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Tuesday, May 6, 2003

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RAISING MONEY - Alternative Sources
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The sources of traditional capital from Venture Capital, Corporate Venture Capital and Angels has represented a huge source of early stage and growth capital for technology rich and innovative small companies...but these sources of capital have come to a near halt for many early stage companies. Worsening this situation is the fact that in addition to their capital, these sources also provided key customer relationships, validation and credibility within the industry, a strategic partnership for marketing, sales and manufacturing, acquisition synergy and preference, and excellent positioning for later financings. What does the entrepreneur do today in light of this situation? Our speakers tonight from the capital community and as CEOs will talk about their companies, portfolios, investment perspectives, and experiences in alternative funding pathways for early stage companies.
Panel: Jack Langworthy,
Managing Director, TechCap Advisors
Daniel Behr
Principal, Seed Partners and Growth Point Fund
Moderator: Larry Grumer,
President & Managing Director, Technology Associates & Alliances
Panel:
Jack Langworthy, Managing Director, TechCap Advisors is a Boston-based boutique investment banking firm providing private and public software and communications companies with the experience, expertise, resources and focus necessary to initiate and complete mergers, acquisitions, private placements, fairness opinions and related financial advisory assignments. TechCap Advisors has extensive experience advising corporate clients and have built an impressive record of assisting technology companies in evaluating strategic alternatives and successfully marketing, structuring, negotiating and closing transactions. They have led and completed more than 40 transactions with an aggregate value exceeding $2 billion in the software and communications sectors.

Prior to founding TechCap, Jack was a Principal in the Boston office of Banc of America Securities LLC's ("BAS") technology investment banking practice where he was responsible for the development and execution of equity and M&A assignments for BAS's technology clients. Before joining BAS, Jack was at IBM where he executed transactions as part of IBM's corporate M&A team and, earlier, was with Fireworks Partners, IBM's internal venture capital group. Prior to IBM, Jack was Vice President and General Counsel and had extensive operational responsibilities with Integrated Resources Energy Group, a Denver, Colorado-based oil and gas company management firm. Before that, Jack was an attorney in private practice in Denver. Jack's education includes a S.M., MIT Sloan School of Management; J.D., University of Denver; and, B.A., University of Denver.
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Daniel Behr is the Principal of Seed Partners and Growth Point Fund. Seed Partners is a hands-on, seed-stage and early-stage private equity firm founded in 1998. They typically invest at a relatively early stage in a company's development and prefer to take on significant hands-on roles - in some cases as interim operating executives. Their investment focus is on advanced engineered products and systems that solve real problems.

The Growth Point Fund (managed by Growth Point Ventures, LLC) invests in companies delivering advanced engineered products and systems that solve real market needs. The Growth Point Fund makes private equity investments in early-stage, emerging companies that have reached a stage of development where additional capital can significantly accelerate growth and value creation. The Fund plans to deploy $100M in 20-30 companies, investing between $1M and $6M in each company.

Mr. Behr co-founded and successfully operated two industrial instrumentation companies focused on the semiconductor equipment industry. His most recent company, Compact Instruments, was one of the first portfolio companies for Seed Partners Fund I. Compact Instruments produces mass spectrometers and other vacuum based instrumentation. It was sold to MKS Instruments within a year of founding for a 17x gain. Mr. Behr co-founded his first company in 1987 after having spent 2 years as a strategy consultant at Bain & Company. He earned an MBA from the Harvard Business School and an engineering degree from Georgia Tech. Mr. Behr serves on the board of several portfolio companies.
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Moderator:
Larry Grumer is Chairman of the Boston Entrepreneurs' Network & Managing Director, Technology Associates & Alliances (TAA). TAA is a management advisory and investment company that commercializes technology for early-stage companies and corporate spin-outs preparing these businesses for accelerated growth, high valuations, funding and strategic corporate partnerships and business recovery. TAA establishes and implements companies' growth strategies through; emerging markets, government initiatives, corporate partnering, sales and licensing to bring the technology research and commercial product concepts to manufacturing, and market realities. Mr. Grumer has held profit & loss management positions at Textron (Avco), Arthur D. Little, John Brown Group, and Foster-Miller where he helped effect their business turn-around. He received a BS in Engineering and MBA with high distinction in International Marketing and Finance concentration from Northeastern University. He has held a Top Secret clearance.
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