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The Valley of Death

Idaho is not at a loss for ideas nor in growing businesses.  With approximately $500 million in R&D annually, this money has allowed Idaho to maintain its number one position in patents per capita over the last 5 years.  The state leads in the number of net new businesses each year.

Where Idaho needs help is in the middle of the innovation pipeline – through the Valley of Death.  This transition from R&D to market is difficult.  It requires both public and private sector investment.  

Valley of Death

Stages of Capital

Stage

Company Status

Source(s) of Capital

Seed

Pre-Business Plan

3 Fs
Friends
Family 
Fools

Start-up

Plan, Most of Team, Pre-Product & Revenue

Angels
Federal R&D Funds
Seed/Early Stage Funds

Growth

Predictable Business Model, 
Full Team, Product, Customers

Angels, Strategic Partners (Vendor, Customers), 
Corporate/Public Investors, Venture Capital, Banks

Mezzanine

Predictable & Profitable

Strategic, Corporate/Public
 Cross-Overs, Banks

Public

Predictable & Profitable

Public Markets

 

Featured Publications

9 Secrets of Pre-IPO Investing

HOW TO: Find & evaluate emerging, early-stage investment opportunities; Position yourself to earn outsized returns; Mitigate your return through diversification and investment monitoring.

Download
The 3 F's

Why hitting up friends and family for investment is a good idea.

VC Predictions for 2008

The National Venture Capital Association asked its members to offer predictions for 2008.  Read the results here.