WEBVTT

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>> IT'S TIME TO GO INSIDE
INNOVATION BROUGHT TO YOU BY
ALLEGION. PIONEERING SAFETY.
VENTURE CAPITAL INVESTMENT IN

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INDIANA TECH COMPANIES INCREASED
BY TRIPLE DIGITS IN 2019...A
RECORD YEAR FOR INDIANA.
TECHPOINT, THE STATE'S

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TECHNOLOGY INITIATIVE, SAYS
FIRST QUARTER OF 2020 WAS A
MODEST...BUT PROMISING START.
THEN CAME THE COVID-19.

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I'M PLEASED TO WELCOME BACK TO
THE SHOW TECHPOINT CEO MIKE
LANGELLIER, WHO HAS A LOOK AT
THE NUMBERS AND HOW THE PANDEMIC

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COULD IMPACT THE INVESTMENT
LANDSCAPE IN INDIANA.
IT'S GOOD TO SEE YOU!
>> THANKS, GERRY, GOOD TO SEE

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YOU, TOO.
>> LET'S TOUCH BRIEFLY, BECAUSE
THESE NUMBERS IN THE FIRST
QUARTER DON'T REFLECT A

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PANDEMIC, BUT COMING OUT OF
2019, AND INTO THIS YEAR, 2019
WAS A REALLY GOOD YEAR, MOMENTUM
COMING IN. WHAT DID WE SEE IN

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THE FIRST QUARTER THIS YEAR?
>> YEAH. AS YOU SAID, 2019 WAS A
VERY STRONG YEAR, 2020 WE CAME
OUT INTO 2020 IN Q ONE WITH A

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MODEST START, A RESPECTABLE
START, NOT AS STRONG AS LAST
YEAR. BUT, AS YOU SAID, THINGS
CHANGE REALLY RAPIDLY. THERE AT

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THE END OF Q1.
>> LET'S TALK ABOUT THAT TO THE
EXTENT THAT YOU CAN KIND OF
CHARACTERIZE THE IMPACT. FIRST

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OF ALL, ON THE VC COMMUNITIES,
WHAT ARE THE THUNDERS, AND THE
FOLKS WITH THE MONEY, WHAT'S
BEEN THEIR INITIAL RESPONSE OR

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REACTION, HOW ARE THEY IMPACTED
BY THE PANDEMIC?
>> YEAH. I THINK THAT SO MANY OF
US HAVE FOR THE MOST PART,

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INVESTORS WENT INTO ASSESS AND
TRY TO FIGURE OUT WHAT IS GOING
ON AND WHAT THE TRUE IMPACT IS.
YOU THINK ABOUT THESE VENTURE

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CAPITAL FIRMS THEY'VE RANGED
PORTFOLIOS TO INVEST FROM OTHER
INVESTORS, SO THEY HAVE A FUND
TO INVEST, AND THEY'RE MAKING

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DECISIONS ABOUT WHERE TO INVEST
THOSE DOLLARS. I THINK ONE OF
THEIR FIRST REACTIONS WAS MANY
OF THEM PULLED BACK ON

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PROSPECTING ACTIVITIES AND NEW
INVESTMENT ACTIVITIES TO REALLY
FOCUS ON THEIR CURRENT PORTFOLIO
OF INVESTMENTS AND UNDERSTAND

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WHAT SITUATION ARE THEY IN, HOW
EXPOSED ARE THE INDUSTRIES THAT
THEY'RE SELLING INTO?
AND AS A RESULT -- AND FOR MANY

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OF THEM, THEY'RE TRYING TO
DETERMINE HOW MUCH POTENTIALLY
MORE INVESTMENT COULD THEIR
CURRENT PORTFOLIO NEED, WHAT

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VENTURE CAPITAL FIRMS DO, WHEN
THEY MAKE AN INVESTMENT INTO A
COMPANY, THEY RESERVE MONEY BACK
IN THAT FUND THAT THEY CAN

