583_ Some of the Greatest Successes Started During the Downturns
At the October TiE Rockies meeting, the keynote speaker was Dinesh Patel, PhD, Managing Director, vSpring Capital. Dinesh said, "I believe personalized medicine has finally arrived and it’s going to revolutionize how we practice medicine and health care in this country.” vSpring Capital started in the year 2000, Dinesh is one of the founding partners. About 75% of their fund’s investments are in the technology sector and 25% in the life sciences sector, and they are early stage investors, generally the first institutional investor in a company. They are managing roughly $360 million today. They are always looking for deal flow, like to make investments in the $500K to $2 Mil investment range. "Times are very interesting now. I think times are more uncertain today than they were in 2000. Right now we are trying to figure out how to proceed in this climate. But every time there is a major problem of this kind you also find major opportunities, so we are very optimistic about this cycle. Startups happen all the time, you can never time that. In fact some of the greatest successes started during the down turns. Google is an example of that. So I think it is not the timing but the key today is to have enough money to take you 18 to 25 months, because you don’t know if you can raise the money in 6 months or 12 months. Cash is king, you’ve got to preserve the money, spend it wisely, stretch it out a little bit." Dinesh also talked about the Human Genome Project - fascinating....
Related Links: vSpring Capital || TiE Rockies Home || Venture Capital || Biosciences || Keywords: Dinesh Patel, vSpring Capital, Venture Capital, Human Genome Project, TiE Rockies, Bioscience - Channels: News > Bytes: 9398546 - 11/10/08 LISTEN

578_ Times are Tough but Good Companies are Still Being Funded
Larry was talking to David Cohen, Founder of Colorado Startups and co-founder of TechStars about the impact of the economy on startups, the Expense Paid Job Fair held in Boulder, and the position of venture capital and angel funding in today's market place. About 17 companies put money into a pot, flew 81 candidates in to Boulder, for an expense paid job fair – worked out to about $60 an interview, a pretty good deal. TechStars Demo and Investor Day 2007 (i.e. first year TechStar Grad') Social Thing was there - who has been bought by AOL and now have opened offices here in Boulder - was one of the companies interviewing at the Job Fair. Since TechStars Demo & Investor Day, TechStars has done a similar event in Silicon Valley.. and at that event, 9/23/08, announced their second acquisition from the first class of 10 companies, a company called Intense Debate, acquired by Automatic, which is the company behind Word Press. So that’s very exciting. They’ll be integrating the blog comments that they were working on directly into the WordPress platform. That’s 100 million blogs that they’ll get distribution on. So the first class has been really amazing and there are other companies that are doing really well from that 2007 class including Event Theater, FiltrBox, BrightKite and other companies, we’re expecting more good things out of that first class. The second class, it’s a little early to tell, but a lot of them are getting funded. David offers some great funding advice...listen now...

Related Links: TechStars Home || Entrepreneur Channel || Colorado Startups || Expense Paid Job Fair || Blog ||
Keywords: TechStars, David Cohen, Colorado Startups, Social Thing, Raising Capital, Entrepreneurs, Expense Paid Job Fair > Channels: VC > Bytes: 10349403 - LISTEN > 11/3/08

564_ Expense Paid Trip to Job Fair in Boulder, Colorado
Chris Wand, managing partner at Foundry Group here in Boulder, Colorado, had some startling news for the whole country... "A handful of us were talking about what is going on in Boulder – there is an amazing amount of activity going on here – a huge number of startups, a lot of them growing very rapidly. One of the pain points they’re all experiencing is finding enough technical talent, software developers, programmers, engineers. We have a lot of great talent here in Boulder; we just don’t have enough given how fast these companies are growing. We thought the right way to recruit out of state talent to Colorado, to Boulder, was to find a way to fly them out here where it was low cost or no cost to them, to experience Boulder for three days. We’re having a week long job fair at the end of October. Aiming to fly in about 100 folks and we’re giving them a day to experience Boulder, just get to know the town. Then in a 'speed dating fashion’, meeting with each one of the 20 sponsoring companies, and a third day to go deep on interviews with the companies they’re most interested in." Get the details, there's much more to this story.
Related Links: Expense Paid Job Fair || Foundry Group || TechStars || Colorado Startups || Venture Capital Channel || Keywords: Boulder Startups, Boulder Job Fair, Foundry Group, Chris Wand, Technology Developers, Engineers, Software Developers, Boulder Wants You > Bytes: 7505191 > 10/06/08 > Channels: VC, Software - LISTEN

557_ Different Choices and Immediately Available New Technologies
"As we look at statistics, people are making different choices today. They’re parking their cars. As a nation, we’re using less oil. They’re buying different products. As a nation we consumed fewer cars by maybe 4 million in 2008, projected over 2007, and it looks like China will actually sell more vehicles this year than we do in the US," said David Moll. David is Founder and General Partner of Infield Capital, a Venture Capital firm targeting the Green Tech industry is well suited to do extraordinary things in the industry. He goes on, "Scooter sales are up, it could be as high as 60% over prior the year, and that’s not for everybody. So, as we face higher gas prices people are making different choices. And now they can make decisions not to use gas at all. I’m concerned about our nation’s economy, I’m concerned about what scientists are beginning to understand in detail about global warming – and so I’m like you are, I can be down on these things and really concerned. The thing that buoys me right now is the hope and enthusiasm that I draw from so many entrepreneurs. The stuff I’m seeing just makes me believe all over again, in the entrepreneurial spirit. It makes me believe in the 'technological can-do- attitude' in this country." Listen for more...
Related Links: Infield Capital || Conscious Economy Channel || CORE || Venture Capital Channel || Find It || Keywords: David Moll, Infield Capital, Electrical Vehicles, Clean Technology, Capital, Scooter, Automotive Industry, > Bytes: 12071395 > LISTEN 9/22/08

