Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Venture Capital and
   Universities
A Match Made in…

     Robert Siegel
    X/Seed Capital
   20 January 2009
Simple Creatures




                   © Copyright, X/Seed Capital, 2009
                                  All Rights Res...
Rob Siegel and X/Seed




                   © Copyright, X/Seed Capital, 2009
                                  All Right...
What Do VCs Look for When They
           Invest?
    It depends on the

    VC…
    – Defendable market
      position (...
Different Types of Investors
    Seed stage

        Angels
    

        Seed funding
    




    “Early” stage



 ...
What Makes a VC Tick?
    Economics of venture



    Definition of terms

    – Limited partner
        Universityendo...
How Venture Works*
                                                        $300
 $100
                                    ...
“When Talking to a VC, What Should I
         Say in the First Meeting?”
    Define the invention

    – Publications
   ...
Then What
 Follow   up
  – More technical detail
    with the right partner
  – Any business
    analysis
     May  not ...
What Does It Mean When He/She
      Won’t Call Me Back?

  VCs have little

incentive to say “no”



  Someone might want...
How Do I Know if it Is Going Well?
    First meeting leads to

    follow up and more
    meetings

    Ongoing due dilig...
What Should A First Round of
         Funding Look Like?
    It depends…



    Things to consider

    – How much money...
They Are Trying To Steal My
              Company!!
    It just feels that way

    – They don’t sign NDAs,
      blah, b...
Things to Consider
 Take    the “right amount” of money

 You    will be diluted

 All   men [people] are created equal...
Things You Can Do to Help
                 Yourself
    Mentors/advisors

    that you can trust
    – Be careful that yo...
Common Questions
    Should I already

    have a company
    formed?

    How do I deal with

    the tech transfer
   ...
© Copyright, X/Seed Capital, 2009
               All Rights Reserved
Upcoming SlideShare
Loading in …5
×
Upcoming SlideShare
University of helsinki will cardwell
Next
Download to read offline and view in fullscreen.

1

Share

Download to read offline

Rob Siegel of X/Seed Capital Management at UCSC Baskin Engineering

Download to read offline

Venture Capital and Universities -- a match made in ...
Robert E Siegel presents background and guidelines on venture capital investments for university-based startup founders.

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Rob Siegel of X/Seed Capital Management at UCSC Baskin Engineering

  1. 1. Venture Capital and Universities A Match Made in… Robert Siegel X/Seed Capital 20 January 2009
  2. 2. Simple Creatures © Copyright, X/Seed Capital, 2009 All Rights Reserved
  3. 3. Rob Siegel and X/Seed © Copyright, X/Seed Capital, 2009 All Rights Reserved
  4. 4. What Do VCs Look for When They Invest? It depends on the  VC… – Defendable market position (technology or business model) – Large market (ability to become a big company) – Ability to bring entrepreneurial talent to a situation © Copyright, X/Seed Capital, 2009 All Rights Reserved
  5. 5. Different Types of Investors Seed stage  Angels  Seed funding  “Early” stage  Late stage  Private equity  © Copyright, X/Seed Capital, 2009 All Rights Reserved
  6. 6. What Makes a VC Tick? Economics of venture  Definition of terms  – Limited partner  Universityendowments, non-profit foundations, insurance and retirement funds – General partners – Management fee – “Carry” © Copyright, X/Seed Capital, 2009 All Rights Reserved
  7. 7. How Venture Works* $300 $100 million million Management fee General Partners 16% ($40 million) $100 million Limited Partners Investment capital 84% ($160 million) * For example only – your mileage may vary Assumes $100 million fund with eight year life © Copyright, X/Seed Capital, 2009 All Rights Reserved
  8. 8. “When Talking to a VC, What Should I Say in the First Meeting?” Define the invention  – Publications – Other research in the field – Not too much detail… Potential applications  – Bigger is better The team  – Post-docs, graduate students, business team Simple slide deck  – Think 20+ slides © Copyright, X/Seed Capital, 2009 All Rights Reserved
  9. 9. Then What  Follow up – More technical detail with the right partner – Any business analysis  May not need to be a full plan © Copyright, X/Seed Capital, 2009 All Rights Reserved
  10. 10. What Does It Mean When He/She Won’t Call Me Back? VCs have little  incentive to say “no” Someone might want to  play with their toy Innovation <> commercial success © Copyright, X/Seed Capital, 2009 All Rights Reserved
  11. 11. How Do I Know if it Is Going Well? First meeting leads to  follow up and more meetings Ongoing due diligence  Term sheet  Fund the deal  © Copyright, X/Seed Capital, 2009 All Rights Reserved
  12. 12. What Should A First Round of Funding Look Like? It depends…  Things to consider  – How much money goes in – How far along development is – How the Board is comprised – Financial rights of preferred shareholders – Vesting © Copyright, X/Seed Capital, 2009 All Rights Reserved
  13. 13. They Are Trying To Steal My Company!! It just feels that way  – They don’t sign NDAs, blah, blah, blah Remember: VCs aren’t  operators – They can’t run the business It’s always easier when  things are going well – What matters is when things aren’t going well © Copyright, X/Seed Capital, 2009 All Rights Reserved
  14. 14. Things to Consider  Take the “right amount” of money  You will be diluted  All men [people] are created equal – But not all VC firms are created equal – Not all partners in VC firms are created equal © Copyright, X/Seed Capital, 2009 All Rights Reserved
  15. 15. Things You Can Do to Help Yourself Mentors/advisors  that you can trust – Be careful that you hook up with the right crowd Understand the  history of the venture fund and partner with whom you are speaking Do your own  reference checking © Copyright, X/Seed Capital, 2009 All Rights Reserved
  16. 16. Common Questions Should I already  have a company formed? How do I deal with  the tech transfer office? How long before a  liquidity event? © Copyright, X/Seed Capital, 2009 All Rights Reserved
  17. 17. © Copyright, X/Seed Capital, 2009 All Rights Reserved
  • WallStBrainTrust

    Sep. 22, 2015

Venture Capital and Universities -- a match made in ... Robert E Siegel presents background and guidelines on venture capital investments for university-based startup founders.

Views

Total views

2,079

On Slideshare

0

From embeds

0

Number of embeds

23

Actions

Downloads

35

Shares

0

Comments

0

Likes

1

×