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INVEST IN SUBSEQUENT ROUNDS OF
INVESTMENT. AND SO AS ECONOMIC
IMPACTS LIKE THIS HAPPEN, THEY
OFTENTIMES WILL HAVE TO MAKE A

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DECISION TO ALLOCATE MORE MONEY
FOR FURTHER INVESTMENT KNOWING
THEY HAVE CURRENT COMPANIES IN
THEIR PORTFOLIO THAT MIGHT NEED

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ADDITIONAL INVESTMENT TO WEATHER
THIS KIND OF A STORM. I THINK WE
SAW JUST OVER THE COURSE OF THE
PAST MONTH OR SO, WE SAW A

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COUPLE DIFFERENT
INVESTMENTS -- RAISE
$15 MILLION, LARGEST OF THOSE,
BUT I THINK WE HAVE TO TAKE INTO

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ACCOUNT THE FACT THAT THOSE
INVESTMENTS WERE ALREADY IN THE
PIPELINE. THEY WERE ALREADY IN
THE WORKS. SO REALLY A

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CONSUMMATION OF THE DEAL. WE
WILL NOT FEEL COVID-19 FOR
ANOTHER QUARTER OR TWO THE
IMPACT ON CURRENT INVESTMENT

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ACTIVITY
>> MANY RIGHT NOW, MIKE, ARE
LOOKING AHEAD TO POST PANDEMIC,
WHAT IS IT GOING TO BE LIKE, AS

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YOU LOOK AT THE TECH LANDSCAPE
IN INDIANA, THE START-UP
COMMUNITY, HOW DO YOU ASSESS THE
IMPACT ON COMPANIES?

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ARE THERE GOING TO BE CERTAIN
SECTORS IMPACTED MORE THAN
OTHERS?
>> YEAH. I THINK THERE ARE A

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COUPLE MAIN COMPONENTS TO IT.
ALL OF US ADJUSTING TO IT,
WORKING FROM HOME AS I AM TODAY,
FORTUNATELY, FOR MANY TECH

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COMPANIES, THAT REMOTE WORK,
BUSINESS OPERATION WAS SOMETHING
THAT WAS ALREADY FAIRLY
FAMILIAR, FAIRLY FAMILIAR

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TERRITORY, AND SO MAKING THAT
ADJUSTMENT WAS LESS DISRUPTIVE
THAN IT WAS FOR A LOT OF OTHER
INDUSTRIES. THE BIGGEST IMPACT

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IS GOING TO BE DEPENDENT ON WHAT
INDUSTRY, WHAT CUSTOMER BASE
THOSE COMPANIES SELL INTO. SO,
THERE ARE SOME COMPANIES IN OUR

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ECOSYSTEM THAT SELL FOR EXAMPLE
INTO THE TRAVEL INDUSTRY, OR
SELL INTO THE EVENT INDUSTRY OR
HOSPITALITY INDUSTRY, THOSE

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EVENTS ARE GETTING HIT REALLY
HARD RIGHT NOW, AS A RESULT,
THEY ARE GETTING HIT VERY HARD,
TOO. THERE ARE OTHERS THAT WE

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HOPE WILL SEE, BUT HEALTHCARE,
FOR EXAMPLE, OR REMOTE WORK, AND
ENABLING TECHNOLOGIES, THOSE
WILL STAND TO DO WELL, OR MAYBE

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EVEN LOGISTIC TECHNOLOGY STAND
TO DO WELL IN AN ENVIRONMENT
LIKE THIS. IT'S TOO EARLY TO
TELL, THERE'S A DIFFERENCE

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BETWEEN BUSIEST AND
PROFITABILITY AND FINANCIAL
SUCCESS, I THINK THAT'S THE WAY
IT'S LARGELY GOING TO FALL.

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>> ALL RIGHT. GREAT PERSPECTIVE,
AS ALWAYS, MIKE LANGELLIER, THE
CEO OF TECHPOINT. MIKE, THANKS
FOR THE GREAT WORK YOU DO AROUND

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THE STATE OF INDIANA. I KNOW
WE'LL BE TALKING A LOT MORE OVER