ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. RESEARCH CONSULTING Entrepreneurial Computer Science Yonah Alexandre Bronstein, PhD alex_bronstein@ieee.org Session 10 ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Session Outline Administrative Stuff Chapter 7: Art of Raising Capital – Part 2 Final Homework ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Admin: PSU Intro ECS Class (Winter) Learn the principles, grow start-up seed Project Start Up (Spring): Sign up for CS Project class (+ biz student ok) Official Supervisor: Prof. Shlomi Dolev Meet Sundays 12noon to 2pm, at <TBD> in Business! (Summer) Funded, or in Negev Incubator G_d willing: Afikim B’Negev! Interest? (Yes/Maybe/No) ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

Ch.7: Competition Is Good! Company We can do, they can’t We can’t do, they can X Y Z ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

Ch.7: Convinces Investor That there is a market. You can realistically appraise competition. You can communicate knowledge clearly & succinctly. You are willing to present facts that don’t always make you look good… ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Top 10 Lies (to avoid!) “Our projection is conservative.” “Gartner says our market will be $50 Billion in 5 years.” “Boeing is signing our contract next week.” “Key employees will join us as soon as we get funded.” “Several investors are already in due diligence.” “IBM is too old, big, dumb, and slow to be a threat.” “We have first-mover advantage.” … Bottom-line: tell the factual truth (present or past) & beware of future-oriented statements… ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Top 4 Trick Questions “What makes you think you are qualified to run this organization?” (“Did OK so far, will step aside when necessary.”) “Do you see yourself as the long-term CEO of the organization?” (“I’m focused on getting our stuff to market right now. Here are logical milestones at which a transition to another CEO could be made…”) “Is ownership control of the organization a big issue to you?” (“No, it is not. To make this successful, we need great employees and investors who all need a significant stake. I’ll focus on making the pie bigger rather than keeping a big piece…”) “What do you see as the liquidity path?” (“We know we have a lot of work in front of us before thinking of liquidity. An IPO would be a dream outcome, plus these 5 companies are possible acquirers…”) ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

Ch.7: Understand What You’re Getting Into Different kinds of investors mean different business lives: Venture Capitalists (VCs) Other People’s Money Quarterly pressure / No room for personal feelings 2 Control buttons: fire CEO and/or VP of Sales Angel Investors (“White Knights”) Different motivation (Pay back society? Get meaning to market) Live vicariously Spouse = investment committee (Make story comprehensible to spouse) ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Ch.7: Creating a Board Whether “Board of Advisors” or “Board of Directors”, you need to have: “The Customer” “The Realist” “Dad” (concensus builder) “The Truth Watcher” “Mr. or Mrs. Connections” ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Ch.7: Managing a Board Whether “Board of Advisors” or “Board of Directors”, you need to give them: Less paper rather than more Useful metrics A couple of days ahead of board meetings Only positive surprises (bad news should be shared in private ahead of time) And for your sake: ask feedback in advance of key decisions ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Q & A ? For Next Session? Find someone with $$ Ask for 20 minutes of their time to hear about your business idea And give you their FEEDBACK Kind of pitching… ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2008 ASTAV, inc. – Confidential & Proprietary – Contact Research@ASTAV.net for pricing.