tag:blogger.com,1999:blog-83867731295042380892024-03-05T01:42:02.466-06:00Texas Entrepreneur Network BlogWe help Texas Businesses Raise FundingHall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.comBlogger470125tag:blogger.com,1999:blog-8386773129504238089.post-8903629056012881052016-07-17T07:02:00.000-05:002016-07-17T07:02:12.742-05:005 Investor Questions You Should Be Prepared to Answer<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Before you approach
investors you should know enough about your startup to answer these five questions.
<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">What is your value
proposition? The answer points out what your company provides and why people
want it.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Will customers pay for
the solution? nvestors want to know if
customers will pay for your solution.
Free usage is not hard to achieve but paying customers is required. <o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpFirst" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Who is on the team?
About half of an investor’s decision comes down to believing in the team and knowing
they will be enough to reach the goal. <o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Why is now the right
time? Is there anything in the deal that suggests now is the right time to
start this business. Why hasn’t someone
done this before?<o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpLast" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">What is your exit?
This is one of the hardest questions to answer – how will the investor get
their money back. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Best regards,<o:p></o:p></span></div>
<br />
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Hall T.<o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-3715937942037540342016-07-10T06:50:00.002-05:002016-07-10T06:52:18.019-05:00You Need Three Businesses – Not Just One<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY5TbsBoy8Kkz6VVbXOISVgT9SB_DM2jctnOpPNF3FeykloQuju4cGcMDGJFrIo9S21Tj2J14lTHb9Nk2Tna-1Yb9_8oIf7RVysMbBO9nb61n1Sq9C_RjAwyaL9gIgdL601uu8TYyk-GI/s1600/dollar-163473_1280.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="243" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY5TbsBoy8Kkz6VVbXOISVgT9SB_DM2jctnOpPNF3FeykloQuju4cGcMDGJFrIo9S21Tj2J14lTHb9Nk2Tna-1Yb9_8oIf7RVysMbBO9nb61n1Sq9C_RjAwyaL9gIgdL601uu8TYyk-GI/s320/dollar-163473_1280.jpg" width="320" /></a></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">When I was growing up,
they had a saying in business. There’s
the product you market, the product you sell, and the product that makes money. The example was McDonalds which marketed the
Big Mac. When you bought a meal they
would ask “want some fries with that?” They
made almost all of their profit off the coke drinks. At the time it was rumored to be around 90%
profit margin.<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">In today’s business
you need three products:<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">The product you market
– your brand, your mantra, your flagship product that everyone wants. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">The product that generates
cash—this is basically a service business that pays the bills now. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">The product you build
to sell as a business unit later–this is typically a SaaS business model that
provides recurring revenue. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">It can be hard to
build a SaaS business when the only thing you are building/selling is the SaaS
product. Consider adding more products around it to make the business easier to
grow. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Best regards,<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-78929661349652282692016-07-06T06:58:00.001-05:002016-07-06T06:58:48.542-05:005 Golden Rules of Fundraising Success<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">There are several
basic rules of fundraising that all startups should keep in mind</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0cMwhKCSWvXgdztX6ECkLgMqqn_VD7sWjteufdqn0r0pwueFnE9GG5Fa89euFs6N4rI9ISFPKvoRNBeO66B5X5-2Wt71bThitWmgTzYUpx5-w9i8viP93CYqifhkvEixomdURiqE1ZKg/s1600/golden-1321410_1280.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0cMwhKCSWvXgdztX6ECkLgMqqn_VD7sWjteufdqn0r0pwueFnE9GG5Fa89euFs6N4rI9ISFPKvoRNBeO66B5X5-2Wt71bThitWmgTzYUpx5-w9i8viP93CYqifhkvEixomdURiqE1ZKg/s320/golden-1321410_1280.png" width="320" /></a></div>
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<span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">1. Know your investors—it’s
important to know what kind of investor you are looking for and what those
investor wants to see in your deal. Many
startups fail to understand what the investors are looking for and end up
without a followup meeting after the pitch. </span></div>
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<span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">2. </span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">Educate your investors--after
you pitch the investor it’s important to educate the investor through updates
about your deal. It’s often the case the
investor is unfamiliar with your application or space. </span></div>
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<span style="background-color: transparent; color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">3. Build trust—demonstrate
that you can be trusted by showing examples of how you’ve performed in the past.</span></div>
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<span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">4. Respect your investors—show
respect to the investor and don’t take their time and advice for granted. When investors see their feedback and advice
is not followed up, they turn their attention elsewhere.</span></div>
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<span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt; text-indent: -0.25in;">5. Focus on current
supporters—make sure you keep your current investor and investor prospects
updated on your startup. If you don’t articulate progress in your deal, the
investor will most likely not know.</span></div>
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<span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt;">Best regards,</span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-73350681801135451072016-07-01T06:25:00.000-05:002016-07-01T06:25:14.784-05:00Five More Habits of Successful Fundraisers<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfl-dxlEF1SqHFuripkBarWncC9ASTvNBRewcZJEfrZntjaNfneVIB_vlt57lQ4BAi264tz_zW0tOIBOtdhl-KGjko7_1hLa7V2xSETceUAr-nZ7PaOg2bINJ7SnbCFYDjS0m9QKdMuPA/s1600/skills-835748_1280.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="223" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfl-dxlEF1SqHFuripkBarWncC9ASTvNBRewcZJEfrZntjaNfneVIB_vlt57lQ4BAi264tz_zW0tOIBOtdhl-KGjko7_1hLa7V2xSETceUAr-nZ7PaOg2bINJ7SnbCFYDjS0m9QKdMuPA/s320/skills-835748_1280.jpg" width="320" /></a></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Successful fundraisers
demonstrate key habits that others can learn as well. Here are five more habits that will help you
hone your fund raising ability:<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">1. They practice their pitch—the successful
fundraisers know their pitch cold and have it well honed. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">2. They create a plan and then work the plan—they
have a list of prospective investors and continually work investors through the
process. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">3. They focus on metrics—they keep track of the
numbers in their campaign. They know how
many prospects they have and how many they need to achieve their goal.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">4. They ask investors for feedback—they are open
to feedback from investors and others on their pitch and campaign. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">5. They demonstrate appreciation—they show
appreciation to those who help them in their fund raise. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Best regards,<o:p></o:p></span></div>
<br />
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-35619350411772873682016-06-28T06:24:00.000-05:002016-06-28T06:24:24.065-05:00Five Habits of Successful Fundraisers<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoZJDfJKH5D7_22PaWlWs-ieG_ha_hthOeAMCpnhHlEjtWFAteyQygPfCqqd8gBq7_H1i_284bPUpcJjCZLJIaQSSh1c75dZ2C02y60t2L-OuRS334SVjQi8chhOl-fqlAIzh_aULkciE/s1600/traffic-sign-809006_1280.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoZJDfJKH5D7_22PaWlWs-ieG_ha_hthOeAMCpnhHlEjtWFAteyQygPfCqqd8gBq7_H1i_284bPUpcJjCZLJIaQSSh1c75dZ2C02y60t2L-OuRS334SVjQi8chhOl-fqlAIzh_aULkciE/s320/traffic-sign-809006_1280.jpg" width="320" /></a></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Some entrepreneurs are
quite good at raising funding. They know what to say to investors and they do
the right things. Here are five habits
of successful fund raisers:<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">1, Set goals—know what
you want from the overall raise and break it down into stages. The entrepreneur who vaguely requests $1M has
not yet thought through the use of funds and most likely needs less to get
started. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">2. Stick to budgets—setup
a time budget for raising funding and then stick to it. It’s a daily/weekly exercise – not a some
time thing. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">3. Consider the
calendar—starting a raise in the middle of summer or just before Thanksgiving
is going to be difficult. Plan the
launch of your fundraise with the investor’s schedule in mind.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">4. Know the target
audience—understand the target investor and what they are looking for. It’s a good idea to see what they have
already invested in and approach them from that angle. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">5. Spend time
preparing documents—make sure your documents –executive summary, pitch deck,
and financial projections are ready to go so when an investor expresses
interest you can provide tem. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Fund raising is a
skill just like most other aspects of running a business. These skills can be learned and honed. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Best regards,<o:p></o:p></span></div>
<br />
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-56958633577423874782016-06-18T07:29:00.002-05:002016-06-18T07:31:06.756-05:00Five More Reasons an Investor Will Pass on your Deal<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt 0.25in;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP4pHA1M5CZ3us5-mCGi0mibJeeJHXhnMUQqRTJb_xtA8qaY8dgVu_Kwu06WKkw4TP5JNYQFrf6bdPnYAYyzRkqXOJfKkPUhWWXwXBxnR94FycH-xmKa9roHcy8IH48uu8onCENCNUPcA/s1600/fist-160958_1280.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP4pHA1M5CZ3us5-mCGi0mibJeeJHXhnMUQqRTJb_xtA8qaY8dgVu_Kwu06WKkw4TP5JNYQFrf6bdPnYAYyzRkqXOJfKkPUhWWXwXBxnR94FycH-xmKa9roHcy8IH48uu8onCENCNUPcA/s320/fist-160958_1280.png" width="192" /></a></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Investors see many
deals and can spot glaring holes immediately.
