FundingPost Venture Funding Panel

Yesterday I participated as a panelist in an Early-Stage VC and Angel Investor event organized by FundingPost.com.  The event was sponsored by Perkins Coie and the panel was ably facilitated by Partner, Ben Straughan (see 3^rd photo from top with Ben standing far left).  Also serving on the panel pictured above(see top photo above from l-to-r) was Saqib Rasool, CEO and Angel Investor of Conceivian; Petra Franklin, Managing Director of Vault Capital; me, Lucinda Stewart, Managing Director of OVP Venture Partners; Bill Bryant, Venture Partner at Draper Fisher Jurvetson; Bill McAleer, Managing Director of Voyager Capital, and Janis Machala, Angel Investor of Paladin Partners.

The event began with at least 15 or more entrepreneurs each sharing a two minute elevator pitch.  The entrepreneurs varied widely from those with just the seed of an idea to those with companies that are already producing revenue.  The most memorable was a young man who presented first, wearing a shiny white satin suit and who boomed out his elevator pitch at top volume.  Many of the presenting entrepreneurs had just completed a pitching workshop earlier that day and for some, this was their first public pitch.  There were a few entrepreneurs who have previously pitched at ZINO Society; Michael Williams of Reality Gap (also winner of 2008 ZINO Zillionaire Investment Forum best presenter award), Burt Hamner of Hydrovolts (also winner of ZINO Green 2009 Best Investment Opportunity and current fund finalist in ZINO Green 2010 Best Investment Opportunity), and Greg Lambrecht of Text-a-Day.

The future funding outlook as presented by the panel was relatively positive with the exception of self-described contrarian, Bill Bryant.  See second photo above with Bill 3^rd from left smiling and looking not like a contrarian at all!  Panelists answered questions about what investors look for in a pitch.  Here are my top ten:

1.       A one sentence description right up front in laymen’s terms explaining what problem the business solves.

2.       A reasonable valuation.

3.       How is the product or service is better than what others are doing?

4.       Is there already proof of concept and actual revenue?

5.       What is the addressable market and who are most likely competitors?

6.       What market channels have been identified and how will they be accessed?

7.       How will the funds being raised be used?

8.       What is the entrepreneur’s past experience and expertise and that of his/her team?

9.       What is the envisioned exit strategy and who are likely acquirers?

10.   What rights, deal sweeteners, preferences, etc. does the investor get for participating?

We each were then asked to share an important piece of advice on what to do or not do to be most effective in raising money from investors.  My advice was to take the time to listen to potential investors and hear out their feedback and advice.  The biggest turnoff is an entrepreneur who comes across as arrogant or a know-it-all and who refuses to listen.     

Master of Wine Tuesday at Rovers!

Last night, the staff of Rovers did an incredible job of presenting the ZINO Society Master of Wine Tuesday at Thierry & Kathy Rautureau’s beautiful restaurant, Rovers.  Scot Smith, Rovers Wine Director/Manager, shared information on the wines that were paired with the seven courses of exquisite food.  The design of the menu was to take an escorted tour of France so each course was specifically paired with a beautiful wine that is recognized as a hallmark wine of that particular region.  Chef Thierry’s (aka “The Chef in the Hat”), masterful food pairings, as delicious as they were visually beautiful, were great manifestations of the regional cuisine of France.  We were encouraged to imagine a trip through France with the only criteria being the pleasure of our senses . . . Sight, Smell, Touch, Taste and Sound!

We began the evening with a crisp Taittinger Champagne and then our palate was titillated with a sensory Amuse Bouche (see photo above) that included duck confit, house-smoked salmon with crème fraiche and velvety asparagus soup.

