Artiman Ventures reviews innovation, start ups & lifecycle for venture funding

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Innovation, Startups, Life

• Amit Shah

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What is Venture Funding?

• Riskiest money Equity without security
• Money that your relatives will not lend you
• A bank lends when you dont need it
• Types of Venture fund
• Seed
• Like the individual / team
• Early
• When it is a concept Mid
• Product ready some customers interested
• Late stage funds
• In revenue need money for expansion

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Artiman Investors Entrepreneurs
U.S. Investment Team Amit Shah Yatin
Mundkur Tom Dennedy Akhil Saklecha Ajit
Singh Tim Wilson

• Venture Investing Experience
• Collectively managing 900M invested in 140
  seed/earlystage companies
• 88 exits with aggregate realized return of 3.3x
• 11 IPOs and 32 acquisitions
• Entrepreneurial Experience
• Co-founded 10 startups in the U.S. and India
• 6 successful exits with aggregate value of gt 1
  Billion
• ZeitNet, PipeLinks, Equator, Daksh, Ross,
  Kaleida, Clarity, Airgo, BioImagene
• Operating Experience - public and private
• Cisco, Rockwell, Siemens, AMD, ATT, Lucent,
  Cabletron, Digital Island, FireEye, Airgo,
  Clarity Wireless, Adaptive, Compaq, Qualcomm, HP
• Technology Background
• Played pioneering roles in seminal industries
  Server Computing, Networking, Voice over IP,
  IPTV, Digital Consumer Electronics
• 26 US patents

India Team M. J. Aravind Ramesh Radhakrishnan
US Operations Team Ida Ng
EIR Frank Thibodeau Adam De La Zerda Mahmood
Panjwani Atul Sharan
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Investment Strategy

• Concept and Early Stage
• World class entrepreneurs with ideas
• Lower cost basis, providing significant ownership
• Ability to impact company strategy
• White Spaces
• Potential to dominate markets
• No identifiable competition, with at least a
  12-month lead on technology or market
• Lower execution risk and outsized returns
• Scalable Business Models
• Develop technologies cost effectively
• Scale the business efficiently
• Fundamentally change economics of target sectors
• Leverage India
• Long-standing network and deep deal flow
• Same disciplined screen as in Silicon Valley
• To build companies that cannot be built in the US
  BioImagene, Guavus, Cellworks

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Innovation

• Best ideas have come from outside industry
• Intersect expertise in one market with another
• Think out of the box
• Do NOT be a hammer in search of a nail
• Intersection of experience, market understanding,
  ability to
• Execute
• Is it a business?
• Feature, Product or Company?

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Artiman Focus on Disruption

• BioImagene (Acquired by Roche)
• Changing Standard of Care in Pathology
• Cellworks (www.cellworksgroup.com)
• Designing drugs the way computer chips are
  designed
• Aditazz (www.aditazz.com)
• Designing building Facilities the way computer
  chips are designed and fabricated
• Zspace (www.zspace.com)
• Non-invasive testing for Cardio-vascular diseases
• Invensense (www.invensense.com)
• Motion Processing for consumer devices
• Prysm (www.prysm.com)
• First American TV company in 30 years

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Why? O Why a startup?

• The trigger for doing a startup
• My boss sucks I dont like my job
• He/she made it why cant I?
• Always wanted to do a startup
• Caution
• Not sexy most likely foolhardy
• Very, very hard work with incredible ups/downs
• Enjoyment is in hindsight

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Still want to do a startup?

• Create a Business Plan
• Not an excel spreadsheet or a word document or a
  powerpoint presentation
• An innate and clear understanding of what you are
  going after
• Remember
• if it is in the press it is too late
• Truly understand the market dynamics

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The Money

• Most businesses should not raise venture money
• Do you really know why and how much money you
  need?
• Who do you raise it from?
• Customers, partners, friends and family, angels,
  VCs
• Government (Darpa, SBIC,)

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The VCs

• They are evil dumb do not understand my
  business trying to screw me
• - All true
• - No different than a marriage
• How well do you know the person?
• - Look beyond the sexy early days and to the fat
  middle age and can you live with it?
• - Ecosystem