Here are five more reasons an investor will take a pass on your deal:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Lack of plausible
financial projections—some startups use the excuse that they can’t predict the
future and therefore they have no financial projections. Most investors see this as a lack of
knowledge about the business and the market. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;"> Lack of focus in the business plan—some plans
are filled with future possibilities and great opportunities but fail to define
the core product and how it will be built and sold. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;"> Not knowing the use the funds raised—the
phrase “I’m raising $1M often triggers the bull meter because the fundraiser rarely
knows how they’ll apply the funds.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">4.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">No validated business
model—there’s no evidence of a business either in product or customer activity.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">5.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Lack of followup – an investor
will express interest and then never hear from the entrepreneur again. <o:p></o:p></span></div>
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<br /></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Best regards,<o:p></o:p></span></div>
<br />
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-1429572235856021202016-06-16T06:23:00.000-05:002016-06-16T06:23:14.058-05:005 Reasons an Investor Will Pass on your Deal<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirsgWRpGCkk1He23ef2aFJLzwq6GB9agBTuh6cgdIFZmVhwObE4K52n81n2UNRQ70FUCVPWagd5leZYVAxVgbdhHqSiRYRX_TH5mvoPgCrObWnJNovXg2A00cxssd8deOrBg04956dfG4/s1600/no-68481_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirsgWRpGCkk1He23ef2aFJLzwq6GB9agBTuh6cgdIFZmVhwObE4K52n81n2UNRQ70FUCVPWagd5leZYVAxVgbdhHqSiRYRX_TH5mvoPgCrObWnJNovXg2A00cxssd8deOrBg04956dfG4/s320/no-68481_1920.jpg" width="320" /></a></div>
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<br /></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Investors see many
deals and can spot glaring holes immediately.
Here are five reasons an investor will take a pass on your deal:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; margin: 9pt 0in 0.0001pt 40.5pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">There’s no traction—there
needs to be some evidence of market validation.
Even without a sales team and a marketing budget there should be some
demand for your product.</span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt;"> </span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 40.5pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">There’s no social
proof—there needs to be some evidence the product works. </span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt;"> </span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 40.5pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">The team doesn’t fit
your company—if there are major holes in the team or you’ve filled the
secondary roles and left the primary ones empty, then it’s going to be a
problem.</span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt;"> </span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 40.5pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Your company doesn’t
fit their criteria—many funds are clear about what they invest in (SaaS,
Healthcare IT, etc). Your deal needs to fit into one of those criteria.</span><span style="color: #222222; font-family: 'Times New Roman', serif; font-size: 14pt;"> </span></div>
<div class="MsoListParagraphCxSpLast" style="background: white; margin: 9pt 0in 0.0001pt 40.5pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">You don’t know your
market/customer well enough—those with a vague or fuzzy knowledge of the market
or customer will have difficulty raising funding. Ability to site numbers (market size, growth
rates, customer spend, etc) helps demonstrate your knowledge.<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Best regards,<o:p></o:p></span></div>
<br />
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-86110681504156332592016-06-12T07:17:00.003-05:002016-06-14T06:39:03.917-05:005 Signs you Invested in the Right Startup<div class="separator" style="clear: both; text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNm7-qjWao5Odn4n7US2mvJiMjUD0m-Hqn6rrLlfEM1YgjmUMGMc1b1El9fP2g4tHZUoxfiGCBok4HthSPe2xP-3miOZNq9kcve2NJ4JoJm-CI-xYPnKqkG23_kEdsKtRHndYEMHWcplA/s1600/stars-720213_1920.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="306" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNm7-qjWao5Odn4n7US2mvJiMjUD0m-Hqn6rrLlfEM1YgjmUMGMc1b1El9fP2g4tHZUoxfiGCBok4HthSPe2xP-3miOZNq9kcve2NJ4JoJm-CI-xYPnKqkG23_kEdsKtRHndYEMHWcplA/s320/stars-720213_1920.png" width="320" /></a></div>
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<span style="color: #222222; font-family: "times new roman" , serif; font-size: 14pt;">There are several
signs indicating the investor invested in the right startup. </span><span style="color: #222222; font-family: "times new roman" , serif; font-size: 14pt;">Here are my top five. The startup is:</span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; margin: 9pt 0in 0.0001pt 27pt;">
<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;"> </span><span style="color: #222222; font-family: "times new roman" , serif; font-size: 14pt; text-indent: -0.25in;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><span style="color: #222222; font-family: "times new roman" , serif; font-size: 14pt; text-indent: -0.25in;">Focused on core
products and processes—you see a strong focus on the core product/service and
everyone is pushing in the same direction.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 45pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Revenue and results—you
see the team focused on revenue and hard results and not secondary metrics such
as likes on Facebook or user downloads.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 45pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Customer focused – you
see the team more worried about what their customers think than what their
competitors think.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; margin: 9pt 0in 0.0001pt 45pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">4.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Numbers – the leadership
knows their numbers well including sales, cash spend, and runway.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="background: white; margin: 9pt 0in 0.0001pt 45pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">5.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Updates and
information—you receive updates and news that includes bad news as well as good
news. <o:p></o:p></span><br />
<br /></div>
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<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Best regards,</span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "times new roman" , "serif"; font-size: 14.0pt;">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-10900945120081486252016-06-08T06:34:00.002-05:002016-06-08T06:34:25.477-05:005 Signs your startup isn’t ready to raise funding<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNS_dQGbOoorOmxmE3bn3ri3LLEruY_UHu0ptGKn6oaql1vOvwhjvLBrkExCVvQoiMTwgZoMDZO_tEaXm23gv1RP5es9v1bXW_610iP11AhVwDLiWQqyHqWDGo3nkAbGkhQxIHT8mey8Q/s1600/signs-416440_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNS_dQGbOoorOmxmE3bn3ri3LLEruY_UHu0ptGKn6oaql1vOvwhjvLBrkExCVvQoiMTwgZoMDZO_tEaXm23gv1RP5es9v1bXW_610iP11AhVwDLiWQqyHqWDGo3nkAbGkhQxIHT8mey8Q/s320/signs-416440_1920.jpg" width="320" /></a></div>
<br />
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt; margin-left: .5in; margin-right: 0in; margin-top: 5.0pt; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">The vision is still fuzzy and hasn’t come into focus yet—if you’re
still sorting out the market and your position in it then you need to gain more
clarity on the space and your company’s position. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt; margin-left: .5in; margin-right: 0in; margin-top: 5.0pt; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">The team isn’t in place yet—if you still have major holes in the
team that you are seeking to fill, you need to find candidates for those
positions before funding.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt; margin-left: .5in; margin-right: 0in; margin-top: 5.0pt; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">You haven’t identified the repeatable business model—if you’re
still pivoting from one business model to the other then you’re not ready for
funding. You need to have a business
model that is predictable at some level. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt; margin-left: .5in; margin-right: 0in; margin-top: 5.0pt; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">You don’t have your financials under control—if you don’t know how
much to budget for expenses or what the impact of a sales increase on your
