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Advancing Innovation & Entrepreneurship
November 24, 2015
Presented by
Sean Mallon
1© 2014 Center for Innovative Technology
CIT Mission
• CIT drives innovation, technology and entrepreneurship in Virginia to foster research commercialization, create new high-growth, high-tech companies, promote innovative solutions, expand broadband and grow Virginia’s innovation economy.
2© 2014 Center for Innovative Technology
Funding Sources
3
Sources of New Venture Financing
Development Start-up Early Growth
Rapid Growth
Exit
Entrepreneur Federal and State Government Grants
Friends and Family Angel Investors Strategic Partner Venture Capital Asset-based Lender Equipment Lessor SBIC Trade Credit Factor Mezzanine Lender Public Debt IPO Acquisition, LBO, MBO Black shading indicates primary focus of investor type. Gray shading indicates secondary focus, or focus of a subset of investors.
© 2014 Center for Innovative Technology
Angel Investors
4Source: Startups.co© 2014 Center for Innovative Technology
Angels Investors (cont.)
5Source: Startups.co© 2014 Center for Innovative Technology
CIT GAP Funds Investment Criteria
6
Management Team / Founder Full-Time Commitment Integrity, Passion, Creativity Coach-ability Record of High Achievement
Investment Stage Seed-Stage Focus Up to 36 Months Prior to Series-A Pre-prototype – Newly-Launched
Technologies
Investment Range GAP Investment
< $200K; >$100K Tranched < $1M Concurrent Syndication < $1M Previous Financing Follow-On Investment up to $250K
Innovation Investment < $75K per Company > $50K Requires IAB Review
Proprietary Advantage Unique Technology Defensible IP Position Difficult-to-Replicate
Scalability Markets with Big Buying Power Potential for Dominant Market
Position >$20M Top-Line within 5 years
Returns > 5X Cash-on-Cash Return
Industries Technology BioLife Energy
Geographic Focus Virginia-Only
© 2014 Center for Innovative Technology
CIT GAP FundsHistogram
7© 2014 Center for Innovative Technology
