National Association of State Workforce Board Chairs – Annual Meeting, August 15, 2006 “Developing the Entrepreneur and Small Business Owner in Your State”

National Association of State Workforce Board National Association of State Workforce Board Chairs – Annual Meeting, August 15, 2006Chairs – Annual Meeting, August 15, 2006

“Developing the Entrepreneur and Small Business “Developing the Entrepreneur and Small Business

Owner in Your State”Owner in Your State”

By Jon GregoryBy Jon GregoryGolden Capital NetworkGolden Capital Network

AboutAbout the Presenter the Presenter-- 15 years of increasingly responsible positions in local and 15 years of increasingly responsible positions in local and

regional economic development in Northern Californiaregional economic development in Northern California

- Econ dev leadership (CALED, SARTA and Butte EDC Boards; Econ dev leadership (CALED, SARTA and Butte EDC Boards; EDA 2005 National Awards Committee); recipient of EDA 2005 National Awards Committee); recipient of multiple State and Natl. awardsmultiple State and Natl. awards

- Private sector leadership: formed Golden Capital Network Private sector leadership: formed Golden Capital Network in 1999in 1999-- Over $1B raised by presenting companiesOver $1B raised by presenting companies-- 10+ angel groups, 300 VCs, 800 entrepreneurs10+ angel groups, 300 VCs, 800 entrepreneurs-- Entrepreneurs Grill, Entrepreneurs Hot Seat, UC Entrepreneurs Grill, Entrepreneurs Hot Seat, UC Davis Davis Big Bang, 2 Minute Drill, Silver and Gold Venture Big Bang, 2 Minute Drill, Silver and Gold Venture Club, Club, SARTA, Wildcat Angel Funds I and IISARTA, Wildcat Angel Funds I and II

- New DevelopmentsNew Developments-- Hub and Spokes Seed FundHub and Spokes Seed Fund-- Venture Communities ProgramVenture Communities Program

Sampling of Sampling of GCN Innovation Alumni PresentersGCN Innovation Alumni Presenters

The Small Business and Entrepreneur The Small Business and Entrepreneur Continuum: Differing Needs and StagesContinuum: Differing Needs and Stages

Self Employment/ Microenterprise

Local/Regional Small Business

SME – Mature Industry

Innovative Growth Ventures in Large Markets

(Cleaning Service, Local Artisan, Independent IT Consultant)

(Regional ISP, Restaurant, Gas/Food Market)

(Textile, wood, fab – Est. manufacturers & resellers)

(Technology, process, business model, intellectual property)

EntrepreneurialEntrepreneurial Growth Companies: The Growth Companies: The Engines of Innovation and Regional Engines of Innovation and Regional

CompetitivenessCompetitiveness Entrepreneurial Growth Companies Entrepreneurial Growth Companies

(EGCs) Defined(EGCs) Defined EGCs drive the growth of local and EGCs drive the growth of local and

regional economies, and are the regional economies, and are the pioneers of new industry clusters, pioneers of new industry clusters, and are capable of “economic and are capable of “economic difference making events”difference making events”

All Entrepreneurs Are Not Created All Entrepreneurs Are Not Created Equal!Equal!

Examples of EGCs who became Examples of EGCs who became Market Leaders!Market Leaders!

Hewlett PackardHewlett Packard IntelIntel CiscoCisco MicrosoftMicrosoft Sun MicrosystemsSun Microsystems Computer Science CorporationComputer Science Corporation Optical Coating Laboratory Inc.Optical Coating Laboratory Inc. Grass Valley GroupGrass Valley Group HybritechHybritech Level One CommunicationsLevel One Communications Great Plains SoftwareGreat Plains Software Alantro Communications Inc.Alantro Communications Inc.

Examples of Company TypesExamples of Company Types

MicroenterpriseMicroenterprise Small BusinessSmall Business Growth VenturesGrowth Ventures

Janitorial ServiceJanitorial Service Local Print ShopLocal Print Shop Medical Device Co.Medical Device Co.

Lawn ServiceLawn Service Independent GrocerIndependent Grocer Fables Fables Semiconductor Semiconductor

Handyman ServiceHandyman Service Property Management Property Management Clean Energy Tech Co.Clean Energy Tech Co.

Specialty Crafts MakerSpecialty Crafts Maker Local RestaurantLocal Restaurant Aerospace Mfg.Aerospace Mfg.

