Page 1

2009

Utah Angel Investor Summit 7ZhiEgVXi^XZh[dg7ZhiGZijgch


Welcome to the 2009 Utah Angel Investor Summit! The Angel Summit brings together Angels and Angel groups from around the State of Utah to exchange information, debate issues, discuss best practices, and network with others in the investor community. The last two years have been especially challenging for both investors and entrepreneurs seeking capital. Accordingly, the objective of the Angel Summit is to build Utah’s Angel Groups, increase collaboration among Angels, encourage deal syndication, and improve returns by identifying and adopting best practices. We thank our Organizing Committee, our sponsors, and the speakers and panelists who have taken the time to share of their expertise. Their involvement and enthusiasm is critical in improving returns and expanding angel investment in Utah. We appreciate your attendance and hope your experience will be rewarding. If you require assistance or have any questions concerning the Conference, please see Chris or Jaime at the registration desk. Thank you! Most Sincerely,

A. Scott Anderson President and CEO Zions Bank

Bradley B. Bertoch President Wayne Brown Institute


2009 UTAH ANGEL INVESTOR SUMMIT PROGRAM 11:30 – 12:00 Registration 12:00 – 1:30 Lunch 12:15 to 12:30 – State of the Angels Report 12:30 to 12:35 – Introduction of Keynote by Scott Anderson 12:40 to 1:10 – Keynote, George Feiger, CEO Contango Capital Advisors 1:10 to 1:30 – Q & A 1:30 – 2:30 – PANEL 1 Issues in Angel Deals – How to Avoid a Down Round. This panel will look at problems that are common with angel deals that prevent VCs from investing. What are the metrics VCs want to see in a potential deal? What issues typically slow or turn-off venture interest? What is the role of the Angels after VC investment? How will the Angels' investment be impacted moving forward? What leverage do Angels have? Speakers: • Moderator – Tom Etzel – Zions Bank’s Venture Debt Initiative o Jim Swartz - Accel Partners o Michael Lee – Dominion Ventures o David Rudd – Ballard Spahr o Larry Rigby – Larada Sciences 2:30 – 3:30 – PANEL 2 Building the Best Boards for Angel Deals. This examines the role of Angels as Board members. What are the pitfalls and what are necessities of a young company’s Board? Who should serve? How does a Board member add value? How do you pick a good Board? What is adequate representation? Speakers: • Moderator – Chris Anderson o Dick Shanaman – Eagle Bay Advisors o Ron White – Olympus Angels– o Jim Swartz – Accel Partners o William Borghetti – Sendside Networks 3:30 – 4:30 PANEL 3 From Due Diligence to Closing - Navigating the Process. This panel focuses on the process or lack thereof that an entrepreneur and an angel group goes through to close a deal. How to build a sense of urgency among angels? What steps must the entrepreneur take? The Group take? To close a deal. Examples and concerns are reviewed and shared.


Speakers: • Moderator: Benjamin Johnson – Utah Division of Securities o Hal Widlansky – Mangia/Olympus Angels o Larry Rigby – Larada Sciences o Andrew Gutman– Park City Angels o John Richards – Utah Angels o Steve Grizzell - Innoventures 4:30 – 5:00 – PANEL 4 Angel Group Update. Each group discusses their approach to Angel investing, their membership and portfolio, how their group operates, and what attributes a new angel should have to join. Each group will review their group’s activities according to a standard set of metrics. Speakers: • Moderator: Scott Young – Stoel Rives o Hal Widlansky – Olympus Angels o Stan Kanarowski– Park City Angels o Andrew Laver – Salt Lake Life Science Angels o John Richards – Utah Angels o Brad Bertoch – WBI Angels 5:00 – 5:30 SUMMARY KEYNOTE – Alan Hall, Grow Utah Ventures/Mercato Partners A Successful Entrepreneur's view of Angel Investing - Observations, Comments and Suggestions 5:00ish – 6:00 ANGEL SOCIAL


SPECIAL RECOGNITION AND THANKS TO: ORGANIZING COMMITTEE: • Scott Frazier – Utah Angels • Andrew Gutman – Park City Angels • Stan Kanarowski – Park City Angels • Dick Shanaman – WBI Angels • Ted Stanley - Salt Lake Life Science Angels • Scott Van Orden – Dixie Angels • Hal Widlansky – Olympus Angels • Ron White – Olympus Angels SPONSORS:


