Introduction to the Washington Technology Center and WTC Angel Network

1
Introduction to the Washington Technology Center
and WTC Angel Network

• KREDC BRE Program
• December 14, 2004
• Nate Silverman - Manager, WTC Angel Network
• [phone] nates_at_watechcenter.org

2
Washington Technology Center

• Focuses state, federal and private resources for
  the development and commercialization of new
  products and technologies.
• Sparks ideas, forms connections between people
  and resources and fosters job growth.
• WTCs work with companies has generated 312
  million in external funding for participating
  companies and researchers.

3
WTC

• WTC supports business statewide by
• Providing access to technical expertise
• Supporting funding for company projects jointly
  with universities
• Providing access to federal RD, small business
  and product development grants
• Helping companies maximize their exposure to, and
  preparation for, growth capital opportunities
• Housing a 15,000 square-foot public
  Microfabrication Laboratory

4
Three Main Business Lines

• Micro fabrication Laboratory Facilities
• New Industry Initiatives
• Northwest Energy Technology Collaborative
• Washington Nanotechnology Initiative (WNI)
• Regional Technical Services
• WTC Angel Network
• RD grants (RTD and SBIR/STTR)
• Small Business Services

5
Funding

• WTC Research Technology Development (RTD)
  Program
• Federal SBIR Grants
• WTC Angel Network

6
RTD Program

• Academic-industry research grant
• Designed for commercialization
• Up to 240,000 per partnership
• Phase I Up to 40,000
• Phase II Up to 100,000
• Phase III Up to 100,000

7
Proposal Requirements

• Submitted by CWU, EWU, WWU, UW, WSU, FHCRC,
  Heritage College, or PNNL
• Company cash matching 4,000
• Washington company partner
• Technology
• Agreement to terms of research contract (IP
  publication)
• 250 application fee

8
Upcoming Deadlines

• Spring 2005Notice of Intent 3/10/05Proposal 4/
  21/05 Projects Start 7/1/05
• Fall 2005Notice of Intent 9/8/05Proposal
  10/13/05Projects Start 1/1/06

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Small Business Innovation Research (SBIR)
ProgramalsoSmall Business Technology Transfer
(STTR) Program
10
11 Participating Agencies

• Agriculture (USDA)
• Commerce
• Defense (DOD)
• Education
• Energy (DOE)
• Health and Human Services (HHS)
• Transportation (DOT)

• Environmental Protection Agency (EPA)
• NASA
• National Science Foundation (NSF)
• Homeland Security Administration

11
SBIR Qualifications

• The company is at least 51-percent American-owned
  and independently operated
• The small business concern is located in the U.S.
  
• It is for-profit and employs no more than 500
  employees
• The principal researcher's primary employment is
  with the small business during the project

12
Three Phases

• Phase I Up to six months/Up to 100,000
• Phase II Up to two years/Up to 750,000
• Phase III Commercialization of the results of
  Phase II

13
The WTC Angel Network

• Help facilitate new local angel groups
• Create a statewide network

Seattle
Tacoma
14
Angel Investors

• Wealthy individual investors who make direct
  investments in start-up companies for an equity
  position in the company
• Variety of backgrounds
• Corporate executives
• Entrepreneurs
• Venture capitalists
• Family wealth

15
Accredited Investors

• Defined term under the Securities Act of 1933
• Any natural person whose individual net worth,
  or joint net worth with that person's spouse, at
  the time of his purchase exceeds 1,000,000 and
  Any natural person who had an individual income
  in excess of 200,000 in each of the two most
  recent years or joint income with that person's
  spouse in excess of 300,000 in each of those
  years and has a reasonable expectation of
  reaching the same income level in the current
  year.
• With regard to organizations, an accredited
  investor is a trust with assets in excess of
  5 million, not formed to acquire the securities
  offered, whose purchases a sophisticated person
  makes.

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Potential Accredited Investors?
VALUE FOR ALL OWNER-OCCUPIED HOUSING UNITS 25 -
Universe Owner-occupied housing units Census
2000 Summary File 3 - Sample Data
17
Role of Angels in U.S.

• 200,000 angels invested 15.7 billion in 36,000
  ventures in 20021
• Meanwhile, VCs invested 303 million in 148 seed
  and early stage deals2
• In 1999, only 4,000 out of 700,000 business
  starts (0.57) were venture-backed
• 1 Center for Venture Capital Research
  University of New Hampshire
• 2 National Venture Capital Association
• 3 National Commission on Entrepreneurship

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Angel Qualifications

• High return on investment (ROI) potential
• Unique solution to customers' important needs
• Rapidly growing and/or large market
• Credible, clear and balanced business plans
• Clearly articulated sustainable competitive
  strategies
• Proven management team with relevant successes
• Patents or other intellectual property barriers
  to entry
• A desire for advice and coaching
• Preference for businesses located in Washington
  or other nearby locations

19
Fundraising Process

• Submit executive summary to website
• Select companies asked for more information
• Select companies invited to screening meeting
• Select companies invited to present to large
  group of angel investors

20
Upcoming Events

• Dec. 16 NSF Day, Seattle
• Jan. 20 SBIR Breakfast, Seattle
• Feb 16 SBIR 101, Bellingham
• Feb. 4 Power of Angel Investing, Seattle
• Mar. 4 Power of Angel Investing, Spokane
• Apr. 8 Washington Technology Summit, Seattle

21
Thank You!!

• Nate Silverman
• Manager, WTC Angel Network
• 206-616-7153 or 206-618-7871
• nates_at_watechcenter.org