Transcript Flywheel I, LP - Coronado Ventures Forum

FLYWHEEL VENTURES
Presentation to
Coronado Ventures
Forum
Santa Fe, NM * November 18, 2004
Agenda
1
Experienced
Investment Team
Track Record
of Success
Classic
Investment
Strategy
Hands-On Partnering
with Entrepreneurs
2
Experienced
Investment Team
Track Record
of Success
Classic
Investment
Strategy
Hands-On Partnering
with Entrepreneurs
Flywheel New Mexico Team
3
Trevor Loy
Scott Caruso
Managing Director
Director
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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

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
Angel investor in NM & CO
Founder of HotSpare
Co-Founder of ComputeIntensive
(sold to NTT Verio; $140M)
SUN Microsystems
BS New Mexico State
Kim Sanchez Rael
Chris Traylor
Director
Associate
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Co-Founder, Qynergy
Senior exec, Intel
Senator Bingaman (D-NM)
BA Harvard, MBA Stanford
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Start-up experience with PSI
MBA from Univ. of New Mexico
BA Kansas State University
All Team Members Have
Entrepreneurial Experience
Flywheel Strategic Advisory Board
4
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
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Managing Partner, Natural Gas Partners
David Alderson, Ph.D.
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Post-Doctoral Scholar, CalTech
Andrew Constantin

Partner, Constantin Partners
Bill Garcia
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New Mexico Secretary of Econ Development
Executive at Intel and USWest/Qwest
Craig Johnson
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Founder and Former Chairman, Venture Law Group
Audrey MacLean
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Private Angel Investor; Stanford Professor
Fern Mandelbaum

Venture Partner, Monitor Ventures
Carlos Perea
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Founding Partner, Entrada Private Equity
Olympia Nguyen

VP, JP Morgan Chase
Dr. Everett Rogers (1931-2004)
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Regents Professor, Univ. of NM
Author, Diffusion of Innovations
Erik Straser, Ph.D.
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Partner, Mohr Davidow Ventures
Louise Velazquez
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Senior VP at Oracle
President at Quincy Jones Productions
5
Experienced
Investment Team
Track Record
of Success
Classic
Investment
Strategy
Hands-On Partnering
with Entrepreneurs
Flywheel Investment Criteria
6
Geography
CO
AZ
Investment Size
3:1
CA
NM
$100K$1M
Sector
Semiconductors
Business Model
Advanced
Materials
Re-Segmentation
Security
Telecom /
Networking
Disruptive
Software / Internet
7
How Flywheel Identifies Opportunities
Entrepreneurial
Talent
Technology
Innovations
Flywheel
Matching
Process
Market
Identification
“
Successful
Seed Stage
Companies
”
The enduring competitive advantages in a
global economy lie increasingly in local
things—knowledge, relationships,
motivation— that distant rivals cannot
match.
—Michael Porter, HBS
8
Flywheel Avoids Investment Hype
9
Key Questions Flywheel Asks
 Importance
 Equity
of Sales and Distribution Understood?
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?
10
Experienced
Investment Team
Track Record
of Success
Classic
Investment
Strategy
Hands-On Partnering
with Entrepreneurs
11
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!
12
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
13
Flywheel Provides Bridge to Silicon Valley
14
Experienced
Investment Team
Track Record
of Success
Classic
Investment
Strategy
Hands-On Partnering
with Entrepreneurs
15
Representative Flywheel Investments
San Francisco, CA
Palo Alto, CA
Albuquerque, NM
San Francisco, CA
Mountain View, CA
St. Louis, MO
Albuquerque, NM
Woodside, CA
Santa Fe, NM
16
Sample Co-Investors and Customers
Venture Capital Investors
Constantin
Partners
Representative Customers
Thank You
[email protected]
1.877.586.7526 tel/fax
www.flywheelventures.com