ACCELERATEBALTIMOREInfo Session for 2016 Program

AGENDA

• Introduction to AccelerateBaltimore and the ETC

• Program Overview• Timeline & Application Process• Term Sheet• Hear from a Grad: Andrew Schuster,

founder NewsUp '12• Q & A

WHAT IS THE ETC

• Nonprofit Venture of Baltimore City

• Incubate Baltimore• Beehive Baltimore• AccelerateBaltimore

• Resource

ACCELERATEBALTIMORE Started in 2012 Selects cohort of 6 companies Seed funding 4 month program AccelerateBaltimore specific

Mentors Full support of ETC and Advisors Workspace Startups Perks to Hubspot, AWS,

Microsoft Connections Publicity

22 AB Graduates 1st Accelerator in the City

$4.8 M raised in outside funding

$550K total funding from the Abell Foundation

88% of AB graduates still in

business

68% of AB companies have

women or minority founders

NEW FOR 2016

$100,000 in follow on funding at the end of the 4

month program

WHO ARE OUR IDEAL STARTUPS

• Solving a large problem• Using technology • Have a passionate

founding team • Are pre revenue and/ or

have not raised a significant round of funding

• Ready to work hard

PROGRAM OVERVIEW

Corporate StrategyMarketing & Digital MarketingProduct Launch OperationsBusiness Development & Sales

Investor Readiness Pitching

TIMELINE

Applications close: December 1

Finalist company pitches: December 15

Winners announced: December 22

Orientation: January 11, 2016

Demo Day: April 27, 2016

CONVERTIBLE NOTE FOR AB

Amount: $25,000Funding Source or Holder: The Abell FoundationHow is it distributed? Two installments of $12,500 in the beginning and midway through the program

Due Date: Second Anniversary of Final Disbursement date (2 years)

CONVERTIBLE NOTE FOR AB- CONVERSION Mandatory Conversion Upon Qualified Financing. In the event that the

Company issues and sells shares of its Equity Securities (as defined below) to a person, business entity, or group of persons or business entities acting in concert (the “Qualified Financing Investors”) on or before the date of the repayment in full of this Note in an equity financing in which the pre-money valuation of the Company is at least $1,000,000 that results in gross proceeds to the Company of at least $500,000 (a “Qualified Financing”), then the Obligations shall automatically convert in whole without any further action by the Holder into such Equity Securities at a conversion price equal to 80% of the lowest per share price paid by the Qualified Financing Investors, and otherwise on the same terms and conditions as given to the Qualified Financing Investors. For purposes of this Note, “Equity Securities” means the Company’s Units (as defined below) or any securities conferring the right to purchase Units or securities convertible into, or exchangeable for (with or without additional consideration), Units, except that such defined term shall not include any security (x) granted, issued and/or sold by the Company to any employee, director or consultant in such capacity or (y) issued upon the conversion or exercise of any option or warrant outstanding as of the date of this Note. For purposes of this Note, “Units” means the common units of the company or other similar security.

CONVERTIBLE NOTE FOR AB- CONVERSION Optional Conversion Upon Unqualified Financing. In the event that

the Company issues and sells Equity Securities to a person, business entity, or group of persons or business entities acting in concert (the “Unqualified Financing Investors”) on or before the date of the repayment in full of this Note in any equity financing that is not a Qualified Financing (an “Unqualified Financing”), then the Holder may, at the option of the Holder convert all, but not less than all, of the Obligations into such Equity Securities at a conversion price equal to 80% of the lowest per share price paid by the Unqualified Financing Investors, and otherwise on the same terms and conditions as given to the Investors. In order to exercise the option to convert this Note pursuant to this Section 3(a)(2), the Holder must notify in writing the Company of Holder’s election to so convert at least twenty (20) days prior to the closing of the Unqualified Financing. For so long as any principal remains outstanding under this Note, the Company shall give written notice to the Holder of any Unqualified Financing no less than thirty (30) days prior to the effective date of such Unqualified Financing.

TALK TO A GRAD!

Questions?