CII-TiE VC-PE Summit, October 2006 in Bangalore

Alabama Information Technology Association

An Alabama-India TechVenture

A joint project of

TechBirmingham and AITA,

pursuing a new trade model

between Alabama and India

A joint project ofTechBirmingham and AITA,pursuing a new trade modelbetween Alabama and India


Purpose of the TechVenture

Alabama-based angel investors will visit India

to seek operating, proven tech-based

businesses with an established market but

no penetration into the USA

Moderate investments will be made to

establish new Alabama HQ’s with

sales/marketing for these tech companies



The TechVenture Timeline

USA USANew Delhi HyderabadNew DelhiBangalore Agra

Saturday Sunday Monday Tuesday WednesdayFridayThursday



Partners in India

• NASSCOM

– Official country-wide host for the trip

• Confederation of Indian Industry

• TiE

– Coordinating entrepreneurs

– 200+ business plan pool in each city


Your Lifestyle, Your Mind, Your Future

About Birmingham



Birmingham

Washington DC

Huntsville

Where Are We?

New Delhi

Bangalore

Hyderabad

Mumbai



Birmingham’s Past



Birmingham’s Present + Future



Who is TechBirmingham?

• Not-for-profit

• Started in the fall of 2001

• Board of Directors is made up of

Technology Industry CEO’s, Venture

Capitalists, and Service Providers



Who is TechBirmingham?

• Mission Statement:– “Formed to lead, support, and coordinate the start-up,

attraction, growth, retention, and expansion of

technology-based businesses, investments, add jobs

for the Birmingham metropolitan region”

• Aligned with…

…among others



Entrepreneurism



#3 Hot City for Entrepreneurs



Our Startup Ecosystem

• Business Incubation / Startup Assistance

• Economic Development

• Technology User Groups

• Technology Centers / Research Institutions

• Venture Capital Funding Sources

• Workforce Development and Tech Education



Entrepreneur Accelerator Program



Innovation Depot ~ the downtown incubator

• Combining the Entrepreneurial Center

and UAB’s OADI @ old Sears Building

• $12M+ Project

• <12 blocks vs. ~9 miles from UAB



Innovation Depot ~ the downtown incubator



Other Projects



Community Engagement



TechMixer



The Tech Industry



“Large” Tech Companies ~ >100 emp.

10

100

1000

2006

2002

8060

40

20

200

400

600800

Command Alkon not shown



“Midsize” Tech Companies ~ >20 emp.

10

100

2006

2002

80

60

40

20

Command Alkon not shown



A Sampling of Tech Companies



India & Alabama



Why TechVenture? Why Now?

• A significant opportunity exists to invest in Indian technology startups and enhance their value by establishing USA headquarters in Alabama

• An untappedbusinessmodel with anopportunity forAlabama tolead the way

• Leverage India to improve cost structure

• USA as platform for growth

• Introduce new service offerings

• Capture Intellectual Property

Steps for value creation

Results we seek

• Seamless global service value chain

• More efficient, profitable, and valuable companies

• Bring value to Alabama for the global outsourcing trends

Characteristics of target investments

• Defensible market position

• High value, high switching costs

• Small and medium size enterprises with a stable revenue ($20M to $200M)



Cross Border Growth = Alabama

• Becoming Multinational

• Increased Market Opportunities

• Leveraging Indian Cost Advantage

• Valuation on Exit

• Cultural Fit

• Availability of Angel Funds in Alabama



Stay Informed About Birmingham’s Tech Economy by

signing up for our monthly e-newsletter at

www.TechBirmingham.comOther URLs to visit:

TechMixer.org / EcyclingDay.orgBhamWIFI.com / TechWalk.org

CII-TiE VC-PE Summit, October 2006 in Bangalore

Economy & Finance

Transcript of CII-TiE VC-PE Summit, October 2006 in Bangalore