Taittinger, Cuvee Prestige, NV Champagne FR

Amuse Bouche

Sancerre, Francois Crochet, 2008, Loire Valley, FR

Dungeness Crab with Fennel, Celery Root-Apple Salad and Orange Dressing

Pessac-Leognan, Lagrave-Martillac, 2004 Bordeaux FR

Alaskan Halibut with Red Quinoa, Roasted Baby Turnip and Arugula

Gevrey-Chambertin, Les Seuprees, Premiere Cru 2004, Burgundy FR

Braised Pork Belly with a Quail Egg, Parsnip Puree, Leek and Meyer Lemon Confit

Rhubarb Sorbet with Ginger White Wine Pearls

Saint Joseph, JL Chave, Offerus 2004, Rhone Valley FR

Roasted Muscovy Duck Breast with Spinach, Herbed Farro, Mushroom and Thyme

Banyuls, Olivier of Chrystel Saperas, Vial Magneres, Tradition 4 Years, Languedoc FR

Warm Goat Cheese Crottin with Preserved Fruit Chutney

The ZINO Society members and guests all had a wonderful time, the noise level in the room escalating as the evening progressed.  Two of our guests, Eden and Hank Waggoner,  were celebrating birthdays and they were properly serenaded by the rest of the group (see photo above).  For a few, it was their first visit to Rovers, and they were hugely impressed with the quality of the food and service as were those of us who were happily returning for yet another amazing and impressive dinner.

Photo Gallery Above:

Top photo:  Bernadine Dochnahl, Chef Thierry, Cathi Hatch, Denny Dochnahl, Ken Hatch

2^nd photo:  Amuse Bouche

3^rd photo: Eden & Hank Waggoner

4^th photo: Randy Squires & Angela Polin

5^th photo: Bob & Katie Nowlin, Mary & Don Gher, Isabella McPeak

6^th photo: Debe Doran & Dana Reid

Drinking and Driving!

It was grey and overcast this morning with a stiff wind blowing, but Deb Doran, Dana Reid and I decided to play our scheduled game of golf anyway at my home course, Overlake Golf & Country Club. OGCC still has the archaic rule that only men are allowed to play on Saturday mornings until after 11:00 am. Of course, the fact that Deb, Dana and I all work fulltime during the week along with many other female golf members is not a consideration. I will save this fight for another time, but don’t you think it is time for these private golf clubs to recognize that we are in a new century and embrace the fact that it is a different world now than it was when these rules were initially established? Some may still be surprised to learn that women even have the right to vote now! I digress . . .

Deb and Dana are both beautiful golfers with long, clean drives and precise and accurate putting. I, on the other hand, tend to flail about the course almost always at least a couple of strokes behind. Though I am pleased that I did make one par today on hole #12, beating both of them on that hole only.

Throughout our game, the wind continued to get more aggressive and though we all had jackets, it was very cold. On the back nine, Tim, one of the assistant pros, stopped by to talk with Deb and me to see how we were doing and offered to bring us a drink. Dana had been talking about a hot chocolate with Peppermint Schnapps from the moment she alighted shivering from her car, so Deb and I were happy to surprise her with one when Tim returned bearing three piping hot chocolates laced with Peppermint Schnapps.

It was a drink that I hadn't tasted in years, but I have to admit that it was absolutely delicious. In fact, my drives improved almost immediately so I have decided that I am now a proponent of “drinking and driving” (only golf balls of course)!

ZINO Life Seattle a Success!

Yesterday at the beautiful Pan Pacific Hotel, ZINO Society was the proud presenter of ZINO Life:  Life Sciences Investment Forum along with our partner, WBBA.  We were very pleased to have around 120 members and guests in attendance to hear 15 entrepreneurs present their companies’ needs divided into three dealflow flights:  Seed Stage, Launch Stage and Expansion Stage.  (See alphabetical list and links of the 15 presenting companies below at the bottom of this blog post.)  Each of the entrepreneurs was carefully screened and then coached to be successful in presenting their pitches succinctly and clearly in 7 minutes each with 2 minutes following for questions and answers.  Though we are usually quite time sensitive and strive to stay on the agenda schedule at all of our events, we were thoroughly impressed with the results and that we were able to stay completely on schedule for the entire afternoon with Events and Marketing Manager, McKenzie Powell’s chimes warnings and agenda timing tools.  Or maybe it was the delicious chocolate treats that brought people back to their seats so effectively that sponsor, Stoel Rives, shared as part of the coffee break they sponsored.

