1. Capital-Efficient Funding After the Bubble
Glenn Carter
Entrepreneur in Residence
STARTech Early Ventures
7/30/2003

2. Let’s Define our Terms Funding Sources Funding Structure
What is the “bubble”?
How do you get funded?
What does it look like now?

3. Funding Sources
Friends and family
Angels
Venture Capital

4. What is a VC General partner Limited partners Likes risky investments?
ROI

5. Structure of VC Investments
Seed Round
Series A
Series B…
What is “cram down”?

6. What is the “Bubble”? Year Total ($B) Texas ($B) Total # Texas # 199920 - 48 14
4487
1997
2000 96 27
6142
2821
2001 35 7
3088
1002
2002
3.4
2129
599
2003*
14*
2.5*
1800*
500*

7. How do you get funded? Business plan Capital efficient 2 Minutes
Problem solved
Technical
Value proposition
Market size
Customers
Capital efficient
2 Minutes
“This is a good thing that should be done!” NOT
Compete for scarce resources based on ROI

8. What’s next
Who knows!
Seems to be getting better
Fruit stand model