Transcript Venture Capitalists: Who We Are and How We Think

Murphree Venture Partners
Early Stage Technology Investing
May 15, 2003
Dennis E. Murphree
Thomas J. Stephenson
Elliott M. Bouillion
M U R P H R E E V E N T U R E PA R T N E R S
Murphree Venture Partners
• Significant investment history
– Founded in 1987 with over 50 investments to date
• Focused on early-stage investments in the Southwest
– Growth technology from e-business to life science
• Organized to maximize ability to provide key services
to portfolio companies
– 4 distributed offices and 6 partners
• Proven track record with multiple success stories
– 96.7% of portfolio has or will participate in IPO or M&A
M U R P H R E E V E N T U R E PA R T N E R S
MVP Partners
Dennis Murphree
25 years of direct investment experience
Tom Stephenson
Austin Technology Incubator
Elliott Bouillion
Landmark Graphics, Founder Phoenix Computer Graphics
John Dennis
Koch, Simmons & Company, Goldman, Sachs & Co.
Geoff Tudor
Founder Genius Technology and Advent Networks
Steve Wagh
Brown-Wagh (Sound Blaster), IBM
16 years average experience
M U R P H R E E V E N T U R E PA R T N E R S
Murphree New Mexico Investments
Company
Location
Investment Date
MicroOptical Devices
Albuquerque June, 1996
Adaptive Learning Tech. Santa Fe (*)
November, 1997
Kinetisis
Los Alamos
February, 1999
Elisar Software
Albuquerque November, 2000
Mesofuel
Albuquerque November, 2002
(*) Relocated to Austin, Texas 8/98
M U R P H R E E V E N T U R E PA R T N E R S
What We Look for in a Deal
• The fundamentals:
– Strong Team
• Doesn’t have to be complete
• P.I.H. (more on this later)
– Excellent Market Opportunity
• $1B+ and growing (less for LS)
• Fragmented industry
– A Proprietary Position
• Technology
• Competitive differentiation
M U R P H R E E V E N T U R E PA R T N E R S
What We Look for in an Entrepreneur
• Passion: Will you walk through
walls to make the deal work?
• Insight: Can you identify a market
need and see an INNOVATIVE way
to provide a solution?
• Humility: Do you know what you
know, and know what you don’t?
M U R P H R E E V E N T U R E PA R T N E R S
NM Industries of Interest Today
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Energy
Software
Optical and semiconductor devices
Life Sciences (with a qualified lead)
• Now, more than ever, we are opportunistic
in our investing.
M U R P H R E E V E N T U R E PA R T N E R S
Murphree NM Involvement
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Coronado Ventures Forum
NM Info. Technology & SW Association
TVC Equity Capital Symposium Advisors
LANL IBD External Advisory Board
UNM Management of Technology Program
Advisory Board
• NMSU Physical Sciences Lab Advisory Board
• Leadership New Mexico
• NM presence since 1996, full time since 1997
M U R P H R E E V E N T U R E PA R T N E R S
Characteristics of all MVP NM Deals
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Extremely early (seed) stage
Proprietary Technology
Huge Market opportunity
Strong Entrepreneurs
Incomplete management
team
M U R P H R E E V E N T U R E PA R T N E R S
Characteristics of all MVP NM Deals
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Extremely early (seed) stage
Proprietary Technology
Huge Market opportunity
Strong Entrepreneurs
Incomplete management
team
Average Time from First Meeting
to Full Funding: 11 Months
M U R P H R E E V E N T U R E PA R T N E R S
What’s Next for New Mexico
• VC Dollars are on the rise
– 92 Investors at TVC Symposium
• Serial Entrepreneurs are growing in number
– Ned Godshall (SMD, Kinetisis, Mesofuel)
– Waneta Tuttle (Indigo, PhDx, Exagen)
– Paul Shirley (SVS, Qynergy)
• Big, local success has still eluded us
M U R P H R E E V E N T U R E PA R T N E R S
Contact Information
Thomas J. Stephenson
1 Technology Center
1155 University Blvd. SE
Albuquerque, NM 87106
TEL: (505) 843-4277
FAX: (505) 843-4278
[email protected]
www.murphreeventures.com
M U R P H R E E V E N T U R E PA R T N E R S