Local Gift ShopLocal Gift Shop Digital Media Digital Media VentureVenture

Computer Repair ShopComputer Repair Shop Software ProducerSoftware Producer

Reasons For Starting the BusinessReasons For Starting the Business


Self-EmploymentSelf-Employment Build profitable bus.Build profitable bus. Change the WorldChange the World

Apply Basic SkillsApply Basic Skills Good LivingGood Living Get WealthyGet Wealthy

Improve Living Std.Improve Living Std. Self-StarterSelf-Starter Feel superior to Feel superior to comp.comp.

Apply ExperienceApply Experience Challenge/Compet. Challenge/Compet.

Sources of Startup CapitalSources of Startup Capital


$500-$10,000$500-$10,000 $10,000-$250,000$10,000-$250,000 $100,000-$2M$100,000-$2M

Social ProgramSocial Program SavingsSavings SavingsSavings

SavingsSavings ; Limited; Limited Cash From Prior Job/Cash From Prior Job/ Cash From PriorCash From Prior

Capital RequiredCapital Required Sale of BusinessSale of Business Liquidity EventLiquidity Event

Bank LoanBank Loan Friends, Family, Friends, Family, FoolsFools

EDC Gap LoansEDC Gap Loans Angel InvestorsAngel Investors

Friends, Family, FoolsFriends, Family, Fools Venture CapitalVenture Capital

Market Size DistinctionsMarket Size Distinctions


NeighborhoodNeighborhood Mostly Local/Regional Mostly Local/Regional National or GlobalNational or Global

CommunityCommunity Nat’l./Global Sm. Niche Nat’l./Global Sm. Niche Often $1B+ Mkt.Often $1B+ Mkt.

Examples of Company TypesExamples of Company TypesEducation/Training NeedEducation/Training Need

MicroenterpriseMicroenterprise Small BusinessSmall Business Growth VentureGrowth Venture

Balance a checkbookBalance a checkbook QuickbooksQuickbooks Capitalization TablesCapitalization Tables

Components of a bus planComponents of a bus plan Inventory managementInventory management M&A and IPO OptionsM&A and IPO Options

Operating a PCOperating a PC FranchisingFranchising Term SheetsTerm Sheets

Succession PlanningSuccession Planning Sales channelsSales channels

Managing PeopleManaging People Managing Boards of Dir.Managing Boards of Dir.

Where/How Training DeliveredWhere/How Training Delivered


Community CollegeCommunity College OnlineOnline Phone call to peer Phone call to peer

Social Welfare OrgsSocial Welfare Orgs BooksBooks Specialized service Specialized service prov.prov.

Classroom FocusedClassroom Focused WorkshopsWorkshops Dinner w/Board Dinner w/Board MemberMember

One-On-One One-On-One Exclusive Peer Groups Exclusive Peer Groups

AdvisingAdvising

Most Common Service ProvidersMost Common Service Providers


Social Welfare AgencySocial Welfare Agency InsuranceInsurance Corp/Securities Corp/Securities Atty.Atty.

Commercial BankerCommercial Banker Big 5 Acctg. FirmBig 5 Acctg. Firm

ArchitectArchitect Exec Search FirmExec Search Firm

Personal AttorneyPersonal Attorney Investment BankInvestment Bank

Personal AccountantPersonal Accountant Outsourced CFO Outsourced CFO Svc.Svc.

PrinterPrinter Public Relations Public Relations FirmFirm

Office SuppliesOffice Supplies

Outsourced HROutsourced HR

Real Estate AgentReal Estate Agent

Misc. Nonprofit/Public Sector Svcs.Misc. Nonprofit/Public Sector Svcs.

Most Common NightmaresMost Common Nightmares


Tools BrokeTools Broke Find/Retain LaborFind/Retain Labor Find Exec. Mgmt.Find Exec. Mgmt.

Client Won’t PayClient Won’t Pay Computer CrashComputer Crash Find InvestorsFind Investors

Employees Won’t ShowEmployees Won’t Show New Competitor New Competitor Find CustomersFind Customers

Managing Bus. WhileManaging Bus. While Make PayrollMake Payroll

AwayAway Burn RateBurn Rate

CompetitorsCompetitors

Low-Cost ProducerLow-Cost Producer

Hope Tech WorksHope Tech Works

Security BreachesSecurity Breaches

Get To Mkt. FasterGet To Mkt. Faster

TYPICAL OCCUPATIONS/STAFFING TYPICAL OCCUPATIONS/STAFFING MODELSMODELS


Self-EmploymentSelf-Employment P/T Office ManagerP/T Office Manager Systems Test Engr.Systems Test Engr.

