1

Partnering with Universities for Deal FlowHow working with your local university can

lead you to the next Google!

Welcome!

January 14, 2015

•Use chat to submit questions

• Yes, you’ll get the slides

•We’re recorded, so come back and listen again

2

Mission: Fuel the success of angel groups and accredited individuals active in the early-stage landscape

• World’s largest trade group for angel investorso 220+ angel groups

o 12,000 accredited investors

o Voice of accredited individuals, portals, and family offices

• 50 US states + Canada

• Research/ education partner

Member Groups & Accredited Platforms

New Dominion Angels

3

ACA Partners

Our Moderator

Jamie Rhodes

Founder, Alliance of Texas Angel Networks

Founder, Central Texas Angel Network

Board member, Angel Capital Association

CEO, National NanoMaterials

Add Photo Here

4

Today’s Presenters

John Hanak, J.D.

Purdue Foundry Entrepreneur in Residence

Founder of the Purdue Angel Investment Network

NBIA 1st Vice Chair, Board Member

W. Lafayette, IN

Stephen F. Flaim, Ph.D., F.A.C.C., F.A.H.A.

Director, Angel Capital Association

Emeritus Chair, Tech Coast Angels

San Diego, CA

David VerrillBoard Chair, Angel Capital Association

Founder/Managing Director, Hub Investment Group, LLC

Boston, MA

Differing Frames of Reference

• Faculty are rewarded for their research, patents and papers. They can see results from one experiment and claim “problem solved”. Basic research is often conducted in the fashion of “here is funding, let us know when/if you discover something”.

• Universities own Intellectual Property. Their goal, working through the technology transfer office, is to build revenue for the university. They are often driven by the philosophy “all IP could be the next Gatorade”

• Angels are looking to invest in a fully formed startup that includes an entrepreneurial team with a business plan and a well defined market and product. Very few are interested in funding a business that is still trying to define its product. Often the quality of the management team is more important to investors than the quality of the technology.

• Startup entrepreneurs are interested in building companies with innovations that can scale into large markets. In their vernacular a solved problem implies a solution that is defined, repeatable and scalable.

5

John M. Hanak, J.D.

Entrepreneur in ResidenceVenture Funding Relations

Purdue Foundry

Former Statewide Director Purdue Tech Centers

P3 Alliance Angel Network

NBIA Board Member1st Vice Chair

Helping the Purdue Community move

ideas to the marketplace through

new ventures

Lessons Learned:• Ideation – Articulate the Value• Founder to Entrepreneur/Team• Business Talent Challenge• Funding Challenge

• And…Put the Entrepreneur at the Center...

6

• Purdue Foundry Goals & Metrics

• Move ideas and innovations to the marketplace

• Capitalize on Purdue’s vast talent and innovation capabilities

• Produce happier, longer and healthier lives through innovation

• Produce high quality jobs for our community and state

FOUNDRY GOALS FOUNDRY METRICS

July 10, 2014Purdue announces record-breaking

year in commercialization!

24

7

University Angel Investing Model

Stephen F. Flaim TEAM

Working with Universities

• University technology is innovation in its purest form

• Academics have to prove a technology only once to publish

• Faculty rarely make for good CEOs

• One excellent way to wrap up the technology is to hire the students who “worked the bench” into the company

David Verrill

8

Anatomy of a Technology Focused New Venture

IP Rights

Technology

Jamie Rhodes

Anatomy of a Technology Focused New Venture

IP Rights

Technology

There are

more fundamental

issues than technology and IP

Success = Getting this Part Right

9

Comprehensive Concept of New Venture

IP Rights

Technology

Market Engagement

Team

$$$ Motivation vision

Right…

IP Rights

Technology

Market Engagement

Team

Motivation

These needs change depending on the team and how they develop and execute their market engagement strategy!

This is developed by the team and continually

adjusted and adapted to market conditions

Entrepreneur needed -Team is built by the entrepreneur

Must be embodied by

the team

10

Thank you!

Audience Questions

Webinar programs archived at:

www.angelcapitalassociation.org/events/webinars/

Additional Resources

Marianne Hudson

Executive Director

Angel Capital Association

Christopher Mirabile

Managing Director, Launchpad;

Vice Chair, Angel Capital

Association

http://www.angelcapitalassociation.org

/news-forbes/http://www.angelcapitalassociation.org/

news-inc/

11

Upcoming EventsWebinar, January 28, 2015 at Noon Eastern

Betting on the Right Jockey - The Number One Indicator of Investment Success

10th Annual ACA Summit, April 14 – 16, 2015 in San DiegoRegister now for early bird discount: http://www.angelcapitalassociation.org/2015summit/