Raising Capital in the Current Environment: the SBIR Advantage
Though with some important and notable exceptions, though sometimes part of the investment community, in the past the portfolio holdings of Corporate Venture Capital (CVC) have been largely syndications: deals with VC entities in the lead positions making investment for financial return. 
    Just
Raising Capital in the Current Environment: the SBIR Advantage
Though with some important and notable exceptions, though sometimes part of the investment community, in the past the portfolio holdings of Corporate Venture Capital (CVC) have been largely syndications: deals with VC entities in the lead positions making investment for financial return. 
    Just as reviewers may see an Industry Connection on an SBIR Proposal Submission as a positive indicator, for financial VC that industry involvement has similarly serve to validate the relevance of the technology and viability of business opportunity.
    In striking contrast - and with increasing frequency - we are now seeing far more deals with Corporate VC in the lead position and/or even going it alone. Data also shows a major uptick in overall CVC activity to include Funds launched by Corporations not previously so engaged.
Benefits to SBIR Awardee:   Drivers for Corporate Investor:
Exposure to potential CVC investment can provide small firm opportunity to
  • establish and build closer ties to potentially valuable business partner(s)
  • send a strong validation signal to the marketplace
  • provide access to resources and complementary assets not readily able to generate themselves
But, working from agenda driven by core Corporate Strategy, CVC have different requirements, processes and tempos than financial VC.
Learn more about the world
from their perspective
  Pro-active investment provides the Corporation
  • a window on new technologies and diverse capabilities
  • new products & new market potential for existing product lines
  • lowered costs; greater efficiency; enhanced capabilities; accelerated time to market
  • access to non-core talent and resources - to include federal R&D dollars and facilitated procurement opportunities
  • and/or - not trivially - to possible acquisitions: over EIGHT percent of SBIR awardees acquired.
 
Call for Presenting SBIR Awardees
  • On the Invitation List for participation in this Event are all those VC entities having made investment in one or more of the 682 firms which are both VC-funded and currently SBIR-involved: a total of 945 entities, of which 98 are Corporate VC
  • Additionally, many of the Tech Seekers with whom we work on a regular basis having a (newer) Corporate VC capability but so far not having recent SBIR related investment are also being actively recruited
We are committed to having at least TWO qualified investors in the primary presentation sessions in which 4-5 firms will be allocated 20-25 minutes each for presentation and Q/A.
   There will additionally be a number of VCs actively involved but who are indicating that they prefer the option of moving between working Presentation Breakout sessions to being session assigned.
 
Benefits of Event Presentation
Pre-Event:
  • Before selection: review of your options and a detailed critique of submitted presentation materials. Useful feedback
  • Post selection: distribution of your submitted non-proprietary materials to those particular VC - Corporate and other - we judge might be interested and of whom you approve.
At-Event:
  • Presentation before investors with demonstrated experience of, and interest in, SBIR-involved firms - often uncovers interest from unexpected sources
  • Small scale of event supports extensive formal and informal interactions with all attendees:  investors, content specialists and other SBIR awardees
  • Content sessions and overall event participation supports:
    • Learning what others are doing - enabling you to set what you're about in that context
    • Becoming substantially more aware of the overall CVC  (and VC) process - terms, valuations
    • Understanding far better what different types of investor look for and types of relationship
    • Opportunity and TIME to talk.
Post-Event
  • Useful context-setting assistance in preparing to deal with any investor initiated post-event contact
  • Potential distribution of prepared materials to non-attending but interested investors - VC and CVC
Securing a Presentation Slot:
A total of 28-30 Full-Blown Presentation Slots are available at the Corporate Venture Capital Forum.
  • Completion of the simple On-line Check-off of Intent to Apply is requested ASAP.  Conditional on meeting the Materials Provisions and Dates below, this is will serve provisonally to secure your slot.
  • Application for one of these slots requires submission of a one-two page Application prepared online to a common format.    
  • All Applications are being evaluated as they are received. Once all slots are taken, Application Process will closed.  Therefore, interested Awardees are encouraged to apply early.
  • No Application Submissions can be accepted after March 28, 2014
  • Copy of Non-proprietary Executive Summary of your full Business Plan to be received not later than April 16, 2014
How the Review Process plays out
  • Based on the information provided, on an ongoing basis a panel of Preliminary Submission Evaluators are selecting Awardees to make Event Presentation.  
  • Primary criterion for selection:
    • Quality of the submission AND
    • Extent to which the firm appears to present a profile likely to be of interest to one or more of the participating investment sources.
  • After submitting firms have been notified of Panel's decisions - again on an ongoing basis - names of all presenters will be added to list on the website.
  • All Potential Applicants still in the preparation process but not yet having submitted will be Notified when all the presentation slots are taken.
 
