Going to Cali for Women 2.0
May 7 2008

You might have heard, I was a semi-finalist for the Women 2.0 napkin business plan competition.  Well, they informed me on May 3, I didn’t make the finals.  Sigh.  But trying to look on the bright side, I’m actually kind of relieved because now I can focus on networking and learning instead of being stressed out about giving my pitch!  I’m starting to think I’ll have to get a job to support my entrepreneurial addiction.  Too bad I didn’t get rich off of my first entrepreneurial endeavor…

I’d like to profusely thank Sylvester Becker (a.k.a. German Cowboy) of Dana Lynn Media for helping me pull together a very cool 2 minute pitch video which I can’t share with the world yet, but maybe soon.  Sylvester was awesome to work with and so creative!  We used crayons.  We used Little People to illustrate our future customers as well as small figures of Dora the Explorer and her friends Boots and Benny.  Although I think Boots got cut out in editing.  My daughter loves Dora and in fact some people say she looks like her especially now with her new haircut.

I had already decided that even if I didn’t make the finals, I was going to the Women 2.0 conference (check out the site for the fabulous list of panel speakers – entrepreneurs and venture capitalists) this weekend in the Bay Area where the skies are blue, the weather is usually predictable, the money made in tech is gigantic, and everything is way too expensive.  Except for, oddly, the reasonably priced rental car I got from Hertz.  Thankfully, some friends are letting me crash at their place so I can save money by not getting a hotel.

Anyway, in case you are interested in the names of the finalists, here you go:

 Women 2.0 Napkin 2008 Pitch Finalists

I’ll do a post about it after I get back, so Subscribe Now so you don’t miss a thing about my sure-to-be idyllic, fantastic, jaw dropping trip to Cali!  I wonder if I can find a way to eat some sushi while I’m there…

Author: | Filed under: competition, conferences, diversity, entrepreneur, entrepreneurship, venture capital | Tags: , , , , , , , , , , | 4 Comments »

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 »

Speaking of Venture Capital…
Nov 13 2007

First off, if you haven’t heard Al Gore is now a partner at Silicon Valley venture firm, Kleiner, Perkins.  Kleiner is the most prestigious venture firm in Silicon Valley.  He joined to help guide their investments in companies that are combating global warming.  I have to really hand it to Al Gore for totally reinventing himself from VP of the United States to candidate for President of the US to champion for the planet!  His parents must be mighty proud!

After writing my post on Fred Wilson on Venture Capital Fund Performance, I have happened upon a few more interesting posts on the subject of fundraising.

Wendy Piersall made me aware of 7 Things No One Tells You About Raising Venture Capital Financing by Ben Yoskovitz.

From Ben’s blog I found 7 Steps to Land and Leverage an Angel Investor by Carleen Hawn.

Here’s a chart listing their lucky number 7 items:

7 Things No One Tells You About Raising Venture Capital Financing 7 Steps to Land and Leverage an Angel Investor
Signing a term sheet is only step one. Step 1: Identify yourself.
It might not be worth negotiating the finer points of the deal at the term sheet stage. Step 2: Identify the right angel
Due diligence is an “interesting” process. Step 3: Your company’s fundamentals.
The paperwork is extremely detailed and extensive. Step 4: Valuation.
Most of the deal focuses on negative details. Step 5: Structuring the deal.
You pay all the legal bills. Step 6: Negotiation. (Psst!: You don’t need to do it!)
Don’t just focus on how much you’re raising and what chunk of the company you’re giving up. Step 7. Leveraging the relationship.

Ben and Carleen make great points and from my experience back in the late 90’s I agree with all of them.  I’d like to add, ‘trust your gut!’  Your gut feelings are based on years of experience that you may not be able to articulate quickly in words but you know…you know you do.

Author: | Filed under: angels, entrepreneur, entrepreneurship, fundraising, venture capital | Tags: , , , , , | Comments Off on Speaking of Venture Capital…

Fred Wilson on Venture Capital Fund Performance
Nov 10 2007

For those of you interested in venture capital, you should definitely check out Fred Wilson’s blog called A VC – Musings of a VC in NYC.  He’s been doing a series of articles on Venture Fund performance that is very interesting.  Although I’m not currently looking to raise venture capital, it’s good for entrepreneurs to understand the history of venture financing because these venture funds might be investing in future partners or competitors.

I am currently evaluating the opportunity to raise angel and strategic financing to take Babble Soft to the next level.  I am reaching near the end of my pocket book (or purse strings) and I have so many ideas that I want to implement that will mostly likely require outside capital.  The interesting challenge I have with Babble Soft is that we are not only a Web 2.0 (ACK!$%#) play but also a web portal, thingamajig, mobile application, [invent new word here] play.  Most of these plays are in my mind, scratched out on paper, or mocked up in PowerPoint and the only things lacking are the money and the people to bring them to fruition.

Anyway, check out:

VC Fund Performance – Some History

VC Fund Performance – Selection Bias

The Rise and Fall of the Venture Business

VC Fund Performance – Sample Size

VC Fund Performance – The Ugly Years

A VC – for future posts that I’m sure Fred will be putting up on the subject.

I’m excited about the prospect of raising angel funds because I had a good experience with the two angel rounds I raised for my first tech start-up.  However, having raised funds before I know how long it can take and how many doors will be slammed in my face before getting to the right investment partners and I’m not looking forward to that.  For my first company, we raised money in 1998, 1999, and 2000 (just a few months before the bubble burst) so I know that things went faster than they normally do in ‘fundraising land.’  Isochron survived because it has a solid product/service that companies like Coca-Cola were willing to pay for but let’s just say we as Founders were washed out when it was sold in 2002.

I’m a little bit wiser now on how to play this game, however, now I’m leading a company that has a Business-to-Business (B2B) and Business-to-Consumer (B2C) business model compared to my last which was purely B2B.  Plus even though the Internet has been around for a while, things are evolving at a lightening pace making last years, last quarters, or last months strategies in some cases no longer repeatable.

Interesting times ahead!  All I know is that of all the deals out there, Babble Soft will one day be in the top 10% of ‘why didn’t I think of that’ ideas!  Ah yes, spoken like a true high-tech entrepreneur who might one day wish she had invented those little, cute Croc shoe accessories called Jibbitz instead of trying to do a high-tech startup!  Yeesh…I don’t even own a pair of Crocs, but I know that mom who invented Jibbitz is sitting back laughing all the way to the bank!

Author: | Filed under: entrepreneur, entrepreneurship, new york city, technology | Tags: , , , , , | 7 Comments »