Kerisma

AlwaysOn Venture East

Despite the economy in a slump, there are a few new start-ups on the horizon seeking the proper seed capital to get their businesses off the ground, or take their company to the next level of success. It appears to be a tough road ahead, but along every path there are a few bumps to proceed to the next promising opportunity.  Last week AlwaysOn hosted the Venture East conference at the Mandarin Hotel Boston, providing an opportunity for venture capitalists, angel investors, entrepreneurs and new start-ups to showcase their products and services, as well as discuss their thoughts around business today during these unpredictable times.

A few local companies offered demonstrations of their products and/or services available today, or are just a step away from the store soon. Maybe you always wanted that surround-sound audio system in your living room, office, or bedroom, but didn’t want to bother building, breaking down walls and investing in all the parts to put it together? Emo Labs has the answer with its built-in speaker technology revolutionizing the way sound is brought to you. Hate the line and check-out counter at the supermarket? Why not consider ModivMedia’s point, click and scan your items, expediting the time it takes to do your shopping and check out. All it takes with their product is a quick minute or two to pay the bill at the register.

There was some discussion of the venture capitalists having to overhaul their internal infrastructure and be more cautious about the types of investments for the future. The old ways of doing business is not working in this economy. Some professionals are jumping ship from traditional firms to start funds of their own to take advantage of the up and coming industries. In the past, too much money was being thrown at IT and very few deals are coming together now.

Business Week reported in These Angels Go Where Others Fear to Tread ( June 1, 2009 issue), that more and more people are shying away from the venture capitalists to further conduct business and are seeking help from angel investors. Josh Kopelman, founder of First Round Capital reported, “…many old-line firms have gotten too big and unwieldy to build innovative companies the way they used to, and many angels, individuals who invest in start-ups, don’t have enough money to back most high-tech ideas . The article continues to discuss the importance “to take [venture capital]..back to its roots, when firms were smaller, more nimble and more likely to get start-ups off the ground.”

More links from Business Week about the attitude around the VC community

Is There An Angel in the Hub?

Angel Investors

As an entrepreneur, angels can be another route to get your business off the ground. Some New England leaders at different local organizations had spoken at the conference. These included Jean Hammond, of Boston’s Golden Seeds, Ham Lord of Launchpad Venture Group, and David Verrill of Hub Angels to name a few, who provided some advice to prepare promising entrepreneurs with the proper tips when approaching angels.

• Find someone you want to target that has experience in your business, or someone that can help to network you in.
• Make sure to have an interesting set of people that are working for your business that can bring diverse skills to the table.
• Be sure to have a great connection to customers and consider bringing a few to the meeting when pitching your product and/or service.
• Make sure to have a proof of concept, patents, etc, validate your target market needs/wants.
• Prove that you have thought through the parameters around the exit and make sure the right fund is a strategic fit.

New Investment Opportunities:
Boston VC’s Offer Hope on the Horizon

Managers of many of the local venture capitalist firms also spoke about the opportunities in Cleantech, discovering new tools and uses within digital media, eCommerce and mobile as a few contenders for consideration. David Beisel, VP at Venrock sees new hope in performance advertising where there is a shift in publishing to ad networks and/or real-time ad exchanges. Yet, in some instances, ad networks can hurt publishers as the business scales. Bob Davis, General Partner at Highland Capital Partners, said there is very little interest in media companies. So if you’re looking to attract any interest, you must be able to engage 100 million unique users each day and the audience must be measurable. Alan Spoon, Managing General Partner at Polaris Ventures spoke about how social media platforms may create awareness, but monetizing this is still a tough struggle. It’s key to focus on what platforms you are using, and what types of intellectual property has been created that can be of value to other companies who wish to acquire those aspects of the business.

Cleantech, Mobile, Digital Tools, eCommerce

Jeff Bussgang, General Partner of Flybridge Capital Partners commented on additional areas of growth which includes virtual goods, where people are willing to pay a premium for a service such as certain subscriptions or online games.

Marketing Matters

Kopelman also sees light at the end of the tunnel vested in interest to “building businesses on information freely on the web, or disrupting markets with cheaper web technology.” As technology has improved, the barriers to entry for many are few, thus positioning many entrepreneurs down an easier path of getting the business off the ground. However, some are finding it tough to gain customer acquisition and further online engagement with their brands that could be attractive to potential investors. In that case Kopelman states, “hire a marketing executive and launch a guerilla campaign.”

Too often, I’ve seen companies, especially new start-ups overly focused on the product and technology development neglecting one of the most important pieces of the puzzle. MARKETING. You can have the best product, but until one can easily identify “what can this product/service do for me?”, then you could have a problem. I’ve seen quite a few glitzy designed websites, all beautiful, but showcasing models, graphs, technical jargon, you name it – still no understanding of the target with the proper research to create a brand that could attract audiences. A skilled-marketer should be a part of the product development and go-to-market plans early on communicating with all parties. This prevents getting too far along the process by taking into consideration how to attract the audience, how to understand the audience, how to define the needs of the audience, and learn to market the business in the right fashion.

Tell me more about your business and be featured potentially in a future blog post. What challenges have you encountered?  What avenues have you considered for your marketing and sales strategy, or what would you like to learn in hopes to attract interest from potential investors? I welcome an opportunity to consult with you, or become a future member of your team in a marketing or business development role.

Are you looking for a job? Are you stuck trying to figure out what social media can do to promote yourself, or what it can do to help your business? Or, maybe you’re having trouble closing a sale when so many people are sensitive to spending money now.

Gain the Upper Edge

Last week, the New England XPO for Business held an open event at the Boston Convention & Exhibitor Center (BCEC) that featured new tips and tricks to put into practice and how it has paid off for some professionals. The event provided an opportunity for one to perfect their skills, knowledge and approach for doing business with others.