bottom line may be, then you’re not ready for funding. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt; margin-left: .5in; margin-right: 0in; margin-top: 5.0pt; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">There’s no clear path to profitability—if you don’t see how you
can grow to a profitable position with your current business model, then you’re
not ready for fund raising. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt;">
<span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">Best
regards,<o:p></o:p></span></div>
<br />
<div style="background: white; line-height: 16.8pt; margin-bottom: 7.5pt;">
<span style="color: #1c1c1c; font-family: "Georgia","serif"; font-size: 10.5pt;">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-85857732409433584572016-06-05T07:13:00.004-05:002016-06-05T07:13:42.687-05:00How to Make the Most out of a One-on-One Conference<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZjxj1vdJ15Vz7Xr3dmGFk1xD65wjFftQ4ymq_2DPTXaKzBgzdq6dtYeO9X415_IBU92l-Ij6NfvbT9AatCMbF91o8UUCbJsDKew7TCS2Ds-tjIs-sFxJe8g5py_NZ-YOlad1ii7FMcNE/s1600/audience-828584_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZjxj1vdJ15Vz7Xr3dmGFk1xD65wjFftQ4ymq_2DPTXaKzBgzdq6dtYeO9X415_IBU92l-Ij6NfvbT9AatCMbF91o8UUCbJsDKew7TCS2Ds-tjIs-sFxJe8g5py_NZ-YOlad1ii7FMcNE/s320/audience-828584_1920.jpg" width="320" /></a></div>
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<span style="font-size: 12pt;">The appointment-based
event is gaining popularity with those who want to raise funding as it turns a
conference into a series of dealflow meetings. Both investors and entrepreneurs
are making more use of the One-on-One conference to find prospective matches.<o:p></o:p></span></div>
<o:p></o:p><br />
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For those not familiar
with a one-on-one conference, the venue offers the participants the ability to
see who will attend the event and schedule meetings at the event. The conference also offers panels, keynote
speakers, and workshops. In a one-on-one
conference, one participant invites another for a meeting. If the invite is accepted, the scheduler
provides a date/time/location for a meeting.
The meetings are typically 15 to 30 minutes in length. The objective is
to meet as many qualified contacts as possible.
Detailed follow up comes after the event. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In running several of
these events I’ve seen how some find better results than others. Here are some
tips on how to make the most of your next one-on-one conference:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Preparation—a
one-on-one conference takes a great deal more preparation than the typical
panel/speaker filled conference in which the participants find contacts through
general networking. The conference will
provide a scheduler system with profiles of attendees. You must log into the scheduler system
several weeks in advance of the conference to setup appointments. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Fill out your profile –
most schedulers offer a place for the participant to fill out their
profile. It’s important to make it
compelling to others so they will accept your meeting invites. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Make it interesting—give
the others a reason to accept your meeting invite or to initiate an invite.
Show the values in your business and make clear what you have to offer. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Indicate who you are
seeking to connect with—it’s fair game to include what you are looking for as
others can determine if they fit.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Research the other
candidates -–in addition to scheduling, it’s important to research the other participants. Since some conferences have hundreds of
participants, this could take some time so start early.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Login daily to see who
else has just joined—new participants join the conference every day in the run
up to the event so you have to check back to see who joined recently. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Know the network—it helps
to know the community and network as it will help narrow down your list of
contacts to pursue. <o:p></o:p></span></div>
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<br /></div>
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<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Best regards,<o:p></o:p></span></div>
<div class="separator" style="clear: both;">
</div>
<div class="MsoNormal" style="background: white; margin: 9pt 0in 0.0001pt;">
<span style="color: #222222; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-84491498604494857642016-06-01T08:30:00.000-05:002016-06-01T08:30:25.465-05:00Texas Entrepreneur Network (TEN) Infographic--Wilco Funding Portal<h3 class="post-title entry-title" itemprop="name" style="background-color: white; color: #222222; font-family: Georgia, Utopia, 'Palatino Linotype', Palatino, serif; font-size: 22px; font-stretch: normal; font-weight: normal; margin: 0.75em 0px 0px; position: relative;">
Texas Entrepreneur Network (TEN) Infographic--Wilco Funding Portal</h3>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimmHZbcltTkEGRRIFcXCSaenQ8vYgzaxLA6G0oT409m8uCd2Hkx1KR4etkqA6BD0JH6d_stc5ngKtAmuVntQN82HSXReEcETedo3VzB4LowQn0imiYidxzUpXfsVypPiZlAxTyyfD2HHg/s1600/TEN-Part-7.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimmHZbcltTkEGRRIFcXCSaenQ8vYgzaxLA6G0oT409m8uCd2Hkx1KR4etkqA6BD0JH6d_stc5ngKtAmuVntQN82HSXReEcETedo3VzB4LowQn0imiYidxzUpXfsVypPiZlAxTyyfD2HHg/s320/TEN-Part-7.jpg" width="320" /></a></div>
<div>
<br /></div>
<div>
The Wilco Funding Portal provides funding for Williamson County businesses and those businesses seeking to relocated to Williamson County in Texas. </div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-91855985083187288502016-06-01T06:25:00.002-05:002016-06-01T06:25:09.538-05:005 Techniques for Getting a Reader to Open your Email<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1cFT5V0eROYhTArarKkxwHsoVBrlsOFPtWLlyv8xuGJA26bRZI6DIP_zUNgn8IhsBEgEy-BmBVYez-JsLoLqyiW5FYCZScVkhst_fpPEb16GaL-UQVSElnj9pM5OMWtKZs55hoSbnQDA/s1600/finger-769300_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1cFT5V0eROYhTArarKkxwHsoVBrlsOFPtWLlyv8xuGJA26bRZI6DIP_zUNgn8IhsBEgEy-BmBVYez-JsLoLqyiW5FYCZScVkhst_fpPEb16GaL-UQVSElnj9pM5OMWtKZs55hoSbnQDA/s320/finger-769300_1920.jpg" width="320" /></a></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Readers receive hundreds
of emails every day. How do you make
sure a reader opens your email? Here are
5 techniques to make sure your email gets read:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoListParagraph" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Make the subject line intriguing and provocative. Make it short – no more than 30 letters or 6
to 10 words. Tell the reader what they
are going to learn in a short amount of time. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoListParagraph" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Use numbers – numbers show specificity which
comes across as concrete and definitive.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoListParagraph" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Use the person’s name -- make it a person to
person to communication. Avoid the use
of Mr, Investor, All, or other generic terms.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoListParagraph" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Use your name in the ‘from’ line -- it should
come from you and not your company. Ideally,
they should recognize your name and know who you are.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoListParagraph" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Use an easy to read font in text layout -- avoid
brochure style emails as it looks like it was generated from a corporate
marketing machine. In preview mode the reader will judge the email by its
format and length. Using bullet points
will make it faster to read. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">The key is to offer a
great deal of value in a minimum amount of time. I’ve scanned longer articles looking for the
core concept and then passed on reading the article when I couldn’t find it. Make your message easy to find and you’ll
gain more readers.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Best regards,<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Hall T. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-57607279352885864582016-05-25T06:37:00.000-05:002016-05-26T06:31:53.933-05:00How to Pitch an Investor through Email<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-VA98psStDshrgONWPJ-oLgcdgfRuvDkO-H1A5XgQX3ehdZuLv6hi0Ar9gJnh5X_0nWUSpp5egTZepAfhXuspmgb2oolFacylmXPSgdBy07Lr9rNBJg9ML9QWB0G_bdpl8qsJwGBi5K4/s1600/email-848534_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="184" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-VA98psStDshrgONWPJ-oLgcdgfRuvDkO-H1A5XgQX3ehdZuLv6hi0Ar9gJnh5X_0nWUSpp5egTZepAfhXuspmgb2oolFacylmXPSgdBy07Lr9rNBJg9ML9QWB0G_bdpl8qsJwGBi5K4/s320/email-848534_1920.jpg" width="320" /></a></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Pitching investors in
person and online is a skill one can learn.