553_ Environmental Policy and Economic Policy: Choices and Challenges
With 10 years of really solid industrial experience from the shop floor up plus 10 years of high tech, venture backed startups, David Moll, Founder and General Partner of Infield Capital, a Venture Capital firm targeting the Green Tech industry is well suited to do extraordinary things in the industry. David said, "Ask yourself what’s required now that the investment community is looking at new ways to capture and store energy, and revolutionize our energy picture. It’s got equal parts and that was the genesis of understanding how we wanted to approach Infield Capital. Infield has a little different model than the traditional venture capital model. I chose to raise capital from a set of limited partners that are largely strategic investors. They are companies with small vehicle platforms." David goes onto point out, "The reason I chose to raise capital from these guys was that as I looked at early stage companies, particularly in the transportation space, everybody knows that if we could have the best battery, we could sell that to all the automotive companies and make more Prius type vehicles and maybe full electrical vehicles, and wouldn’t that be great! Yes it would – but how hard is that?" Listen for more...
Related Links: Infield Capital || Conscious Economy Channel || CORE || Venture Capital Channel || Keywords: David Moll, Infield Capital, Electrical Vehicles, Clean Technology, Capital, Automotive Industry - Bytes: 8750710- LISTEN 9/15/08

546_ Fast Start Program with Up to a Million Dollars in Early-Stage Funding
"The Fast Start Program has been a part of Meritage’s DNA from the beginning. The Fast Start Program allows us to invest up to $1 million in an early stage idea," pointed out Stephanie Smeltzer McCoy, Managing Partner of Meritage Funds.
The purpose for the fast start program is to deal with the risks; technology risks, market risks, and execution risks, faced by every company we view. Meritage does not take technology risks in our investments, we leverage proven technology. So what we’re really focused on is market risk and execution risks. "When an entrepreneur comes to us with a very innovative idea, often what we’re faced with is market risk and we use our Fast Start program to help both ourselves and the entrepreneur get their arms around that market risk. We combine operating expertise along with venture capitalist expertise. Every portfolio company has two partners on it, an operating partner and a venture capitalist partner. Our operating partners are highly successful entrepreneurs – combined they have founded, built, run and exited companies worth $25 billion." Listen to more in Stephanie's own words.
Related Links: Meritage Funds || Venture Capital Channel || CTP Channel || Find It || Keywords: Stephanie McCoy, Early-Stage Funding, Meritage Funds, Venture Capital, Network-Enabled Service > Bytes: 5547052 - LISTEN > 9/2/08

542_ Lots of Innovation and a 30 Billion Dollar Deal Flow on the Horizon
The venture capital syndication environment is not working for some today, but for others it is taking center stage. Stephanie Smeltzer McCoy, Managing Partner at Meritage Funds discusses their new deal flow with Larry as Meritage Funds recently made two exciting new investments. One thing Stephanie feels sure of is now that evaluations are down compared to 2003 and 2004, it is a great time to invest. With the interesting deal flow today and the tremendous amount of innovation, some are comparing this period to the late 1990s. If the market does experience a significant downturn in the next couple years it will have not impact Meritage Funds' investment because they operate and invest with a five to seven year exit plan. By then, the market will be up. Their investments are in the hundreds of millions in US dollars. While the majority of venture capitalists are very cautious about fundraising, Meritage Funds is well on the way of raising its third fund...and a big one at that. They invest in network-enabled service companies, specifically those that leverage networks to enable communication, deliver content and facilitate commerce. Whether you are an investor or an entrepreneur seeking venture capital, you should listen to Stephanie in her own words. She shares some great insights.
Related Links: Meritage Funds || Venture Capital Channel || CTP Channel || PodCast Directory || Keywords: Stephanie McCoy, Venture Capital, Meritage Funds, Capital Syndication, Exit Strategies, Network-Enabled Service > Bytes: 11281870 LISTEN 8/18/08

Ambitious Companies Not Big Enough for an IPO
Have Another Alternative
537_ "Entrepreneurial companies tend to put in their financial plan that their first exit is that somebody will buy them out. And if they’re not going to be bought out, then surely they’ll do an IPO. Neither one of those really take into consideration what the real world is," states Leo Solomon, President and CEO of Premier Capital Alternatives. Our deal size is $2.5 M to $10 M. Our funding process is four steps. The first is to have the legal and accounting documents prepared for filing to the SEC for public trading. The second step is file to the SEC. The third step is to use a Private Investment in a Public Entity known as a PIPE to raise the cash. The final step is to secure stock volume through the market makers. Premier Capital Alternatives offers an innovative funding mechanism for the developmental or early commercialization companies. Their areas of expertise are medical devices, alternative fuel (not alternative energy), banks, and proven companies seeking to expand their business. This makes their business unique as they fill the capital requirements for ambitious companies who are not substantial enough to qualify for an IPO (usually $25 M) but who seek a capital infusion and want all the advantages of a public company. Listen, there's more...
Related Links: Premier Capital Alternatives || Venture Capital Channel || Blog || PodCast Directory || Keywords: Leon Solomon, Premier Capital Alternatives, IPO, Private Investment, Venture Capital, SEC, PIPE > Bytes: 9770112 LISTEN 8/11/08

