Hispanic Venture Capital Fund（一）.pptVIP

Infinitum--Confidential ????? January 28th, 2005 Steve Montoya Azul Venture Partners Vice-President, Hispanic-Net Outline Funding Equity Financing Venture Capital VC Statistics Advice Financing Alternatives Bootstrap Debt Customers/Partnerships Equity Equity Sources Personal Angel Investors Partnerships/Corporations Government Private Capital Firms Venture Capital Firms Equity Investment Model Purchase % of Ownership Risk Capital High Growth Businesses Strong Management Realize a Large ROI 7 to 10x Within 5 Years Stages of Equity Financing Seed Start-up/First Second/Third Expansion Mezzanine Buyout Venture Capital Definition Venture Capital Why Use Venture Capital? Require substantial capital to develop the product or service. Must expand quickly to hit the market window. Need the contacts to grow the business Venture Capital What do Venture Capitalist Have? Industry Expertise Industry Contacts Vast Experience in Starting, Growing, Selling Companies Enjoy Working With Young Companies They Want to Make Money !!! VC Investment Preference Stage of Financing Amount of Capital Geographic Industry Specialization Management Team Strong Referrals Venture Capitalists Look At Vision Leadership Experienced Team Target Market Potential Business Model Revenues, Revenues, Revenues How to Approach VCs? Option 1 - Referral Option 2 - Referral Option 3 - Referral Venture Capital Your Must Have’s Clear Differentiation High Barriers to Entry Market Expertise Business Model Financials Strong Management Team Investments—VC Industry 3rd Qtr 2004 – National Top 6 Investments by Industry Software 22% Biomedical, Health 19% Telecomm., Networking 17% Medical Devices Equipment 11% Semiconductors 8% Media, Entertainment 3% Source: Venture Economics () 3rd Qtr 2004 – National Top 6 Investments by Region Silicon Valley 33% New York 11% New England 10% Southeast 6% Northwest 5% Texas 4% 3rd Qtr 2004 – National Investments