Software Council of Southern California

Orange County Chapter

Money doesn’t grow on Trees in 2003
We’ll show you how to get it from a VC

February 13, 2003

That’s right, we said VC money is still flowing… But don’t get too excited, you can’t get $10 million for an idea on a napkin anymore, but we’ll tell you what it takes to get funding in 2003. Learn from some of California’s most active venture firms what they are looking for in the companies they fund. Hear the war stories of down-rounds and valuation, the good, the bad, AND the ugly. Also, listen as an entrepreneur like yourself talks about what it was like to get funded in this economy.

Presenters:
>> Jon Funk, Partner at Allegis Capital
>> Bruce Hallett, Partner, Miramar Venture Partners
>> Marc Kelly, CFO, of Alteer
>> Tom Clancy, Partner at Enterprise Partners Venture Capital

Moderated By: John Wong, Partner, KPMG LLP

Jon Funk, Partner at Allegis Capital
Jon Funk has been a principal in the venture capital industry in Southern California since 1981. Prior to co-founding Allegis Capital, he was a founding General Partner with InterVen Partners, a $51 million Southern California early-stage technology venture capital firm, and a principal with First Interstate Capital, the venture capital arm of First Interstate Bancorp.

Jon has directed start-up investments in a range of technology areas, including computer-aided engineering software, electronic assemblies and components, digital imaging systems, peripherals, digital cable programming and telecommunications.

He currently manages the Southern California office of Allegis Capital. Jon received an MBA with honors from the University of Southern California, and a B.S. in Engineering from the University of California at Berkeley.

Jon is on the Board of Directors of Biz-Rate, Viva.com and IdeaForest.com. He has been the Allegis Capital representative to Virage, Inc. (VRGE) and Sandpiper/Digital Island (ISLD).

Bruce Hallett, Partner, Miramar Venture Partners
Bruce is a co-founder of Miramar Venture Partners. Prior to founding Miramar, Bruce was one of the leading partners in the Business and Technology Group of Brobeck, Phleger & Harrison. Bruce joined Brobeck as a partner in early 1993 after spending nine years at Morrison & Foerster, where he was a partner in Morrison's emerging company practice. Bruce was appointed Managing Partner of Brobeck's Orange County Office in 1995 and served in that position until early 1999, when he was appointed to Brobeck's Policy Committee, the firm's highest governing body. Since early 1999, Bruce also served as one of three partners on Brobeck's Investment Committee, which was responsible for investing and managing Brobeck's captive venture funds. From 1998 to 2000, those funds made over 250 investments and produced substantial returns to Brobeck.

In his 19-year career as a counselor to emerging technology companies, venture capitalists and investment banks, Bruce orchestrated initial public offerings, venture financings and strategic transactions for many high profile technology companies in Southern California. Bruce has served on the boards of directors of companies whose investors included top tier venture funds and prominent corporate investors. Bruce has been recognized as one of Southern California's leading technology lawyers and was selected by members of the California State Bar as one of the 100 most influential attorneys in California.

Marc Kelly, CFO, of Alteer
Marc brings over 24 years of financial management and professional services experience to Alteer. Prior to Alteer, Marc was Managing Director of IAG Corp., a consulting firm for entrepreneurial companies seeking growth financing and corporate development planning. Marc’s extensive professional services background as a Registered Investment Advisor includes Spectrum Asset Management, a firm he co-founded, Argus Investment Management and Stein Roe & Farnham, Chicago, IL.

Tom Clancy, Partner at Enterprise Partners Venture Capital
Tom has been an innovator throughout his career with over twenty years devoted to introducing leading edge enterprise software products and services. He has held key management roles in new product development at a variety of Southern California companies including Magnavox Research Laboratories (satellite navigation), Citicorp-Transaction Technology Inc. (nationwide banking), BIM Systems (artificial intelligence & network management) and Expersoft Corporation (CORBA II), an Enterprise Partners II portfolio company. He also served as the Engagement Partner at Technical Resource Connection, Inc. where he was a key participant in the company's acquisition by Perot Systems.

Tom joined Enterprise Partners in 1996, initially participating in due diligence efforts and holding board observation rights for new portfolio companies. As a venture partner, Tom expanded his board responsibilities to include eight portfolio companies including Stamps.com (NASDAQ: STMP) and SupplySolution. With Enterprise Partners V, Tom became a managing member responsible for GroceryWorks and TradeBeam.