>UJ Co-founders a:: Startup Financing Cycle TIME. :::::> Later Stage. Public Market. Equity Crowdfunding & Crowdlending

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1 Startup Financing Cycle Equity Crowdfunding & Crowdlending UJ Accelerators Angels, FFF :::::> Later Stage z UJ Seed Capital Early Stage >UJ Co-founders a:: VCs, Acquisitions/Mergers & Strategic Alliances Secondary Offerings Public Market 3rd Mezzanine IPO Break even 2nd Valley of Death TIME

2 Validation M odel Dev. Launch Accelerate Early Stage Matu rity Late r Stage Individual Ideas School Classes Big Idea$ lnnot ation Lab Problem Bank Tech Transfer Deans/Schools IM ot ation la b Networ king Problem Challerg e BRCGrow Your Bus Phase 1 UVU Classes? GIS SBCCM arket Research Student Projects MBA Proj ects BRCGrow Your Bus Phase 2 UVU Classes? Entrepreneur ial Launch Pad (BRQ Business Mod el Ev aluations SBDC Rapid Dev. Center 3D Print ing (UVU) W ebsit e Dev Prototyp ing Wi reframes IRTesti~ Solid W orks Student Projects Bio Inno vation Gateway (USTAR) Rocket Ship RedCone Dev Development House Directory Business Reg, Brand Launch, Sales Traction Product Deplo yment Customer Acq, Cash Flow Incubator BRC Incubator Startup Stud io ThinkA tomic Hol o De-ck Camp 4 Smart l ab Grow Your Business Phase 4 Competitions 3~ Party MEP (BRQ Seed Ca pita I Friends, Family, Fools Acceler at or ( Boo tst rap ) 0 uper Ange0 ( Angels ) ( IPO ) Funds Crowd Fund ing Prototypa l Seed Incubat or Seed Fund ( VC's ) ( Mergers ) ( Genes is vc) Micro Vent ure Corporat e Seed Funds ( Banks ) ( Acqu isitio n)

3 What do you NEED? 1. A completed business plan 2. Market research 3. Financial models 4. One-, three-, and five-year plans 5. Potential customers 6. Real ability 7. Existing investment 8. A brand 9. A goal 10. A payoff Source:

4 1. Relationship before the ask 2. Sales validate the model 3. Explain who your audience is and how to reach them 4. Sustainable competitive advantage 5. Know your numbers and ROI 6. Clear details about the investment 7. Show skin in the game 8. Anticipate challenging feedback KEYS to SUCCESS

5 Bank Financing 2017 Mike Winder Vice President, Community Development Director, Entrepreneurship Programs

6 CREDIT CARDS - 1oc re ~ ar d s AmaZing Rewards AmaZing Cash Back (1% cash back) AmaZing Rate(10.24% instead of 14.24%) WE HAVEN"T FORGOTTEN WHO KEEPS US IN BUSINESS

7 FACTORING Factoring is a finance method where a company sells its receivables at a discount to get cash upfront. It's often used by companies which have to fill orders long before they get paid. Companies selling receivables pay a fee that's a percentage of the total amount. WE HAVEN 'T FORGOTTEN WHO KEEPS US IN BUSINESS "

8 EQUIPMENT LEASING Retain working capital Interest savings Tax advantages ZIONS BANK. WE HAVEN"T FORGOTTEN WHO KEEPS US IN BUSINESS '

9 MICROLOANS $500 - $35,000 Flexible underwriting criteria Nonprofit w/ free orientations UTA J? ~~ M1croenterpr1se LOAN FUND BUILDING BRIGHTER FUTURES THROUGH SMALL BUSINESS WE HAVEN"T FORGOTTEN WHO KEEPS US IN BUS IN ESS'

10 BUSINESS ACCESS LINE OF CREDIT Loans of $5,000-$50,000 Basic borrowing needs 2yr in business, $150k-$2m in revs WE HAVEN 'T FORGOTTEN WHO KEEPS US IN BUSINESS "

11 SBA LOANS Zions Bank #1 in Utah for 23 straight years! Most popular: 7(a) & SBA Express WE HAVEN"T FORGOTTEN WHO KEEPS US IN BUS IN ESS'

12 SBA EXPRESS Up to $350,000 SBA turnaround time 36 hours Flexibility in rate & collateral reqs. WE HA ~-!~~~H~ANK KEEPS US IN BUSIN. ESS'

13 SBA 7(a) SBALa_an Up to $750,000,,. Salal'f Ideal for working capital, asset purchases and leasehold improvements Owners with 20%+ must personally guarantee

14 FIVE C s Character (Track record/familiarity) Capacity (Ability to cash flow & pay loan) Capital (Skin in the game) Collateral (Some guarantee for lender) Conditions (Timing right for industry/idea) WE HAVEN 'T FORGOTTEN WHO KEEPS US IN BUSINESS "

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16 ANGEL FUNDING PROCESS Steps to Know: Business Model Ready Message Ready Pre-Screen Full Presentation Due Diligence Term Sheet Funding What Investors Look for: Trust in the Entrepreneur Business Model Validation Paying and Satisfied Customers Sustainable Competitive Advantage Realistic Growth Opportunities Ability to Leverage Partnerships

17 Business and Economic Forum 2017