*(Oregon Duck) University of Oregon
*Cloverpark Hichschool
*Golf
*BS in finance *Puget Sound bank
(?) *Surety bond (Insurance/Bond)
*Free Range Media 94 with Fry
-Sold in 1999
--Employment agreement – Sacked, severance package
--Retired for 3 weeks at age 39.
*(Dot com boom – companies that don’t exist until put on
market)
*Dot com bust April 2000
*Angel investing, technology. (typically go for 1%-3%)
*Hiring the right people in the right places.
-(Right folks can become wrong folks if business rapidly
changes)
-Keeping a warm body in a spot even if suboptimal
*Partnership with friends
-Built a Honda dealership
--Good manager hired. Golden handcuffs needed.
---Honda store is franchisee of franchiser Honda. Couldn’t
give him equity cause Honda is reluctant.
---Manager wants an RV(Airstream) dealership. After
financial crisis 2008. Did well.
----Largest Airstream dealer, every 1 in 4 global
airstreams.
----Airstream recession resilient
----Ted oversees Honda & Airstream. Golden handcuffs.
-----But then they moved him out of Honda.
-----New manager. Good guy, once again need golden
handcuffs.
**Funding your business
*Business lifecycle phases
-Concept – Idea
-Start-up – organization structure. Nominal or no profit.
-Expansion – business established in market
-Mezzanine – prepare a company for initial public offering
(IPO)
-Exit – Prepare a company for sale transaction.
?Market share? – Owning a percentage of the market.
?What does mezzanine mean? – “Intermediate” Between not-IPO
and IPO.
-IPO means you get government regulation.
*Fund types
-Debt - borrow cash.
-Equity – sell ownership interest.
-Hybrid – Debt/preferred securities convertible into equity.
-Other – Business plan prize money. –Government grants.
–Veteran program –Crowd sourcing
(?)-Preferred securities – common stock vs preferred stock.
Common is flexible for when company liquidates. Preferred is specialized.
--Converted debt into stock that works like debt. Some
people think it looks better.
-In crowd sourcing, don’t over commit, make sure you can
deliver.
*Legal structure – some business structures restrict certain
funding.
-Sub-Chapter S Company – “Pass-through entity.” Cannot have
Limited Liability Companies (LLCs) be shareholders.
-“C” Corporation – well defined laws. Self-contained.
Drawback: double taxation of dividends.
-Limited Liability companies.
?Corporations are people – “C” corporation. Sued like a
person.
*Stages of investment
-Concept or idea – Founder’s money. Enough to have “skin in
the game.” (but not “all in”)
-Proof-of-Concept – Friends and family money. (Accredited
investor laws…)
Product Design – Angel money
Expansion – Venture Capital
-“Skin in the game” means stick around. Not “all in” means
less pressure.
-Not-accredited investor can stop a buyout, so you gotta buy
them out. Have a predetermined buyout plan so they don’t hold you ransom.
-Keep number of family investors low, phone calls.
-Angel group presentation cost: $250-$500
--Look for groups predisposed to your business or
demographic.
-As an angel, John Dimmer looks for people. Investing makes
a relation. Prefers people over idea. He’s trusting people to follow through.
--Likes investing in spaces he knows.
(questions)
*Accredit investor questionnaire.
-Non-accredited is a problem in stock for stock sales.
Doesn’t apply to cash buyout.
?Could you still retire? –Yes. –Don’t see that happening.
-Home office. Wakes whenever.
-Dad is the same.
*Tech. business – does not miss the 24/7 pressure.
(literally dreaming solutions)
*Strengths and weaknesses
-Cannot write HTML or code
+Operations. HR. Finance.
