Tom Markiewicz

The panel had a nice balance of entrepreneurs who have taken funding, angels, and VCs. The panel’s official description was the following:

In order to successfully secure funding, entrepreneurs need to be prepared to answer tough questions from potential investors. What types of things do investors look for when making funding decisions? What is the best way to approach investors? Which investors are the right ones to approach? What are potential warning signs to investors and how can weaknesses in the business plan or model be mitigated? This panel of successful entrepreneurs, angels, and venture capitalists gives practical tips to entrepreneurs in search for funding for their ideas.

I didn’t hear a whole lot of new ideas in this panel. It was interesting, but mainly a re-hash of the same themes I’ve heard from the money people. Here are the notes:

- know what it is you’re trying to get, what do you really want; what is ideal outcome of this meeting, what is ok/nice? (Harlan Beverly, CEO of Bigfoot Networks)

- people, technology, market – this is what VC look at (Sachi Gahan, Principal at CenterPoint Ventures)

- more interested in bottom up marketing calculations – shows analytical ability and intelligence of entrepreneur (Gahan)

- the passion behind management team is critical

- experience and proven entrepreneurship has to be there for more traditional entrepreneurs; you’re either the guy with experience or you’re the same as everyone else

- this is less true with angels

- do they like, trust, and admire the person (Peter Huff)

- need to be open to change (Huff)

- very concerned with who the customers are going to be (Joshua Baer, Founder & CEO of Skylist)

- a mistake can be to pretend who you’re not (the technologist pretends to be the business person)

- convertible debt is a good option – value is determined later

- deal breakers:

• doesn’t fit into the firm’s focus
• customers – have to show these customers, how your going to sell them
• personal integrity and honesty of principles – they always ask for reference lists (Gahan)
• wants to see 100% focus, no other outside activities (Baer)

- more money isn’t always better; more small deals can be better (Ashwani Dhar, Managing Partner, Venio Capital Partners)

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