Program of theProgram of the

Rocket VenturesRocket Ventures

Greg KnudsonGreg KnudsonVP of TechnologyVP of Technology

Director of Rocket VenturesDirector of Rocket Ventures

The Northwest Ohio Manufacturing ForumThe Northwest Ohio Manufacturing Forum

November 20, 2009November 20, 2009

NWO Manufacturing ForumAreas of Opportunity

• RV has a need to find “Spin-Off” opportunities

– Small to large companies with technology

• RV is looking for manufacturing companies for

development, proto-type development, manufacturing

– Lockrey Mfg. and Pinnacle Technologies models – across technologies

• RV needs to find “JV” partners for start-up companies

– Bringing strengths together (engineering, design, manufacturing)

Program Definition• Pre-Seed, Early Stage Venture Fund

• Provide Management, Networking and Capital Resources

• Sponsored by - “Ohio Third Frontier Program”

• Program Financing:

$15.0 Million ODOD

$ 7.5 Million Private Investors

$22.5 Million

Phases of Development

Regional Growth Partnership’s

Launch

Rocket Ventures

IMAGININGthe Commercial

Opportunity

IMAGINING

INCUBATINGto Define

Commercialization

DEMONSTRATINGProducts & Processes

in CommercialViability

Market Entryto Prove Commercial

Viability

Growth &Sustainabilityto Generate

Financial Returns

MobilizingResources for

Incubating

Mobilizing Resources forDemonstrating

MobilizingResources for Market entry

MobilizingResources for

Growth &Sustainability

INCUBATING DEMONSTRATING MARKETING GROWTH

“Valley of Death”

Business Development

Targeted Technologies

Regional Partners and Collaborators• Advan. Materials Commercialization Ctr.• Air Force Research Lab• Annual Collab. for Entrepreneurship (ACE)• BioOhio • Bluffton Center of Entrepreneurship• COACT• EMTEC• Gorillas & Gazelles

• Ohio Aerospace Institute• Ohio’s IT Alliance / Get It Green Ohio• Ohio Manufacturers’ Association (OMA)• Polymer Ohio • State of Ohio / OHIO THIRD FRONTIER• Toledo Business Journal• Toledo-Lucas County Port Authority• Toledo Regional Chamber of Commerce

• Greater Findlay Inc. (GFI)• Great Lakes Entrepreneur's Quest (GLEQ)• Junior Achievement• MAGNET• Market Access Group• New Enterprise Forum (Ann Arbor)• Northwest Ohio Regional Economic Development (NORED)

• Toledo Metropolitan Area council of Governments (TMACOG)• BGSU• Ohio Northern• Owens Community College• University of Findlay• University of Toledo

Located in Northwest Ohio

Early Stage: Imagining, Incubating and Demonstrating Phases

Scalable to $30M - $50M in 5 to 7 years Targeted areas in Technology:

• Biomedical, • Alternative Energy, • Advanced Materials and Manufacturing Technologies

Intellectual Property (IP) Documented & Owned by / Licensed to Company

Clear Business Plan and Exit Strategy

Portfolio Company Screening Criteria

Program Elements

• Enhanced Business Management Services

• Ignite! Development Grant

• The Pre-Seed Fund

Rocket Ventures

Enhanced Business Management Services

Enhanced Business Management Services

Provide Hand’s-on: Business Management Support :

o Market assessmento Financial modeling and planning o Finding sources of capitalo Management expertiseo Technology readinesso Marketing, sales and public relationso Grant pursuit assistanceo Exit strategy development

R e g ion a l G ro w th P a rtne rsh ip

S a va g e C on su lt ingP re -S e ed F un d M a na g er

R o cket V en tu resIn ves tm e nt Fu nd

M ike B ro o ksE IR

Jo n K lo tzE IR

P a u l H o rstE IR

C ra ig O rte gaB u s in e ss P ro jec t M g r.

D a n S lifkoB D M

D a v id M ille rB D M

T o d d D a v iesB D M

Ju lie M ye rsM a rke tin g M a na g er

M ike B og d anIn ve stm en t A na lyst

U n ive rsity In te rn L e s lie S h erm anA d m in A ssis ta n t

T e ch n ica l S a les

G reg K n u dsonD ire c to r

T & CA d v iso ry B o a rd

R V S e rv icesB o ard o f M a n ag e rs

Rocket Ventures

Ignite! Development Grants

Program Elements • Ignite! Development Grant

Up to $50,000 per Grant

26 Awarded

Funding to Accelerate Commercialization

Specific activities:o Marketing Analysis and Planning o Prototype Developmento Beta Site Testingo Business and Technology Validation

Lockrey ManufacturingKeyboard Stand CoreTrainer

Rocket Venture Fund, LLC

17

Program Elements

•The Pre-Seed Fund

$13.5 Million - $6.0M State / $7.5M Private Investors

Investment Process1. Inquiry Via Electronic “Intake Form”

2. Fit with the Rocket Ventures Criteria

3. MOU Signed

4. Initial Company Validation (Technology / Business)

5. RV Team Analysis, Review, Comment and Decision

6. RV Commercialization Services Begin • Ignite! Grant – Potential / VC Primer / CEO Primer

7. Due Diligence on High Potential Clients

8. Term Sheet Development and Negotiation

9. Formal Presentation to Investment Committee

10. Investment Closing / Portfolio Company Management

Risk and Return

21

Rocket Ventures Portfolio Companies

Rocket Ventures

Performance Metrics

37%

32%

26%9%

BioscienceAlternative EnergyAMMT

AMMT – Advanced Materials, and Manufacturing Technologies (ICE and power systems)

Client Company Profile

SOURCES OF DEAL FLOW + University Spin-Offs + Regional Outreach – 18 Counties + Company Spin-Offs + “ Garage Technologies”+ Joint Venture Partnerships + Marketing, Communications, Events

BioSys Medical

DenDroCo, LLC

25

550 inquiries

60 new start-ups

50 active clients

30 state / federal grants

26 Ignite Grants awarded

Innovation to Commercialization Continuum

=+ +

NWO Manufacturing ForumAreas of Opportunity

• RV has a need to find “Spin-Off” opportunities

– Small to large companies with technology

• RV is looking for manufacturing companies for

development, proto-type development, manufacturing

– Lockrey Mfg. and Pinnacle Technologies models – across technologies

• RV needs to find “JV” partners for start-up companies

– Bringing strengths together (engineering, design, manufacturing)

Thank you

Questions / Comments

29

Greg Knudson, VP and Director Rocket Ventures

E-mail: knudson@rgp.org 419.252.2700 Ext. 313

www.rocketventures.org