jeff pruitt's azec presentation 10.24.12

AZEC 2012TALLWAVE: BUILDING & GROWING RAPID-GROWTH COMPANIES

JEFFREY PRUITT CEO & FOUNDER, TALLWAVE

OCTOBER 2012

AGENDA

• ABOUT TALLWAVE

• ARIZONA ENTREPRENEURIAL SUCCESS

STORIES

• THE STARTUP LIFECYCLE

• LEAN APPROACH TO BUILDING & GROWING

COMPANIES

• SMART FUNDING AND EXITS

• ENTREPRENEURIAL ECOSYSTEM CHALLENGE

• QUESTIONS?

TALLWAVEA lean business accelerator and venture management company

specializing in validating, commercializing and scaling emerging technology and digital media ventures

through lean business and design validation methodologies.

TALLWAVE SUCCESS: BUILDING RAPID GROWTH COMPANIES

34 Companies & Clients

$10M Raised by

Companies Engaged w/ Tallwave

3Years in

Operation

17Full-Time

Employees

Port

folio

Com

panie

sC

lients

91 Jobs

Generated

ARIZONA ENTREPRENEURIAL SUCCESS STORIES

Arizona & Greater Phoenix has innovation, talent and deal

flow equivalent to the rest of the nation, but it is largely

untapped. Sampling of Arizona Success Stories

THE STARTUP LIFECYCLE

Research IdeaValidate / Prototype

Funding (Seed)

Early Commerci

alGrowth Sustain Exit

Funding (Friend/ Family)

Entrepreneurs build, commercialize and scale their ventures following the startup lifecycle, eventually leading to successful exits.

Funding (A , B, & C Rounds)

M&A

THE STARTUP LIFECYCLE: BUILDING & GROWING

Research IdeaValidate / Prototype

Funding (Seed)

Early Commerci

al

Funding (A , B, & C Rounds)

Growth Sustain Exit

Funding (Friend/ Family)

Entrepreneurs build, commercialize and scale their ventures following the startup lifecycle, eventually leading to successful exits.

M&A

THE TALLWAVE WAY: LEAN BUSINESS + DESIGN VALIDATION

Capital Efficiency through Early Validation

THE STARTUP LIFECYCLE: FUNDING & EXITS

Research IdeaValidate / Prototype

Funding (Seed)

Early Commerci

al

Funding (A , B, & C Rounds)

Growth Sustain Exit

Funding (Friend/ Family)

Entrepreneurs build, commercialize and scale their ventures following the startup lifecycle, eventually leading to successful exits.

M&A

FUNDRAISING & EXIT MYTHS…DEBUNKED

• INVESTORS ANALYZE THE CURRENT AND FUTURE VALUE

OF A COMPANY

• IDEAL INVESTMENT RETURNS VARY BY COMPANY,

INDUSTRY, AND INVESTOR

• BUSINESS PLANS ARE NICE…PROOF OF CONCEPTS ARE

BETTER

• FIRST TIMERS CAN FUND AND SELL THEIR VENTURE, BUT

EXPERIENCE DOES HELP

• SELLING DOESN’T MEAN LESS CONTROL, IT MEANS MORE

OPPORTUNITY

• BUYER AND SELLER FLEXIBILITY IS KEY TO A SUCCESSFUL

M&A

ICROSSING STORY: GROWTH & EXITS

Initial Funding & Early Growth

Top Interactive

Agency Award& Investor Advocate

International Company Growth,

Expansion, & Recognition

Follow-on Investment

M&A by Hearst

1998 2003 2008 2010

BUILDING & GROWING ARIZONA’S ENTREPRENEURIAL ECOSYSTEM…TOGETHER

Research IdeaValidate / Prototype

Funding (Seed)

Early Commerci

al

Funding (A , B, & C Rounds)

Growth Sustain Exit

Funding (Friend/ Family)

M&A

Angel Groups

Venture Capital

Banks

Follow-on Capital

Incentives, Support & Technology Organizations

Incubators & Co-Working

Product Prototyping

Business Validation Accelerators

Human Capital

Let’s collaborate to identify YOUR needs, build rapid-growth companies, and create successful exits for our Arizona Entrepreneurial

Ecosystem!

THANK YOU

Jeffrey PruittFounder & CEO, Tallwave

Jeffrey.Pruitt@Tallwave.com