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Actual for You - It's An Uphill Battle For Venture Capital These Days - Sharpen Your Sword
Every leader of organizational change has a timeline. The Big Kahuna wants it done by such and such a date and that date becomes the gospel. There is just no changing it. Let me take you on a trip and show you why that is often fatal, for the project, the organization and mostly the people involved.Go back with me to the summer of 1967. It was in the northern provinces of South Vietnam and I was a sniper team leader with the U.S. Marines. It was my second consecutive year in country and we were assigned to go with a Marine infantry un
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to cu
Massage Therapists are always looking for new ways to build their clientele. Finding unique ways to reach your existing clientele is what makes them remember you and tell others about you. Here are three easy, unique ways to build client relationships:1)Add comfort to your clients' visit:To enhance your clients' visit to your business, offer them a bag of herbal tea to take home after they pay for their treatment. Adhere a mailing label sticker to the tea bag that reads, "INSTRUCTIONS: 1) Add hot water, 2) Curl up in you
Here's what they told us:
Reach Significant Milestones Before Seeking Funding- especially Having Paying Customers -- The more the early-stage company is able to accomplish on its own, the more attractive it is to venture capitalists, who now put a premium on the existence of real, live customers rather than vague notions about the customers being 'out there.'
"Get as far as possible without money. Find a way to show the dogs will eat the dog food."
"We've gone from an unrealistic period of believing that the way to grow a company was to constantly seek new investment funds; revenues and earning were scoffed at as "old economy" values. We've gone from "price to yearnings" to "price to earnings" and that's is where we should be. There is nothing "old economy" about revenues and earnings."
"Right now, you need to have it all: working, proprietary, protectable technology; successful, experienced and relevant management team; and proof of market demand in the form of paying customers."
Be Prepared to Bootstrap the Company -- During times when capital is less plentiful, entrepreneurs have to be prepared to go it alone until more investors jump back into funding early-stage deals.
"Very, very, very few seed stage companies will obtain capital from venture funds, so it is best to bootstrap as much as possible. Save the time seeking investors and get to work to make something happen."
"Be more creative. Think of ways to make progress without institutional investors."
Work Harder and Do Your Homework -- Finding capital for a start-up company has always been a difficult task, and many entrepreneurs have found it especially hard in 2007. But perseverance and taking the time to really understand what investors look for in a company are two ways of improving the chances of obtaining funding.
"Network like crazy and know EVERTHING about your industry."
"Get realistic about valuation. 100% of Zero is Zero."
"Don't give up!. Keep looking. Research the VCs more thoroughly to find true early stage firms in your particular space. Work with local angel groups, the most likely source of seed money. "
Have the Strongest Management Team Possible Before Seeking Capital -- Investors in each of our annual surveys have stressed the importance of the management team.
"Make sure at least one team member has done it (built a successful company) before."
"Get the best team you can and plan on only one shot at a VC. And plan on a low valuation."
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to cus
A satisfied customer brings ten more. This old law of business is often forgotten by business people to earn some quick buck. Many companies still believe in the policy of ‘plunder with a tongue of honey’. Such companies are actually legal thugs and eventually earn the wrath of the customers. They publish juicy ads which make your tongue hungry with desire. Their marketing persons display all the charms they can just to hook you. Once you are hooked they don’t leave a chance to make more and more money from you. A common customer always f
"Get as far as possible without money. Find a way to show the dogs will eat the dog food."
"We've gone from an unrealistic period of believing that the way to grow a company was to constantly seek new investment funds; revenues and earning were scoffed at as "old economy" values. We've gone from "price to yearnings" to "price to earnings" and that's is where we should be. There is nothing "old economy" about revenues and earnings."
"Right now, you need to have it all: working, proprietary, protectable technology; successful, experienced and relevant management team; and proof of market demand in the form of paying customers."
Be Prepared to Bootstrap the Company -- During times when capital is less plentiful, entrepreneurs have to be prepared to go it alone until more investors jump back into funding early-stage deals.
"Very, very, very few seed stage companies will obtain capital from venture funds, so it is best to bootstrap as much as possible. Save the time seeking investors and get to work to make something happen."
"Be more creative. Think of ways to make progress without institutional investors."
Work Harder and Do Your Homework -- Finding capital for a start-up company has always been a difficult task, and many entrepreneurs have found it especially hard in 2007. But perseverance and taking the time to really understand what investors look for in a company are two ways of improving the chances of obtaining funding.