514_ Another Round of Tech Stars Winners Along with the Best
"What we learned from last year is, just focus on quality and get the best quality of passionate, excited, talented entrepreneurs in the program, and amazing stuff happens. We purposely didn’t change too much. We did add some new mentors into the program and got pretty good engagement from people outside of Colorado. That’s been really great to have - it gives us more diversity and ability to connect the companies with interesting business partners or investors and that’s really the goal." says David Cohen, cofounder of Tech Stars. David is also Founder of Colorado Startups, his Angel Fund. Colorado Startups has now invested in about 8 or 9 companies as well as TechStars. We’re speaking during week three of our 14 week program. The first weeks are pretty varied; we do a lot of what we call sessions. Those are all over the map in terms of what the topics are, but “Starting Your Startup” is a session we do. We had Google in for a day, and we had Microsoft in for a day, and Amazon in for a day, and Yahoo just completed a day. We spend a day with them and some of their top biz dev folks and some of their top technical folks come out. We’re really pretty lucky. They sent some amazing people out this year and have been very supportive of the program. Larry probed some more...listen...
Related Links: TechStars Home || TechStars Blog || Colorado Startups || Venture Capital Channel || Keywords: David Cohen, TechStars, Entrepreneurs, Startups, Mentoring, Investors, Venture Capital, Google, Microsoft, Amazon, Yahoo - Bytes: 8940045 LISTEN 6/30/08

511_ A Small Fund with a Team of Experienced Entrepreneurs
The CO Cap Group is a small fund, and they're a team of experienced entrepreneurs and executives. Their mission is to improve the efficiency of early stage investing and to produce a strategy to reduce risk. Marc Silverman, CEO and founder of the Colorado Capital Group went onto say, "Early stage investing can be very risky. It's difficult to manage the risk; it's difficult to find the right companies and do the proper diligence. But I think there is a better away and that's applying a better methodology, finding the right companies, looking for a higher batting average, a little bit lower risk and instead of looking for grand slams, look for base hits and I think you can manage the risk of finding good companies." Marc said, "It's also very important to keep in mind that we are active investors, we're not passive investors. So when we find a company that really fits, and we invest the money, we also come with the money. We get very involved and we don't take a management role in the company. From that perspective I'll work with and for the CEO. I have two great partners, Rob Geller and Larry Harms. Rob has been in the software business for years and years and also has been a leading clean tech advisor, so Rob is very interested in 'clean tech investing' and knows a lot about it. Larry Harms has been a software and manufacturing guy and has worked in DOD and really understands that process and that cycle. So between the three of us these are the areas we really cover; medical informatics, medical devices, software, clean tech and homeland security."
Related Links: Colorado Capital Group || Venture Capital Channel || Software Channel || Biotechnology || Keywords: Marc Silverman, Colorado Capital Group, Rob Geller, Larry Harms, Entrepreneurs, Clean Tech, Software, Medical Informatics, Medical Devices, DOD Bytes: 11586145 LISTEN 6/23/08

502_ TiE Rockies Lively Panel: Getting Funding in Hard Times

Businesses the world over are experiencing a slowdown as the worst economic crisis since World War II unfolds. Not everyone agrees with that doom and gloom outlook. But what if you have a great business idea or winning product or service...or if your business is expanding? You need financing and you need it now! Now a few more agree with that challenging outlook. TiE Rockies put together a lively panel (and it was lively) to discuss and debate 'fundraising in hard times'. Catharine Merigold, General Partner of Vista Ventures, served as the Event Moderator. Panelists included Dan Caruso, CEO of Zayo Group, Mike Devery, Market Manager - Rocky Mountain Region, Silicon Valley Bank, Brad Feld, Managing Director of Foundry Group, and Vipanj Patel, Managing Director of iSherpa Capital. They covered: - How can you stand out from the pack so that you get the financing you need? - How can you get funding for expansion as the capital markets contract? - How can you get your business launched in these tough economic times? ...and much more. Listen to this part of the on-the-spot recording of this panel discussion. You will learn things about Brad, Dan, Mike, and Vipanj that you won't hear anywhere else.
Related Links: TiE Rockies || Venture Capital || w3w3 Blog || w3w3 Community Calendar of Events || Keywords: Brad Feld,Foundry Group, Catharine Merigold, Vista Ventures, Dan Caruso, Zayo Group, Mike Devery, Vipanj Patel, iSherpa Capital, Silicon Valley Bank, Venture Capital, Funding- Bytes: 17303826 - 6/9/08

505_ Do You Have a Great Business Idea or Winning Product...and? PART 2

At the TiE Rockies event/discussion/debate/lively panel, Pat & I enjoyed Brad Feld's response to "There's not enogh capital," with "That's a total copout. Capital finds deserving companies...entrepreneurs with something great will get funded." There was some uneasiness with the entrepreneurs in the audience...but, they needed to hear it. During the Q&A, a person in the audience raised the assertion that he believed too much emphasis on preparing an extensive and polished business plan. He wanted the reaction of the panel as to whether the idea was far more important, and that it should be presented in a concise executive summary and a follow-up face to face meeting. Dan Caruso's response was, "That even more important was establishing a relationship and positive impression well in advance of presenting an idea. The investors need to conclude they want to fund you. Get over this hurdle first, and then selling the idea will be far easier." This panel discussion is loaded with ideas and hard advice from this first-class panel at the TiE Rockies event. Catharine Merigold, General Partner of Vista Ventures, served as the Event Moderator. Panelists included Dan Caruso, CEO of Zayo Group, Mike Devery, Market Manager - Rocky Mountain Region, Silicon Valley Bank, Brad Feld, Managing Director of Foundry Group, and Vipanj Patel, Managing Director of iSherpa Capital.
Related Links: iSherpa Capital || Zayo || Foundry Group || Silicon Valley Bank || Vista Ventures || TiE Rockies || Keywords: Vipanj Patel, iSherpa Capital, Mike Devery, Silicon Valley Bank, Brad Feld, Foundry Group, Dan Caruso, Zayo, Catharine Merigold, Vista Ventures, Denver, Colorado, Venture Capital, Funding, Business - Bytes: 16862461 LISTEN - 6/16/08

