Copyright © 2013 NC IDEA Carolina Innovations Seminar Attracting 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 Mission To 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); 15 th 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 11 th *Register for our February 12 th webinar to learn more* Copyright © 2013 NC IDEA

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 Execution What We Look For: Innovation Commitment Momentum Impact What We Look For: Innovation Commitment Momentum Impact $ CRITICAL FUNDING $ Accelerated Growth and Positioned for Equity Copyright © 2013 NC IDEA

Grant Winners are Good Investments Rigorous Process Vetted by Experts Disciplined Milestone Driven High % of Success $ Copyright © 2013 NC IDEA

Counter cyclical nature of investing – money follows returns Little competition = attractive valuations * ** 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 Note: SE inc. FL, GA, NC, SC, VA SE Investments = Better Returns Regional Seed & Early Stage Deals vs. Returns 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 Attend our Spring 2013 webinar Tuesday, 2/11 at 1:00pm Register at Attend IDEA Pitch – next event February 20 th Learn more and register at Learn More:

Thank you! Copyright © 2013 NC IDEA