1. Early Stage Funding and Your Startup Business... Sara Hand Sarasota Chapter President Gulf Coast Venture Forum Co-Founder BarCamp Sarasota Board of Directors Suncoast Technology Forum Regional Collaborative for Entrepreneurial Support

2. Why am I here?

3. Questions for you to ask: Who do I want to be? Microenterprise Small business Large Business Do I want to stay here? Do I want to build it and get out? (Acquisition...Sooner or later)

4. Growing a Business R – repeatable S – sustainable S – Scalable T – Transferable

5. Do I really need funding? Bootstrapping Organic Growth Business Models

6. If you can build anything... would FREE money make a difference? SBIR/STTR http://www.sbir.gov/ Phase 0 Funding http://www.eflorida.com/Why_Florida.aspx?id=8804 Multiple Agencies Several Solicitations yearly

7. Agency: Department of Defense Current Release Date: July 28, 2011 Open Date: August 1, 2011 Close Date: September 28, 2011 (closing in 34 days) OSD11-CR2: Adaptive Desktop Trainer for ISR Imagery Analysis Based on Contextual Factors Description: TECHNOLOGY AREAS: Information Systems, Human Systems OBJECTIVE: Develop an adaptive desktop training device with underlying learning management system (LMS) architecture to train ISR imagery analysis for better decision making by warfighters

8. Angel Funding vs. Venture Capital Angel Funding – Individual Investors – Receive convertible debt or ownership equity – Not a fund but organized into groups or networks – Seed funding in range of few thousand to few million $ – Average raised ~$450K Venture Capital – Fund comprised of multiple investors – Makes money via equity, eventual IPO or trade sale – Funding after seed round, usually called Series A – High risk significant control and ownership – Range $1MM - $10MM +

9. What’s the Difference - Angels? From Wikipedia, the free encyclopedia Affluent individual who provides capital for a business start-up,start-up Usually in exchange for convertible debt or ownership equity.convertible debtownership equity Increase of investors organized into angel groups/networks to share research and pool capital. Angels typically invest their own funds, Fills the gap in start-up financing between "friends and family“ to provide seed funding,seed funding Common second round of financing for high-growth start-ups Accounts in totals for almost as much money annually as all venture capital funds combined Into more than fourteen times as many companies Angel - US$26 billion vs. VC - $30.69 billion - in the US in 2007: 57,000 companies vs. 3,918 companies Average capital raised was about US$450,000. No “set amount” for angel investors Ranges from a few thousand to a few million dollars

10. What’s the Difference - Venture Capital? From Wikipedia, the free encyclopedia Financial capital provided to early-stage, high-potential, high risk, growth startup companies Financial capitalgrowthstartup companies Venture capital fund makes money by owning equityfundequity Companies usually have a novel technology or business modelbusiness model The typical venture capital investment occurs after seed funding as growth fundingseed funding Interest is to generate a return through an eventual realization event: IPO or trade saleIPOtrade sale Venture capital is a subset of private equityprivate equity All venture capital is private equity, but not all private equity is venture capital. Attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.bank loandebt offering In exchange for high risk VC’s assume they get : Significant control over company decisions Significant portion of the company's ownership (and consequently value). Year almost 2 million businesses created in the USA - Only 600-800 get VC funding 11% of private sector jobs come from VC companies VC backed revenue accounts for 21% of US GDP. [3] [3]

11. Stages of Funding

12. What are Investors looking for? Great idea! – Only the beginning – Novel/differentiated Substantiated by real market needs Skin in the Game Management Team

13. What do I need when looking for money?

14. What resources are available to help me have my “act” together? The Florida Virtual Entrepreneur Center is a free web portal designed to connect entrepreneurs with business support organizations, programs and service providers who can support their new or growing business. http://www.flvec.com/ Entrepreneurs: Navigating the Virtual Entrepreneur Center is easy and free. Are you starting a business? How about expanding an existing operation? Considering relocating? By simply selecting any of these topic areas and many others, you will instantly be connected with local, state, regional and national resources, programs and service providers who can support all of your business needs. Business Owners & Service Providers: If you are a local business or service provider offering business-related products and/or services meeting the needs of entrepreneurs and/or businesses, you can register your company with the Virtual Entrepreneur Center at no cost. Once registered you can upload your company information to the online web portal and become a resource for other businesses. Major funding and support provided by the Florida High Tech Corridor Council http://www.flvec.com/Florida High Tech Corridor Council

15. Check local... Alphabets... SBDC Score EDC/EDO Others... Independent Groups Consultants Master Mind Groups ** Don’t FORGET Corporate Resources Like BizSpark!

16. Where do I look first?

17. If you want better answers, ask better questions!

18. Thank you...Contact Sara at sara@SPHANDandAssociates.com Submit your business plan www.GCVF.com Build Community with www.BCSRQ.com