1 Gary Williams – Director Federica Pericle - Director Jeni Clark – Associate Director Starting Start-Ups May 21, 2014

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3 Key Elements of Business Plan An Executive Summary Business Overview Market & Competitive analysis Sales & Marketing Strategy Organization & Management including Advisors Operations Risk Analysis & Mitigation Financial Plan Investor Request & Exit Strategy 3

4 Overview of Key Start-up Activities Overview of Key Start-up Activities Good reference for start-up activities can be found at: - Hubofhumaninnovation.org; “Choose What Start-Up Guide” 4

5 Consult an Attorney Consult an Attorney on Intellectual Property (IP), HR & Corporate Law - License Agreement - Personnel policies - By-Laws; stock certificates; equity distribution 5

6 Types of Company Formations Form a Company ManagementLiabilityAbility to Raise Capital Inc. Managed by directors & officers; general limited shareholder participation Owners have limited personal liability for debts & obligations of company Preferred structure for public offering or raising capital from certain investors LLC Flexible – members may directly manage company or elect managers Owners have limited personal liability for debts & obligations of company Generally good except for planned public offering or raising capital from certain investors 6

7 Capital Structure of Company Number of issued shares:100,000 % of Shares Shareholder Shares Owned IssuedOwned Founder 115, %21.43% Founder 215, %21.43% Founder 310, %14.29% Founder 410, %14.29% Investor 110, %14.29% Investor 210, %14.29% Sub-total70, %100.00% Summary Shares Reserved % of Shares Reserved Held for Employee Option Program10, % Reserved for New Investment20, % 30, % Detailed Capitalization Table for NEWCO Inc. Number of authorized shares: 10,000,000 Valuation = $5,000,000

8 Other Key Start-up Activities, continued 8 Consult a Certified Public Accountant Plan for Taxes – Federal [apply for Employer Identification Number (EIN}] – State (in Texas: Franchise tax) – Employment (FICA) Decide on Officers and Board Members Decide on Compensation Where’s the money coming from?

9 Other Key Start-up Activities, continued Choose & Register Business Name – Register Domain Name of Website Open a Business Bank Account Investigate Operating Licenses Purchase Insurance—liability; health plan Set-up Office/Warehouse/R&D facilities/phones Obtain Duns and Bradstreet Number Register at SAM.gov & Grants.gov (for Federal Work) Develop Marketing information, website, brochures 9

10 Other Key Start-up Activities, continued Plan for incubation at The Hub of Human Innovation – Studies show that companies that are incubated have a much higher success rate. – A lot of business support is provided including a “world class” mentor program – You can participate at a number of levels including an affiliate member which does not include an office space 10

11 Gary Williams – Director Federica Pericle - Director Jeni Clark – Associate Director Starting Start-Ups May 21,2014