Developing a solution first, then looking for a problem to solve rarely leads to success
There once was a highly motivated developer who worked at a bank. One day, he figured out a way to automatically round up decimals in banking transactions to the nearest whole number in bank accounts. He reasoned that the difference could be either taken as additional revenue to the bank or paid back to the…
Without the right tools, we can’t build a house. Without the right people, things will get broken
“You are fired!” John yelled at me as I was lying on the ground after falling off the roof of the house. John was mad because his sawhorses had been broken in half because of my stupidity. I was stunned and just wondering if I had broken anything in my body as a result of…
Always be raising, always be closing, always be talking about the business
Being a startup CEO is tough. Work life balance, as nice as it is, is not easy. Many leadership gurus – who invest in or mentor startup founders – often find CEOs struggle with the pace. One of the biggest challenges startup founders faces is balancing the continuous need to raise capital while running the…
The journey for your startup is just beginning
Yipee! Your startup has been funded. You suddenly have sufficient capital to put in motion the plans your pitch deck promised your new investors. Term sheets negotiated, first wired funds received, shares issued. So, now what? The world of startups is filled with cautionary tales of startups which can’t seem to navigate the new world…
The venture capitalist is actually looking for a reason not to invest in your company
It is an industry accepted standard that venture capitalists will fund one of 100 deals. Some entrepreneurs will not be given more than a few minutes to pitch; others will get a longer meeting, while a lucky few will move into a process of successive interviews and discussions. But, in the end, only one deal…
Learning these five facts will save you time and frustration
Every year hundreds of entrepreneurs and investors congregate at the base of the mountains at the Fairmont Banff Springs Hotel in Alberta. Over the course of two days, approximately 50 IT, life science, and cleantech companies make their pitch to an audience of venture capitalists and angel investors. (This year's event is combining virtual and…
Instead, start focusing on pitching for revenue
Most of us in the entrepreneurial space, whether building, supporting or funding early-stage companies, assume attracting investor capital is just the normal course of business. We have been conditioned to believe or accept that once an entrepreneur gets a business underway, raising investor capital is just part of the plan. Some entrepreneurs begin crafting their…
If you can't make your pitch within 10 minutes, however, you're not ready
How you approach a venture capitalist (VC) can be the difference between receiving a quick glance or gaining direct attention. It can be very tempting to cold call venture capital via web search results or chase down a harried VC at an entrepreneur event. While those attempts may work, it's a low probability tactic and…
Attributing value is a source of countless rolled eyes, smacked foreheads and arguments
When a new company is launched, the odds are stacked heavily against the entrepreneur. It is stacked especially high against the tech entrepreneur. University of Tennessee Research tells us that more than half of all new businesses fail by the end of year four but only 37 per cent of technology businesses remain operable by…
Don't be that guy who gets mad after buying a car without first performing a test drive
Most times, raising capital is a tough haul. Endless pitching, gruelling due diligence and an enormous commitment of time and money are usually required. But, once in a while, a company rises and grabs the attention and the imagination of a swarm of venture capitalists (VCs) in a relatively short period of time. Maybe the…