1. Scott Technology Center Ken Moreano Executive Director Financing Entrepreneurship in Today’s Environment

2. FUNDING Sources o Founder, Family, & Friends o Angels o Fund/Syndication o VC o Not for Profits o Co-Working Incubator o “Jump Start” / “Tryout”

3. TODAY’S ENVIRONMENT Strategic: Pain Points Matching: Partner Matching Leverage: Syndication Infrastructure: Subsidy

4. VALUATION CONSIDERATIONS A valuation considers many factors: o Milestones o Industry o Economic climate o Management & Board of Directors o Market and competitors o Barriers to entry o Proprietary technology o Strategic relationships o Cost structure and financial face

5. VALUATION Start-Ups (What we are seeing) o $300k-$500k (some at $1M-$3M) o Company worth $1M o Raise of $500k o Post-money value is $1.5M o $500k investment provides 33% ownership

6. VALUATION Silicon Alley Insider: Valuation Index o SAI 25 LIVE! – Guess work based on VC financing, financial performance, growth rate and market share & size. Facebook valued at $15B after MSFT investment of $240M. Index currently @ $9B o Various Methods o Very subjective at Start-Up & Early Stage

7. RATE OF RETURN Start-Up 35-50% Later Stage 25-35%