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Alternative Funding Sources & Debt Financing Philip G. Korn - Senior Vice President Emerging Technologies Silicon Valley Bank March 3, 2001
A Bit About SVB - Who We Are ,[object Object],[object Object],[object Object],[object Object],[object Object]
Chicago, IL Phoenix, AZ San Diego, CA Northern Virginia, VA Boston, MA Atlanta, GA Austin, TX Boulder, CO Seattle, WA Portland, OR Napa Valley, CA Sand Hill, CA Palo Alto, CA Santa Clara, CA Los Angeles, CA Irvine, CA SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB Santa Barbara, CA SVB SVB Sonoma, CA SVB Minneapolis, MN Philadelphia, PA SVB Dallas, TX SVB 25 offices nationwide with clients in all 50 states Silicon Valley Bank is the the source of financial services for early-stage companies throughout the United Statesโ€ฆ
2000 IPO Clients   @Road, Inc. Aclara Biosciences Inc. Advanced Power Technology, Inc. AeroGen, Inc. Alliance Fiber Optic Products, Inc. Applied Molecular Evolution, Inc. Apropos Technology, Inc. Argonaut Technologies Array Biopharma, Inc. AvantGo, Inc. Avenue A, Inc. Centra Software, Inc. Ciphergen Biosystems, Inc. ClickSoftware, Inc. Corillian Corp. CoSine Communications, Inc. CrossWorlds Software, Inc. Cypress Communications, Inc. Deltagen, Inc. DigitalThink Inc. DURECT Corporation Dyax Corp. Eprise Corporation Esperion Therapeutics, Inc. Evergreen Solar, Inc. Evoke Communications, Inc. Exelixis Inc. Genomica Corporation Handspring, Inc. HealthGate Data Corp. iBEAM Broadcasting Corp. I-many, Inc. inSilicon Corporation InterMune Pharmaceuticals Inc. IntraBiotics Pharmaceuticals, Inc. Lightspan Partnership, Inc. Mainspring Communications, Inc. MatrixOne, Inc. McData Corporation Moldflow Corporation Neoforma.com, Inc. Network Engines, Inc. Nogatech, Inc. Nuance Communications, Inc. Numerical Technologies, Inc. OmniSky Corporation Opus360 Corporation OraPharma, Inc. Oratec Interventions, Inc. Organic Inc. Pixelworks, Inc. Quantum Effect Devices, Inc. Rosetta Inpharmatics, Inc. Selectica, Inc. Sequoia Software Corporation Sonic Innovations Inc. Sonus Networks, Inc. Speechworks International, Inc. Support.com, Inc. T/R Systems, Inc. Talarian Corporation Triton Network Systems, Inc. Vicinity Corporation ViryaNet Ltd. webMethods, Inc. Websense Inc. Witness Systems The companies highlighted above represent some, but not all, of Silicon Valley Bankโ€™s current clients which completed initial public offerings during 2000.
Q3 2000 IPO Clients
Silicon Valley Bank Northern California banking niches include the following:   TECHNOLOGY & LIFE SCIENCES - ANGEL / INCUBATOR / BOOTSTRAPPED Emerging Technologies : TECHNOLOGY & LIFE SCIENCES - VENTURE BACKED Online Services Communication & Electronics Software Life Sciences 8
Other Bank Products & Groups ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recent Bank Developments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SVB Emerging Tech Client Focus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SVB Emerging Tech Client Focus (contโ€™d) ,[object Object],[object Object],[object Object]
Typical Needs Early On ,[object Object],[object Object],[object Object],[object Object]
Debt Financing   12
Bank Debt Is Defined As:   12 From
Debt financing has one key difference from equity: IT  MUST  BE PAID BACK!  12
Debt Financing   ,[object Object],[object Object],[object Object],[object Object],[object Object],12
Early Stage Debt Financing Typical Hurdles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Early Stage Debt Financing Typical Strengths ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Debt Financing Vehicles: ( Who, What & When) Stage of Development / Financial Profile R&D Product Launch Market Penetration Maturity Cash Flow Negative   Cash Flow Positive Available Debt Financing Venture Leasing Niche Banking Factoring Asset Based Traditional Banking 13
Debt Financing:  (Why)   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],12
Underwriting Criteria:  (How)   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],14
Sources of Repayment:  (We need 2)   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],14
Financial Covenants  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],14
What we expect from our borrowers ,[object Object],[object Object],[object Object],[object Object],[object Object],15
Summary ,[object Object],[object Object],[object Object],[object Object],16
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Debt fin philip

