1. 70-397 Venture Finance Fall 2002 Slide 1 Class 6 – Class Project PolyTronics and Project Overview © Andrew W. Hannah

2. 70-397 Venture Finance Fall 2002 Slide 2 Agenda Homework due tonight Teams assigned WA pp 245 - 285 PolyTronics Pitch Richard Pilston, CTO Eric Boughner, VP Product Marketing Project Overview © Andrew W. Hannah

3. 70-397 Venture Finance Fall 2002 Slide 3 The PolyTronics Pitch Richard Pilston, CTO Eric Boughner, VP – Product Marketing © Andrew W. Hannah

4. 70-397 Venture Finance Fall 2002 Slide 4 Class Project Overview Tasks, Objectives, and Rules © Andrew W. Hannah

5. 70-397 Venture Finance Fall 2002 Slide 5 Project – Opening Tasks Sign the Confidentiality Agreement Choose your project teams Read the PolyTronics Business Plan To be distributed tomorrow over email to those on official class list Do not forward to others not covered under confidentiality agreement Use the material in Winning Angels This is an excellent guide for your project © Andrew W. Hannah

6. 70-397 Venture Finance Fall 2002 Slide 6 What You Will Do… Distill a business plan using a framework to expose the most interesting or critical deal points Develop a diligence plan and prepare cogent analysis of critical market, competitive, value issues Prepare and present an investment recommendation founded on your overview of the company and the results of your diligence work © William Hulley

7. 70-397 Venture Finance Fall 2002 Slide 7 Project Components Frameworks– what matters? what can we do given the materials at hand and timeframe? Teams– four teams of five, one team of four Diligence A, B, C – markets, comparables, competition Draft presentation and recommendation – first look at diligence and overviews Final recommendation – the distillation of diligence and the company in context Final presentation – your recommendation © William Hulley

8. 70-397 Venture Finance Fall 2002 Slide 8 Grading Draft presentation and recommendation (10%) Final presentation (25%) Final recommendation (25%) Key points Understanding of frameworks, diligence, valuation Production of relevant diligence Concise summary of company, context, diligence Clear, concise, accurate presentation Company contact rule © William Hulley

9. 70-397 Venture Finance Fall 2002 Slide 9 The Framework Context Industry, regulation, technology, competitors People Management, employees, shareholders, vendors Opportunity Market, model, customer, timing Deal Price, structure © William Hulley