In addition to the entrepreneur presentations, we had the opportunity to hear insights and experiences from keynote speaker Patrick Jensen of SpaceLabs during the “Fireside Chat” portion of the afternoon (see top photo above).  However, in the spirit of full disclosure, there was NOT a fireplace in sight!  Following the keynote, the expert panel discussed some of the opportunities and the challenges facing life science companies and included David Schubert, President of Accelerator Corporation; Marty Simonetti, President of VLST Corporation; Chris Rivera, President of WBBA; Michelle Burris, COO of Trubion; facilitated by ZINO Life major sponsor Alan Smith, Partner at Fenwick & West, (see 2^nd photo above).  Alan did his usual great job of extracting and managing the plethora of information that our expert panelists were ready to share.

Patrick Jensen then joined the expert panel to participate in the Due Diligence LIVE! process to question the three entrepreneur finalists  (see 3^rd photo above) selected by the ZINO Life 2010 Investment Fund investors.  The three finalists gracefully surviving their due diligence grilling were Kevin Connolly of SRS Medical, Carole Spangler of Seattle Sensor Systems and Paul Slowey (aka “Dr. Spit”) of Oasis Diagnostics Corporation, who was also last year’s winner of the ZINO Life 2009 Investment Fund.

The ZINO Zenith Award winners were selected by all the attendees at the event via written ballot.  Winning the award for Best Presenter was Richard Lazar of DeltaPoint and for Best Investment Opportunity was Carole Spangler of Seattle Sensor Systems (see 4^th photo above).

The event concluded with fantastic passed hors d’oeuvres provided by our venue sponsor, Pan Pacific Hotel, and wine and beer courtesy of our ZINO Society Wine/Beer Professional Members, Don Wood of Icicle Ridge Winery, Joseph & John Miglino of Martedi Winery, and Charles & Rose Ann Finkel of Pike Brewing Company (see 5^th, 6^th and 7^th photos above).  Along with the excellent beer and wine selections, conversations flowed!

Next stop is ZINO Life Portland on April 29^th with a new set of sponsors, expert panelists and keynote speaker, but the same screened and coached presenting entrepreneurs.  Click here for registration info.

ZINO Life Presenting Companies:

Coherence Resources

DeltaPoint

DesignMedix Inc

Emergent Detection

Empowering Engineering Technologies

Guided Therapeutics

Impel NeuroPharma

Oasis Diagnostics Corporation

OnPoint Medical

PredictDent Corporation

Seattle Sensor Systems

SRS Medical

Sweet Spot Diabetes

ThermImage

Valant Medical Solutions, LLC

Wine Tasting at King Estates in Oregon

On Sunday morning, bright and early, I flew down to Eugene along with Michael Heijer and Basant Singh to attend a two-day bank board retreat.  Michael and I are the Seattle Directors for the Pacific Continental Bank Board of Directors and Basant is the Pacific Continental Bank Market President for Seattle and Bellevue.  We spent all day on Sunday in an ALCO Committee Retreat, but were rewarded at the end of the day with dinner at a spectacular local winery, King Estate.

Founded in 1991 by the King family, King Estate is comprised of over 1,000 acres and includes 465 acres of organically certified vineyards, 15 acres of orchards and a state-of-the art winery.  The winery, which reflects the architectural traditions of Europe, is majestically situated atop a hill surrounded by vineyards and produced around 175,000 cases of wine last year.  Located within the winery is an excellent restaurant where we were led to a private room with a wood-burning fireplace for our wine tasting and dinner.   

It was a great opportunity for the Pacific Continental Bank Board of Directors and management team to spend some non-meeting time together relaxing and talking about other topics in addition to bank business.  CEO, Hal Brown, toasted the group as did Chairman of the Board, Bob Ballin.  President, Roger Busse, toasted Shannon Coffin for all of her efforts in pulling off the entire weekend so seamlessly and efficiently with every detail handled.

