A critical component of the development finance toolbox, innovation finance provides access to capital for entrepreneurs, new technology ventures, and emerging small businesses. CDFA’s Innovation Finance WebCourse explores the growing seed, venture capital and angel investment industry and provides clear direction for designing and implementing capital formation models at the local, regional, and state levels. This course differs from other capital formation curriculums in that it focuses more concretely on designing a program that uses public-sector connections, resources and coordination to drive long-term and sustainable private-sector investment.
The nation’s top innovation finance leaders will discuss how to develop a capital formation program and establish a long-term private-sector driven, but public-sector supported initiative. In addition, the course will highlight successful programs that are working throughout the country in communities with varying levels of capacity, sophistication, and size. The Innovation Finance WebCourse will provide development finance agencies a roadmap for building an innovation finance initiative that supports entrepreneurship, business investment, job creation, and 21st century technology development.
The Innovation Finance WebCourse is presented via the web over two days and includes lecture and presentations from speakers throughout the country. During the WebCourse, attendees can raise their hands, ask questions, comment on presentations and take interactive polls during the sessions. CDFA's Course Advisor moderates the WebCourse to ensure speaker and participant interaction throughout.
Participants must have access to a computer and phone to attend the WebCourse. Participants receive instructions for logging into the WebCourse in a follow-up email after registering. Course materials are mailed to participants approximately one week before the course.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
By attending, you will:
- Learn about how Innovation Finance complements and enhances an economic development strategy
- Interact with leaders in the Innovation Finance industry
- Discuss best practice principles for sound Innovation Finance management
- Dissect the seed investing process from start to finish
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You will learn through:
- Real life case studies
- Interactive, small group exercises
- Presentations from industry experts
- A comprehensive reference guide
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Topics covered include:
- How Innovation Finance can enhance your economic development strategy
- How to design and establish an investment program
- How to manage, market, and promote a program
- The decision making process
- Pre- and post-investment closing
- Managing an investment portfolio
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Who should attend?
- Community & Economic Development Professionals
- Angel Investors
- Incubator and Accelerator Managers
- Government and Non-profit Finance Officers
- Attorneys
- Accountants
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Course Advisor:
Jim Troxel, Managing Director, Development Capital Networks, and Robert Heard, Managing Director, Cimarron Capital Partners, will serve as Course Advisors for the Innovation Finance Course.
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The following is the preliminary agenda for this course. This agenda will be updated and modified slightly to accommodate speakers and content. However, the main areas of content as outlined in this agenda will be covered. All times are in Eastern Daylight Time (EDT).
| 12:00 – 12:15 pm | Welcome & Overview |
Creating and implementing a sound strategy for supporting local entrepreneurs is a key to achieving your organization’s economic development goals. This session will focus on how to integrate a local angel investor network (AIN) into your overall economic development strategy.
| 12:15 – 1:15 pm | Building the Entrepreneurial Ecosystem |
Entrepreneurs create new businesses, and sometimes whole new industries, that drive the prosperity of communities. The nurturing of entrepreneurs happens in the communities that are rich in the knowledge of business venturing and investing and interaction among the many who help give birth to new companies. This session explores the components of this ecosystem and how a development organization can contribute to its growth.
| 1:15 – 2:20 pm | Tapping the Full Capital Continuum |
As a business progresses from raw technology to business idea to startup and beyond it requires different partners and forms of capital. The range and type of sources must be well understood by an entrepreneur in order to pursue the options that make the most sense at each stage of development. During this session, leading industry representatives will explore the continuum of capital resources from technology to bank debt, when to seek a resource and how to acquire it.
| 2:30 – 3:15 pm | Accessing Local, Private Seed Capital |
The primary source of seed capital in most communities is provided by individuals known as “angel investors.” These tend to be business builders who have achieved wealth through their own entrepreneurial endeavors and have reached the stage in life when they want to support young entrepreneurs. Tapping this local resource is the first and most important step in facilitating access to seed and venture capital for local companies. This session will share the impact of angel investing and how the practice is evolving across the U.S. A case study will be introduced.
| 3:15 – 3:50 pm | Analyzing a Deal - Conducting Due Diligence |
Young companies come in many forms and span many sectors and strategies. From a technology springing from the lab to a division spinning out of a larger company, every deal holds both opportunity and challenge. Identifying the questions and issues and conducting the investigation in an efficient manner are the core components of due diligence. Investors think differently than providers of debt capital such as bankers and other lenders. This session will introduce the key steps of this process. Armed with this new skill, participants will then apply it to the case study business venture provided for the course.
| 4:00 – 5:00 pm | Valuing a Company, Pricing the Deal |
How much is a company worth? What goes into determining this? If I invest, what should I pay for my stake in the company? Participants will acquire the knowledge of various formulas that can be applied to start-up companies that frequently lack sales or positive cash flow. Knowing how angels think about “exiting” their investments will underscore the importance of growth rate and profitability. These formulas will then be applied to the case study.
| 12:00 – 1:00 pm | Structuring the Deal – Legal Terms for a Venture Investment |
While the range of possible structures for an early stage venture capital investment is very broad, most deals tend to follow a fairly standard template. Common terms include the form of security for the investment, preemptive and registration rights, and board representation, to name just a few. Being familiar with these terms will help a development professional counsel the young companies in their region. Participants will apply these lessons in a mock “win-win” negotiation session.
| 1:00 – 1:50 pm | Creating Value – Managing an Investment for Best Results |
After an investment is made, the real work begins. This presentation explores what it takes to monitor, mentor, encourage, and support a young company, ending with an exit from the deal to achieve a return on investment. Participants will explore the critical “chemistry” that needs to be established between angel and entrepreneur to help entrepreneurs achieve success.
| 2:00 – 2:45 pm | Implementing Angel Groups and Angel Funds |
In communities large and small there are angel investors, and people who may aspire to become angel investors. Economic developers can help make the knowledge and capital of these investors more accessible to local entrepreneurs by organizing these investors into groups or funds. Already, over 300 such angel groups operate across the United States and Canada and there is evidence that those that focus their efforts on a region have helped spur business growth, job generation, tax base increase and overall wealth enhancement. Participants will learn the various models and success stories of angel groups and gain access to resources available to help launch such groups in their own region. This session shares the options, and an exercise in building an angel fund action plan.
| 2:45 – 3:20 pm | Tapping the Sources of State Sponsored Venture Capital |
Incentives, tax credits, and guarantees are powerful tools being used by states to support seed and venture capital programs. Both federal and state tools are available. This session will explore the variety of programs and how they can help produce good results.
| 3:30 – 4:30 pm | Case Studies |
Universities serve as the driver of entrepreneurial activity in many communities. Some have formed proof-of-concept and seed funds to accelerate the launch of start-ups that seek to commercialize university technologies. And many states are seeding the growth of a comprehensive venture capital industry by forming a Fund-of-Funds that can invest in seed funds, venture funds and angel funds. This session provides case studies.
| 4:30 – 5:00 pm | Selecting the Appropriate Models for Best Value and Mix |
Reflect on the lessons of the course and begin to identify the models that may be a good fit for your community. Closing remarks.
The course will take place on the web through GoToWebinar, an online distance learning software. The course will meet each day from May 8-9, 2012 from 12:00-5:00 pm (EDT). Participants must have access to a computer and phone to attend the WebCourse. Participants receive instructions for logging into the WebCourse in a follow-up email after registering. Course materials are mailed to participants approximately one week before the course.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Register before April 20, 2012 for Early-Bird Rates.
| Early-Bird Registration | Standard Registration |
| Member | $550.00 | $600.00 |
| Non-Member | $675.00 | $725.00 |
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