Unskilled LaborUnskilled Labor P/T BookkeeperP/T Bookkeeper Online Sales ManagerOnline Sales Manager

Medical BillerMedical Biller Software EngineerSoftware Engineer

DispatcherDispatcher Database Database ProgrammerProgrammer

Payroll SpecialistPayroll Specialist Web DeveloperWeb Developer

Siding InstallerSiding Installer Data Quality Data Quality AnalystAnalyst

Screen PrinterScreen Printer User Interface User Interface Engr.Engr.

Kitchen HelpKitchen Help Research ScientistResearch Scientist

Advertising SalesAdvertising Sales Clinical ConsultantClinical Consultant

Counter ClerkCounter Clerk Workforce ManagerWorkforce Manager

Graphic DesignerGraphic Designer Senior Test Engr.Senior Test Engr.

Ways Workforce and Economic Ways Workforce and Economic Development Can HelpDevelopment Can Help


MicroloanMicroloan Revolving Loan FundRevolving Loan Fund Connections/NetworkConnections/Network

Business ClassesBusiness Classes Mentoring/CounselingMentoring/Counseling Public Exposure Public Exposure

Social Services Suppt.Social Services Suppt. WorkshopsWorkshops Find ExecutivesFind Executives

Training/PlacementTraining/Placement Staffing PlansStaffing Plans

Outsourced HROutsourced HR Low Cost Low Cost RecruitmentRecruitment

One Stop SupportOne Stop Support Build Skilled Build Skilled WkforceWkforce

Outsourced HR Outsourced HR Dept.Dept.

Value-Add NetworkValue-Add Network

Policy Implications/Questions For Policy Implications/Questions For StatesStates

• Where can you get the most economic Where can you get the most economic “bang for your buck” with limited state “bang for your buck” with limited state resources?resources?

• Do you have strategies in place for the Do you have strategies in place for the different types of businesses?different types of businesses?

• How are you preparing your workforce for How are you preparing your workforce for the occupations in the Growth Venture the occupations in the Growth Venture sector?sector?

• Are your “field level” staff and community Are your “field level” staff and community partners up to speed on this?partners up to speed on this?

Cultivating the Sustainable Innovation Cultivating the Sustainable Innovation and Entrepreneurial Ecosystem and Entrepreneurial Ecosystem

Seven Steps Necessary to Build Seven Steps Necessary to Build and Sustain the Eco-Systemand Sustain the Eco-System

1)1) Convene and Engage a Stakeholder Convene and Engage a Stakeholder CommitteeCommittee

2)2) Conduct Catalyzing Kick-Off and Other EventsConduct Catalyzing Kick-Off and Other Events

3)3) Survey, Outreach, Classify, CaptureSurvey, Outreach, Classify, Capture

4)4) Growth Company and Entrepreneur Impact Growth Company and Entrepreneur Impact PlanPlan

5)5) Angel Investor Impact PlanAngel Investor Impact Plan

6)6) Evaluation, Benchmarking, ReportingEvaluation, Benchmarking, Reporting

7)7) Continue to Build and Nurture Your “High Continue to Build and Nurture Your “High Impact” NetworkImpact” Network

Step #1: Stakeholder CommitteeStep #1: Stakeholder Committee Opinion leadersOpinion leaders Workforce investment, econ dev and chamber orgsWorkforce investment, econ dev and chamber orgs Incubator/SBDC/SCORE and related repsIncubator/SBDC/SCORE and related reps Academics – Administrators and faculty -- Business, MIIS, Academics – Administrators and faculty -- Business, MIIS,

Engineering EntrepreneurshipEngineering Entrepreneurship Elected officials/policy leadersElected officials/policy leaders Venture capitalistsVenture capitalists Established CEOs/founders from industryEstablished CEOs/founders from industry Retired CEOs/executives from industryRetired CEOs/executives from industry Startup and early stage growth entrepreneursStartup and early stage growth entrepreneurs Angels and potential angelsAngels and potential angels Private sector service providersPrivate sector service providers Experienced advisors/mentorsExperienced advisors/mentors

Q: WHERE CAN YOU FIND THEM?Q: WHERE CAN YOU FIND THEM?

