Angel and Venture Capital in Northwest Ohio

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! “Third!Frontier!Program”!– Sponsored!by!the!ODODM t S i T! Management!Services!Team

! Pre"Seed,!Early!Stage!Venture!Fund! $22.5 Million Program financing:! $22.5!Million!Program!financing:! $15.0!Million!ODOD! $7.5!Million!Private!Investors

! Industries of Interest! Industries!of!Interest:! Advanced/Alternative!Energy! Advanced!Mfg!&!Materials! Biosciences! Information!Technologies!(Opportunistic)

! Geography!Focus!– Northwest!Ohio


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Clients!Gain!Access!to…


ADVANCED!BATTERY!CONCEPTS,!LLC


117 Startup/Seed Stage deals received $376MM (5% of total) - $3.2MM on average


! Boot!Strapping! Friends & Family Personal Investment! Friends!&!Family,!Personal!Investment

! Angel!Investors! Wealthy!individuals,!!and!groups! Limited!resources

! Venture!Capital! Seed, Early"stage and Growth phasesSeed,!Early stage!and!Growth!phases! Geography!and/or!Industry"focused

! OthersG t G t! Government!Grants!! Strategic!Alliances/Partners


! An!angel!is!a!high!net"worth!individual!who!invests!his!or!her!own money in start up companies in exchange for an equityown!money!in!start"up!companies!in!exchange!for!an!equity!share!of!the!businesses.!!! Many!angels!are!former!entrepreneurs!themselves.!! Invest!to!gain!a!return!on!their!money.! Participate!in!the!entrepreneurial!process.! Often!to!give!back!to!their!communities!by!catalyzing!economic!growth.!! Angels!tend!to!invest!in!companies!that!are!located!near!them!regionally.! Seek!a!liquidity!event!in!4"8!years.

! Individual angels may join with other angels to invest! Individual!angels!may!join!with!other!angels!to!invest!collectively!as!a!group.


! Money!provided!by!professionals!who!invest!alongside!management in young rapidly growing companies that havemanagement!in!young,!rapidly!growing!companies!that!have!the!potential!to!develop!into!significant!economic!contributors.

! Venture!Capitalists!generally:! Finance!new!and!rapidly!growing!companies.!! Purchase!equity!securities.! Assist!in!the!development!of!new!products!or!services.!p p! Add!value!to!the!company!through!active!participation.!! Take!higher!risks!with!the!expectation!of!higher!rewards.!! Seek a liquidity event in 3"5 years.Seek!a!liquidity!event!in!3 5!years.


! While!both!invest!in!entrepreneurial!firms!and!take!equity!(ownership) in those businesses there are some important(ownership)!in!those!businesses,!there!are!some!important!differences:!! Funding!Source!! Angels!invest!their!own!funds!directly!in!a!business,!while!venture!capitalists!invest!funds!from!other!sources!(e.g.!pension!funds).!

! Stage!of!Business! In!general,!angels!invest!in!seed,!start"up!and!early"stage!businesses,!while!venture!capitalists!invest!in!later"stage!businesses.!

! Size!of!Investment! Venture!capitalists!generally!invest!$2!million!and!up!in!a!financing!round,!while!individual!angels!make!much!smaller!investments!($5,000!to!$100,000!and!most!often!larger!if!from!a!group).


! In!general,!the!best!time!to!seek!investment!funding!from!Angels and VCs is when:Angels!and!VCs!is!when:!! Your!product!is!near!completion!or!developed.!! You!can!demonstrate!market!validation!" existing!customers!or!potential!

t h ill fi th ill b fcustomers!who!will!confirm!they!will!buy!from!you.!! You!can!demonstrate!that!the!business!is!scalable!to!at!least!$15"30!million!in!revenues.!Y ' i t d d ll d h t d th lt ti! You've!invested!your!own!dollars!and!exhausted!other!alternatives,!including!friends!and!family.!! Your!business!plan!is!tip!top!shape.!Y h “ l i h”! You!have!!an!“elevator!pitch”.! You!are!willing!to!give!up!some!ownership.


! Sample!criteria!used!to!“initially”!evaluate!your!business!idea!include:include:! Management!Team! Market!Opportunity

/! IP/Technology!– Is!it!disruptive?! Faster,!Better,!Cheaper! Stage!of!Commercialization! Pre!or!Post!Revenue! Funding!Requirements!! How!much!money!do!you!need!to!reach!a!liquidity!event?y y q y! Milestones!Achieved! Time!to!Exit! Amount of Cash Founders Have Contributed


Amount!of!Cash!Founders!Have!Contributed

! Initial!Investigation! Overview Assessment! Overview!Assessment! Discussions!with!Management

! In"depth!Investment!Assessment! Analysis!of!Management! Review!Intellectual!Property! Analysis!of!Market!&!Opportunity! Analysis!of!Operations/Business!Model! Make!Key!Industry!Contacts! Research!Industry!Exit/Liquidity!Activityy / q y y

! Negotiation!of!the!Terms!of!Investment! Estimated!Timing!" 90!to!180!Days


! Core!Network!" Toledo,!OH!Mill t A l Cl b Fi dl OH! Millstream!Angel!Club!– Findlay,!OH

! Akron!ARCH!Angels!" Akron,!OH!! Ohio TechAngels " Columbus, OH! Ohio!TechAngels Columbus,!OH!! North!Coast!Angel!Fund!" Cleveland,!OH!! Queen!City!Angels!" Cincinnati,!OH!! Medical!Growth!Fund!" Cleveland,!OH!! Blue!Water!Angels!"Midland,!MI!! First Angels Kalamazoo MI! First!Angels!" Kalamazoo,!MI!! Grand!Angels!" Grand!Rapids,!MI!


! Plymouth!Ventures!– Toledo,!OHE l St P t Cl l d OH! Early!Stage!Partners!– Cleveland,!OH

! Chrysalis!Ventures!– Cleveland,!OH! Arboretum Ventures – Cleveland, OH! Arboretum!Ventures! Cleveland,!OH! RiverVest Venture!Partners!" Cleveland,!OH! Reservoir!Venture!Partners!– Columbus,!OH! NCT!Ventures!" Columbus,!OH! Fletcher!Spaght Ventures!– Columbus,!OH! Adena Ventures Athens OH! Adena Ventures!– Athens,!OH! Draper!Fisher!Jurvetson " Cincinnati,!OH! Triathlon!Medical!Venture!Partners!– Cincinnati,!OH


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Mike!BogdanRocket!Ventures2600!Dorr!StreetToledo,!Ohio!43606Voice:!!!!419.530.6084Email:[email protected]: www.rocketventures.org

Rocket Ventures is a $13 5 million venture capital firm jointly funded by the OhioRocket!Ventures!is!a!$13.5!million!venture!capital!firm!jointly!funded!by!the!Ohio!Department!of!Development!and!private!investors.!In!exchange!for!an!equity!state,!Rocket!Ventures!invests!between!$250,000!to!$750,000!in!technology"based!companies,!requiring!seed!and!early!stage!funding,!who!are!either!located!or!have!a!significant!presence!in!Northwest!Ohio.


Angel and Venture Capital in Northwest Ohio

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