497_ Keynote Address at the RVC 19th Annual Colorado Capital Conference
Marc Silverman, Managing Partner, Colorado Capital Group was the opening key-note speaker at the Rockies Venture Club 19th Annual Colorado Capital Conference. Colorado Capital Group invests in select companies in software, energy, medical device/healthcare and nanotechnology areas and they invest various amounts of money in their ventures, including a few in a smaller investment range. Marc Silverman is a successful serial entrepreneur. He is a founder and managing partner of Colorado Capital Group, a seed-stage fund providing capital and hands-on mentorship and discipline to early-stage Rocky Mountain region companies. Mr. Silverman is a seasoned corporate executive with over twenty-five years experience in technology product design, development, manufacturing, distribution, corporate management, governance, investor relations, and early-stage financing. He is a successful entrepreneur (two exits, incl. IPO), angel investor, and advisor. He is a savvy “bottom-line manager,” but is also highly regarded as a product design “visionary” and team builder. He has raised tens of millions in capital. ***Listen to this unedited keynote address*** it is loaded with excellent advice.
Related Links: Colorado Capital Group || 20th Annual Colorado Capital Conference || Entrepreneurs Channel || Rockies Venture Club || Keywords: Marc Silverman, Colorado Capital Group, Rockies Venture Club, Colorado Capital Conference, Capital, Bytes: 20031428 - 6/2/08

496_ The Do’s and Don’ts of Approaching a Venture Capitalist, Cold (Part 1 of 2)
"Every entrepreneur who has raised venture capital has heard it a thousand times — the best way to approach a venture capitalist is via a warm introduction," points out Chris Wand, Managing Director of the Foundary Group, a well known venture capital firm in Boulder. Chris goes onto explain to Larry, "The logic is that venture capitalists invest in people as much as they do in technology or business ideas, and having some connection (even if it’s indirect) is immensely helpful to the VC in determining if that entrepreneur is one the venture capitalist wants to back. The logic also continues that VCs are generally bombarded by requests for meetings, so a warm introduction helps an entrepreneur’s request get a quicker response. Unfortunately, as many entrepreneurs have realized, rarely do you have the luxury of relying only on warm introductions." Chris goes onto suggest, "Research the VC, his/her firm and their investments. If you’re asking a venture capitalist to take the time to read your business plan or take a meeting with you, then you owe it to him to take the time to understand who he is and what kinds of investments his firm makes. Reach out to the VC in a way that makes it easy for a VC to respond to your approach. Out of the three primary options—postal mail, phone and email — I think email is by far the best way to make the initial approach." There's much more...listen now
Related Links: Foundry Group || Private Equity Hub || Ask the VC Blog || Rockies Venture Club || Keywords: Chris Wand, Foundry Group, Venture Capital, Entrepreneur, Funding - Bytes: 6363640 - 5/26/08

498_ Recognize That Successful Fundraising is a Series of Small Steps (Part 2 of 2)
VCs are notorious for their hectic travel schedules, packed calendars and odd working hours. The cold email approach saves you time and makes it easy for the VC to quickly assess whether your opportunity is one that merits pursuing. Regardless of how you decide to approach VCs, make sure they provide all of your contact info (including email and phone number) so they can re-connect with you in whatever way is best form for them. That's a recommendation from Chris Wand, Managing Director of the Foundary Group. "I really respect it when someone cuts straight to the chase and tells me what they’re looking for and why they think I’m the right person for them to reach out to. It not only tells me the entrepreneur knows what he wants and is confident enough to just ask for it, but it also gives me a sense of where that entrepreneur is coming from, whether he’s done his homework and whether his interpretation of the situation matches my interpretation. "I’ve been on the receiving end of emails and voicemails that say nothing more than... 'I have a really exciting idea for a company and would like to arrange a meeting with you at your office next Tuesday.' Rather than make me intrigued, this approach usually makes me suspicious." There's more...
Related Links: Foundry Group || Private Equity Hub || Ask the VC Blog || Rockies Venture Club || Keywords: Chris Wand, Foundry Group, Venture Capital, Entrepreneur, Funding Bytes: 7421913 - 6/2/08

