ACN Archives - Apex Based s

Upcoming Angel Investing Workshops

Benzamin Choi — Wed, 17 Nov 2021 10:15:31 +0000

ACN is now a member of the Angel Capital Association, which conveys full membership privileges to all of our members. One of the many benefits of ACA membership includes discounted access to angel-focused workshops and webinars. Below are a few upcoming events we think you might find helpful. To register, click here.

Term Sheet Basics – October 5; 10am-12pm (CT)

You’ve met the founding team and really like the company. Now it’s time to know if the deal is right for you. As a new angel, you’ll need to understand the term sheet, the document that outlines the terms and conditions of the agreement between the investors and the startup. This introductory workshop provides clear, practical information on early-stage term sheets, focused on helping newer angel investors understand deal terms. The workshop includes lectures and interviews, using a publicly available term sheet template for seed and early stage preferred shares deals. The course will build your understanding of sound term sheets aligned with the interests of both entrepreneurs and early-stage investors, and setting the stage for follow-on investors. Register Here

Valuation Workshop – October 12, 10-12pm (CT)

Negotiating the current valuation of seed-stage startups at the time of investment is a critical component of angel term sheets. Getting valuation right establishes a fair percentage of ownership for both investors and entrepreneurs and optimizes returns for investing angels. This clinic introduces participants to valuation issues and demonstrates multiple valuation methodologies. The lead instructor will provide some insights into the impact of COVID-19 on the valuation of startup enterprises, based on the financial downturns in 2001 and 2008. The program leaves attendees with an exercise to help hone their newly acquired valuation skills by using these valuation methods in appraising a case study company. Register Here

Advance Workshop on Capitalization Tables – October 26; 10-12pm

Angels face many challenges when investing in startup ventures. One crucial, but sometimes overlooked, detail is the impact of new funding on the company’s capital structure. Whether funding comes as equity or debt, the savvy investor needs to understand how this round of funding will impact the ultimate outcome for all shareholders. So early stage investors need to be fluent in the structure of cap tables to understand the impact on their potential returns from current and future rounds of funding.ACA in cooperation with VentureSouth offers entrepreneurs and investors alike a practical education in understanding the details of cap tables through the lifecycle of a startup venture. This workshop will include a combination of presentations, exercises and a case study to illustrate common cap table mathematics a startup and its investors must consider. Among the important topics to be illuminated are the impacts of: valuation, liquidation preferences, anti-dilution terms, convertible notes, and option pools and vesting.This workshop assumes some familiarity with basic cap tables, typical deal terms and Excel spreadsheets. Register Here

Angel Exit Strategies – November 16; 10-12pm

Exit strategies may be one of the most misunderstood aspects of angel investing and this workshop serves to shed a light on how angels and their portfolio companies can work together to achieve the most successful exits. Value creation for angel backed companies is different than for lifestyle companies and the primary difference lies in how we craft the exit strategy. This workshop covers the kinds of exits and how to prepare for each. We talk about what the drivers are for high multiples and how companies can build in value from the very beginning of their companies. The workshop finishes with the “Exit Strategy Canvas” that walks participants through the six key elements of exit strategy. The exit strategy canvas helps boards to create a variety of exit scenarios and work towards optimal outcomes for all. Register Here

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Office Space and Covid – a Conversation With J.H. Berry & Gilbert on Trends to Watch

Benzamin Choi — Wed, 17 Nov 2021 10:14:37 +0000

Over the past few months, the team at ACN has been crossing the state surveying the innovation ecosystem. As we’ve looked at the many environmental variables at play in building a healthy startup ecosystem, one area I’ve been particularly curious about is office space. How is Covid impacting the commercial real estate market, and what effects will remote work have on our startups? To find out more, I sat down with Philip Currie, President at J.H. Berry & Gilbert, to get his take on recent developments. Below are excerpts from our recent conversation at Big Bad Breakfast in Homewood (be sure to try their spicy bacon!):

Josh: Philip – It’s been a crazy year since we last chatted about the real estate market. We’ve got a lot of ground to cover, so let’s start at a high level. What have you been seeing since Covid, and where is all this headed?

