TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
2014 Technology Entrepreneurship
Boot Camp
Sponsored by Jackson Walker
UTSA Colleges of
Business and Engineering
CITE BootCamp February 2014
1
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Disclaimer!
The information I’m about to share
with you is my experience and my
truths only.
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
Slide 2
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Q1. How Difficult Is It To Raise Capital?
 Why would someone give you money?
 What do you know?
 How much experience do you have?
 What is your track record?
 What’s your business plan?
 What assurances do I have that I will get my
money back plus with a return commensurate to
the risk I’m taking?
 Who do you know that will give you capital?
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2014
3
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Q2. My Options
 You can try to sell your technology to a big
company for cash.
 You can try to license your technology.
 You can try to meet with small companies and
negotiate some kind of royalty or out right sale
(small companies are always looking for new technologies).
 You can try to convince a senior executive to
take your technology and build a company
around it – you retain a small equity.
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2014
Slide 4
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
THE DR. ROSENBERG STORY
CITE BootCamp January 2014
5
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
The Dr. Rosenberg Story
CITE BootCamp January 2014
Slide 6
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2014
Slide 7
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Q3. Working With Founders
It all depends on the founders !
 How much experience to they have?
 Are they teachable?
 Will they listen?
 Do they have a proper sense of value?
 What role will they take in the company?
 Do they understand what has to be done?
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
Slide 8
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Q4. The Board Of Directors
•
•
•
•
•
•
Board Members are responsible to shareholders / investors
Their responsibility is to oversee the activities of the company
The main duty is to hire and fire the CEO
They provide the Company with significant creditability
In VC back boards – they’re their to make money
Good boards should be value added to assist the company in
its growth with contacts, experience, established industry
relationships.
• Help the CEO with major decisions – sounding board.
• Board Members must add value and must have significant
industry experienced – track record of success.
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
Slide 9
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
What Does This Graph Depict ?
CITE BootCamp January 2014
10
TAKE YOUR
TECHNOLOGY
TO THE
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UTSA Colleges of
Business and Engineering
Highs Being Offered $20 M Valuation
And $7 M in Cash
CITE BootCamp January 2011
11
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
How Difficult Was It ?
CITE BootCamp January 2011
12
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Vidacare Story
Private Placement Offering - Dated Sept 10, 2001
Appointments shattered
Enron, WorldCom, Anderson - Made headlines
Stock market crashed!
Venture Capitalist Were Angry
Term sheets unacceptable
Valuation dropped
Angel Investors Fled
We pressured a couple of investors to give us $230K
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
Slide 13
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
The High Cost of Success
No one has a clue !
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UTSA Colleges of
Business and Engineering
Quit my job and lived off my savings for 2 ½ years
I left my family in Vancouver until we raised the capital
I lived out of a suit case sharing a room with Dr. Miller
Very long hours
Endless tasks and deadlines
Sleepless nights
Financial loss – all my savings gone.
Uncertain future
Unbelievable stress
CITE BootCamp January 2014
Slide 14
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
You don’t know
what you don’t
know!
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2014
Slide 15