From the monthly archives:

August 2009

Fire Walk Your Way to Success!

in How To,Raising Money

Firewalking has occured for centuries, and some believe, for thousands of years. What is it? Glad you asked…

Fire walking is the act of walking barefoot over a line of smoldering coals or stones, from one end to the other – coals which can reach temperatures of 1,800-degree (1,000 °C).

So why would someone…anyone of sound mind and body anyway (and especially someone who wants to stay that way) walk nonchalantly down an alley of super hot burning coals as if they are going for a nice leisurely stroll along a country path? OK, so, mostly the hustle their way across the bed of firey objects – but they still do it…

Now, I won’t bother getting into how the first person managed to walk across hot coals – it could be any one of a number of reasons – head down in a book while walking across the village, being famished and running across the BBQ pit to get that last slice of wooly Mammoth – could have been any number of crazy reasons – but what is interesting is, over the years, it has become a symbol of commitment and faith – a proclamation that by being absolutely committed, that the human spirit can prevail and achieve beyond what is expected.

This has been grabbed onto by those coaches and motivational speakers – so much so that many of them use a fire walk at the end of their seminars…the particularly passionate are encouraged to show their commitment, passion and fervor by undertaking their own fire walk.

Do NOT Try this at home!

Do NOT Try this at home!

So what has any of this got to do with Fund Raising or interacting with Angel Investors or Venture Capitalists?

Often the most challenging part of any process or achievement – especially something that is really worth achieving – is starting…

…and I would suggest that one of the main reasons for that is the mental hurdle that people impose on themselves believing that failure will be a pain exercise – to the point where subconscious they may actually be telling themselves that dreaming about success, without actually taking that first step forward, will be less painful than actually going for it…

The reality is people like to minimize pain – and perhaps right about now you are nodding your head – of course, sure, why wouldn’t people try to minimize their pain – well, sure, but the real problem is, people tend to blow up the SIZE of that pain beyond what is actually is…

If you have a fantastic business idea or actual business – going out there and raising money can be daunting – you will probably have many conversations, undergo many pitches where you stand there with high hopes only to have them dashed but this is part of the process – it’s part of what’s necessary to find the right investors – you will be rejected but when that happens, say a small ‘thank you’ and breath a sigh of relief – you have just taken one more step across the coals towards finding the right investor and have avoided walking forward with an investor that would not have been right for you or your business.

So – go out there and start the walk towards the right investor – after all – you are not required to walk across burning coals to find them – you just need to have commitment, passion and be prepared to put one foot in front of the other…

$$$

Forgive the fact that sometimes there are some days between postings – I’m actually spending time developing a program to give entrepreneurs the insights they need to go out there and engage with angels and venture capitalists and raise the money they need for their businesses – my intention is that these lessons, once learnt, can be used over and over again by entrepreneurs throughout their careers – the challenge is – to do it right takes time and focus – so, apologies these blog posts don’t happen every day but there is a great reason why not…

I would really appreciate your comments on this posting, does the metaphor work for you? And please – don’t try this at home…we are not suggesting anyone actually should walk across coals!

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The Abbott and Costello of Angel Funding – These Guys Rock!

in How To,Offering Help

Abbott & Costello

Abbott & Costello

Hepnova and WealthNet Partners. the Abbott and Costello for Entrepreneurs, have got together again to create a new video.

Now you could go and watch a boring video about how to raise money through multiple sources…YouTube or some other place *yawn*

Or – you can press play and enjoy the video made so you will never forget the message – so, over to Hepnova and WealthNet Partners.

So why do I like these guys? Because they turn what is an often dry and borng subject and have fund communicating a few key points in a way that makes sure you will never forget it (especially if you have a sense of humor…and lets face it, you’ll need a BIG sene of humor if you are working with VCs and angel investors…)

Thanks guys! You are awesome…

Any comments or thoughts on this video? Helpful? Useful? Useless? Add your comments now.

 

 

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Have Two Brains When Talking to Venture Capitalists

in Raising Money,VC Garage

 

Homer

Homer

Have two brains when talking to Venture Capitalists

You are standing at the end of a board room, licking your lips, a warm moist sweaty hand leaving a print on the table, that if laden with turkey, sweet potato, gravy and stuffing – would be a Thanks Giving dinner for three families – but putting hot platters of food on top of the highly buffed cherry wood surrounded by misted brown glass floor to ceiling windows, would be close to sacrilegious to all the furniture lovers out there.

