CAPITAL FORMATION IN NORTH CAROLINA A STATE WIDE PROGRAM TO INCREASE ACCESS TO CAPITAL AND PROVIDE EDUCATION FOR INVESTORS AND ENTREPRENEURS

North Carolina’s Economic Growth THE NEED: Stimulate the formation of more committed private equity investment groups in : 1. True seed funding (first money in) 2. Early stage funding ( $250K to $500K) Traditional VC models cannot meet this need. Concurrently expand the program delivery, counseling and mentoring resources of the University’s Small Business and Technology Development Center to better support and educate both private investors and entrepreneurs for successful angel investment relationships.

North Carolina’s Economic Growth THE SOLUTION: Create the IMAF Family of Funds and deliver capital using the successful experience with IMAF Triad-1, other angel groups, private and institutional investors and the broad spectrum of educational programs and counseling resources of the SBTDC on a state wide basis. Offer “Power of Angel Investing” and “Becoming an Investor-Ready Entrepreneur” seminars to support IMAF Fund.

THE FUNDING GAPS Source: Kauffman Foundation – “Power of Angel Investing” Angels Number of Investors SEED GAP EARLY STAGE GAP VCs $50K - $100K $5 million $10 million

IMAF SOURCE CAPITAL IMAF SOURCE CAPITAL FUND IMAF WEST IMAF EAST W.C.U., UNC-A, ASU IMAF EAST ECU, Elizabeth City IMAF TRIAD WFU, NCA&T UNC-G, WSSU, NCSA IMAF COASTAL UNC-W, FSU, UNC-P IMAF RTP NCCU, NCSU, UNC-CH, DUKE IMAF KANNAPOLIS UNC-C

= University Campuses = IMAF Sites

IMPACT IMAF-TRIAD 67 JOBS CREATED OR RETAINED (POTENTIAL FOR 300 + JOBS ON A STATE WIDE BASIS) $2,158,350 INVESTED IN 13 TRIAD COMPANIES AND 1 FROM R.T.P. 1:1 LEVERAGE OF ADD ON INVESTMENT DOLLARS.

IMAF MODEL A MEMBER - OWNED AND MEMBER - MANAGED LIMITED LIABILITY COMPANY, ORGANIZED TO PROVIDE MEMBERS AN OPPORTUNITY FOR ACTIVE INVOLVEMENT IN A DIVERSIFIED AND DISCIPLINED CAPITAL INVESTMENT PROCESS FOCUSED ON ROI AND ECONOMIC GROWTH.

HOW DOES IT WORK ? COMMITTED FUND - MEMBER MANAGED EXECUTIVE FUND DIRECTOR FINDS AND SCREENS APPROPRIATE DEALS 1 OR 2 COMPANIES MAY PRESENT AT EACH MONTHLY MEETING OF THE FUND MEMBERSHIP MEMBERS VOTE ON WHETHER TO START DUE DILIGENCE DUE DILIGENCE TEAM IS FORMED – THE COMPANY INFORMATION IS VALIDATED – A REPORT AND RECOMMENDATION IS ISSUED TO THE ADMIN. COMMITTEE FOR REVIEW AND TO THE MEMBERSHIP FOR INVESTMENT VOTE 67% MAJORITY IS REQUIRED TO COMMIT THE FUND

BENEFITS OF THE FUND DESIGN AND THE OVER-ALL IMAF FAMILY OF FUNDS PROGRAM DISCIPLINED AND ORGANIZED INVESTMENT APPROACH SHARED DUE DILIGENCE AND DEAL FLOW AROUND THE STATE PORTFOLIO MODEL MODEST COST TO JOIN ( $15,000 PER UNIT ) INDIVIDUAL ADD ON OPTION AVAILABLE THROUGH THE FUND NC QUALIFIED BUSINESS VENTURE TAX CREDIT AVAILABLE TO FUND MEMBERS CONTINUING EDUCATION AND PROGRAM DEVELOPMENT THROUGH THE SBTDC OPPORTUNITES TO ENGAGE UNIVERSITY RESOURCES FOR COMMUNITY DEVELOPMENT

WHAT DOES IT TAKE TO CREATE A SUCCESSFUL IMAF FAMILY OF FUNDS SITE? DEAL FLOW DEDICATED CHAMPION TEAM CAPITAL WILLINGNESS TO PARTICIPATE IN THE EDUCATIONAL PROCESS RISK TAKING !

PROJECT STATUS AND NEXT STEPS IMAF-TRIAD, 14 DEALS AND CONTINUING TO SEEK INVESTMENTS IMAF-TRIAD II, ANTICIPATED EARLY 2008 IMAF-WEST, FORMED, RAISING MONEY, AND LOOKING AT DEALS IMAF-EAST, FORMED, SELECTING FUND DIRECTOR IMAF-KANNAPOLIS, FORMED, RAISING MONEY IMAF-RTP, ANTICIPATED EARLY 2008 IMAF-COASTAL, ANTICIPATED EARLY TO MID 2008 IMAF SOURCE CAPITAL FUND, START RAISE LATE 2007

The Power of Angel Investing       The NC Small Business & Technology Development Center is pleased to present The Power of Angel Investing A Private Workshop For Angel Investors   Presented in cooperation with   Event Sponsors     Host Sponsors & Marketing Partners

Becoming an INVESTOR-READY ENTREPRENEUR™   The NC Small Business & Technology Development Center is pleased to present Becoming an INVESTOR-READY ENTREPRENEUR™ October 30, 2007 Broyhill Inn & Conference Center Boone, NC   SPONSORS 8:30-8:32 - 2 minutes – 2 slides On behalf of the NC Small Business and Technology Development Center staff, advisory board, and our faculty volunteers , welcome to the SBIR Conference hosted Becoming An Investor-Ready Entrepreneur Seminar. Today’s full day workshop is designed to help SBIR Phase 1 award winners understand the private equity investment process and prepare for funding concurrent with or “after SBIR” By the way, this seminar is also delivered to entrepreneurs who have had experience searching for angel and venture capital.