We began the evening with a blind wine tasting of three Pinot Gris white wines and were asked to guess which was the correct vintage for each; 2004, 2007 or 2008.  Several of us got all three of these wine vintages correctly.  Next we were asked to guess which was the correct vintage for three Pinot Noir red wines; again 2004, 2007 and 2008.  Only one of us identified both flights of wines correctly and the winner was Casey Hogan, the Chief Credit Officer for the bank.  It appears that Casey has a nose for more than low risk bank credits!

Top photo from L to R:  Basant Singh, Bob Ballin, Michael Heijer, John Rickman

2^nd photo from L to R:  Don Krahmer Jr, Hal Brown

3^rd photo from L to R:  Rachel Ulrich, Casey Hogan, Cathi Hatch

4^th photo from L to R:  Shannon Coffin, Roger Busse, Charles

5^th photo from L to R:  Charlotte Boxer, Dan Hempy

6^th photo from L to R:  Mike Holcomb, Mike Holzgang, Don Montgomery

7^th photo from L to R:  Roger Busse, Cathi Hatch, Charles

Cooking Class at Bastyr University

My fingertips still smell faintly of garlic following our cooking class tonight at Bastyr University.  Our hosts, Sue and Robert Holmes (see 2^nd photo above of Sue & Robert with Ken) invited us along with eight other couples to join them for a hands-on “Whole Foods” cooking class taught by, Cynthia Lair, Bastyr University faculty member, cookbook author and host of television show, Cookus Interruptus.

One of the guests, Steve Huebner (see 4^th photo above) kept all of us well supplied with incredible wines from his collection including Leonetti Cellar Cabernet Sauvignon and Merlot and DeLille Cellars Chaleur Estate.  See guests Dave Barber, Jim & Bonnie Towne and Jean Bartell Barber enjoying the fruits of the vine (3^rd photo above).

We divided into teams of three and each team was assigned two items to prepare.  Our team consisted of Rose Ann Finkel, Robert Holmes and me and our two items were Caribbean Lime Halibut and Cream of Asparagus Soup.  Robert and I were on garlic duty while Rose Ann grated fresh ginger.  Each team of three was paired with another team that prepared the other two menu items which were Emerald City Salad with wild rice and Fresh Fruit Ambrosia with Vanilla Nut Cream.  Our partner team included Ken Hatch, Dave Barber and Sue Holmes (see 5^th photo above of our group and 6^th and 7^th photos above of the other two groups).

Following the delicious dinner (really!), our job was to clean up and we were each sent home with the cookbook, “Feeding the Whole Family” by Cynthia Lair.  I look forward to trying it out!   

Book Club at The Panama Hotel

Though I usually have to miss it due to all my activities and work at ZINO Society, this week I attended my Book Club, of which I have been a member for around 30 years, which met at the Panama Hotel in the international district in Seattle.  Diane Kuenster was our hostess this month and the book that we read was “Hotel on the Corner of Bitter and Sweet” by Jamie Ford reviewed by Jan Rogers.  (See top photo of Denise Nielsen, Jan Rogers and Diane Kuenster in the attached Tea Room).

The story revolved around the wartime persecution and internment of Japanese immigrants during World War II.  In the opening pages of the novel, protagonist, Henry Lee comes upon a crowd gathered outside the Panama Hotel, once the gateway to Seattle’s Japantown.  It has been boarded up for decades, but now the new owner has made an incredible discovery: the belongings of Japanese families, left when they were rounded up and sent to internment camps during World War II.  The book tells the story of Henry Lee’s earlier life during the days of World War II and then his search to find his friend and the owner of some of the possessions that had been left behind when she was forced to go to the internment camp with her parents.

