Hours• Info Sessions• Webinars

Education

•

• YEiRs (MBA Interns)• External Reviewers• Feedback• Due Diligence• Coaching

Evaluation(3 phase process) • Quarterly Reports

• Advisory Board• YEiRs (MBA Interns)• In-Kind Partners• Access: Investors & Network• Education

ExecutionWhat We Look For:

InnovationCommitmentMomentum

Impact

$ CRITICAL FUNDING $

Accelerated Growth andPositioned for Equity

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Grant Winners are Good Investments

Rigorous Process

Vetted by Experts

DisciplinedMilestone Driven

High % of Success $

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1980s* 1990s 2000s 2010s**-10%

0%10%20%30%40%50%60%

6.26%

52.81%

-4.07%

Venture Returns by DecadeFor the Years ended June 30, 1982 –

2011

• Counter cyclical nature of investing – money follows returns• Little competition = attractive valuations

* 1982-1990** 26.30% return for the year ended June 30, 2011

* Seed and early stage investments 2001 – 2005** M&A returns on seed and early stage investments 2006 - 2010Note: SE inc. FL, GA, NC, SC, VA

SE Investments = Better ReturnsRegional Seed & Early Stage Deals vs. Returns

SE CA MA NY TX.0x1.0x2.0x3.0x4.0x5.0x6.0x7.0x8.0x

$5.0B

$10.0B

$15.0B

Seed/Early Stage Dollars Invested*

Return on Multiple of Invested Capital**

Sources: Cambridge Associates and Thomson ONE

Environment: What We See

Copyright © 2013 NC IDEA

How to Engage

Copyright © 2013 NC IDEA

$190K Awarded

• Office Hours every Friday morning Register online at www.ncidea.org

• Attend our Spring 2013 webinar Tuesday, 2/11 at 1:00pm Register at www.ncidea.org

• Attend IDEA Pitch – next event February 20th • Learn more and register at www.ideafundpartners.com

Learn More:www.groundworklabs.com

www.ncidea.orgwww.ideafundpartners.com

Thank you!

Copyright © 2013 NC IDEA