Event participation valueInvestment Sources
Though 27% of all VC deals involving SBIR awardees include a CVC entity, there is little/no evidence of any systematic engagement of the diversity of talent that is SBIR by those in the Corporate VC community. Perhaps because
  • pro-active, strategic role of CVC is a more recent condition
  • or most VC exposure to SBIR-involved firms has been
    • either that enabled by a particular agency showcasing their current crop of SBIR awardees seeking Venture Capital
    • or such effort have been in large convenings focused on transitioning to Phase III. Awardees of possible interest are mixed in with lots of others
These mean that very few have a useful grasp on 
  • the sheer scale and scope of what is available from within the entire SBIR-involved community is less evident
  • nor - importantly - the fact that very powerful tools exist effectively to mine and to monitor that resource.
Achieved results to date - deals and collaborations - clearly suggest that there is considerable value in the on-demand availability of a system which enables useful exposure
  • to the full range of SBIR awardees across all agencies
  • to pre-qualified, investment-caliber firms among those Awardees
  • to SBIR awardees determined pre-Event as having capabilities directly relevant to the Agenda of participating CVCs
  • to the many SBIR awardees having platform capability and/or whose technology has application relevance across various fields of use.
The Corporate VC Event experience:
All CVC Registered Participants are set up with a Secure On-System Office housing all Event related materials and required working tools. Lead CVC player may permit Office access by others on their team.

Pre-Event:
  • All CVC participants are provided basic data on all SBIR awardees selected for presentation.
  • Based on on-file priority listing of areas of technology interest, a package is provided on those Awardees of particularly interest. Package to include Business Profile; 2-3 page Application and, closer to Event, small firm prepared Executive Summary
  • Full Investor Package to include
    • Executive Summaries and supplementary analysis on each featured SBIR awardee to include Materials applicants wishes to make available and
    • Useful information on other firms either not able to participate or, though promising, not quite making the cut.
At-Event:
  • Full involvement in all Plenary Sessions presentations to include two grouping - one in morning; one in afternoon - by all selected Awardees (4-5 minutes each).
  • For those who are interested, time on podium: panel sessions
  • Opportunity to sit in on Full Presentations breakout sessions featuring 4-5 Awardees: 20-25 minutes allocated
  • Option either to manage one of those concurrent Breakout sessions or to 'float' across any one those ongoing.
  • Active participation in TWO (AM and PM) roundtable working sessions involving the earlier-stage SBIR awardees judged by the pre-event evaluators as not yet ready for Prime Time
  • An Event structure and location that permits extensive formal and informal interaction and Time.  This is NOT speed-dating.
Post-Event:
  • Involvement as necessary and appropriate to support follow-up on SBIR Awardees of continuing interest.
  • For those Tech Seekers having a Corporate Retainer relationship to Innovation Development Institute, the full range of services that rovides to include 
    • Full data access and useful data analysis
    • Ping alerts: request for data on firms which fit the profile of those of likely interest
    • Profile reviews: full analysis on firms which cross your path and are SBIR involved.