1. New Jersey Technology Commercialization Conference December 8, 2004

2. Agenda What is Venture Capital? Who is NJTC Venture Fund? What do VCs look for? Are you ready? Beyond the first meeting – what to expect The Deal

3. What is Venture Capital? Limited partnerships Equity investments Long term investors Value-added investors Generally focused on a specific area

4. Who is NJTC Venture Fund? New Jersey focus Seed through expansion stage Investing across all industries $80 million fund Networked Capital

5. What do VCs look for? What is the problem? What has been done in the past to solve the problem? Why did it fail? Why are you different? Who will be running the company? Is there a deal that makes sense for everyone?

6. Are you ready? Target your pitch Understand the costs of capital KNOW YOUR MARKET Consider alternative funding sources How “baked” is the technology?

7. Beyond the first meeting References (customers, suppliers, management) Financial models Network contacts Syndicate-building

8. The Deal Preferred stock Participation and liquidation preferences Anti-dilution Board seats and veto rights