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.