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High-Tech Companies in Santa Barbara: 

High-Tech Companies in Santa Barbara Venture Capital and Other Funding Sources

Current Climate for Capital Raising: 

Current Climate for Capital Raising More money available Longer time horizons Blending of traditional and new-economy business models Focus on REVENUE MODEL

Venture Capital - National: 

Venture Capital - National

National Venture Capital Investment: 

National Venture Capital Investment $ Billions 1996 1997 1998 1999 2000 Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

National Venture Capital Investment: 

National Venture Capital Investment # Deals 1996 1997 1998 1999 2000 Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

Technology Vs. Other IndustriesNational: 

Technology Vs. Other Industries National # Companies Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

Venture Capital – Southern California: 

Venture Capital – Southern California

Southern California Venture Capital Investments: 

Southern California Venture Capital Investments $ Millions Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

Southern CaliforniaVenture Capital Investments: 

Southern California Venture Capital Investments Q4 ‘99 Q1 ‘00 Q2 ‘00 $ Billions Invested 1.42 1.09 1.32 # Deals 122 104 108 Average $/Deal (mil) 11.6 10.5 12.2 Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

Southern CaliforniaVenture Capital Investments: 

Southern California Venture Capital Investments *Includes Los Angeles, Orange, Riverside, Ventura, and Santa Barbara Counties $ Millions # Deals Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

What is Being Funded inSouthern California: 

What is Being Funded in Southern California Source: Pricewaterhouse Coopers LLP - MoneyTree™ Report

Santa Barbara: 

Santa Barbara

The Evolving Santa Barbara: 

The Evolving Santa Barbara Santa Barbara is becoming a young and entrepreneurial version of Silicon Valley. Capital sources and high level services are being attracted to Santa Barbara.

Santa Barbara High-Tech Business Climate: 

Santa Barbara High-Tech Business Climate Long tech history Over 300 high-tech companies right now Migration from Silicon Valley, LA/OC Entrepreneurs from current base of companies University - College of Engineering

Santa Barbara Investment Activity: 

Santa Barbara Investment Activity

Capital Sources: 

Capital Sources Angels Venture Capital VC Funds Investment Banks Corporate VC – HP, Cisco, Compaq, Safeguard Strategic Investors – longer time, less diligence, big $ Bridge Loans - Short term debt for venture backed firms Incubators – provide support services

Sample Local Capital Sources: 

Sample Local Capital Sources Angels Venture Investment Partners (VIP) Jim Newman Mike Pfau Tim Schwartz – UCSB College of Engineering Tech Coast Angels Acorn Angels – Beverly Hills

Sample Local Capital Sources: 

Sample Local Capital Sources Venture Capital Investment Group of Santa Barbara – IGSB Software.com ValueClick Contact: Paul Done or Brian Flynn 969-5868 Bertelsmann Ventures Ants.com – just closed 2nd fund - $1 billion seed Contact: Tom Geiselman or Matthias Schilling Dugan andamp; Associates Computer Motion Contact: Ramses Erdtman

Sample Local Capital Sources: 

Sample Local Capital Sources Incubators Santa Barbara Technology Incubator Contact: Christina Wallman 564-8005 www.sbtechnology.com Expertelligence

Sample Local Capital Sources: 

Sample Local Capital Sources Bridge Loans Agility Capital Contact: Jeff Carmody 568-0424 Sandhill Capital Private Placements Roth Capital Partners Contact: Jeff Divine, Bob London Other Sources SoCal Tech - Los Angeles Area Angels, Investment Banks, VC Firms San Francisco, Sandhill Road

What You Can Do: 

What You Can Do Network Accounting Firms Law Firms Investment Banks Events/Organizations Central Coast Venture Forum Contact: Joe Nida 568-1151 MIT Enterprise Forum LAVA – Los Angeles Venture Association

Summary: 

Summary Money is there A little more difficult to get than last year Areas that are currently in favor Internet infrastructure – pipeline, technology Telecommunications – wireless, broadband, etc. E-business – if solid business model or addressing 'brick-and-mortar' needs Media B2B and ASP – slowing Biotech – picking up

Good Luck: 

Good Luck Susan Block Block, Bowman andamp; Associates, LLC block@bbrgroup.com (805) 563-9123