490_ Venture Capital Firm Targeting the Green Tech Industry
Here's a person who went from 10 years in the manufacturing industry, to President and CEO of Webroot Software and David Moll is now founder and partner of Infield Capital, a Venture Capital firm targeting the Green Tech industry. "Our specific target market is focused on the transportation industry specifically, with a tight orientation around what I'm calling future power train. Those innovations between the key and the wheel that are going to reduce the amount of energy we consume in transportation and the amount of pollution we do generate when we consume. So there are just a number of areas that jump out. Between the key and the wheel, we've got the transmission. There's some really neat companies doing things with 'continuous variable transmission'. There's the internal combustion engine, and I am stunned, to see how many university engine labs are spitting out tech transfer programs. And there are some very very promising concepts that are early, and not all of them are going to work. But there are some new engine technologies that I think are extremely viable and is going to cut gas consumption even, if we continue to burn gas in the near term, by potentially 30-60%." David also works with and suports other startups in unrelated sectors including Boulder Non-Linear Systems, Newton Running, University Parents and remains on the Webroot BOD. See David at the Colorado Capital Conference on the Building a Winning Team panel.
Related Links: 20th annual Colorado Capital Conference || Conscious Economy Channel || Rockies Venture Club || Find It || Keywords: David Moll, Infield Capital, Rockies Venture Club, Colorado Capital Conference, Teams - Bytes: 20583970 - 5/19/08

482_ Money, Music and More: Bringing Balance - Your Soul Patch (Part 1 Below)
Part one of the interview with Jason Mendelson and Ryan McIntyre, both Managing Directors with the Foundry Group was focused on intellectual property and the current 'copyright paradigm'. IP isuues are hot topics with their portfolio companies. Both men are dedicated to the success of the companies they work with. Larry had to ask, "How do you bring balance to your business and personal lives?" Jason's been playing the drums since he was 3, a percussionist, and actually supported himself playing music with big names like Aretha Franklin. Jason and Ryan met at Mobius in California. Ryan had built a recording studio in his home – 600 sq. ft of recording space, and had a band. Jason showed up one day, "..the idea was that I would be a consultant to the band." Things took off from there. Ryan said, "In general our lives are hectic with a thousand calls in the air, generally multi tasking, always thinking about the past, present and future, and the great thing about music... it’s then. When I’m playing music there’s no room in my head for anything other than the moment. That’s a liberating thing and it is great for bringing balance." BTW, the music at the beginning and end of this interview is a small part of the second album produced by Jason's and Ryan's band 'Soul Patch'. Enjoy!
Related Links: Foundry Group || Ask the VC || Venture Capital Channel || Soul Patch || Keywords: Jason Mendelson, Ryan McIntyre, Foundry Group, Venture Capital, Ask the VC, Trade Secrets, Intellectual Property, IP, Patents, Soul Patch - Bytes: 24152505 - 5/5/08

481_ Intellectual Property Can Save You or It Can Get Ugly
Don't despair. The scary aspect, that a cheap patent lawsuit could cost $1 to $2 million to defend... Still, patents can make a difference when you are seeking an investor. Jason Mendelson, managing partner of the Foundry Group and Ryan McIntyre, also a managing partner of that Venture Capital firm go onto point out that a bigger patent case can cost $10 million and up. "Most are spurious with the intent to halt progress of a competitor, or put small startups out of business. The idea of a 7 or 8 figure legal bill, for a startup company todefend your intellectual property will destroy most companies. Even venture backed startups do not have the resources to fight that. They typically end up settling and making some sort of agreement where they have to pay royalties to the plaintiff." They talked about 'patent trolls' and pointed out that prior to 2007, 92% of the cases that went to trial, the plaintiff won...ouch. They discussed other IP issues and Jason said “Trade Secrets" are the forgotten stepchild of IP. When you hear trade secrets you think of KFC recipes. You don’t find too much Trade Secret protection happening in the VC world – I think that’s a mistake.” We don’t like the ‘patent paradigm’ we’re in, but in order to have a defensive strategy you’ve got to have a shield. We do encourage our companies to get patents. If nothing else, as a bug spray to the patent world. BTW, the music at the beginning and end of this interview is a small part of a CD produced by Jason's and Ryan's 'Soul Patch' band. Enjoy!
Related Links: Foundry Group || Ask the VC || Venture Capital Channel || Soul Patch || BYTES:23115131 - 4/28/08 > Keywords: Jason Mendelson, Ryan McIntyre, Foundry Group, Venture Capital, Ask the VC, Trade Secrets, Intellectual Property, IP, Patents, Soul Patch

476_ Learn what Actually Goes Through a Venture Capitalist’s Head
Have you ever wanted to learn firsthand what actually goes through a venture capitalist’s head while doing deals. Jason Mendelson, Managing Partner of the Foundry Group levels with Larry as he is asked some probing questions about how Venture capitalists think. Larry wanted to know answers (and opinions) about: Whether it be the initial funding, later rounds, time of acquisition or IPO, what are the incentives that drive a VC’s behavior? How are valuations arrived at? Why do some companies get “better deals” than others? What exactly makes up a “good” deal? Join Jason Mendelson, who has over 10 years experience in the venture world and has structured more than 500 deals in excess of $8 billion dollars. Check this out: Assume a VC decides to invest in a company. What do they REALLY care about when negotiating a deal? There are so many terms to keep track of? How on earth do VCs value private companies? Why do some companies get higher valuations and some lower? What are the terms that can really matter? To the point that I lose control of my company? (Hint: Control and Return). Jason also shares the three key issues when VCs consider investing in a startup.
Related Links: Foundry Group || Ask the VC || Venture Capital Channel || Podcast Directory || Keywords: Jason Mendelson, Foundry Group, Venture Capital, Ask the VC, Valuations, Funding, IPO, Acquisition - Bytes: 25253410 - 4/21/08