Stakeholder Committee:Stakeholder Committee:How Can They Help?How Can They Help?

PromotePromote• Local champions to talk about itLocal champions to talk about it

Help “Build” the Agenda for “Kick-Off”Help “Build” the Agenda for “Kick-Off”• Speakers/Panelists Speakers/Panelists • Serve as panel moderatorsServe as panel moderators• Local companies to ShowcaseLocal companies to Showcase

Recruit SponsorsRecruit Sponsors Communication & Media RelationsCommunication & Media Relations

• Newsletter, PR, E-blasts, advertisementsNewsletter, PR, E-blasts, advertisements Advising and MentoringAdvising and Mentoring

• Coaching the companies you will be showcasing Coaching the companies you will be showcasing

By Promoting Your Initiative By Promoting Your Initiative

Scott Winter, LearningChange – graphic Scott Winter, LearningChange – graphic design and local business journaldesign and local business journal

The Linscheid Group – radio interview, The Linscheid Group – radio interview, media placements/discountsmedia placements/discounts

Butte Community Bank – distribute flyers Butte Community Bank – distribute flyers in all bank branchesin all bank branches

Scott Gruendl, Mayor, City of Chico – Scott Gruendl, Mayor, City of Chico – engagement of all community engagement of all community organizationsorganizations

By Building the Agenda!By Building the Agenda!

By Providing Deal Flow and By Providing Deal Flow and Advising Companies!Advising Companies!

Hi Jon. Here's the summary for one Hi Jon. Here's the summary for one of the teams I am hoping to get into of the teams I am hoping to get into the conference. This is the UC Davis the conference. This is the UC Davis team I am mentoring. They were a top team I am mentoring. They were a top finisher at the Jungle Business Plan finisher at the Jungle Business Plan competition last weekend, and they competition last weekend, and they are a Big Bang finalist, so I think are a Big Bang finalist, so I think they would be a great addition to they would be a great addition to the EDH conference. Let me know if the EDH conference. Let me know if they are able to come!!!they are able to come!!! Thanks!JimThanks!Jim

By Recruiting Sponsors!By Recruiting Sponsors!

Typical Shortcomings…Typical Shortcomings…

Committee includes too few of the Committee includes too few of the right playersright players

Organizer doesn’t “recruit up” high Organizer doesn’t “recruit up” high enoughenough

Organizer schedules the meetings at Organizer schedules the meetings at the wrong timethe wrong time

Organizer mismatches roles and Organizer mismatches roles and responsibilities of committee responsibilities of committee membersmembers

Step #2 – Executing The Kick-Off Step #2 – Executing The Kick-Off EventEvent

Brings the right people togetherBrings the right people together Sends the innovation growth Sends the innovation growth

entrepreneurship messageentrepreneurship message Gets the entrepreneurs, angels and Gets the entrepreneurs, angels and

private sector out of the woodworkprivate sector out of the woodwork Establishes the brandEstablishes the brand Establishes credibilityEstablishes credibility Generates momentum and contactsGenerates momentum and contacts

Why do a kick-off event?Why do a kick-off event?

Yesterday's event was spectacular. I hope that this will be the first of Yesterday's event was spectacular. I hope that this will be the first of many more to come. Any time our community can learn more about many more to come. Any time our community can learn more about the opportunity to bring new business and capitol to our area, is time the opportunity to bring new business and capitol to our area, is time well spent. As a sponsor of many events, I must let you know that well spent. As a sponsor of many events, I must let you know that with out a doubt this is the best return for a sponsorship that I have with out a doubt this is the best return for a sponsorship that I have seen. We appreciated being part of the planning of the event by seen. We appreciated being part of the planning of the event by having Becky Gard attend meetings. It was wonderful having a table having Becky Gard attend meetings. It was wonderful having a table at the event where we could offer information about the bank. I was at the event where we could offer information about the bank. I was amazed at the repetition in display of the logos of the sponsors during amazed at the repetition in display of the logos of the sponsors during the entire event. Then to have the three minutes to have Damon the entire event. Then to have the three minutes to have Damon Gustafson be able to thank the attendees and have our logo giant size Gustafson be able to thank the attendees and have our logo giant size during the whole panel we sponsored was really great.The panels during the whole panel we sponsored was really great.The panels were all very informative and the key-note speaker, Tim Draper was a were all very informative and the key-note speaker, Tim Draper was a grand slam. The most enjoyable part of the day was listening to each grand slam. The most enjoyable part of the day was listening to each presenter do their two minutes with the passion and energy it will presenter do their two minutes with the passion and energy it will take to make their dreams become a reality. Thank you for organizing take to make their dreams become a reality. Thank you for organizing such a memorable event, Diane Modes such a memorable event, Diane Modes

It Brings the Right People TogetherIt Brings the Right People Together

Those Who Are Critical to Your Those Who Are Critical to Your Entrepreneur Eco-System!Entrepreneur Eco-System!

