1. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Preparing for the VCIC Jeff Reid Amanda Deerhake January 9, 2003

2. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu First, a note on Team Formation Teams are already set Approximately 16 teams signed up Incomplete teams will not be allowed to compete Make sure your people are committed! Work with Patrick Vernon on team formation issues

3. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Global Overview of the VCIC 34 schools in this year’s event Internal: January 31 – February 1 Regionals: UNC goes West: February 20-22 –(UNC hosts SE: February 27-March 1) UNC hosts Finals: April 10-12 History of UNC performance

4. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Know the Schedule Plan your time wisely!

5. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu What the Judges Look For Basic understanding of the companies Basic understanding of how VC deals work Ability to communicate your thoughts Don’t worry about the technical details, unless you are an expert

6. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Do Some Homework 1.Books in CETV Library – on reserve from now until the competition 2.VCIC web site – Team Preparation Guide, Judging Criteria, etc. 3.Other web sites

7. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Read Up on Venture Capital VC Club Web Site: http://www.kenaninstitute.unc.edu/Centers/CETV/Clubs/VC_Club/Resources/resources. html http://www.kenaninstitute.unc.edu/Centers/CETV/Clubs/VC_Club/Resources/resources. html www.corante.com/venture/ ww.venturewire.net/ A Venture Capital Primer by Tripp Peake, Mass Ventures Equity Fund - http://www.entrenetwork.com/articles/39.cfm http://www.entrenetwork.com/articles/39.cfm Good Idea? Great Idea? Super Idea? By Stephen Spinelli, Director of the Center for Entrepreneurship at Babson College - http://www.entrenetwork.com/articles/45.cfmhttp://www.entrenetwork.com/articles/45.cfm Business Valuation Techniques and Negotiation by Mark Cameron White of White & Lee LLP - http://www.whiteandlee.com/papers_transactions_bvtn.htmlhttp://www.whiteandlee.com/papers_transactions_bvtn.html What Are the Terms? - Three part series on the terms of venture capital financings - from "STARTING UP" Column Reprints by Joe Hadzima - http://web.mit.edu/entforum/www/hadzima/terms1.htm http://web.mit.edu/entforum/www/hadzima/terms1.htm "Company Valuation Issues for Technology Start-ups by David Sheehan http://www.dcu.ie/enterprise/presentations/hotorigin14jan02.pdf http://www.dcu.ie/enterprise/presentations/hotorigin14jan02.pdf

8. THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE The Kenan-Flagler Business School at The University of North Carolina at Chapel Hillwww.kenaninstitute.unc.edu CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY VENTURING www.cetv.unc.edu Questions – Other Hints