362_ Heidi Roizen : Living in the Entrepreneurial Ecosystem
Heidi Roizen has spent her entire life in the entrepreneurial ecosystem of Silicon Valley, first as an entrepreneur and ultimately as a venture capitalist helping other entrepreneurs build the great companies of tomorrow. She is currently a Managing Director of Mobius Venture Capital, a venture fund with over $2 billion under management. Lucy Sanders, CEO and Founder of the National Center for Women & Information Technology and NCWIT board member, Lee Kennedy with Larry Nelson, co-founder of w3w3.com explore the 'legend behind the lady entrepreneur'. They got some great advice for all who want to build a substantial company. Heidi's father continues to be influential in her thoughts and actions. Heidi's definition of common sense networking is an understanding of what to give in return and to ask for help when it is appropriate. Her long-time friendship with Bill and Melinda Gates is very inspiring and explains why she considers passion, tenacity and learning new things key to building the future. A day before this interview, Heidi funded a new company...there will be news here. LISTEN

Related Links:  Mobius Venture Capital || NCWIT Heroes || NCWIT Blog || CO Coalition for Gender and IT || NCWIT Practice|| NCWIT Channel || Keywords:  Heidi Roizen, Mobius Venture Capital, Lucy Sanders, Lee Kennedy, Entrepreneurs, National Center for Women & Information Technology, NCWIT Heroes >Bytes: 16585563>8/20/07

589_
Guy Kawasaki Talks About Innovation, Change and Entrepreneurs
Larry cornered Guy Kawasaki at the BioWest conference after his keynote address. Guy, author of the best selling book, The Art of the Start and Reality Check is also cofounder Alltop.com as well as Garage.com. Larry asked, "We are going through some tougher times, how do you see this playing out?" Guy, a champion for entrepreneurs replied, "Well, I’m not a visionary or an oracle, I’ll tell you what I would tell an entrepreneur, which is, ‘plug your ears and keep going!’ Of all the tech startups one out of 5000 go public so what difference does it make what the DOW Jones Industrial Average, especially tomorrows DJIA, maybe 5 years from now it’ll matter, but not tomorrow. If you just try to build a great business, hopefully that great business will make a ton of money. If you make a ton of money, maybe you’ll go public – still unlikely, but you might; and you might get acquired, also unlikely but we go from one out of 5000 to one out 500, something like that, so that helps. But even if none of those sort of dream things happen, you have a good business! If you only start businesses in good times, you may have to wait a few years – I really don’t see why it truly matters. You either believe or you don’t believe. If you’re an entrepreneur who says, ‘well, I’m not going to start a company because the stock market is too low and unemployment is too high’, I’ve got to tell you I would put those two items right at the bottom. You have to develop a good product, you have to make it, you have to sell it, collect the money and service your customers, pretty much the fundamentals." Listen for more insights...
Related Links: Alltop.com || Garage Technology Ventures || BioWest 2008 || Guy Kawasaki Blog || w3w3.com Blog || Keywords: Guy Kawasaki, Garage Technology Ventures, Alltop.com, BioWest, DOW Jones, Art of the Start, Reality Check, Entrepreneurs, Blog - Channels: Bio, VC, Bytes: 9134814 - 11/17/08 LISTEN

563_ The 2nd Annual Angel Capital Summit is Heading Our Way
This year they’re scripting it to be twice the size because it sold out last year. They have room for at least 1000 people; and billions of dollars in investments made, represented on the executive committee at the Rockies Venture Club 2nd Annual Angel Capital Summit. This is a state wide networking event, pulling together on the platform each group providing deals to the event. Kevin Johansen said, “Our groupware has a deal flow management system embedded in it. By example Grand Junction Incubator is recruiting advisors to their group to help them screen their deals and submit the best of the best up to the Angel Capital Summit executive committee. That's the semi finals.” From there the executive committee (representing lots of money actively seeking deals) will screen and select the top 40 to be presented on November 21st – all day. At the end of the day we’re pulling together a ‘town hall meeting’ with thought leaders from up and down the front range, to basically sit down and talk about how to make sense of what’s happening in the economy. We’re trying to open up the conversation and address these problems. It’s a scary thing to be out there all by yourself, we don’t want anybody to think they’re all by themselves. Everybody in the room wants everybody else in the room to be successful. The focus isn’t only on raising money but also getting help, mentorship and so on.
Related Links: Angel Capital Summit || Rockies Venture Club || Business Catapult || Venture Capital || Keywords: RVC, Angel Capital Summit, Angel Funding, Venture Capital, Kevin Johansen, Business Catapult > Bytes: 7950736 > 10/06/08 Channels: VC LISTEN

558_ TechStars Winner Going Global - Australia, UK & Japan

The Wall Street Journal article highlighted this trend of group dating and featured Ignighters as one of the leaders in the market. They threw a party in New York recently which was a great success. Larry did a follow-up interview with the Ignighter cofounders Adam Sachs, Kevin Owocki and Dan Osit. They were one of the top ten TechStars 2008 startup companies. The guys were excited to point out, "It’s funny because group dating is actually a cultural phenomenon in different parts of the world and so we’re discovering there is a lot of interest in group dating in countries like Australia, the UK and other European countries as well as Japan. So right now, Australia is one of our fastest growing markets." Ignighter is group to group dating. What that means is you and your friends create a group profile and then search your area for another group with whom you plan an offline date. It works, in contrast to the conventional dating sites where those sites ask you to create your own one-on-one awkward blind date. With Ignighter you meet people the way you do in real life, which is with your good friends...listen now.
Related Links: Ignighter || TechStars Blog || Colorado Startups || Podcast Directory || Radio Blog || Ignighter Blog || WSJ Article "All Together Now" || Keywords: Ignighter, Tech Stars, Group Dating, Adam Sachs, Kevin Owocki, Dan Osit, > Bytes: 9902605 > LISTEN 9/22/08