- Investment bankersInvestment bankers- Money managersMoney managers- Legal, accounting, marketing, pr and Legal, accounting, marketing, pr and

design firmsdesign firms- Media representatives (daily, weekly Media representatives (daily, weekly

and broadcast)and broadcast)

It Establishes The Brand!It Establishes The Brand!

It Generates Momentum/Contacts! – ExamplesIt Generates Momentum/Contacts! – Examples

Daniel Ledford, Oroville Attorney (ex Keiretsu Daniel Ledford, Oroville Attorney (ex Keiretsu Forum member)Forum member)

Bill Deters, Sierra AngelsBill Deters, Sierra Angels Damon Danielson, Private Angel InvestorDamon Danielson, Private Angel Investor Thomas Toy, PacRim and Smart VenturesThomas Toy, PacRim and Smart Ventures Kathy Castillo, Gene Chueng - HornMurdockColeKathy Castillo, Gene Chueng - HornMurdockCole Greg Chabrier -Cisco Systems Sales Exec and Greg Chabrier -Cisco Systems Sales Exec and

angelangel Bob Bozeman, Lake County – ex GP of Angel Bob Bozeman, Lake County – ex GP of Angel

Investors, Inc. (invested in Google)Investors, Inc. (invested in Google) Josh Morgan, Morgan/Dorado PR – ex Edelman PRJosh Morgan, Morgan/Dorado PR – ex Edelman PR John Scifres, Cornish & Carey, Sac AngelJohn Scifres, Cornish & Carey, Sac Angel

Elements of an Innovation Growth Elements of an Innovation Growth Entrepreneurship-Focused EventEntrepreneurship-Focused Event

Showcase innovation growth Showcase innovation growth companies (and make it competitive)companies (and make it competitive)

Hear from equity investors (angels Hear from equity investors (angels and VCs)and VCs)

Executives, CEOs and other Heavy-Executives, CEOs and other Heavy-Hitters panelHitters panel

Plenty of NetworkingPlenty of Networking Keynote if it adds the right valueKeynote if it adds the right value

The Right Keynote Speaker The Right Keynote Speaker Can Make All the Difference!Can Make All the Difference!


Too much “government speak” – it’s Too much “government speak” – it’s supposed to be a business event!supposed to be a business event!

Wrong topics on the agenda!Wrong topics on the agenda! Event held at wrong time of day…Event held at wrong time of day… Not enough networking opportunities Not enough networking opportunities

providedprovided Organizers did not “recruit up!”Organizers did not “recruit up!”

Step #3: Survey, Outreach, Step #3: Survey, Outreach, Classify, CaptureClassify, Capture

Follow up e-mail with brief surveyFollow up e-mail with brief survey 3 different targets3 different targets Key data for follow up (Action Key data for follow up (Action

Category determination)Category determination) Key data for measuring progressKey data for measuring progress Build and grow continuallyBuild and grow continually


No, or very limited, post-event outreach No, or very limited, post-event outreach occursoccurs

Little, if any, key data is captured from Little, if any, key data is captured from attendeesattendees

No methodology for benchmarking this No methodology for benchmarking this data is used as a tool to demonstrate data is used as a tool to demonstrate progress (other than # of attendees)progress (other than # of attendees)

Organizers over-complicate the data Organizers over-complicate the data gathering processgathering process

Step #4: The Growth Company & Step #4: The Growth Company & Entrepreneur Impact PlanEntrepreneur Impact Plan

Assigning to an Action CategoryAssigning to an Action Category

• Deal-Flow StreamDeal-Flow Stream

• Communication StreamCommunication Stream

• Advising StreamAdvising Stream

• Networking StreamNetworking Stream

The Communications StreamThe Communications Stream ArcWave Expands Sales Team and Opens New Office ArcWave Expands Sales Team and Opens New Office

to Accommodate 60% Growth Rate for Wireless Last to Accommodate 60% Growth Rate for Wireless Last Mile Product for MSOs – Los GatosMile Product for MSOs – Los Gatos