Here are some key steps in reaching out to potential investors through
email to pitch your deal. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Choose investor prospects carefully</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;"> – don’t spam an entire list but rather use
lists to research and identify qualified candidates. Search for connections to those candidates and topics of interest. Then devise strategies for how to reach out to them. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Indicate why you are reaching out to them</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;">—show why that person and company could be
interested in your deal. This could be based on a past investment, a network
connection, or a group affiliation. Answering the "why" will keep them reading. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Show your connection to the reader</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;"> – finding a common connection will greatly
improve your chance of a response so it’s worth looking for someone who is in their network that can provide social proof that you are legitimate.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Show the problem you solve, the solution you offer and the market
you target</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;">—do this in one or two
sentences and not one or two pages of text. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;"><b>Show indications of
traction</b>—show 3 to 5 examples of
traction such as leads generated, sales closed, number of users in a beta program, etc. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Introduce yourself and show social proof</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;"> – there’s a tendency to start the email with
this information but showing your position in the community and credibility
comes after you have established a topic relevance to the investor.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "times new roman" , serif; font-size: 12pt;">Close with a one sentence ask—</span></b><span style="font-family: "times new roman" , serif; font-size: 12pt;">make clear the next step such as a conference call, a
meeting, advice, etc. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;"><b>Also remember these
following points:</b><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Write in a
conversational but business-style tone--not marketing-speak.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Keep it short and to the
point avoiding </span><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; letter-spacing: -0.05pt;">long blocks of text.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; letter-spacing: -0.05pt;">Use numbers to make your pitch stronger as it shows
specificity.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Remember to attach the
executive summary or pitch deck.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Best regards,</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">Hall T. </span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-47400061705183756952016-05-21T06:48:00.001-05:002016-05-21T06:52:43.868-05:00Healthcare Texas 2016 Conference Wrap Up<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGNu2kwHpqaUvP2unDnEkUnTC04BzEwAKUOIDyw7CZ9EMjZEETlK2YK_UjwmhggST_3ssbS1ooigVazqTosk_nuqI2ElMp161u3h4TYSh8lqNie3t4CvSVPQl4YHNsHGFJDC4mSiZ6gxA/s1600/IMG_0752.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGNu2kwHpqaUvP2unDnEkUnTC04BzEwAKUOIDyw7CZ9EMjZEETlK2YK_UjwmhggST_3ssbS1ooigVazqTosk_nuqI2ElMp161u3h4TYSh8lqNie3t4CvSVPQl4YHNsHGFJDC4mSiZ6gxA/s320/IMG_0752.JPG" width="320" /></a></div>
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span>
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The <a href="http://texasgrowthcapitalforum.com/">HealthCare Texas 2016</a> annual technology and venture capital conference in Austin, Texas was a rousing success, bringing together 109 companies and 65 investors and holding 270 one-on-one capital matching meetings. The massive turnout from the health care and business community at the two-day conference sent a loud and clear message that Austin is quickly becoming a major force in the health and life sciences and venture capital landscapes.</span></div>
<b id="docs-internal-guid-2d275a95-d323-badb-a7ee-7fae0b0805a7" style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The conference, which was held May 3 and 4 at Brazos Hall, a chic turn-of-the-century warehouse in downtown Austin, featured keynote speeches and panel discussions on a variety of cutting-edge health care topics and trends, including information technology, informatics, and value-based reform.</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“The turnout for HealthCare Texas 2016 was outstanding,” said Matt Black, director of the Texas Growth Capital Forum. “The conference definitely furthered our goal of maintaining a lasting ecosystem of funding for technology growth companies here in Austin.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“HealthCare Texas 2016 was proof positive of Austin’s standing as an emerging biotech and life sciences hub,” said Hall T. Martin, Founder/CEO of Texas Entrepreneur Networks. “As indicated by the hundreds of one-on-one meetings, the interest from entrepreneurs and investors in Austin’s health and technology spheres has been awe-inspiring.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Austin Mayor Steve Adler clearly and succintly explained the appeal of the city to investors during the panel “Austin 2020” on Day 2 of the conference.</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“I really do think that this a magical place,” Adler said of Austin. “We’re the fastest growing metropolitan area in the country and have been for the last five years.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Adler said the fact that Austin creates more startups per capita than any city in the U.S. is driven by its “entrepreneurial, creative and innovative core.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Austin’s life science cluster is currently at a launch pad, the mayor said. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“The infrastructure is here and growing,” he said. “This is a pivotal moment.” </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Important partners, including the University of Texas and the city’s business community, have brought research dollars to the city. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This fall, UT’s Dell Medical School will open its doors to its first class. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“Austin is the place where ideas become real,” he said. “Launching the Dell Medical School provides an opportunity for us to meet the challenges of minimal capital, a trend of the future.” </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Dr. Mark McClellan, former commissioner of the U.S. Food and Drug Administration, spoke to a packed audience during his keynote address on health policy that it’s critical companies’ business plans align with government policies. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“Being aligned where policy is heading is important,” McClellan said. “There’s a lot of interest in getting better treatment to patients faster.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">McClellan, who was hired as a faculty member for the new Dell Medical School late last year, said health care companies need to be able to change quickly and adapt to government policies as needed. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“What you do matters as innovators,” he said. “But you’re dealing with very important consequences while dealing with very scarce resources.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Dell Medical School, which welcomes its first class of students in August, presented the conference.</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Christopher W. Kersey, managing partner of Camden Partners, a prominent Baltimore-based venture capital firm, delivered a keynote on global health care. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“It’s fascinating what’s happening out there,” said Kersey, who also serves as chairman of the board of Johns Hopkins Medicine International. “I often say we’re in the third inning of an extra inning baseball game in terms of the extent to which health care technology can transform the continuum of care.”</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Kersey said health care expenditures make up 15 percent of the GDP of the United States. Globally, it’s around 7 percent. </span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Many countries around the world have experienced double digit growth in private health care sectors, Kersey said, with Australia and India being notable examples of nations that have seen significant growth in recent years.</span></div>
<b style="font-weight: normal;"><br /></b>
<br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 14.666666666666666px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Kersey discussed three major trends in health care technology: cyber security, personalized medicine, and biopharmaceutical development. </span></div>
