m u r p h r e e v e n t u r e p a r t n e r s murphree venture partners early stage technology...

M U R P H R E E V E N T U R E P A R T N E R S

Murphree Venture PartnersMurphree Venture PartnersEarly Stage Technology InvestingEarly Stage Technology Investing

May 15, 2003May 15, 2003

Dennis E. Murphree

Thomas J. Stephenson

Elliott M. Bouillion

M U R P H R E E V E N T U R E P A R T N E R S

Murphree Venture PartnersMurphree Venture Partners• Significant investment history

– Founded in 1987 with over 50 investments to date

• Focused on early-stage investments in the Southwest– Growth technology from e-business to life science

• Organized to maximize ability to provide key services to portfolio companies– 4 distributed offices and 6 partners

• Proven track record with multiple success stories– 96.7% of portfolio has or will participate in IPO or M&A

M U R P H R E E V E N T U R E P A R T N E R S

MVP PartnersMVP PartnersDennis Murphree 25 years of direct investment experience

Tom Stephenson Austin Technology Incubator

Elliott Bouillion Landmark Graphics, Founder Phoenix Computer Graphics

John Dennis Koch, Simmons & Company, Goldman, Sachs & Co.

Geoff Tudor Founder Genius Technology and Advent Networks

Steve Wagh Brown-Wagh (Sound Blaster), IBM

16 years average experience

M U R P H R E E V E N T U R E P A R T N E R S

Murphree New Mexico InvestmentsMurphree New Mexico InvestmentsCompanyCompany LocationLocation Investment DateInvestment Date

MicroOptical Devices Albuquerque June, 1996

Adaptive Learning Tech. Santa Fe (*) November, 1997

Kinetisis Los Alamos February, 1999

Elisar Software Albuquerque November, 2000

Mesofuel Albuquerque November, 2002

(*) Relocated to Austin, Texas 8/98

M U R P H R E E V E N T U R E P A R T N E R S

What We Look for in a DealWhat We Look for in a Deal

• The fundamentals:– Strong Team

• Doesn’t have to be complete• P.I.H. (more on this later)

– Excellent Market Opportunity• $1B+ and growing (less for LS)• Fragmented industry

– A Proprietary Position• Technology• Competitive differentiation

M U R P H R E E V E N T U R E P A R T N E R S

What We Look for in an EntrepreneurWhat We Look for in an Entrepreneur

• Passion:Passion: Will you walk through walls to make the deal work?

• Insight:Insight: Can you identify a market need and see an INNOVATIVE way to provide a solution?

• Humility:Humility: Do you know what you know, and know what you don’t?

M U R P H R E E V E N T U R E P A R T N E R S

NM Industries of Interest TodayNM Industries of Interest Today

• Energy

• Software

• Optical and semiconductor devices

• Life Sciences (with a qualified lead)

• Now, more than ever, we are opportunistic in our investing.

M U R P H R E E V E N T U R E P A R T N E R S

Murphree NM InvolvementMurphree NM Involvement

• Coronado Ventures Forum• NM Info. Technology & SW Association• TVC Equity Capital Symposium Advisors• LANL IBD External Advisory Board• UNM Management of Technology Program

Advisory Board• NMSU Physical Sciences Lab Advisory Board• Leadership New Mexico• NM presence since 1996, full time since 1997NM presence since 1996, full time since 1997

M U R P H R E E V E N T U R E P A R T N E R S

Characteristics of all MVP NM DealsCharacteristics of all MVP NM Deals

• Extremely early (seed) stage

• Proprietary Technology

• Huge Market opportunity

• Strong Entrepreneurs

• Incomplete management team

M U R P H R E E V E N T U R E P A R T N E R S

Characteristics of all MVP NM DealsCharacteristics of all MVP NM Deals

• Extremely early (seed) stage

• Proprietary Technology

• Huge Market opportunity

• Strong Entrepreneurs

• Incomplete management team

Average Time from First Meeting Average Time from First Meeting to Full Funding: 11 Monthsto Full Funding: 11 Months

M U R P H R E E V E N T U R E P A R T N E R S

What’s Next for New MexicoWhat’s Next for New Mexico

• VC Dollars are on the rise– 92 Investors at TVC Symposium

• Serial Entrepreneurs are growing in number– Ned Godshall (SMD, Kinetisis, Mesofuel)– Waneta Tuttle (Indigo, PhDx, Exagen)– Paul Shirley (SVS, Qynergy)

• Big, locallocal success has still eluded us

M U R P H R E E V E N T U R E P A R T N E R S

Contact InformationContact Information

www.murphreeventures.com

Thomas J. Stephenson1 Technology Center

1155 University Blvd. SEAlbuquerque, NM 87106

TEL: (505) 843-4277FAX: (505) 843-4278

TStephenson@MurphreeVentures.com