KeyEye to Present Technical Paper at IEEE KeyEye to Present Technical Paper at IEEE International Solid-State Circuits Conference – International Solid-State Circuits Conference – SacramentoSacramento

Intellidot Announces Novation Contract – San DiegoIntellidot Announces Novation Contract – San Diego WellDog Awarded $200k Grant to Develop Best WellDog Awarded $200k Grant to Develop Best

Practices Guide for Coalbed Natural Gas Industry – Practices Guide for Coalbed Natural Gas Industry – Laramie, WYLaramie, WY

XCOR Announces $3.3 Million NASA contract through XCOR Announces $3.3 Million NASA contract through ATK, a $3.3 Billion aerospace companyATK, a $3.3 Billion aerospace company- Mojave, CA - Mojave, CA

The Advising StreamThe Advising Stream

STARTUPS CAN BUY TIME IN HOT SEATSTARTUPS CAN BUY TIME IN HOT SEAT

Golden Capital NetworkGolden Capital Network launched its new Entrepreneur Hot Seat this week, launched its new Entrepreneur Hot Seat this week, offering founders of emerging growth companies a 90-minute session to offering founders of emerging growth companies a 90-minute session to pitch their concept and company to a panel of industry experts. pitch their concept and company to a panel of industry experts.

The entrepreneurs receive a quick tune up for their ventures, and the The entrepreneurs receive a quick tune up for their ventures, and the professionals get a first look at up-and-coming companies. professionals get a first look at up-and-coming companies.

Customers pay $500 for the privilege, a fraction of what these venture Customers pay $500 for the privilege, a fraction of what these venture capitalists, attorneys, accountants and investors would normally charge -- capitalists, attorneys, accountants and investors would normally charge -- assuming an entrepreneur could wrangle 90 minutes with them in the assuming an entrepreneur could wrangle 90 minutes with them in the first place. first place.

Before the session, the experts review the business plan and presentation Before the session, the experts review the business plan and presentation materials. Then the entrepreneur, the company and the concept get materials. Then the entrepreneur, the company and the concept get peppered with questions. peppered with questions.

"The advisers listen to the business plan, watch the presentation, ask "The advisers listen to the business plan, watch the presentation, ask questions and offer advice," said Jon Gregory, president of Golden Capital questions and offer advice," said Jon Gregory, president of Golden Capital Network. Network.

When it's all over, Golden Capital polls the advisers and puts together a When it's all over, Golden Capital polls the advisers and puts together a briefing paper so the entrepreneur can learn what the experts said. briefing paper so the entrepreneur can learn what the experts said.

The Networking StreamThe Networking Stream

TechCoire's mission is to help technology entrepreneurs and executives within the region build successful businesses by empowering them with the knowledge, capital and connections that are critical to their development and growth.

Since its launch in 2001, TechCoire has become the Sacramento region's only business-technology education and networking organization serving a network of over 1200 technology executives, entrepreneurs and venture capitalists. www.techcoire.org


Organizers have mismatch of funding Organizers have mismatch of funding sources for growth venturessources for growth ventures

Or, no deal flow process even existsOr, no deal flow process even exists No “milestone-based” communications tool No “milestone-based” communications tool

is utilized is utilized Too much advising is focused on “aspiring Too much advising is focused on “aspiring

entrepreneurs” versus adding value to entrepreneurs” versus adding value to “sophisticated entrepreneurs”“sophisticated entrepreneurs”

Under-qualified folks do the advisingUnder-qualified folks do the advising Networking programs mix growth ventures Networking programs mix growth ventures

with lifestyle companieswith lifestyle companies

Step #5: The Angel Investor Step #5: The Angel Investor Impact PlanImpact Plan

NetworkingNetworking• Personal RelationshipsPersonal Relationships• Local Angel GroupLocal Angel Group• External GroupsExternal Groups

EducationEducation• Risk MitigationRisk Mitigation• Tax ImplicationsTax Implications• ValuationValuation

Investment OpportunitiesInvestment Opportunities• LocalLocal• ExtendedExtended

Networking for Angel InvestorsNetworking for Angel Investors

Keiretsu Forum Golf TournamentKeiretsu Forum Golf Tournament Join ACA for Their Annual and Join ACA for Their Annual and

