copyright © 2013 nc idea carolina innovations seminar attracting investors through winning grants...
TRANSCRIPT
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
Copyright © 2013 NC IDEA
• 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
Copyright © 2013 NC IDEA
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