<br />Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-83609813631272820792016-05-15T09:43:00.002-05:002016-05-17T06:22:10.875-05:00How Uber/Lyft's departure from Austin will impact your VC Fund Raise in Texas<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_E4fNqPSYesak9Jj23pM9phuHuON25dJjV_C9aOhvH_EkY3CZqfeu_dGqwQXRfIdCqi9TW8v2l3QMZCclZZHpX-dczruWs9csTz06WV4-CfAJnf3dO8rlNfXppLO_r9bKXUVo3W6g0mA/s1600/waiting-926533_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_E4fNqPSYesak9Jj23pM9phuHuON25dJjV_C9aOhvH_EkY3CZqfeu_dGqwQXRfIdCqi9TW8v2l3QMZCclZZHpX-dczruWs9csTz06WV4-CfAJnf3dO8rlNfXppLO_r9bKXUVo3W6g0mA/s320/waiting-926533_1920.jpg" width="320" /></a></div>
<br />
For some, the recent defeat of Proposition 1 in Austin signaled Austin's shift away from the tech world in which venture capital is a critical component for starting and growing companies. At TEN we recently ran our Healthcare Texas 2016 event in which we had over 100 companies from Texas (mostly Austin) pitch in one-on-one sessions with 60+ venture capitalists, private equity, and angel investors from across the country. <br />
<br />
In the run-up to the event, I talked with many of our investors and heard a variety of viewpoints about Prop 1 and on how the fight between the City of Austin and the the Transportation Network Companies (TNCs) was playing out. Some investors viewed it as a proxy on Austin's position in the Tech world but most considered it a political fight over who is going to call the shots. Many questioned Uber/Lyft's campaign strategy and tactics. In the end that strategy backfired on Uber/Lyft and they lost the vote along with some credibility.<br />
<br />
The common message I received from investors was this . . . as long as you have quality deals that meet our fund's criteria, we'll keep coming to Austin. As one investor said, "the teams are great, the valuations are good, and we want more."<br />
<br />
We ended up with over 240 one-on-one sessions throughout the two-day event. We launched the Austin Healthcare Council initiative. Uber and Lyft are no longer picking up rides within the city of Austin, but most expect they will be back. The VCs are asking, when is your next event?<br />
<br />
<br />Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-6819846153372268212016-05-14T07:22:00.000-05:002016-05-14T07:24:03.890-05:005 Characteristics of a Lead Investor<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzXQ2WLeKRdXwVpE9XvhPJ7n-0-hq8r_IqGiJkVHaaDrfG8yXWZnsPDiug-ZaJZUl99RyLOEHPe2iwoxj43NlMElseFpHUXcMU6bfZZOTOwB34REj2Du2_9NTCxssFKNFQgPLEWV_fcdk/s1600/businessmen-152572_1280.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzXQ2WLeKRdXwVpE9XvhPJ7n-0-hq8r_IqGiJkVHaaDrfG8yXWZnsPDiug-ZaJZUl99RyLOEHPe2iwoxj43NlMElseFpHUXcMU6bfZZOTOwB34REj2Du2_9NTCxssFKNFQgPLEWV_fcdk/s320/businessmen-152572_1280.png" width="320" /></a></div>
<br />
I often hear of entrepreneurs stuck in their fund raise efforts with several prospective investors but no one willing to be the first invest. That's because the first investor could be the last investor in a deal and no one wants to be that investor. The lead investor breaks down that barrier by providing the initial capital and due diligence that paves the way for others to join the deal.<br />
<br />
Here are some key characteristics of a lead investor:<br />
<br />
--Provides a substantial sum of capital -- at least $100K. The $25K check writer should not be leading the deal. <br />
<br />
--Provides advice as he should have experience in the industry and know well the problem the company is solving.<br />
<br />
--Is your leading advocate. By going first, he's putting his reputation on the line. It's important to keep the lead informed as he's championing your deal -- more so than other investors.<br />
<br />
--Brings a strong reputation that attracts others to your deal.<br />
<br />
-- Performs the initial due diligence. Al investors should be performing their own due diligence but most will use the lead investors work as the basis for their decision. This upfront work can easily reach 30 to 40 hours of work. If the entrepreneur doesn't offer compensation it can be quite difficult to sign up an lead investor.<br />
<br />
In finding a lead investor it helps to start with those who know your industry and market. Those with a successful business track record are ideal candidates. They say it takes 7 touches to close a sale. So it takes 7 touches to close an investor.<br />
<br />
<br />Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-65280237091003101772016-05-05T07:07:00.000-05:002016-05-08T07:41:34.929-05:00"VC Angels"--Angel Groups become the New Venture Capitalists<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsoSC6Bq3TC4TJag7sdacNccV4uVxp2CGiBIsM4vgp-m9Uvdud38-E9rlXL6_JeMo12r5i3Y1wMhFBkIjmow90QmStETGw92MX7ls2Uff9gPSU0NXdF1s0sGjNFx52PBd4iLUCVc6PNXA/s1600/angel-1218605_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsoSC6Bq3TC4TJag7sdacNccV4uVxp2CGiBIsM4vgp-m9Uvdud38-E9rlXL6_JeMo12r5i3Y1wMhFBkIjmow90QmStETGw92MX7ls2Uff9gPSU0NXdF1s0sGjNFx52PBd4iLUCVc6PNXA/s320/angel-1218605_1920.jpg" width="320" /></a></div>
<br />
As crowdfunding becomes more prevalent some angel groups are repositioning themselves away from the crowdfunders as a new type of venture capitalist. Those groups who have experienced investors and can tap the expertise in their group have the makings of a VC firm with a strong support base and an internal funding source.<br />
<br />
These angel-based VCs are foregoing the usual application/screen/pitch/invest model used by current angel networks. Instead, they spend their effort on searching for the best deals that fit the expertise of their group. Most angel groups which still use the "Submit your application here" model don't see the best deals because those deals are being picked up long before they make it through the screening process.<br />
<br />
The angel-based VC is typically led by 5 to 7 experienced investors who in most cases have a professional background in the finance world. They leverage the resources of their angel group for expertise on managing the portfolio companies -- sitting on boards, monitoring progress, helping with sales, etc. <br />
<br />
In the past venture capitalists passed on many deals because the VC firm had limited bandwidth to sit on boards and follow up with the portfolio. "VC Angels" can have large networks of investors who contribute to the portfolio with their time in addition to their dollars. <br />
<br />
A fund model would allow for sharing the results of all the deals rather than individual financings. Members of the group would be required to participate in screenings and follow up activities to continue vesting of their shares in the group fund. This model provides diversification to the members and ongoing contribution of support to the portfolio as well.<br />
<br />
With the shift from a geographical focus to a vertical focus, angel groups could form in specific areas such as mobile apps, healthcare, fintech, cybersecurity or others.<br />
<br />
<br />
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<br />Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-3621559295314529202016-04-30T07:04:00.000-05:002016-04-30T07:04:29.429-05:00Better Care at a Lower Cost -- Interview with Mark McClellan<div class="separator" style="clear: both; text-align: center;">
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That’s been health policy expert Mark McClellan’s mantra for
years. Finding ways to get payment and regulatory policies to support better
care and a lower cost is what McClellan does.</div>
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“That’s very much part of the current expansion of efforts to
move to payment models that are based more on results and value,” he says.</div>
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McClellan will discuss the transition toward value-based health
care delivery in his keynote speech “The State of Health Policy” May 3 in
Austin at HealthCare Texas 2016, an annual conference bringing together more
than 300 leading innovators in healthcare information technology, life
sciences, and therapeutics.</div>
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“A lot of these payment reforms are about giving health care
providers more flexibility in doing what they think is working with their
patients and is best for their patients’ outcomes, but at the same time, since
resources aren’t unlimited, having more accountability for results,” McClellan
says.</div>
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Last December, McClellan, who served as head of the U.S. Food and
Drug Administration from 2002 to 2004, joined the faculty at Dell Medical
School at The University of Texas at Austin to advance the school’s mission of
redesigning health care around value. </div>
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McClellan says that while his primary basis with UT is its new
health policy center, he’s working with Dell Medical School on an ongoing basis
as they take steps to implement new health care trends and ideas into the
curriculum. </div>
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“One advantage of being a new medical school is that you don’t