You have done it – your carefully crafted email passed to a friend who reassures you they have a relationship with a ‘known’ VC – actually arrived in the hands of the VC and something in your hopefully constructed paragraphs encouraged them to schedule a meeting with you – and here you are – your laptop whirring and the small machine rendering your first power point slide onto the pale cream wall. 

A younger than you would expect, happy, hip guy strolls in – a perfect all American boy with near teenage good looks and a smile which makes you wonder if you’re about to be asked if you want cream with your coffee – is this an assisant to the VC?

…then the penny drops…no, this is not some intern or recently minted college grad…this is the Venture Capital – damn, they make them young don’t they?…

Doing your best to swallow as all the fluid in your mouth decides to disappear into your twisting gut; you press the down arrow on your presentation and begin to take the VC through it…

…who you are…

…who the team is…

…why this is the biggest market opportunity since the Ford Motor car…

…why you are the right team, nay, the only team to bring this soon to be huge business to the world…

…the barriers that will stop anyone following your world changing idea with a copy of their own…

… And before you know it – you’re done.

Presentation over.

The last slide.

And, with one of your trusty team members flicking the light switch up – you blink into the smooth face of the VC and not for the first time, wonder if he’s shaving yet.

So should you ask him a question or wait for him to ask you?

Whew – question answered – his pen taps on the table as he ‘hums’ – thoughtful…breaking the ice and asking the first question…

And during the next 33 minutes, you have a discussion, listen and retorting as wonder boy pulls and picks your baby apart…

Perhaps it’s the size of the opportunity – perhaps it’s a half complete team – perhaps it’s too close to a company in their portfolio – perhaps you need a few customers…or maybe, just maybe…he loves it and want to introduce you to his partners at their regular X-Day meeting – and you are on your way…

Now you can change the table, you can change the brown mist on the glass but much of the rest will likely be close to what you experience when you meet your first few Venture Capitalists – Oh, OK, they might be older than Wonder boy mentioned above…maybe…

But one thing that is an absolute certainty – you need to be in two brains when talking to VCs – the one that is making your mouth move and helping you put complete sentences together (if you’re lucky) and the other needs to be recording and analyzing because it may take 1 or 5 or ten VC meetings before you start to get real traction – hey, you may also be lucky and get that traction immediately – but either way – have more than one VC meeting and in each of them – learn what elements concern them, learn what parts of the business model they consider a weakness and consider if they’re right. If they are, work on fixing it and during the next presentation, home in again on those areas that are of concern.

Why?

A few reasons – you will only get VC funding when you are ready to get VC funding…

By listening and understanding your business weaknesses, you can address them and ensure when you next present, they’re not weaknesses but perhaps strengths.

Last – VCs see a lot of businesses and business plans – they tend to get pretty switched on about the areas of concern and weakness – if they point them out to you – take it as extremely valuable advice that you got for free. Hey – maybe they’re right and by listening and find a solution now, you might save yourself a lot of time, money and pain later. And worse case – by listening and addressing, it makes your next VC presentation that much stronger and your chances of securing the large check your business needs much higher. Do this enough and you WILL raise the money you need for your business – unless it’s a completely crazy idea of course…

So present, kick ass, sell your business but listen to the challenges and the suggested weaknesses – don’t take them as personal slights – they’re not, they are learning opportunities that will get you closer to raising a significant amount of money for your business and may help you identify and resolve business challenges very early in the life of your new business. 

Remember – it’s not personal – its business!

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Will Smith Interview – The Power of Positive Thinking

in How To

If you look through this blog, you will NOT see posts from motivational speakers or other members of the “change your life in 15 minutes a day ” brigade – My personal view is there are no magic answers or quick and easy ways to obtaining life success. But – I do believe that a positive attitude combined with having a clear vision of your personal goal and focusing on the tangible steps to obtaining it and then…and this is the toughest part…getting off the sofa, or out of the bar, or off Twitter or whatever else you do to pass time…and taking ACTION.

..those simple (but difficult) steps will enable you to realize your true potential.

