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Scott Technology Center

Scott Technology Center. Financing Entrepreneurship in Today’s Environment. Ken Moreano Executive Director. FUNDING. Sources Founder, Family, & Friends Angels Fund/Syndication VC Not for Profits Co-Working Incubator “Jump Start” / “Tryout”. TODAY’S ENVIRONMENT.

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Scott Technology Center

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

  2. FUNDING • Sources • Founder, Family, & Friends • Angels • Fund/Syndication • VC • Not for Profits • Co-Working Incubator • “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: • Milestones • Industry • Economic climate • Management & Board of Directors • Market and competitors • Barriers to entry • Proprietary technology • Strategic relationships • Cost structure and financial face

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

  6. VALUATION • Silicon Alley Insider: Valuation Index • 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 • Various Methods • Very subjective at Start-Up & Early Stage

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

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