2009 Utah Angel Summit Keynote Speakers

George Feiger, CEO of Contango Capital Advisors based in Berkeley, CA, and an executive vice president of the firm’s parent company, Zions Bancorporation. Mr. Feiger has been a frequent commentator on the current financial climate, and has been featured in national media outlets including Fox Business News and in the Wall Street Journal. Prior to directing Contango, Mr. Feiger served in a number of senior positions in the financial services sector. He was a senior advisor to the Monitor Group, global head of Onshore Private Banking for UBS, Global Head of Investment Banking at SBC Warburg and was a senior partner at McKinsey & Co. During his time in Europe, Mr. Feiger led the merger integration of the corporate finance businesses of Swiss Bank Corp. and SG Warburg, and oversaw the consolidation of SBC Warburg's sales and trading businesses. Mr. Feiger was also a partner at Capco, a financial services consulting firm. He holds a PhD in Economics from Harvard University and was an associate professor of Finance at Stanford University's Graduate School of Business.

Alan E. Hall is the founder and chairman of MarketStar Corporation, a global out sourced marketing and sales company with a focus on assisting high technology companies increase sales through the small to medium business sectors. The company employees several thousand employees and generates billions of dollars in sales for its clientele. MarketStar is owned by Omnicom Group (OMC). Mr. Hall is also the founder and chairman of Grow Utah Ventures, a not for profit entity with a mission of stimulating economic development through entrepreneurship. Mr. Hall, an angel investor, has multiple investments in emerging Utah technology companies. Recently, Mr. Hall, with partner Greg Warnock, established Mercato Partners, a growth equity venture capital firm. Its focus is to invest in high growth technology companies that need additional funding and expertise for marketing and sales. Alan is the chairman of the Utah Technology Council, a trustee of Weber State University, a member of the advisory board of Wells Fargo Bank, and a trustee of the Intermountain Healthcare Foundation. He is an Ernst and Young and Mountain West Capital Network Entrepreneur of Year recipient.


PANEL William Borghetti, Sendside Networks. Leveraging his extensive communication, collaboration, and technology management experience, William led the initial market research and technical feasibility for Sendside Networks next-generation message and document delivery technology. Prior to founding Sendside Networks, William was the founder, president and chief technology officer of Campus Pipeline, Inc. (CP), an enterprise software company that developed innovative and highly-scaling software solutions for the higher education marketplace. He is an active investor and advisor to several early-stage ventures and frequent speaker on the topics such as strategic business planning, capitalization strategy and fund raising. William is an Entrepreneur-in-Residence with the Wayne Brown Institute and a member of WBI Angels. Steve Grizzell, InnoVentures Capital Management, is a 20-year veteran in entrepreneurship, finance, innovation and economic development. His experience began in the mid-1980s when he consulted for the World Bank and U.S. Agency for International Development. He is currently Managing Director of InnoVentures Capital Management, which manages two licensed Small Business Investment Company and a Community Development Corporation that provides venture debt to early stage companies. To date, Steve has been directly responsible for more than 100 transactions, the majority involving technology-based companies. He maintains regular communication with some of the more significant companies in which he has invested, and provides counsel on matters like fund raising; board formation; personnel recruitment. He is a member of Utah Angels and Olympus Angels.

Andrew l. Gutman, Polar Capital, has spent most of his career developing; managing and advising technology based entrepreneurial companies. He is currently a special partner with a private equity firm (Polar Capital), a management consultant working with several software companies, President of the Park City Lacrosse Organization and Chairman of the Park City Angel Network. Mr. Gutman became CEO of Speedware Corporation, an enterprise software company, in April 2001. Prior to his involvement with Speedware, he participated with Polar Capital as an investor and manager in a plan to take control of and turn around TSB International Inc. ("TSB"), a $30 million revenue, telecommunications software company.


PANEL

Stan Kanarowski, Park City Angels, is a serial entrepreneur with a passion for new start-ups. He is a co-founder of the Park City Angels and is a board member of Vistrails. Stan most recently served as the founding Managing Director for USTAR's outreach and innovation program where he led the strategy and implementation of entrepreneurial initiatives in Utah. Prior to USTAR, Stan worked for Costella-Kirsch, a leading provider of venture financing for early stage startups based in the Silicon Valley. He also co-founded and served as CEO of Ideal, an enterprise software/e-commerce firm, where he led the company in winning national acclaim in the internet space with half a million users.