Steven Davis of CXO Advisory Group asked the audience what is the importance of ROI? It’s not only the company’s return on investment, but one must consider in today’s social media and viral reach as one’s return on influence. As I’ve mentioned before the importance of building one’s virtual presence, it is just as important as building rapport with others with one’s real presence. Think of this when it comes to business, your brands, and building up your name, credibility and trust in the market.  Google is your brand engine, so be sure to keep your website or personal profiles up-to-date. It’s also a great tool to check up on your competitors, or other potential candidates nearby in your area of work. Try to make sure you end up close to the top of the list.  Contributing to a blog regularly is one sure way to get you there.

In fact, Google offers a service for you to update your personal information with Google Profiles. Regardless as to what may have been promoted about you on the search engine’s historic log , this is a great way to keep your information fresh, or if you need to clean out any skeletons from your virtual closet! It’s also a good way to clarify any information about yourself should some other site, or virtual log be mistaken. Be sure to use many new social media platforms as if you were networking at a business conference or cocktail party. Remind the world who you are or what your business has to offer.

Some things to keep in mind when perfecting your personal pitch or that of your business:

• Provide a description of your product, service or your personal career background.
• Who are your customers or your audience?
• Why would a company and/or customer benefit from your service and/or skills?
• What expertise do you offer, or what are the unique features of the business?
• Explain some typical companies you have worked for and what do you think of the competing products/services on the market.
• Always follow-up personally to each request or inquiry.

Whether you are looking to market yourself, or your brand, it’s important to maintain a specific image and message. Use social media to bridge the gap between technology by making sure to provide a personalized voice.

Consider some of these key take-aways from the event that I’ve found helpful to give you the edge:

• Be prepared
• Transparency is key
• Clarity and accuracy of the issue
• Communication channels: explore different mediums for different things
• Know the facts and promote them
• Make sure the message is positive and strong
• Monitor your message and how others respond

As one speaker suggested, “don’t show-up and throw-up”, but rather be clear to your audience that you know the market, the trends, opportunities, threats and issues faced for a specific industry. Try this the next time you plan to meet an executive and would like to bide one’s time for another 10 minutes proving you are knowledgeable of the field. Should you be invited to speak with someone about yourself, or your business, it’s also good to put together a brief agenda of your interests, as well as goals you wish to accomplish with the meeting. Feel free to share this list with that individual before you get together in person.

Start networking, setting up informational interviews, or potential leads, as you navigate online and off-line to reach your goals! Need help crafting your pitch, personal profile, or assistance marketing your business? Check out some of my advice and what other’s have to say.

An article last year in eWeek,“Why Are There so Few Women Tech Entrepreneurs?” featured a report from Business Week showcasing the best young entrepreneurs in tech most likely to shape the world’s digital future. Of the 45 entrepreneurs, only three were women. It still rings true today, where I’ve noticed a gap with many online start-ups dominated by men with engineering backgrounds who continue to gain the attention and support by the media and venture firms. There are a select group of women professionals who have gone out on a limb and have been noted for their accomplishments in technology and digital developments. Well, maybe it’s a matter of time more women come together highlighting the accomplishments of other women.

Joan of Arc was a peasant girl, who despite her circumstances and an army of men, felt obligated to help lead the people of France to defeat the English. At a time of battle, she was capable of raising the spirits of the French troops securing control of Orleans.

Many times, women are the brainchild for new ideas and unfortunately still aren’t given the recognition or taken seriously for their work as some men. Center for Women’s Business Research (CWBR), reported that 10.1 million businesses are owned by women and this accounts for 40% of all privately held firms in the United States. These women run operations attribute to generating 1.1 trillion dollars in sales.

Is it really still a boys club and can’t the gals play with the venture capitalist crowd? I’ve thought it would be a great alternative to create a women owned VC firm that supports women driven businesses. Forbes magazine selected some of the top women with the Midas Touch to support the growth of new businesses after going out on their own to create their own firms. Many were tired of playing only with the boys club and decided it was best to be entrepreneurial as well. Myra Hart, a retired Harvard professor, conducted a report alongside Patricia Greene of Babson College, and other notable women researchers called The Diana Project. They reviewed many of the myths for women entrepreneurs seeking venture capital funding. In the report, “there was a noticeable trend where women received a disproportionately low amount of the venture capital available in the United States,” as reported in eWeek. During these tough economic times, it has created new challenges for both men and women entrepreneurs to seek the necessary funding for the growth of their business where new sources of financial support will be in need.

Why is it some men work together and become mentors for one another, while for the most part some women compete often against one another? Women need to bond together as much as men to move the army of talented individuals to the forefront of the battleground to win. I was considering today that there are few resources that promote the success stories, as well as hearing the challenges for women in the digital space. It would be great to share these experiences first-hand with others, or help connect people that want to make a contribution to new developments. It always interests me to create programs that can cultivate new talent to thrive, brings together people of different backgrounds and different areas of expertise to help new ideas, inspire entrepreneurship, or provide the proper tools to individuals about marketing, sales, and creating further awareness. I would like to join the ranks of women in leadership for making a remarkable and memorable change to empower people, while celebrating our similarities and embracing our differences.

I continue to work towards leading others, or learning from other leaders which include both men and women. It’s about time in 2009 that more organizations such as Girls in Tech have started to develop local chapters to support women of all ages seeking advancement and resources.

For some reason the competition between certain women in power remains strong and not supportive, while men look beyond that with their colleagues in the workforce. New programs for women is a positive thing, however, there is much needed focus at an earlier age for young girls and older women to change the old attitudes about competition and be in touch with collaboration and mentoring one another.

Are you a Joan of Arc in the Making? Or, do you know of one? Let me know!