1. Is Equity Capital For You? Bill Gust Anthem Capital & Plasmonix, Inc.

2. Who Am I And Why Am I Here Today?
35 Years Of Start-Up/Early Stage Venture Capital Experience
Technology: Apple Computer (AAPL:NYSE), Sequoia Software (NASDAQ: SQSW)
Life Sciences: BioRexis (Sold to Pfizer), Immunicon (IMMC:NASDAQ), GlycoMimetics, Senseonics
Healthcare: HealthSouth (HLS: NYSE)
Other: Chucky Cheese (CEC: NYSE)
4 Years As A Real Live Entrepreneur
CEO of Plasmonix, Inc.
Life science assay consumable products start-up
IP licensed from University of Maryland
10 Years Running Broseco Ranch
45,000 Acre cow-calf operation In East Texas
12,000 cow herd at peak
One of 10 largest ranches in United States

3. Selling Equity – Two Key Questions
Do I really want to do it?
Positives:
Frequently brings business expertise
Built in source of future capital
Might be only source if capital appetite is big
Negatives
Give up a share ownership – “dilution”
Could lose operating control/independence
Greater pressure to produce
And, even if I do, can I?
Maybe, maybe not
Are you in an investment mainstream industry?
Do you match the investment profile investors seek?

4. Equity Investor Types The “Three F’s” – Friends, Family, Fools
Low-hanging fruit
Angel Investors
Has some potential for ag entrepreneurs
Strategic Investors
Definite potential for ag entrepreneurs
Institutional Venture Capitalists
Unlikely for ag entrepreneurs
Crowdfunding/Crowdsourcing
Maybe potential, but some pitfalls

5. Friends, Family, Fools Grandma is a soft touch
Probably doesn’t care much about investment returns
Not much money available
Quick decision

6. Angel Investors Individuals Family Offices
Affinity for your product/market sector?
More money than Grandma?
Can be bothersome
Reasonably fast decisions
Family Offices
Industry affinity
Substantial investment potential
Tough to find/reach
Groups – Acting More and More Like Institutions
Industry specialization growing
Larger investment size – $100,000 to several millions of $
Slower process – usually several months
Intrusive, more demanding

7. Strategic Investors Companies with strategic mandate in your space
Some/many have established investment strategy
Usually millions of $
Preference for more mature companies

8. Institutional Venture Capitalists
Tight industry investment preferences
Looking to invest millions of $
Most avoid pre-revenue companies
Looking for companies that can reach $50-$100 million in sales in five years or less
Definitely intrusive
Board seats
Determine founders’ roles
Control/influence structure, strategy, decisions

9. Crowdsourcing/Crowdfunding
Tend to be project oriented
Be careful with equity sales, SEC rules/regulations
Pros and cons
Companies targeting smallholders could appeal to “contributors”
Relatively small amount of money per project
Find an expert advisor/mentor

10. So … What Are Your Chances?
Amount
of Funding
Ease of
Obtaining
Invest Pre-
Revenues
Odds of
Funding
FFF
Small
Easy
Yes
100%
Angels
Small-Medium
Moderate -Hard
Sometimes
Low - Medium
Institutional VC's
Large
Difficult
Seldom
0% - 3%
Strategic Investors
Low
Crowdfunding
Moderate
Medium

11. Other Places To Look – Non-Dilutive
Government Grants
SBIR’s, etc.
Foundations (e.g., Gates Foundation)
Other non-profits
Corporate research funding
Debt
Personal guarantees?
Other