Andrew Laver is a Co-founder and the Managing Director of Salt Lake Life Science Angels (www.SLLSA.com), an angel group focused on seed stage medical investments. Mr. Laver is also the Founder of APL Capital Advisors (www.APLcapital.com), a Salt Lake City-based boutique investment bank providing capital raising and merger & acquisition advisory services to earlystage and middle-market companies. Prior to founding APL Capital, Mr. Laver gained investment and transactional experience in the venture capital and private equity industries. He holds Series 7 & 63 securities licenses. Mr. Laver also has an operations and technical background having worked as an engineering project manager at Abbott Laboratories and as a research assistant at the University of Utah. Mike Lee, Dominion Venture Management, Co-Founder and Managing Director. Dominion Venture Management is a private equity firm specializing in early-stage companies. His investment focus has been in financial services, information/business services and cleantech. Previous investments include Advancedmd, Ciena, Efficient Networks, Human Genome Sciences, Online Resources , Morgan Stanley Direct (formerly Lombard Securities), Vertex Pharmaceuticals, and other successful growth companies. Mr. Lee was also Co-Founder of Kreos Capital ( formerly European Venture Partners) a London based private equity firm.

John E. Richards, Utah Angels, is an active angel investor, focusing primarily on Internet and software companies headquartered in the Wasatch Front area of Utah. He often mentors entrepreneurs on a regular basis, employing the combination of his experience and teaching skills to help new ventures achieve their goals. John was president of a publishing company in Seattle, Washington for several years and later had the experience of being part of a company that went from nothing to an initial public offering on the NASDAQ stock market.


PANEL

Larry Rigby, founder, CEO and Board Chairman at Larada Sciences, a medical device company based on University of Utah technology. He is also a Founder and Chairman of Exeven Therapeutics, Inc. Larry is a Founder and Vice Chairman of ZARS Pharma, Inc., a University of Utah spinout focusing on proprietary drug delivery technologies. He served as Chairman from its founding in November 1996, until he assumed the office of President and CEO in December 1998 which he held until January 1, 2006. He is co-founder of Kalypto Medical and Aplion Medical, private medical device companies. These are only the most recent medical companies that Larry has started. His first start-up, CardioPulmonics, was founded in 1985 around the world’s first intravenacaval oxygenator for the treatment of adult respiratory distress syndrome and the most advanced thrombo-resistant coating yet developed for blood contacting devices. CardioPulmonics went public in 1992 and subsequently merged with Innerdyne which later merged with Tyco. David R. Rudd, Ballard Spahr, is a partner in the Business and Finance Department, partner-in-charge of the International Group, and a member of the Life Sciences/Technology, Energy and Project Finance, Mergers and Acquisitions/Private Equity, P3/Infrastructure, and Securities Groups. Mr. Rudd practices exclusively in the area of complex domestic and international business transactions in a wide variety of legal fields and industrial sectors.

Richard Shanaman, Eagle Bay Advisors, graduated from Dartmouth College and Stanford University Graduate School of Credit and Financial Management. He held officer positions at Citibank, Bank of California and Prudential Financial Services and was CFO and Vice Chairman of American Stores Company. He was a founding partner of Utah Ventures, a Utah venture capital company and is presently a Limited Partner. He was a director of Lombard Investments in San Francisco, a billion dollar private equity fund. He is currently a director of TruVision, Wayne Brown Institute, Western Electronics, and Zevex International.


PANEL Jim Swartz, founder of Accel Partners, has been active in venture capital for four decades. Experienced in the operating needs of young companies, he particularly enjoys working with start-up teams that are defining new industries. He has served as a Director for over fifty successful companies and has been closely involved as lead investor with the emergence of numerous industry pioneering firms including Avici Systems, BroadBand Technologies, FastForward/Inktomi, FVC.com, Illustra/Informix, Medical Care America, Netopia/Motorola, PictureTel, Polycom, Remedy Corporation, Riverbed Technology and Ungermann-Bass. Current private company directorships include Gen3 Partners, Ingenuity Systems, MetraTech, RGB Networks and Transera Communications. In addition, Jim works with the Accel Europe team as a founder/mentor of Accel's European business. Ronald W. White, Olympus Angels, is a veteran of the telecommunications industry, having been a director ofNMS Communications (NASDAQ: NMSS) since 1988 and AirNet CommunicationsCorporation (NASDAQ: ANCC) since 2004. From 1983 until 2002, White was also a founderand general partner of the Advanced Technology Development Funds (ATDF), a venture capitalfirm investing in information technology companies. During his time at ATDF, White invested in six wireless companies that went public, including Nextel Communications, Inc. (NASDAQ:NXTL). From 1997 until 2002, he was a partner at Argo Global Capital, a venture capital fundfocused on wireless technology. He is a founding member of Olympus Angels.