Since the Panama Hotel is a real place located at 605 ½ South Main Street in Seattle and has a Tea Room attached, it was the ideal place for Book Club to meet.  Jan Johnson, the current owner, bought the Panama Hotel in 1985 and has spent the last 25 years attempting to collect and catalog the many belongings and mementos that were from that period as well as from the time when the hotel was built in 1910 and on.  (See photos of Jan Johnson sharing photos of an earlier era from her collection and touring us through the attached bath house.)  Jan is an artist who has become an archivist and collector and advocate for the Japanese culture and the progenitors of the families who lived and worked in “Japantown” and whose descendants still live in Seattle.  She shared the story of acquiring the hotel and the challenges she faces with all the complexities of the ongoing business of running a hotel and keeping it true to the historical era and genre of what it was meant to be when it was built 100 years ago.  The number of keys she wore on her belt was impressive or frightening depending on your point of view.  My guess is that she had 40 or 50 keys on her keychain.  And now with the release of the popular book that highlights her hotel, she is getting many people stopping by to relive the story and to see the venerable, Panama Hotel.

Following the lecture and tour, the Book Club group adjourned to an adjacent room for a light lunch and review and discussion of the book by reviewer, Jan Rogers.  (See photo of hostess Diane Kuenster offering cookies to Jacqueline Witter and Kathy Haggart above.)  It was a fascinating afternoon which everyone seemed to thoroughly enjoy.   

Ode to Mike Kunath

The following poem is a tribute to Mike Kunath penned by Teri Citterman and read to him at his birthday celebration last week.  See photos of Teri, Mike, Kate Harrison, Mike Flynn, Gina Kunath and Michael Steiner above.

 

Ode To Mike – April 9, 2010

 

It seems like forever ago --

When I met with Dick Friel --

He suggested I meet a friend of his

I left with the Dick Friel-Seal.

 

There’s someone you should meet he said

Today at 4 pm

Kunath is his last name –

His first starts with M

 

On this auspicious day in 2000

The night of Halloween

I arrived at THE-THEN Four Seasons –

To nothing short of a scene

 

Look for a man in an Italian suit

Smoking a corn-cob pipe

As I walked toward the northwest corner of the room,

There, I spotted Mike

 

He seemed to be leading a circus

As a group around him spoke

About boarding schools and armor suits --

I was out of my league with these folk.

 

He introduced himself to me

And suggested” I sit down and wait

I ordered a glass of water

I’d made my first mistake

 

“I knew a man who ordered water” he said

As he sat straight and then leaned in --

“That man who ordered water

We never saw that man again.”

 

He then went on to explain

That the Grande Dame was for sale

And that he was part of a business group

Who wanted the Four Season to prevail

 

Now, if I understand correctly, he said

It’s PR that you do.

What would you tell a reporter

Of the news I just told you

 

I opened my mouth to speak

As a Times reporter took a chair

I looked at kunath puzzled

He didn’t seem to care.

 

He introduced himself to the reporter

Who took out a pad to write

“Uh-uh”, said kunath shaking his head. 

That’s not how it works tonight.

 

Mike then proceeded to tell him

Everything he’d just told me

And by the way he had stressed to me --

I’m telling you confidentially

 

So I sat there  having a seizure

Not sure what  I should do

Mike seemed to know what he was doing

But I did not have a clue

 

Then mike looked at me with a grin

Much like the Cheshire cat

I can tell you’re uncomfortable with what I just said

How would you have handled that?

 

I was a deer in the headlights

And wasn’t quite sure what to say

This was the first of many tests

I’d either pass or miserably fail.

 

Then the reporter got up and left

And mike again turned to me

C’mon let’s go to dinner. 

Is this guy hitting on me?
 

The condition is I get to ask

30 minutes of questions he said

That seemed like a reasonable request –

But I couldn’t just leav it at that

 

I’ll go to dinner I said,

But I have conditions too.

You can ask me the questions you want –

But then I’ll ask questions of you.

 

We agreed to the terms of the dinner

And unbenounced to me

I had just negotiated my first of many contracts

The terms favored him - usually

 

Over the years  we’ve shared secrets

Sometimes we’ve shared our dreams

One time he tried to set me up

An absolute CAT-AST-RO-PHE

 

I’ve learned a lot from Mike

No doubt both don’ts and dos

And there might have been a moment

Where he learned a thing or two

 

On that auspicious evening

When kids were dressed up strange

I had no idea of the impact

And how my life would change

 

So please  - raise your glass

And I think I speak for all of us

We are proud to be part of your crazy club

And its nightly 3 ring circus

 

Cheers & Happy Birthday!

