Venture Capital Investment Competition at USC in Los Angeles
Mar 8 2008

For the past few years I have served as an Advisor to The University of Texas at Austin MBA team that competes in the Venture Capital Investment Competition (VCIC).  

It all started when I was an adjunct lecturer of entrepreneurship at UT Austin and since then I’ve continued to advise as they need me and my schedule permits.  This competition did not exist when I got my MBA, and even if I had the opportunity to participate I was too busy trying to start my first venture.  What a plus it would have been for any entrepreneur to have seen a term sheet presented by experienced investors in an academic environment rather than in real life when you feel like you have to learn another language just to understand parts of the investment terms!

This year the regional competition was held at USC in LA on March 7, 2008.  The UT team this year was comprised of:

Ben Jones – MBA 2008
Kyle Reese – MBA 2008
Rajiv Bala – MBA 2009
Ryan Sanders – MBA 2009
Scott Chiou – MBA 2009

I connect them with local venture capitalists and entrepreneurs to help them prepare but we had a late start with only about 5 weeks to get ready and midterms in between this year.  Other teams have semester long classes to prepare for this competition!

At the competition, 6 teams were given business plans for 3 real companies including NiLA, makers of environmentally friendly lighting, on Wednesday, March 5 at 5:00 pm.  They use the Internet and other relevant sources to research the companies and come up with questions for the entrepreneurs.  On Friday, they heard the entrepreneurs pitch their business concepts in front of 11 real live venture capitalists, including Aditya Mathur of Revolution Ventures, Nathan Joyner of Pacific Ridge Capital, Neal Hansch of Rustic Canyon Ventures, representatives from Tech Coast Angel Group and many more. 

They then go into little rooms and subject the entrepreneurs to answering several of the same questions over and over again from the 6 different teams.  Why would any entrepreneur do this you might wonder? Because the VCs are in the room while they are being asked the questions so they are getting exposure that they might not have had otherwise to them.

After the questioning sessions are over, the teams again regroup and come up with a PowerPoint presentation which outlines which company they would chose to invest in and why.   For the company they choose to invest in, they create a term sheet.  They present their choice in 3 minutes in front of the VCs.  The VCs then grill them for about 15 minutes on their company choice and investment terms.

At the end of the day, the judges decide who wins and who takes 2nd place.  The 1st and 2nd place winners get money and the opportunity to compete in the national competition at University of North Carolina Kenan-Flagler Business School in April.  I have personally seen one student get a job on a team I advised in venture capital because of participating in this competition.

As an advisor I get to be a fly on the wall and watch the VCs deliberate and observe the decision making process.  Plus I build my network in areas outside of Austin.  Personally, I believe this experience has helped me gain better perspective on what venture capitalists are looking for which is why I’m currently seeking money from angel investors or smaller boutique/seed stage venture firms. 

So I’m sure the suspense is killing you as to whether or not our team placed and unfortunately they did not. They picked the company with the biggest market potential but with the highest risk and the VC judges picked NiLa, which has a great opportunity but less risk and less upside.  Goes to show you that most VCs are not early stage investors!

There are so many variables that go into winning from judges backgrounds, to student’s experience, to understanding of the market of the presenting companies, etc. that you can’t always prepare for everything.  But what an experience! 

Flying back to Austin today for SXSW Interactive and will post about my experience as a newbie SXSW attendee.  I’m looking forward to meeting many of the people I’ve met through blogging and twitter!

Author: | Filed under: competition, entrepreneurship, fundraising, venture capital | Tags: , , , , , , , , , , , , , , , | 2 Comments »

One Entrepreneur’s 2008 Goals
Jan 1 2008

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I don’t really like making New Year’s resolutions.  However, I’m making an exception this year because I figure I’ll try something new.  Maybe I’ll even make quarterly resolutions!  This is the first year I’ve had a blog which means I can now write them down and let my readers hold me accountable.  So here it goes. 

Business Goals

Raise funds for Babble Soft.  I will finish the business plan, refine the pitch, and set up meetings with angel investors.

Establish additional nanny partnerships and other corporate partnerships that lead to increased revenue and revenue opportunities.  I have to make hundreds of calls, send hundreds of emails, set up meetings, and close deals.

Identify and become a member of at least 2 organizations that will help build my network to reach our customers.  If you have any suggestions on what organizations to join I would love to hear them!

Convince some great companies to advertise with us.  If I can demonstrate a significant increase in users (SEO please work!) of our applications, I believe those advertisers who want to reach new parents and caregivers that are breastfeeding, bottle feeding, changing diapers, taking medicine, pumping, and trying to get some priceless, precious sleep would be *extremely* interested.  Plus with our planned new applications that audience widens and deepens.

Find great people to help make it happen!  Must find great people.  Must find great people!  Key team additions needed are 1) Experienced Senior Product Manager with strong technical skills to manage products from design to implementation to market and 2) Experienced Internet Partnership, Social Media & Ad Sales Manager (does such a person even exist?).  Must find great people!

Personal Goals

Lose 5 pounds.  I will eat less and exercise more.

Take Yoga classes.  I will locate, sign up, and attend classes.  Anyone have any recommendations for instructors in the Austin, Texas area?

Laugh more.  I will find more funny and fun people to hang out with. 🙂

Be less concerned with what other people think.  This will probably be the hardest one for me to accomplish and the hardest to measure.  Worrying about what people think of me, my decisions, my company, my appearance, my parenting, my words, etc. sometimes unduly stresses me out and takes up way too much energy that should be devoted elsewhere.  I’m not alone in this issue.  I’ve seen many bloggers write about it but more women than men which may be a result of our society or more likely Oprah.  I will work to drastically reduce the negative self talk in my head.  I think Yoga will help me with this goal.

My Personal Goals are mostly in my control.  I decide what to eat.  I decide when/how to exercise, etc.  I decide when to pick up the phone and sign up for a Yoga class.  

Achieving the Business Goals, on the other hand, are less in my control.  I can do everything right but if the angel investors don’t understand or care for the market or market need I’m addressing then funding sources might not be available.  If the stock market crashes and everyone quits investing then, c’est la vie.  If the funding doesn’t come through then I won’t be able to hire great people, etc., etc.  I believe I have the most control over establishing additional partnerships and joining organizations but that’s what I believe right now on January 1, 2008.  As the Internet has proven, things change at the speed of each new thought!

What are your goals?  Feel free to leave a comment here and/or leave a link back to your blog to where you posted your 2008 thoughts.

If you’d like to see if I meet my goals (or even heckle me – I don’t mind as long as its funny and helps me with my Laugh More goal 🙂 ) subscribe to this blog’s feed and share your wonderful thoughts with me.

Happy New Year Blogosphere!

Author: | Filed under: babble soft, baby sleep, blogging, breastfeeding, entrepreneur, entrepreneurship, Just For Fun, random stuff | Tags: , , , , , , , , , , , , , | 8 Comments »