Here is an interview with Will Smith where Will discusses the power of positive thinking – I recommend you watch it and consider taking onboard those elements that make sense to you.

Does Will make some good points? or do you think he’s full of it? How do you motivate yourself? Are you motivated in your life?

Andrew

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Business Investor in South American or Brazilian Company

in Raising Money

South America

South America

An alumni contacted me looking to invest up to $10M in a private or public company in either Brazil or South America in the following sectors:

  • Oil and Gaz
  • Renewable and Alternative energy
  • Solar energy
  • IT/Telecommunications/Media
  • Aerospace & defense
  • Consumer Goods
  • Healthcare technology
  • Textiles
  • Commercial Real Estate
  • Manufacturing

The company needs to have at least 2 years positive cashflow.

If your company meets that criteria, contact me and I’ll send through your details.

Andrew

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Roulette or a Sure Thing?

in How To,Raising Money

A game of chance
A game of chance

Maybe you’ve been to a Casino and seen a roulette wheel or perhaps you haven’t – either way, everyone is probably familiar with the game.  There is a wheel with pockets and inside the pockets. Within those pockets of red and black are the numbers – from 1 to 36 and a zero (or double zero) on a green background. 

The wheel is spun in one direction and a white ball is sent in the opposite direction. After the whirr of the rotation comes a click, a bounce and a few more clicks and bounces as the ball hits the sides of the pockets, initially rotating too fast for the ball to settle. As both slow, the small white ball and the wheel both eventually stop the ball sitting inside one of the numbered pockets. That is roulette – a game millions of people have played for the excitement and the chance of winning their fortune– just like a Start-Up!

And just like pretty much every game of chance, people have spent hundreds of years trying to get an edge – a way to shave points off the odds in their favor, with the hope and belief that having a slightly better chance than the House and the next person – they’ll win their fortune.

If you’re reading this blog post – you may not be a gambler, you may not have any interest in gambling – I’m hoping you are here because you are interested in starting or building a business and you are interested in raising money from investors for it. Well folks – you are one of the biggest gamblers there is on the planet – whether you lay your chips on a table in a Casino or not. Make no mistake – starting a business and going into the entrepreneurial ‘Casino’ is risky – and you’re not laying down plastic chips – you are laying down seconds, minutes and hours of your life in the pursuit of something that may be great! And do you know what else?

You should look to optimize the percentages in your favor…

There may not be a House that will take your chips if you lose – but that time you spend on building a new business does not get put back in your life wallet – you spend them, they’re gone.

So how can you weigh those precious percentages and do your best to tip the chances of success more in your favor?

Well, I can think of a few ways but there a many…

1) Try to find someone who has trod the same path you are about to tread – and save yourself some time by trying to understand the opportunities and pitfalls that they experienced. Learning just a few of both will make the time you invest in finding and learning from a good mentor is incredibly worthwhile. It will pay off in dividends of time and money saved.

2) If you are going out to get Venture Capital funding – Andreas, the MD from DFJ I just interviewed, made a point which continues to resonate with me.  Self filter when reaching out to a VC – taking even a cursory amount of time to understand which VC partners are likely to be interested in your business model will increase your chances of success.

3)  When introducing yourself to a VC through either a contact or directly – avoid the templates, the Dear Sir / Madam’s, the cut and pastes - unlike Roulette, finding an investor is not a numbers game – sending a standard form letter to a hundred Venture Capital partners is likely to get you a hundred rejections. How often do you buy when you get an envelope through your front door addressed to ‘The Resident’? Yeah me too!

Now, I’ve been working on a number of tools which I’m confident will tip the playing field in your favor but I going to hold off from launching them quite yet. I want input from more folks so I’m 110% sure they’re ready  and 120% confident they’ll help entrepreneurs optimize their chance of winning the Investor Jackpot- 

But like I said above, raising money from Angel Investors or Venture Capitalists is not a numbers game – but you can certainly increase your likelihood of success – and when you are trying to raise One hundred thousand, or one million or one hundred million dollars – don’t you think you should try to improve the odds in your favor?

If you would like to improve your chances…consider signing up to my mailing list.

As always, I would really appreciate any thoughts or comments.

Andrew

PS – for a short time I have an audio course which could seriously help your fund raising. I’ll soon bundle it with a broader course so it could be pulled from availability at any time.

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