548_ Supporters of Techstars Come From California to Massachusetts
"TechStars has some great companies here including a hardware company, a software company, tools, and a wide range of different companies." Three ardent supporters from Microsoft commented on the Techstars Investor day and about what lessons were learned by all. Dave Drach, Managing Director, Business Development Team, Denver, CO; Don Dodge, Director, Emerging Business Team, Waltham, MA; Anand Iyer, Evangelist – San Francisco, CA were the three Microsoft champions interviewed by Larry. "There were 150 investors from across all the United States, to see the 10 companies." "So, it’s pretty interesting to see the innovation coming out of TechStars here in Boulder. It’s great to see the passion and sparkle in their eyes when they get up to demo their product and show something that’s never been seen before. So, it’s pretty interesting to see the innovation coming out of TechStars here in Boulder. One company started out with an optical recognition of receipts and evolved into their picture, mash-up, automated demo we witnessed today. So a significant evolution of blending the technology and team into something that’s very impressive now. Any startup company can engage with Microsoft. We have a website called the Microsoft Startup Zone. We're very active in the Boulder/Denver community. We’re active with some of the VCs in the area, like Brad Feld. At Microsoft in the Emerging Business Development Team, our total goal, we want to find startups, help them succeed, and build partnerships with Microsoft and get them the resources they need to succeed. What better place to do that than TechStars.
Related Links: Microsoft Startup Zone || Don Doge Blog || Tech Stras || TechStars Investor Day Photos || Keywords: Dave Drach, Don Dodge, Anand Iyer, Microsoft, TechStars, Investor Day, Brad Feld, Entrepreneurs, Emerging Business Development > > Bytes: 10403320 > LISTEN 9/8/08

New Perspective on the "10 Immutable Laws for Raising Capital"
538_ In 2005 when Larry interviewed David Moll he was the President and CEO of Webroot and still remains on the board. Today he is the Founder and General Partner of Infield Capital, a Venture Capital firm targeting the Green Tech industry. During that 2005 interview, David shared his "Ten Immutable Laws for Raising Capital". Now that David is on the other side of the isle, Larry and Pat wanted to ask him how he looked at those same 10 immutable laws for raising capital. Now that he is a venture capitalist, will his take on them be the same or is the new perspective changing his point of view? Infield Capital has built their fund around a model that really addresses some of the huge requirements of early stage clean technology companies. Recognize the nuances of commercialization of industrial products that wasn’t there for software and high tech. Infield Capital is built on the idea that they can provide unique assistance to the companies that are ready to move from the lab to the production floor. David's first immutable law is 'Make sure you need the cash'. The second, 'know what your options are' and the third, 'choose your investor like you choose your spouse' (David is a winner in both areas) and the forth 'check out the references of your investors'. Listen now in David's own words...
Related Links: Infield Capital || Conscious Economy Channel || CORE || Venture Capital Channel || Keywords: David Moll, Infield Capital, Venture Capital, Clean Technology, Capital, 10 Immutable Laws - Bytes: 14370171 - 8/11/08

527_ Brad Feld, Foundry Group, Reporting in From Homer Alaska
Entrepreneurial challenges started the the conversation Larry had with Brad Feld. Learning more from mistakes than entrepreneurial wins, Brad shares some great advice for all of us. The challenges and the choices he put it this way, "It's summarized in one word...'people'. Whether it was as an entrepreneur or as an investor, I realized at times that I was working with people that had different value systems than I did. Essentially the different value systems and perspectives are helpful, but a lot of times get in the way, especially when there’s stress on the system. Another big lesson I’ve learned is that I really want to spend my time with people I enjoy working with. Spending time, especially when you’re trying to create businesses with people, who get stuck in endless drama because they don’t like you, or you don’t like them, or you don’t like working together is kind of a pointless experience." Brad also adds on the people issue by talking about his partners. Larry asked him if we were heading for another 'Dot Bomb'. "I think there are always cycles of positive time and negative times. While I have no idea what the peaks and the troughs of the future will be, I think it doesn’t matter. What we know is there will be peaks and troughs." Brad went into a deeper discussion on this topic and then went onto share his thoughts on social media and Web 2.0...which are subsets to an overarching movement. Listen to Brad's thoughts...they're right on.
Related Links: Foundry Group || Feld Thoughts || Venture Capital Channel || Podcast Directory || Keywords: Brad Feld, Foundry Group, Entrepreneur, Venture Capital, Dot Bomb, Web 2.0, Social Media > Bytes: 9307013 LISTEN 7/21/08

528_ Brad Feld, Foundry Group, Talks About the 'Change' in the Air
(Part 2 of 2) With all the changes occurring at the fast pace, Larry asked Brad Feld, Managing Director and co-founder of the Foundry Group in Boulder, "If you were giving advice to a roundtable of business leaders and entrepreneurs, what would you have them do to better prepare for change?" Brad was very straight forward and said, "I would tell them not to fight change, to recognize there are a whole bunch of things you can't control and are going to happen, regardless of what you do. My father gave me great advice when I was a kid. He said, 'Find your 2% of the world that you can impact and spend all your time there.' Obviously the 2% is metaphorical. Picture your tiny part of the universe. Try to create something that dominates that area that's your favorite, rather than try to control all of the things that you cannot impact." Brad also talked about the disappearing age breakdown on the Internet, including mobile devices. He also has some interesting views about Google and today's changing search strategies. Brad is a master at entrepreneurial strategies and how innovation impacts business development. Brad said, "Well the way innovation works, especially with information products, is the newer innovation just constantly supersedes the older innovation. So, it's natural that they are popular and critically important for relatively short periods of time. Whenever I hear people talking about innovation slowing in the software/ hardware business, I just chuckle." Obviously, change is in the air. Listen for more insights.
Related Links: Foundry Group || Feld Thoughts || Venture Capital Channel || Blog || Keywords: Brad Feld, Foundry Group, Entrepreneur, Venture Capital, Dot Bomb, Web 2.0, Social Media - Bytes: 9307013 LISTEN 7/28/08