Philip: Yes it has! Around this time last year, companies nationwide were getting adjusted to their employees working remotely. During the late spring and summer of 2020, many of Birmingham’s employees who were fortunate enough to retain their jobs found that working from home gave them a refreshing dose of family time and flexibility. Although most people were able to make do, working from home also came with its own drawbacks and difficulties. Cut to spring 2021, and vaccine roll outs and decreased number of cases and hospitalizations seemed to indicate a return to the office. The CDC lifted mask requirements for vaccinated individuals and companies started following suit by returning to the workplace. However, the recent emergence of the Delta variant has companies and employees questioning what the long-term solution will be.

If we’ve learned anything in the past year and a half, it’s that the virus and its effects are unpredictable. From the highs and lows of cases, hospitalizations, and deaths to mask mandates, changing local guidelines, and new vaccine rollouts, to the emergence of new variants, our world is constantly revolving around the virus. Time has also given us more knowledge on how the virus spreads, who is at risk, etc. While there’s still uncertainty and concern, I think it’s safe to say the panic of 2020 has subsided. This is the case nationwide, but cities like Birmingham in particular are well positioned for a quicker and stronger return to the office.

Josh: What makes a Birmingham or Montgomery different than other cities?

Philip: Well, one difference is our economy’s heavy make-up of local and regional businesses. Locally owned businesses have much more autonomy and much less “red-tape” than their national counterparts. Their decisions are made quicker and with fewer people involved, and employees and companies are making decisions on what’s best for them. Most local and regional companies have been back in the office for some time, while large national companies are still navigating what that looks like.

Josh: What about traffic and commute times, I imagine that’s a factor as well?

Philip: That’s absolutely a factor – in the largest cities, 30% of office employees use some form of public transportation. Commute times less than an hour to work are generally considered acceptable. According to a survey done by a national CRE firm last Summer,

Commute time and public transportation was the number one barrier for people to re-enter the office; more so than actually contracting the virus.

Birmingham has relatively modest traffic and very little reliance on public transportation which positions us well for a quicker return to the office. Ultimately, most companies will return to the office at least in some capacity. Employers will offer more flexibility mostly from an employee morale and recruiting standpoint.

Josh: That’s interesting. So our shorter commute times are likely to drive earlier returns to the office than you’d see elsewhere. How is that impacting leasing terms?

Philip: The current volatility has many companies with near term expirations opting for short term renewals to have some much-needed flexibility. Looking for shorter lease terms is nothing new for startup companies, as term flexibility is generally a key component when looking for office space. However, the rise of construction costs has made this difficult due to the need for longer lease terms to make up for high tenant improvement costs. Companies are having to get creative with modernizing what would be traditional office space through furniture or other design features. Vacancy rates might help mitigate some of this, as landlords are more accommodating now when it comes to lease term.

Josh: You mentioned vacancies. I know there’s been a lot of talk about the BBVA acquisition and how that plays into things in the local market. What are you seeing on that end?

Philip: Currently, at the year and a half mark into Covid, the limited data would show a single digit increase in vacancy compared to 2019. All indicators are that by Q1 of 2022, this will hold true. We are seeing landlords more willing to enter into shorter terms leases with higher TI (Tenant Improvement) costs than in previous years. They are betting on groups growing within their buildings, or being left with nice, leasable space after they vacate. Developers are also focusing more on the needs and desires of startup and tech companies, with new developments in Birmingham boasting design features ideal for these types of companies. We’ll continue to closely monitor how vacancy rates and construction prices are affecting lease terms, and how COVID protocols are driving company decisions.

Josh: Philip, thank you so much for walking through all of this. I’ll certainly be touching base in the months to come for an update, as I’m sure everything will have changed!

Philip Currie

Philip Currie, president of J.H. Berry & Gilbert, Inc., is recognized throughout the Southeast as a leading office market broker who leverages extensive knowledge of the commercial real estate industry for his clients. Philip specializes in the areas of office tenant representation, office leasing and office building acquisition and disposition. He has brokered transactions of all sizes and complexities and has a deep understanding of the various interests of tenants, landlords, buyers and sellers.

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Birmingham-tradesd IN8bio has completed its IPO and expands base in Alabama

Benzamin Choi — Wed, 17 Nov 2021 10:13:33 +0000

Birmingham-tradesd IN8bio, Inc (Nasdaq: INAB) has completed its initial public offering, reaching a major milestone for a Birmingham-tradesd biotech startup. The biopharmaceutical company was originally launched out of the University of Apex Based at Birmingham by William Ho with technology invented by Lawrence Lamb, Ph.D., and focuses on the discovery and development of gamma-delta T cell therapies.