  • 1. Alternative Funding Sources & Debt Financing Philip G. Korn - Senior Vice President Emerging Technologies Silicon Valley Bank March 3, 2001
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  • 3. Chicago, IL Phoenix, AZ San Diego, CA Northern Virginia, VA Boston, MA Atlanta, GA Austin, TX Boulder, CO Seattle, WA Portland, OR Napa Valley, CA Sand Hill, CA Palo Alto, CA Santa Clara, CA Los Angeles, CA Irvine, CA SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB SVB Santa Barbara, CA SVB SVB Sonoma, CA SVB Minneapolis, MN Philadelphia, PA SVB Dallas, TX SVB 25 offices nationwide with clients in all 50 states Silicon Valley Bank is the the source of financial services for early-stage companies throughout the United Statesโ€ฆ
  • 4. 2000 IPO Clients @Road, Inc. Aclara Biosciences Inc. Advanced Power Technology, Inc. AeroGen, Inc. Alliance Fiber Optic Products, Inc. Applied Molecular Evolution, Inc. Apropos Technology, Inc. Argonaut Technologies Array Biopharma, Inc. AvantGo, Inc. Avenue A, Inc. Centra Software, Inc. Ciphergen Biosystems, Inc. ClickSoftware, Inc. Corillian Corp. CoSine Communications, Inc. CrossWorlds Software, Inc. Cypress Communications, Inc. Deltagen, Inc. DigitalThink Inc. DURECT Corporation Dyax Corp. Eprise Corporation Esperion Therapeutics, Inc. Evergreen Solar, Inc. Evoke Communications, Inc. Exelixis Inc. Genomica Corporation Handspring, Inc. HealthGate Data Corp. iBEAM Broadcasting Corp. I-many, Inc. inSilicon Corporation InterMune Pharmaceuticals Inc. IntraBiotics Pharmaceuticals, Inc. Lightspan Partnership, Inc. Mainspring Communications, Inc. MatrixOne, Inc. McData Corporation Moldflow Corporation Neoforma.com, Inc. Network Engines, Inc. Nogatech, Inc. Nuance Communications, Inc. Numerical Technologies, Inc. OmniSky Corporation Opus360 Corporation OraPharma, Inc. Oratec Interventions, Inc. Organic Inc. Pixelworks, Inc. Quantum Effect Devices, Inc. Rosetta Inpharmatics, Inc. Selectica, Inc. Sequoia Software Corporation Sonic Innovations Inc. Sonus Networks, Inc. Speechworks International, Inc. Support.com, Inc. T/R Systems, Inc. Talarian Corporation Triton Network Systems, Inc. Vicinity Corporation ViryaNet Ltd. webMethods, Inc. Websense Inc. Witness Systems The companies highlighted above represent some, but not all, of Silicon Valley Bankโ€™s current clients which completed initial public offerings during 2000.
  • 5. Q3 2000 IPO Clients
  • 6. Silicon Valley Bank Northern California banking niches include the following: TECHNOLOGY & LIFE SCIENCES - ANGEL / INCUBATOR / BOOTSTRAPPED Emerging Technologies : TECHNOLOGY & LIFE SCIENCES - VENTURE BACKED Online Services Communication & Electronics Software Life Sciences 8
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  • 13. Bank Debt Is Defined As: 12 From
  • 14. Debt financing has one key difference from equity: IT MUST BE PAID BACK! 12
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  • 18. Debt Financing Vehicles: ( Who, What & When) Stage of Development / Financial Profile R&D Product Launch Market Penetration Maturity Cash Flow Negative Cash Flow Positive Available Debt Financing Venture Leasing Niche Banking Factoring Asset Based Traditional Banking 13
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  • 25. Q & A

Editor's Notes

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