509_ Is an Advisory Board or Advisors Really Necessary?
A board of advisors for a startup can be critical for some, and situational for others. Seth Levine, Managing Director, Foundry Group discusses the needs, uses and the role of an advisory board. Seth is 'pro advisory board' if the selection process is done the right way. It is very important to try to get at least one advisor from each category necessary to start and run the business. Then add additional advisors to the mix as needed. An overlooked factor in an advisor and startup relationship is compatibility. Startups should work with advisors that share their communication styles, work ethics, interests, and curiosities. It is extremely important to work with people you like and respect. Yet include some who are challenging when it comes to innovation and strategic planning. Seth, in part 1 of his interview talked about what it is like to work with his partners at the Foundry Group...they would be Brad Feld, Jason Mendelson, Ryan McIntyre, and Chris Wand. Listen and you'll get some personal insights. He also poked a hole in the bubble and comments on Google and a bunch more. Seth gives some great advice that will help you reduce or eliminate the risks associated with building your company and selecting your advisory board. He defines the Role of Company Advisors; answers the question, "Is an Advisory Board or Advisors necessary?" and "What do good Advisors do?" Listen, there's more...
Related Links: Foundry Group || Seth Levine Blog || Venture Capital Channel || Rockies Venture Club || Keywords: Seth Levine, Foundry Group, Advisory Board, Compatibility, Funding, Startup, Entrepreneurs > Bytes: 10052652 LISTEN 6/23/08

508_ Seth Levine, Managing Director, Foundry Group - with Insights
"People like to say we're in a bubble right now, and I don't even know what that means. I think 'bubbles' are overrated. We have a cyclic economy - maybe it's an up cycle and maybe it's a down cycle. But I think people like to speak too much in superlatives."

Let's get back to the bubbles later. Larry asked Seth, what's the difference between managing directors and managing partners? (On a personal note, I remember when Larry was 'the' managing director of our European firm, 191.. he was the only managing director.) You'll have to listen to Seth's explanation of why they have five managing directors.

507_ What Are the Essential Ingredients for Building a Winning Team?
Whether your organization is a startup or an enterprise size company, whether you are in the public or private sector, whether you are in products or services, building and maintaining a 'winning team' is the key to most everything. Founders, executives and leaders might each have their own definition of a winning team, Catharine Merigold and Lisa Reeves, both General Partners with Vista Ventures shared their views from a venture capitalist's perspective. Catharine suggested that the two essential ingredients for building a winning team were respect and fun. Lisa emphasized that a successful CEO will hire individuals that don't look exactly as he looks. Another common mistake is made when people will choose individuals they know, friends, people who agree with them because it feels faster, it's easier to get things done. In building a team, people who think like you aren't creating additional value. Respect is critical because there are going to be some differences of opinions and if you don't respect each other it can be difficult to get through these challenges. You don't necessarily even have to like the people; it is respect that becomes important. Respect builds trust. If I respect someone's expertise, their talent, their values we can get through a whole lot of things. Here is a timely comment, "You don't have time for politics." They went onto discuss diversity, passion and other essentials for building a winning team.
Related Links: Vista Ventures || Venture Capital Channel || Rockies Venture Club || Find It || Keywords: Catharine Merigold, Lisa Reeves, Vista Ventures, Winning Team, Respect, Fun, Diverse - Bytes: 12075993 LISTEN - 6/16/08

500_ Why Colorado is a Statement and Not Merely a Question
Moving from the US to Europe to Silicon Valley and then onto wonderful Colorado. Why Colorado is a new series being launced by w3w3.com. Catharine Merigold and Lisa Reeves, both General Partners with Vista Ventures are the first two people to be interviewed by Larry for this new series. In addition to a little background, both Catharine and Lisa were asked, "Why did you choose to live in Colorado and grow your business here?" They were then asked, "What needs to improve in Colorado to make it even better?" The overall physical environment was important to both, but for very different reasons. Catharine actually did a national search to find the area she wanted to live and work in, and then chose Colorado...Lisa did much the same. Catharine said, "Also technology and entrepreneurship matters, I'm an engineer and I love technology and I wanted a place where there was an abundance of that, so those were two of my important criteria." Lisa pointed out, "what I would like to see, especially within the venture community, for the VCs and the entrepreneurs as well, to really drive some of those relationships with the large corporates that are aggressive acquirers." Improving the University System was a top priority for both. They feel that Colorado's Universities are premiere institutions in many ways, and are delighted with the collaboration but feel there are some important strides to be taken. Listen, there's more...
Related Links: Vista Ventures || Venture Capital Channel || Rockies Venture Club || PodCast Directory || Keywords: Catharine Merigold, Lisa Reeves, Vista Ventures, Colorado, Universities, - Bytes: 6901240 - 6/2/08