Regional EventsRegional Events GCN Silver and Gold Venture ClubGCN Silver and Gold Venture Club- Partner with CalPERS, CalSTRS, Partner with CalPERS, CalSTRS,

Kauffman Foundation/Angel Capital Kauffman Foundation/Angel Capital AssociationAssociation

Angel Investor EducationAngel Investor Education

Kauffman Foundation “Power of Kauffman Foundation “Power of Angel Investing” SeminarAngel Investing” Seminar

- Is Angel Investing Right for YouIs Angel Investing Right for You- Angel Portfolio StrategyAngel Portfolio Strategy- Overview of Due DiligenceOverview of Due Diligence- Structuring the DealStructuring the Deal- Valuation MethodologiesValuation Methodologies- The Post Investment RelationshipThe Post Investment Relationship


No, or very little true linkages with local No, or very little true linkages with local angelsangels

No effort to organize, support an angel No effort to organize, support an angel groupgroup

Organizer or a consultant takes the “out Organizer or a consultant takes the “out front” role rather than an angel iconfront” role rather than an angel icon

No, or very limited, effort to link angels No, or very limited, effort to link angels with other angels and VCswith other angels and VCs

No effort to draw out (and educate) No effort to draw out (and educate) prospective angelsprospective angels

Step #6: Evaluate, Benchmark Step #6: Evaluate, Benchmark and Report Progress!and Report Progress!

The SARTA Technology Index™ is an innovative tool that measures the health of the regional technology economy by tracking the leading 50 high tech and life science companies driving its growth. Just as the S&P 500 acts as a bellwether for corporate America, the SARTA Technology Index™ is a barometer of how technology companies in the nine county greater Sacramento region are performing.

SARTA Tech Index - 1 Quarter - 2006


Use irrelevant metricsUse irrelevant metrics Transmit progress through Transmit progress through

insufficient channelsinsufficient channels Do not engage private sector in Do not engage private sector in

development of metrics modelsdevelopment of metrics models Do not have process for capturing Do not have process for capturing

sufficient datasufficient data Primarily use historical govt. dataPrimarily use historical govt. data

Step #7 – Continue to Build and Step #7 – Continue to Build and Nurture the Network!Nurture the Network!

Your secret driver of success!Your secret driver of success! Your private sector friends will love Your private sector friends will love

you!you! Build upon initial event (and Build upon initial event (and

subsequent ones) to “mine” for new subsequent ones) to “mine” for new high impact participantshigh impact participants

Find ways to engage the network on Find ways to engage the network on a consistent basisa consistent basis

Engaging Your High Impact Engaging Your High Impact Network!Network!

Sample #1:Sample #1: Had a great lunch meting with Jim Had a great lunch meting with Jim Kitchel yesterday. There may be some Kitchel yesterday. There may be some opportunity for us to work together. opportunity for us to work together. Again, thank you for the intro and I'llAgain, thank you for the intro and I'llkeep you updated.keep you updated.

Sample #2:Sample #2: I just called Michael and I just called Michael and introduced myself – I could handle this introduced myself – I could handle this for him very easily. We may set up an for him very easily. We may set up an appointment later on next week – ball is appointment later on next week – ball is in his court. Just wanted you to know. in his court. Just wanted you to know. I’ll keep you posted.I’ll keep you posted.

Common Shortcomings…Common Shortcomings…

No, or limited, effort to proactively “mine” No, or limited, effort to proactively “mine” the personal networks of participantsthe personal networks of participants

Organizers make no-value or limited-value Organizers make no-value or limited-value connectionsconnections

No process to engage and add value to No process to engage and add value to your networkyour network

Do not provide vehicle for them to “lead” Do not provide vehicle for them to “lead” your effortyour effort

Organizers limit the network to local Organizers limit the network to local participantsparticipants

GCN Venture Communities Model GCN Venture Communities Model leverages multi-regional capacityleverages multi-regional capacity

Incorporates the Seven StepsIncorporates the Seven Steps Templates and ResourcesTemplates and Resources Technology PlatformTechnology Platform Relationships with Private Sector Relationships with Private Sector

Value-Add PlayersValue-Add Players The More Communities Join, The The More Communities Join, The

Stronger They All BecomeStronger They All Become Seeking Beta Communities Now!Seeking Beta Communities Now!

Example in Lancaster PAExample in Lancaster PA

Documents

National Association of State Workforce Board Chairs – Annual Meeting, August 15, 2006 “Developing the Entrepreneur and Small Business Owner in Your State”