With age comes wisdom . . .

Yesterday afternoon, Mike Kunath celebrated an auspicious birthday in his traditional corner of the Fairmont Olympic Hotel Bar also known as “The Mike Kunath Club Corner”. Organized by friend, Kate Harrison, and Mike’s son Spencer Kunath, many of his friends gathered to toast his health and congratulate him on achieving the ripe old age of 70.

In addition to Spencer, Mike’s older son Chris Kunath and wife Gina were there to join in the celebration (see top photo of Spencer, Mike and Chris above). Also there were Ken Hatch, Carmine Smeraldo (see 2^nd photo above with Mike), golf buddies Gene Becker and John Hallick, Michelle Rubesch (see 3^rd photo above with Kate), John Oppenheimer, Cynthia Johnson, Gene Juarez, Jerry Henke and Fawn Spade (see 4^th photo above with Mike), Mike Flynn, Nicole Vogel, Matt Walters, Dr. Michael Steiner and his beautiful dog, Anton (see previous blog post about Michael and Anton here) and others.

Though he received several cards and gifts, the special gift of the evening was from Jim and Sue Bianco and was a first edition of Herman Melville’s Moby Dick. In his accompanying card, Jim noted that it was the only gift he could think of that was older than Mike! (See 5^th photo above) The program included a toast from Spencer Kunath (see 6^th photo above), an original poem dedicated to Mike by Teri Citterman (see 7^th photo above), champagne, hors d’oeuvres and a birthday cake studded with 70 blazing candles and an off-key but enthusiastic rendition of “Happy Birthday” (see bottom two photos).

Happy Birthday dear Mike! We all wish for you at least 70 more!!

Art is in the Eye of the Beholder

Last night I attended the Junior League of Seattle Northwest Art Project Preview at the Wright Exhibition Space.  As a Past President of the Junior League of Seattle and past chairman of the JLS Northwest Art Committee, I was especially interested to see the entire art collection hung in one location.  One of the services that the Junior League of Seattle has provided the community is taking our art collection (usually one piece at a time) out to school classrooms and spending time talking about art and encouraging children to share what they see.  Each year, the Northwest Art Project introduces over 20,000 children to the rich production of these Northwest artists by exhibiting our highly respected art collection in local schools.

This event was a kick-off to the 50^th Anniversary of the JLS Northwest Art Project and was attended by both active and sustaining members of the Junior League of Seattle as well as many of the artists whose works are part of the collection.  Artists in attendance were Catherine Eaton Skinner, Joe Max Emminger, Norman Lundin (top photo with me above), Sherry Markovitz, Jose Orantes (2^nd photo above), Elizabeth Sandvig and Michael Spafford (3^rd photo above).  I was so pleased to meet Norman Lundin since husband, Ken, and I have one of his works and it has always been one of my favorite pieces of art in our collection.  It was also fascinating to watch artist, Michael Spafford, produce a new work on the spot as a door prize drawing, which unfortunately I did not win.

Honorary Event Chairs were Junior League of Seattle members, Dee Dickinson, who was the original founder of Northwest Art Project 50 years ago, Alexis Phelps and Janet True.  As an active member, Alexis also chaired the 30 year Anniversary Celebration of the Northwest Art Project which occurred the same evening that I took the gavel as President of the Junior League of Seattle (gulp!) 20 years ago.  See photo of Alexis and 2008-2009 JLS Past President, Joanne Petitto, above (4^th photo).

In addition to the Honorary Chairs, it was fun to catch up with many friends from Junior League including Colleen Willoughby, Pam Green and daughter Paige Dunn, Ann McCutcheon, Pam Eakes, Janet True and daughter Effie, Lorna Kneeland, Joanne Petitto, Betty Rubenstein and Pat Wallace to name a few.  (See bottom photo of Joanne, Betty & Pat.)  All in attendance enjoyed viewing the art, connecting with one another, sipping wine and nibbling on hors d’oeuvres and miniature cupcakes.