"Network like crazy and know EVERTHING about your industry."
"Get realistic about valuation. 100% of Zero is Zero."
"Don't give up!. Keep looking. Research the VCs more thoroughly to find true early stage firms in your particular space. Work with local angel groups, the most likely source of seed money. "
Have the Strongest Management Team Possible Before Seeking Capital -- Investors in each of our annual surveys have stressed the importance of the management team.
"Make sure at least one team member has done it (built a successful company) before."
"Get the best team you can and plan on only one shot at a VC. And plan on a low valuation."
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to cu
There will come a time on every change project that you will wish you had read this article. The size and scope of the work does matter. Everyone today, especially in the larger organizations, wants to forecast heroism. By that I mean they want to think that because they are who they are, or the organization is who it is you will then be able to do anything. Don’t make that mistake.When setting up any change project, and remember all project work is change work, there are three parts you must balance to succeed. They are …1. Sc
"Very, very, very few seed stage companies will obtain capital from venture funds, so it is best to bootstrap as much as possible. Save the time seeking investors and get to work to make something happen."
"Be more creative. Think of ways to make progress without institutional investors."
Work Harder and Do Your Homework -- Finding capital for a start-up company has always been a difficult task, and many entrepreneurs have found it especially hard in 2007. But perseverance and taking the time to really understand what investors look for in a company are two ways of improving the chances of obtaining funding.
"Network like crazy and know EVERTHING about your industry."
"Get realistic about valuation. 100% of Zero is Zero."
"Don't give up!. Keep looking. Research the VCs more thoroughly to find true early stage firms in your particular space. Work with local angel groups, the most likely source of seed money. "
Have the Strongest Management Team Possible Before Seeking Capital -- Investors in each of our annual surveys have stressed the importance of the management team.
"Make sure at least one team member has done it (built a successful company) before."
"Get the best team you can and plan on only one shot at a VC. And plan on a low valuation."
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to cu
Electronic funds transfer is a modern method of financial transaction. The electronic funds transfer systems helps transfer funds from one place to another, via electronic signals transmitted by wire. It eliminates the physical exchange of money or other mediums that are equivalent to money. It is considered to be a hassle free and provides prompt service.Electronic funds transfer systems (EFTS) are comprised of a large number of financial transaction systems. These include fund transfers among major banks and transfers among the Fede
"Network like crazy and know EVERTHING about your industry."
"Get realistic about valuation. 100% of Zero is Zero."
"Don't give up!. Keep looking. Research the VCs more thoroughly to find true early stage firms in your particular space. Work with local angel groups, the most likely source of seed money. "
Have the Strongest Management Team Possible Before Seeking Capital -- Investors in each of our annual surveys have stressed the importance of the management team.
"Make sure at least one team member has done it (built a successful company) before."
"Get the best team you can and plan on only one shot at a VC. And plan on a low valuation."
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to cu
Make sure you have solid foundations.Have you ever seen a skyscraper being built?The first thing they do to build it is to dig down.It’s a little strange to see, but it makes sense if you think about it.By digging down and making sure all the foundations are in place, and making sure they are rock solid… the building can then reach up towards the sky.Without the rock solid foundations the building could topple and crash to the ground.Unfortunately that’s what happens to some businesses.Some ow
Build the Company More Slowly with Less Capital -- Capital is being 'rationed" out in smaller increments, and quick exit strategies are no longer the norm.
"Do not base any aspect of the plan on an exit of less than 36-48 months."
"Get farther along before you seek institutional capital, and ask for smaller amounts with a realistic time line. Don't compress 7 years of development into 24 months. Build your company one block at a time, and ask for the capital in stages as you prove your case."
Use All Available Capital More Carefully -- Capital is now a more scarce commodity than it was in 1999 and early 2000.
"Make sure your business has a tangible economic benefit to customers in the near term, a strong ROI/Payback. Efficient use of capital is paramount now."
"Use lower growth assumptions and slower ramp. Large cash burns will turn off most investors."
"Build a cheap operation. And keep it cheap."
So while it's never been easy to get venture capital, not even during the good old gold rush days of the dot.com's, the challenge is even greater now. But if you have a strong management team, a solid business model and you're persistent, you just might win the battle.
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