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FLYWHEEL VENTURES. Presentation to. Coronado Ventures Forum. Santa Fe, NM * November 18, 2004. Experienced Investment Team. Track Record of Success. Classic Investment Strategy. Hands-On Partnering with Entrepreneurs. Agenda. Experienced Investment Team. Track Record of Success.
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FLYWHEEL VENTURES Presentation to Coronado Ventures Forum Santa Fe, NM * November 18, 2004
Experienced Investment Team Track Record of Success Classic Investment Strategy Hands-On Partnering with Entrepreneurs Agenda
Experienced Investment Team Track Record of Success Classic Investment Strategy Hands-On Partnering with Entrepreneurs
Flywheel New Mexico Team Scott Caruso Director • Angel investor in NM & CO • Founder of HotSpare • Co-Founder of ComputeIntensive (sold to NTT Verio; $140M) • SUN Microsystems • BS New Mexico State Chris Traylor Associate • Start-up experience with PSI • MBA from Univ. of New Mexico • BA Kansas State University Trevor Loy Managing Director • Founded Flywheel in 1999 • Boards: Comet, Samba, CVF, Arrowhead (NMSU), NMVCA • Conexant, Gigabeat, Intel, ParkingNet, Stanford, Teradyne • Co-founder, Stanford “Gap” Fund • BSEE, MSEE, MS MS&E, Stanford Kim Sanchez Rael Director • Co-Founder, Qynergy • Senior exec, Intel • Senator Bingaman (D-NM) • BA Harvard, MBA Stanford • All Team Members Have Entrepreneurial Experience
Fern Mandelbaum Venture Partner, Monitor Ventures Carlos Perea Founding Partner, Entrada Private Equity Olympia Nguyen VP, JP Morgan Chase Dr. Everett Rogers (1931-2004) Regents Professor, Univ. of NM Author, Diffusion of Innovations Erik Straser, Ph.D. Partner, Mohr Davidow Ventures Louise Velazquez Senior VP at Oracle President at Quincy Jones Productions Flywheel Strategic Advisory Board • Tom Byers • Ph.D., Chairman, Strategic Advisory Board & L.P. Advisory Committee • Professor of Entrepreneurship, Stanford University • Co-Founder of Slate and Symantec; operating roles at Novell and Accenture • Board member, Reactivity, Alphablox, Harvard Business CRC, Visio (now MSFT) David Albin • Managing Partner, Natural Gas Partners David Alderson, Ph.D. • Post-Doctoral Scholar, CalTech Andrew Constantin • Partner, Constantin Partners Bill Garcia • New Mexico Secretary of Econ Development • Executive at Intel and USWest/Qwest Craig Johnson • Founder and Former Chairman, Venture Law Group Audrey MacLean • Private Angel Investor; Stanford Professor
Experienced Investment Team Track Record of Success Classic Investment Strategy Hands-On Partnering with Entrepreneurs
3:1 Re-Segmentation Disruptive Flywheel Investment Criteria Geography Investment Size Sector Business Model Advanced Materials Semi-conductors Security Telecom / Networking Software / Internet
“ ” The enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation— that distant rivals cannot match. —Michael Porter, HBS How Flywheel Identifies Opportunities Entrepreneurial Talent Flywheel Matching Process Successful Seed Stage Companies Technology Innovations Market Identification
Key Questions Flywheel Asks • Importance of Sales and Distribution Understood? • Equity Markets Understood? Value Stock > Prestige? • Experienced Team; Play to Win? Know What They Don’t Know? • Market Big Enough; Segmented Properly? • Business Model Works? Capital Efficient? • Technology-based, Sustainable Advantage? • Milestones Aligned with Risk Reduction? • Realistic, Sizable Exit Strategy?
Experienced Investment Team Track Record of Success Classic Investment Strategy Hands-On Partnering with Entrepreneurs
Key Aspects to Selecting a VC Firm • Firm-wide Value Add, Not Just One Partner • Schedule & Resource Capacity to Be Involved • Strategy & Technical Skills • Entrepreneurial Management Experience • Management Recruiting • Sales / Customer Resources & Relationships • Follow-On Capital Reserves & Syndicate Relationships • Experience in Achieving Liquidity Assess the Venture Firm as They Assess You. Check References. It’s a Partnership!
Flywheel’s Commitment to Entrepreneurs • Pick Ventures Where Flywheel Team’s Involvement Adds Operational Value • Maintain Conservative Company Ratio (3-5 Max per Flywheel Team Member) • Syndicate Investments with Additional Professional Investors Nationwide • Strategy, Recruiting, Sales, Management, and Mentoring Assistance
Experienced Investment Team Track Record of Success Classic Investment Strategy Hands-On Partnering with Entrepreneurs
Representative Flywheel Investments San Francisco, CA Palo Alto, CA Albuquerque, NM Albuquerque, NM San Francisco, CA Woodside, CA Mountain View, CA St. Louis, MO Santa Fe, NM
Sample Co-Investors and Customers Venture Capital Investors Constantin Partners Representative Customers
Thank You trevor@flywheelventures.com 1.877.586.7526 tel/fax www.flywheelventures.com