have to do things the old fashioned way,” McClellan says. “The leadership of
the medical school has undertaken a tremendous effort to ask fundamental
questions like ‘What kind of education do physicians need to practice in a
future medical system that is hopefully going to be much more about better care
at a lower cost?’”</div>
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Dr. Clay Johnston, inaugural dean of the Dell Medical School,
said McClellan’s work will support efforts to revolutionize the way people get
healthy and stay healthy.</div>
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<span lang="DE">“</span>Mark has been
a national leader in conceptualizing how to build a better health care system,
and now he can really accelerate the pace in putting that system in place,” Dr.
Clay Johnston said of McClellan after he was hired at UT.</div>
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Another one of McClellan’s objectives has been to help provide
better information on the quality of care. McClellan says in recent years there
has been much support for more transparency regarding prices and quality health
care. </div>
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“I think there’s a lot promising work going on, including by some
early stage companies, to help turn all of this health care data into
information that’s really useful for patients and physicians and other health
care providers that are guiding their decisions,” McClellan says. </div>
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McClellan notes that its very difficult to take raw information
from claims data and convert it into a confident, accurate measure of the total
cost of care that a patient faces. </div>
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“It’s not just a matter of what shows up on an insurance claim
but things like: ‘Did a patient have a better functional outcome after surgery?
What was the outcome of cancer treatment for a patient with an advanced
cancer?’” </div>
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McClellan says the good news is we’re making progress. </div>
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“It’s an area where there’s been a lot of recent investment by
health information companies providing patient-oriented and actionable analytic
information on quality and cost of care,” he says. “I hope we continue to make
further progress there.”</div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-89756068076243891042016-04-24T07:12:00.003-05:002016-04-24T07:17:24.802-05:00Texas Biotech Landscape -- 2016<div class="BodyA">
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Biotechnology comprises a significant
and growing part of the Texas economy as new innovative biotech companies
sprout up in Austin and throughout the Lone Star State each year. Biotech is
essentially technology grounded in biology that harnesses cellular and
molecular processes in order to develop products aimed at improving human health.
Biotech encompasses an array of breakthrough technologies, including those that
combat diseases, increase crop yields, and develop cleaner energy sources. </div>
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<span lang="DE">Texas is</span> home to one of the country’s leading biotech industries
with more than <span lang="DE">3,700 biotech</span>
manufacturing and research and development firms and more than 93,800
biotech-related jobs. (The average salary of these jobs is around $90,000).
Dozens of global biotech companies, such as Novartis, <span lang="DA">Medtronic, </span>and Abbott, have major
operations in Texas. In 2012, Texas ranked No. 2 in the nation for the
number of life scientists and physical scientists employed, with nearly
48,000, according to the National Science Foundation.</div>
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<span lang="DE">Austin</span>, the state capital, is home to state-of-the-art research
facilities and has one of the country’s most educated populations. Austin’s
creative and entrepreneurial landscape<span lang="NL"> is </span>bolstered by the availability of funding, research
collaboration, clinical trials, and highly-skilled workers.</div>
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This combination of factors begs the
question: Could Austin become the next biotech hotspot?</div>
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This very question was posed in a
recent article in STAT, an online health, medicine, and science publication.</div>
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The article points out that, within a
25-mile radius of downtown Austin, nearly 200 life science companies have
sprung up, many of them startups that launched within the past few years.</div>
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The University of Texas at <span lang="DE">Austin </span>currently brings in
approximately $60 million in grants from the National Institutes of Health each
year. This June, UT’s new Dell Medical School will welcome its first class of
students. Dell Medical School promises to bring even more intellectual property
and grant money to the region.</div>
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<span lang="DE">“</span>We seem to have all the right components in play,” Tom Kowalski,
president and CEO of the Texas Healthcare and Bioscience Institute, told STAT,
when asked if Austin could become the next major biotech hub. <span lang="DE">“</span>It all seems to be a wonderful harmonic
convergence.”</div>
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Last year was a big one for the
city’s biotech industry as Austin-based companies Mirna Therapeutics and
XBiotech both went public with initial public offerings that raised $44 million
and $76 million, respectively. Aeglea BioTherapeutics also filed for an IPO
after receiving more than $80 million in private funding and grants in less than
two years.</div>
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For biotech companies looking for a
more affordable area than Silicon Valley<span lang="DE">, Austin </span>makes a lot of economic sense. There’s <span lang="IT">no state income tax</span> in Texas, and the state
offers sales tax credits for some research and development expenses.</div>
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<span lang="DE" style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">“Austin</span><span lang="FR" style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">’</span><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">s life science industry is reaching critical mass,”
Asuragen, Inc. CEO Matt Winkler told the Austin Chamber of Commerce. “As an
entrepreneur, I look forward to Austin</span><span lang="FR" style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">’</span><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">s future as a bioscience hub.”<br />
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<!--[endif]--></span>Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-15704186714748314372016-04-20T06:31:00.000-05:002016-04-20T06:31:20.377-05:00Profile of Chris Kersey of Camden Partners<div class="separator" style="clear: both; text-align: center;">
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Ask a realtor what matters most in a
property and you’ll hear “location, location, location.” </div>
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Ask Christopher W. Kersey, Managing
Member of Camden Partners, what matters most in an investment strategy and
you’ll hear “people, people, people.”</div>
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“Venture capital and private equity
are very relationship-based businesses,” Kersey says. “Camden has raised many
funds in the last 20 years, and we’re now backing folks whom we’ve backed
before. We work with business builders with whom we have previous relationships,
whether they’re the CEOs, the founders, co-investors or deal sourcers.”</div>
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Kersey says “serial relationships”
are the key driver for what he does at Camden Partners, a Baltimore-based
private equity firm providing capital to companies in health care, education,
technology and business services. </div>
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“The best entrepreneurs and
executives - the people who have been in this business for multiple cycles -
know how they want to build their next operating company and they know which
trends are important and I think we likewise have a good sense for how
industries evolve over time,” Kersey says. “There’s some trend recognition and
predictive skills needed in our investing industry, but much of the success is
attributable to people.”</div>
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On May 3, Kersey will give a keynote
speech on global health care and technology at HealthCare Texas Conference
2016, an annual innovation and growth capital conference in Austin that brings
together the greatest minds in health care technology from across the U.S. </div>
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Kersey serves as the Chairman of the
Board of Johns Hopkins Medicine International, the development branch of Johns
