IsVentureCapitalRightForMyBusiness?2004InternationalBusinessConferenceIowaStateCenter,SchemanBuildingAmes,IOwaFriday,April2,2004纂TOp忙SofDiscussionWhatisVentureCapital?aWhoisHopewellVentures?AreYouRightForVentureCapital?ISVentureCapitalRightforYou?WhatisVentureCapital?。Organizedpoolofhighriskcapital。Professionallymanaged。Investsinbusinesseswithhighgrowthpotentialgenerally2saminoritycowner.。Providesactiveassistancebuildingamanagementteamandgrowingthecompany.GoalofWealthCreationforitsinvestors.VentureCapitalIsPredominantly矗Equity,NotDebtpreferredorCommonStockSubordinatedDebtConvertibletoPreferredorCommonStock“SubordinateaddebtwithWalrantsthatCanbeexercisedforPreferredorCommonStocCk.纂IndustryCharacteristicsMoneyCommittedtoFundbyInstitutionalInvestorsfor10Years.GoaltoexitinvestmentthroughanIPOorsaleofcampanyin3-5years,.。TargetReturn30%6-500%6IRRperinvestment.Targetreturntoinvestorsintoday“smarket20%6-30%perannumIndustryCharacteristics一薹Continued。VastMajorityofInvestmentsininformationtechnology,bio-technology,medicaldevicesyenergyortelecommunications.。Fundsusuallyspecializeinoneortwoindustries,aCertainlstageand/orgeographically.。PoolofmoneyinvestedbyAngels(wealthyindividuals)manytimeslargerthantotalVentureCapitalPool。Only1%6ofthoseseekingventurecapitalreceivefinancing.矗StagesofVentureInvestingSeedStage-ConceptorprototypestageStart-up-ReadytocommercializeproductEarlyStage-SomeProductRevenue;marketacceptancestillindoubtLaterStage-SigriificantRcvenuesiProductAcceptance;6-18monthstocashflow.Orproductline/marketexpansion.MezzanineorBridgeFinancing-InterimFinancingtogettosale,mergerorIPO.LeadingVentureCapitalStates矗1998-2000inBillionsInvestedCalifornia$67.54506Mass:.$14.91006NewYork牛9.2606Texas朗7.5506Colorado牛6.4406Next20States$43.82906Bottom25States$1.8106DispatityBetweenShateofSmallBusinessesandShatreofVentute矗CapitalInvestmentintheMidwest16.00“2USPop-SmallVCDealsyCBusinessDollarshoIsHopewellVentures2DiversifiedregionalfundMidwestFocus口StageofInvestment:earlytochangeofcontrol口Industry:manufacturing,consumerproducts,healthcateylfesciences,infotrationtechnology,communicationsOutreachstrategyforgeneratingqualitydealflow。ExperiencedPrincipalswithcomplementaryskillsn