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Finally

• Actually doing a startup
• Phases
• Primordial
• Middle Ages
• Industrial Revolution
• Deliverance

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Primordial

• Concept
• Early fools
• Extreme Energy
• Some lucidity

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Middle Ages

• Newer Skeptics converts
• Energy / focus correlation
• Outside thoughts
• Confusion

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Industrial Revolution

• Scale
• Technology ready for customers
• Sales and Marketing starts ramping
• Internal Challenges
• Job function confusion (mix of newer v/s older
  employees)
• Communications
• Hallway conversations dont work
• Processes (unfortunately) needed
• Fallout
• People dissatisfaction
• Inability to scale
• Some dont make it thru transition

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Deliverance

• Customer interaction starts
• Initially Skepticism
• Goes to piddly stuff
• Some more selling and it becomes maybe
• If persistence, the customer converts

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Start-Up Check List

• Establish business entity
• Engage a lawyer/be cautious going solo with
  online resources
• Corporation is the entity of choice if you plan
  to raise money for the business
• Establish initial ownership of company with
  co-founders
• Fed/State registration, business license and
  permits
• Secure Key Personnel
• As shareholders, consultants or employees

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Start-Up Check List (cont.)

• Secure work space
• Clean up the garage, lease an office, come to
  Artiman
• Open bank account
• Obtain necessary insurance
• Workmens comp
• Medical
• Liability
• Implement Accounting System
• Popular Quickbooks is adequate
• Select payroll vendor (Paychex, ADP)

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Business is Never as Planned

• You will have to Refine your Business Plan
• Annual Strategy Plan
• Annual Operating Plan
• Annual Financial Budgets

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Artiman Tool Kit

• www.artiman.com/startup-toolkit
• Templates and sample documents covering
• Annual Operating Plans
• Board Meetings
• Financial
• Human Resource
• Legal

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Artiman Tool Kit Index
Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index Artiman Tool Kit Index
Description Format   Description Format
1 AOP1 AOP Time Line Graphic Illustration PPT   21 HR2 Form of Offer Letter Word
2 AOP2 Sample AOP Time Line Excel   22 HR2.1 Form of Empl, Conf. Inf. and Inv. Assign. Agt Word
3 AOP3 Sample AOP PPT   23 HR3 New Hire Check List Excel
4 AOP4 Product Planning Template Word   24 HR4 Separation Release Letter Word
5 AOP5 Sample Project Responsibility Owners Word   25 HR5 EE Termination Check List PDF
6 Board1 Key Examples of Information for Board Meeting Excel   26 HR6 90 Day New Hire Review Form Word
7 Board2 Sample Board Package PPT   27 HR7 Employee Self-Evaluation Form Word
8 Board3 Action Item Template Excel   28 HR8 Performance Eval and Career Dev Form Word
9 Board4 Sample Board Consent by Email Word   29 HR9 Staff Empowerment Article Word
10 Board5 Sample Board Indemnification Agreement Word   30 HR10 Consultant Agreement Word
11 Board6 10 Immutable Rules for Exec Presentation PDF   31 Legal1 Sample VC Term Sheet Word
12 Fin1 Financial Package Excel   32 Legal2 Sample Non-Disclosure Agreement Word
13 Fin2 Company Cap Table Excel   33 Legal3 Sample Note Warrant Purchase Agrmt Word
14 Fin3 Expense Report Template Excel   34 Legal4 Sample Note Word
15 Fin4 Insurance Benefits Cost Schedule Excel   35 Legal5 Sample Warrant Agreement Word
16 Fin5 Sample Cash Investment Policy Word   36 Legal6 Sample Mgt Rights Agreement Word
17 Fin6 Sample Fixed Asset Capitalization Policy Word   37 Legal7 Form University License Term Sheet Word
18 Fin7 Sample Travel Expense Reimbursement Policy Word   38 Legal8 Document Creation/Retention Review PPT
19 HR1 Sample Employee Handbook Policies Word   39 Legal9 Fenwick Start-up Legal Resource Presto PDF
20 HR1.1 Sample Company Handbook Word