Hopkins Medicine with hospital management and clinical education services in
North America, South America, the Middle East, Europe and Asia.</div>
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“It’s a honor to be a part of the
leading academic health care brand in the world,” Kersey says of the position,
which he has held since July 2011. “We have a stellar team representing an
amazing institution globally.”</div>
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A major focus of HealthCare Texas
Conference 2016 will be on how health care is being transformed through
information technology, big data, and value-based reform.</div>
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In Kersey’s view, the top two
technological trends in health care today are point of care technologies that
enable mobility and revenue cycle management companies that improve CFOs’
management of cash in terms of how providers and payers are paid and when
they’re paid. </div>
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Kersey says the infusion of
technology into how health care is delivered makes health care an exciting
sector to invest in. And it’s only the beginning. </div>
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“When I talk about the future of
health care, I frequently say that we’re in the second inning of an extra
inning baseball game in terms of how technology can transform the delivery of
health care.”</div>
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Camden Partners’s assets under
management are approaching $1 billion.</div>
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“We anticipate gradually increasing
our fund sizes with each subsequent fund,” Kersey says. “Serving as a steward
of capital - our own capital and our investors' capital - is a real honor. I’m
very proud of the current portfolio, but perhaps most importantly, my partners
and I have the opportunity to work with some of the country’s best CEOs.”</div>
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Two of <span lang="NL">Camden</span>’s most successful companies in the
portfolio are Essence Group Holdings and PatientSafe Solutions. Essence is the
leader in population health management, evidenced by a recent No. 1 KLAS
ranking in population health services, and PatientSafe is a top mobile clinical
communications company specializing in point-of-care medication management and
barcode scanning. </div>
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The success of Camden’s relationships
with Essence and PatientSafe are “excellent examples of prior relationships
with management team members,” Kersey says. </div>
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So what is it Camden looks for in a
management team?</div>
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No. 1 is character and integrity. N<span lang="IT">o. 2</span> is a proven track record of
success with institutional capital.</div>
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“Backing previously successful CEOs
is a big deal,” Kersey says. “Regarding our investment strategy, we also place
a real premium on what we call technology-enabled service companies that possess
hybrid business models that differentiate based on great customer service on
the front end combined with proprietary technology on the back end that helps
the business scale. This is a very
powerful front end-back end combination.”</div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-57820052516584801042016-04-16T06:25:00.002-05:002016-04-16T06:28:17.261-05:00Texas Medical Device Landscape--2016<div class="Body">
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Each year <b>medical devices</b> continue play a vital role in
people's lives. These products are revolutionizing medicine with groundbreaking
advances in both the treatment and the detection of diseases. </div>
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A medical device is defined by the FDA as "an instrument,
apparatus, implement, machine, contrivance, implant, in vitro reagent, or other
similar or related article, including a component part, or accessory…intended
for use in the diagnosis of disease or other conditions, or in the cure,
mitigation, treatment, or prevention of disease.” </div>
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The U.S. is the largest medical device market in the world with a
market size of approximately <b>$110 billion</b>. In 2012, the U.S. market
value represented around 38 percent of the global medical device market. There
are <b>nearly 7,000 medical device companies in the U.S.</b>, most of which are
small and medium-sized enterprises (SMEs).
More than 80 percent of medical device companies have fewer than 50
employees. Medical device companies are mainly concentrated in regions known
for other tech industries, such as microelectronics and biotechnology. </div>
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Many of the biggest players in the medical device industry have
corporate facilities in Texas. More than a dozen Fortune 1000 medical device
companies have manufacturing or management operations in the Lone Star State,
including Abbott Laboratories, Agilent Technologies, Baxter International,
Becton Dickinson, GE, Johnson & Johnson, Medtronic, St. Jude Medical,
Stryker, Zimmer, among others.</div>
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These companies have developed a large medical device workforce
in the state. <b>Over 740 firms employ more than 15,400 workers</b> in this
sector, making Texas one of the top states in the country for the number of
medical device workers. </div>
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A wide variety of medical products are developed and manufactured<span lang="DE"> in Texas, </span>ranging from surgical
sutures and bandages to medication delivery systems and molecular biology kits.
While a broad spectrum of medical specializations are served by Texas device
companies, the state has developed several unique clusters, including
ophthalmology, orthopedics, cardiology, diagnostics, and wound care. </div>
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V<span lang="FR">enture </span>capital
has played a major role in the development of Texas’s medical device industry.
Since 2005, the state’s Texas Emerging Technology Fund (TETF) has invested more
than $88 million in medical device-related deals, and, from 2009 to 2014, <b>venture
capital firms invested more than $526.7 million in 82 Texas medical device
deals</b>.</div>
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Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-18917985695515295132016-04-10T09:06:00.002-05:002016-04-10T09:08:44.982-05:00Texas's Life Science and Health Care Scene -- 2016<div class="Body">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx3Ff8gMPGgudyzXZWEBTYUOj906kWGmx6tbgw4UqsxcrE37p1oWc5ZUN1AVwdnLlU92ClDAIrthQ6KWeMLSi1uwrvVjOWRLnJmhhyphenhyphenC2nQI1x4LcvBFn1K6UH50JXJMWC4GRlacAGAdv4/s1600/medic-563425_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx3Ff8gMPGgudyzXZWEBTYUOj906kWGmx6tbgw4UqsxcrE37p1oWc5ZUN1AVwdnLlU92ClDAIrthQ6KWeMLSi1uwrvVjOWRLnJmhhyphenhyphenC2nQI1x4LcvBFn1K6UH50JXJMWC4GRlacAGAdv4/s320/medic-563425_1920.jpg" width="320" /></a></div>
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Research and development (R&D) is at the core of Texas’s
biotechnology industry. In Texas, biomedical research, or research conducted to
aid and support the development body of knowledge in the field of medicine, is
bolstered in large part by the state’s vast network of public universities and
medical<span lang="FR"> institutions</span>. These
school and health-related facilities invest strongly in biomedical research and
development<span lang="NL">. In 2013</span> alone<span lang="DE">, Texas </span>universities spent nearly
$3 billion on medical and life sciences research, which made up more than 65
percent of all higher education R&D expenditures in the state. </div>
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Public investment in biotech R&D is complemented by Texas’s
significant concentration of private sector R&D activity. More than a
thousand private R&D firms, employing nearly 20,000 workers, call Texas
home. Many of the world’s largest private biotech R&D firms have operations
in Texas, including PPD, Covance, Quintiles, and INC Research.</div>
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In addition to R&D centers, Texas has more than 1,600 medical
and testing laboratories. These laboratories employ nearly 40,000. Major lab
firms in the state include LabCorp’s Esoterix subsidiary, Spanish biological
product firm Grifols, and Sonic Healthcare’s Clinical Pathology Laboratories
subsidiary. </div>
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Over the past decade, the state’s Texas Emerging Technology Fund
(TETF) has invested more than $142 million in some of the state’s major higher
education institutes for biomedical research-related deals in areas ranging
from genetic engineering to pharmaceutical manufacturing. </div>
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The Lone Star State is also among the leaders in cancer research.
