Private Funding for Agribusiness and Energy

Technologies Christopher R. Sackett

BrownWinick666 Grand Avenue, Suite 2000

Des Moines, IA 50309-2510Telephone: 515-242-2470Facsimile: 515-323-8570

E-mail: sackett@brownwinick.com

• Who is BrownWinick?

• Who is Chris Sackett (and why is a lawyer talking to us about funding agribusiness and energy technologies)?

VERY GENERAL OVERVIEW - BASICS OF RAISING CAPITAL

Key concerns for all companies raising capital – whether agribusiness, energy or other projects.

• 3 Most Important Factors to Funding Sources:

oYour Team (internal/management and external)

oMarket Opportunity/NeedoYour Technology/Idea

• Be preparedo Know your business plan, valuation, financials and

projections inside and out.o Know your audience (who are they and why would

they want to invest in you? what motivates them?).o Know your subject matter, competition, market, etc.

• Have accurate/quality presentation materials (pitch, slide deck, executive summary, business plan, evidence/validation).

• Context is important:o Who are you presenting to?

Friends and family Angel investors Seed capital fund VC/Private equity Bank/SBA Government agency/program

o At what stage of the company? Proof of concept Development stage Expansion/growth

o What do you want and for what purpose (i.e., debt, equity, uses, valuation)?

• The importance of your business plano The key document for running your business

AND raising capital.o Focus on the Executive Summary and pro

formas – lenders and investors will.o Know your specific funding need – sources

and uses.

• The importance of peopleo Assemble your team early (internal and

external)o Qualities

Talent Experience Motivation (equity?) Connections Continuity

• Get (and keep) your business, financial and legal house in order.o Corporate documents and minuteso Governing documents (i.e., contract with

owners) o Material contractso Protection of IPo Financials, accounting records, tax returns

• Link to Iowa Venture Capital Guide and Iowa Seed/Angel Capital Guide:

http://www.investiowa.com/icic/web.nsf/

pages/iowafunds.html

Website: www.brownwinick.comToll Free Phone Number: 1-888-282-3515

OFFICE LOCATIONS:

666 Grand Avenue, Suite 2000Des Moines, Iowa 50309-2510

Telephone: (515) 242-2400Facsimile: (515) 283-0231

616 Franklin PlacePella, Iowa 50219

Telephone: (641) 628-4513Facsimile: (641) 628-8494

DISCLAIMER: No oral or written statement made by BrownWinick attorneys should be interpreted by the recipient as suggesting a need to obtain legal counsel from BrownWinick or any other firm, nor as suggesting a need to take legal action. Do not attempt to solve individual problems upon the basis of general information provided by any BrownWinick attorney, as slight changes in fact situations may cause a material change in legal result.