Hal Widlansky, Olympus Angels, is a successful serial entrepreneur and an active member of the Utah investment community. He is currently the managing director of the Olympus Angel Investors and Executive Vice President at ACULIS, a Utah-based global IT services company. He is also a member of the Utah Centers of Excellence Advisory Council at the Governor’s Office of Economic Development and serves on the boards of several privately-held companies. Prior to his entrepreneurial career, Hal completed a Master of Arts program in telecommunications technology at Michigan State University and attended the university’s College of Osteopathic Medicine. He also holds a B.A. in telecommunications from MSU.


ANGEL GROUPS DIRECTORY

Dixie Angels The Southern Utah Dixie Angels are a newly formed group of accredited investors located in Southern Utah. The Dixie Angels are committed to furthering Southern Utah’s development by fostering economic development through experienced investment and consulting. The Southern Utah Dixie Angels facilitate unique, high-caliber networking and development forums for angel investors and mentors involved in early-stage investments. Our mission is to promote best practice to reduce risk in early-stage investments for the benefit of entrepreneurs, investors and the community. Contact: Jill Ellis contact@southernutahangels.com Grow Utah Ventures Grow Utah Ventures screens investments for a number of angel groups and public funds. As such, our preferred investments cover a wide range of industries and market sectors. In general we secure investments for early stage entrepreneurs- those that are in early sales or about to enter the market. Our investors prefer deals in the technology, services, manufacturing and sciences area. We place a heavy emphasis on sales and marketing and look for investments that clearly address a specific market need and have a sound understanding of how to get their product into the market. Contact: Craig Bott info@growutahventures.com Olympus Angels The Olympus Angel Investor network is an affiliation of individuals with an interest in fostering the growth of emerging business enterprises through the provision of capital and other resources. The group’s objective is to identify early stage Utah based endeavors that exhibit the potential to deliver a reasonable return and to become a sustained contributor to the regional business community. Contact: Hal Widlansky Peter Callister info.olympus.angels@gmail.com


ANGEL GROUPS DIRECTORY Salt Lake Life Science Angels SLLSA is primarily interested in seed-stage life science (including medical device & product, service, HCIT, pharma, and biotech) companies located in Utah and the Mountain West. SLLSA typically invests between $50,000 and $500,000 in companies with pre-money valuations below $2 million. Contact: Andrew Laver info@sllsa.com Park City Angels The Park City Angels are a group of accredited investors located in Park City, Utah, looking to invest in promising opportunities that can produce significant shareholder return. The Park City Angels facilitate unique, high-caliber networking and development forums for angel investors and mentors involved in early-stage investment. Our mission is to promote best practice in order to reduce risk in early-stage investments for the benefit of entrepreneurs, investors and the community. Our members have in common a strong desire, willingness, and capability to support ventures where they can work with management in the local region. We invest in areas where we believe our group can be a true value-added investor. Contact: DJ Glusker contact@parkcityangels.com Utah Angels We seek deals in the Wasatch Front of Utah, with a special focus on Utah and Salt Lake Counties. Davis and Wasatch Counties are acceptable as well. We are interested in all types of companies, with the natural venture propensity for high tech and life sciences. However, we will look at any business. We have a preference for a good mix of brand new start-ups and more emerging companies with revenue history. An ideal investment for us would be one that has a relatively low capital need, has good management in place, and has a high exit industry (high multiple - 3X sales or better). Contact: Kyle B Love Roger Andrus www.utahangels.com


ANGEL GROUPS DIRECTORY

WBI Angels WBI Angels welcomes any company to submit a business plan. WBI Angels offer entrepreneurs educational and training programs that transfer experience, knowledge, contacts and capital from the world's leading business and financial organizations to promising early-stage, technology-based companies. WBI hosts the Investors Choice速 conference that bring entrepreneurs together with angel, corporate and venture investors, as well as industry experts. 60% of WBI presenting companies have found funding within 12 months. WBI also hosts The Deal Forum for very early stage companies and offers them venture-based mentoring and introductions to various Utah based angel groups and early-stage venture funds. WBI Angels is made of active angels from around the country that will invest in Utah, as well as, a few non-traditional local angels. A number of these angels are Board members of the Wayne Brown Institute. Contact: Brad Bertoch info@venturecapital.org


NOTES:

Angel Summit Book 2009  

2009 Angel Book