2008 Summer Venture Camp – Session 3 Wraps Up the Series With Outstanding Topics and Speakers

A bustling networking session started off the morning event which featured 4 informative panels and 16 speakers

The Collaborative Summer Venture Camp concluded with Session 3 on August 7 at the University of Minnesota. The audience of entrepreneurs, students and investors were welcomed by Dick Sommerstad, Director of the Academic and Corporate Relations Center, University of Minnesota. The final Summer Camp Session featured 16 speakers and 4 topics critical to successfully grow a company, as well as a bustling networking break.

Panel 1 (L-R): Peter Ekberg (moderator), John Stavig, David Terry and Thies Kolln

The first panel, “Equity Structure, Termsheets, NDAs, Capitalization Tables, Employee Agreements and more,” featured Thies Kolln, Partner, AAVIN Venture Capital; John Stavig, Director, Gary S. Holmes Center for Entrepreneurship, Carlson School of Management, University of Minnesota; David Terry, Partner, M&A Transaction Services, Deloitte & Touche; and moderator Peter Ekberg, Partner, Faegre & Benson. The session addressed optimal capital structure, considerations with public and private financings, founders’ stock, initial seed financing, strategic alliances and equity incentive arrangements for management. Also discussed were terms sheets between entrepreneurs and investors, nondisclosure agreements (NDAs) and other confidentiality issues. Panelist stressed planning, keeping it simple and being flexible when approaching investors. “Investors will put their term sheet on the table and flexibility is required. There is always a lot of give and take. It could be weeks or months until terms are agreed upon,” said Kolln.

Panel 2 (L-R): Tim Bianchi, Shawn Lyndon, Barbara Nelsen and Dan Carr (moderator)

The second panel, “The Role of Intellectual Property Issues in Financing,” included Shawn Lyndon, CEO, Orasi Medical; Barbara Nelsen, Associate Director, Office for Technology Commercialization, University of Minnesota; Tim Bianchi, Shareholder, Schwegman Lundberg & Woessner; and moderator Dan Carr, CEO, The Collaborative. Speakers addressed how various forms of intellectual property, including patents, trademarks and copyrights, may increase the value of your company to investors. Panelists spoke on how rights in such property are acquired and how to use those rights to build a net asset value of a company. Discussions covered how various forms of intellectual property, including patents, trademarks and copyrights, increase the value of a company to investors. “How do you stay on top of your IP Portfolio?” asked Lyndon. “You need to define what steps to take as an entrepreneur and understand you cannot solely rely on your patent.”

Panel 3 (L-R): Mike Roesler, Kari Larsen, Maureen Driscoll and Dan Carr (moderator)

Following a brisk networking session, attendees returned to hear the third panel, “Trends in Talent, Compensation and Benefits.” Maureen Driscoll, Managing Director, Strategy and Human Capital, RSM McGladrey; Kari Larsen, Partner and CEBC, Stanton Group, Mike Roesler, Regional Vice President, Principal Financial Group, and moderator Dan Carr discussed the role of culture and other “perks” that play in attracting and retaining top employees and how an emerging company can offer competitive benefits. Speakers showed other avenues for employee retention and how to design a compensation program that fits in the budget, serves its purpose and supports and aligns itself with the company’s strategic direction. “Communication of benefits and of employees’ investments in the company is key,” stated Larsen. “Employees communicate differently, therefore using different vehicles to provide that message over and over is beneficial.”

Panel 4 (L-R): Doug Johnson, Dan Mallin, Bob Paulson and Jeff Saunders (moderator)

The final panel of the series, “Summer Camp Entrepreneur & Investor Panel,” featured Bob Paulson, CEO, Restore Medical; Dan Mallin, Managing Director, SDWA Ventures; Doug Johnson, Director, University of Minnesota Venture Center and moderator Jeff Saunders, Partner, Dorsey & Whitney. Panelists discussed their criteria on how they select investments and what an entrepreneur should know before they begin knocking on doors. How a company is presented to the investment community can be a key factor in its long range financing ability. Speakers detailed how to most effectively communicate the company’s “story” to the investment community before, during and after fundraising. “Adopt the culture of embracing milestones and hitting matrices,” said Paulson. “You’ll need to be able to track success and communicate what you have, what you are doing and customer issues.”