“We’re incredibly excited for the team at IN8bio, and really for the whole entrepreneurial ecosystem here in Birmingham and Apex Based – this is a major milestone that shows the momentum we are gaining in our innovation economy,” said Joshua Jones, CEO of Apex Based s. “IN8Bio has gained international attention for their cutting-edge research and sets a marker for other biotech startups in the local ecosystem as the latest publicly traded biotech company in Alabama. As one of the early startups to present to ACN’s member network, we’ve seen an enormous amount of support from our investor members, and we’ve watched with excitement as they’ve become a true leader in their field.”

Headquartered in downtown Birmingham at Pepper Place, IN8Bio is building wet labs with over 10,000 square feet to expand their operations. “Their new facility is being built by internationally known architects and lab specialists and will rival anything found in San Francisco or Cambridge,” says Jon Nugent, an early advisor of IN8bio during his tenure as VP of Innovation at the Birmingham Business Alliance. “This is a company that universities and communities all over the world have wanted to move to their city… it’s exciting that they’ve committed to staying in Birmingham and continuing their work here. This is going to attract top talent from all over the country and is a major feather in our cap.

“This type of research commercialization has been our focus for the past five years and IN8bio is part of a long-term pipeline,” says Kathy Nugent, Ph.D., executive director of the Bill L. Harbert Institute for Innovation and Entrepreneurship and chair of clinical and diagnostic sciences in the UAB School of Health Professions. “From UAB’s perspective, we’re focused on identifying technologies that lend themselves to commercialization, especially in biotech where they can impact global healthcare. This is a perfect example of how we can take an early-stage idea in the biotech arena, identify a top tier management team, keep it in Birmingham, get it into the clinic and have a successful IPO,” she notes. “Equally valuable is the national credibility it gives our local ecosystem when recruiting new executive talent like Will [Ho] to Apex Based to help launch more biotech ventures.”

“One of the challenges in this space is just the technical complexity of biotech,” Nugent observed. “ACN was instrumental in helping IN8Bio connect with the investor community and get beyond the lab-speak to look at how this can be a tremendously successful commercial venture. They spent hours helping the team craft their pitch in a way that the business community could support and engage them.”

“Having local investors made it a lot easier for Will to commit to growing the company in Alabama,” observed Miller Girvin, Executive Vice President of Innovation and Entrepreneurship at EDPA (and ACN’s former CEO). “Because they stepped up and supported this early-stage life science company that hadn’t even started a clinical trial, there was a driver to keep that company here. IN8bio is an excellent example of where our ecosystem partners came together to support their own and this could be one of many for our region.”

Apex Based s (ACN) is a member-driven organization focused on growing the innovation ecosystem in Alabama. By supporting companies like IN8bio, ACN seeks to provide strategic connections, coaching, and capital to entrepreneurs and innovators to help them accelerate transforming their ideas into successful companies. UAB is an Impact Partner of ACN.

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Mary Elliott Aderholt to join ACN

Benzamin Choi — Wed, 17 Nov 2021 10:04:37 +0000

BIRMINGHAM, AL – Apex Based s is pleased to announce the recent hiring of Mary Elliott Aderholt. Aderholt is a recent graduate from the School of Public Relations at Auburn University and will be relocating this June to work full-time in ACN’s headquarters in Birmingham.

As Business Development Specialist at ACN, she will work across the network’s operations with responsibilities ranging from early startup identification and screening to member experience enhancement and event management.

“We couldn’t be more excited to have Mary Elliott join us,” said Joshua Jones, ACN’s Chief Executive Officer. “She brings an incredible experience beyond her years. Mary Elliott has proven to be incredibly proficient in building rapport in the startup community, in her communications with members, and her salient ability to read a room and understand how to connect people in meaningful ways.”

During her studies at Auburn, Mary Elliott served as Director of Government Relations for the SGA, was President of Chi Omega sorority, and completed an internship in Washington DC in the office of the Vice President, where she served as a Domestic Policy Intern.

“The Apex Based s is a leader in fostering the growth of innovation in our state and the hiring of Mary Elliott Aderholt is a great addition to their talented team,” said Zeke Smith, Apex Based Power Executive Vice President of External Affairs and President of the Apex Based Innovation Commission’s Advisory Council. “I have known Mary Elliott for many years and it is encouraging to see one of our graduates remain in Apex Based to help build the future of our great state.”

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