Major Texas<span lang="FR"> institutions in</span>
cancer research include MD Anderson Cancer Center in Houston, Scott & White
Cancer Institute in Temple, and Texas Oncology and Mary Crowley Cancer Research
Centers in Dallas. Furthermore, the Cancer Prevention and Research Institute of
Texas (CPRIT), a $3 billion initiative based in Austin, has played a major role
in expanding Texas cancer research. </div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-56426221191094812142016-04-03T07:14:00.000-05:002016-04-03T07:14:45.149-05:00Escalate Capital by Ross Cockrell—Venture Capital Profile<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq4BFfYxuEw2hcHDboKuExPzuLH3fZ2BO57l_rsww3vSYqO79tB5OoSQyGAsiZDYE0rHIeyG2y-2ZL2UV6epIXrr5RJVEzfN5Co25A5-M56FUFxEoYkOsDfBZOGmNWp0OyjVPwnfITQ80/s1600/dollar-1009324_1280.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq4BFfYxuEw2hcHDboKuExPzuLH3fZ2BO57l_rsww3vSYqO79tB5OoSQyGAsiZDYE0rHIeyG2y-2ZL2UV6epIXrr5RJVEzfN5Co25A5-M56FUFxEoYkOsDfBZOGmNWp0OyjVPwnfITQ80/s320/dollar-1009324_1280.jpg" width="320" /></a></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Can you tell me a
little bit about the history of Escalate? Where it came from and how long it’s
been around?<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">We
started in 2005 as a spin out from Austin Ventures, where I had been for 10
years. My partner, Tony Schell, was running the Comerica tech lending practice
here in Austin. We had known each other since our time together at UT Business
School in the mid-‘90s. We have raised 3 funds totaling $625M in capital with
our most recent closing in late 2014 at $235 million. We’ve been executing
pretty much the same strategy since day one, which is to provide mezzanine
capital to expansion and later stage tech and healthcare companies. We invest
all over the country and have made 75 investments to date as a firm. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif";">Typical
structure is in the form of subordinated debt, where we are coming into
companies’ later rounds of financing, providing a little more leverage than is
traditionally available from banks. We work a lot with SVB, Comerica, Square One,
writing $3M-$15M checks into software, tech enabled services, and Internet
companies. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif";">Profile-wise,
we look for companies with a fair bit of stability and low wipeout risk. Since
we are not making as much on the upside, we typically try to underwrite for credit
first and equity appreciation second. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">So this is
mezzanine debt, correct? How would you define mezzanine debt?<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">We
brought what had been a fairly popular financing solution in traditional PE,
real estate, and other asset classes to IT, which was a novel concept 10 years
ago and we had to do some evangelizing early on. When I came up in the venture
business, there was a traditional playbook that said you went out and raised
multiple series of equity, maybe layered in a little bit of bank debt, start-ups
were largely all equity financed. We are offering another financing solution
for certain types of companies looking for additional growth capital or to make
acquisitions. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">What size company
and what criteria does a business have to meet in terms of revenue to get in
your door at Escalate Capital? <o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">Companies
that we invest in are typically in the $10-$50 million revenue range with a
fair bit of granularity in the business. We are not interested in making bets
around technology standards or in customer or channel concentration. We invest
in a fair bit of B2B software, and companies that utilize software in offering
solutions. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Do you do much with
Healthcare IT?</span></i></b><span style="font-family: "times new roman" , "serif";"><br />
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We do, we’ve invested in probably 12 Healthcare IT companies.</span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Any management
buyouts?<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">Selectively,
where we come in alongside equity to help finance a recap, but that’s not the
primary use of funds in our typical situation.<o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Have you made any
Texas deals?<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">Early on
we invested a lot in Texas: HomeAway, RetailMeNot, LDR, and SailPoint are some
of our Austin deals, and we’ve been fairly active in Dallas and Houston as well.
All told we’ve invested in around 20 companies based in Texas.<o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Do you syndicate deals,
and how does that work? <o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">We are
generally the only provider of capital within our portion of the capital
structure. It’s been pretty rare for us to have opportunities syndicate. You
could say we syndicate with senior lenders, which are good partners of ours and
great sources for deal referrals. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">So you partner with
the banks on the debt side, not with other firms?<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">We have
and we would, but it’s pretty unusual.<o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">Tell me more about
the management team.<o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">Besides
me and Tony, we a third partner who covers the East Coast for us named Chris
Julich. With a total headcount of seven, we are a fairly small shop; that can
certainly be an advantage for companies that are looking for speed and the
ability to work directly with principals. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">From the last Texas
Venture Growth Forum, did you find any groups interesting? <o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">Yes, you
guys did a terrific job, especially for the first time. It seemed well attended
by companies and investors alike. We try to have a pretty good grasp on what is
going on in our backyard, but it’s awesome to meet new companies and I had a
chance to do that for sure. <o:p></o:p></span></div>
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<b><i><span style="font-family: "times new roman" , "serif";">What’s your take on
putting Limited Partners out there at the next conference? <o:p></o:p></span></i></b></div>
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<span style="font-family: "times new roman" , "serif";">If those
guys are interested, I think that’s fantastic. I’ve never seen that before
combined with these kind of events. That would be another awesome connection to
make and a great way to potentially increase attendance among investors<o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-16054633952147407902016-03-31T06:38:00.003-05:002016-04-05T06:24:48.378-05:00The Cabernet vs. the Tempranillo-- Choosing the Right Funding Model for Your Climate<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgL6SlewmBuC0Yx2ktkmJnVJ4uxir9KJICivUQWx4DRK2NRO1XOyWzvsEtvCCXqWWivXkWyAfHTHdCIUr-KIj4CTfdKtIufcGki0Y6KOtL0bsIc4jnE2_K68Lx9AjuPM5fQaHU8NNdPF1w/s1600/purple-grapes-553464_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgL6SlewmBuC0Yx2ktkmJnVJ4uxir9KJICivUQWx4DRK2NRO1XOyWzvsEtvCCXqWWivXkWyAfHTHdCIUr-KIj4CTfdKtIufcGki0Y6KOtL0bsIc4jnE2_K68Lx9AjuPM5fQaHU8NNdPF1w/s320/purple-grapes-553464_1920.jpg" width="320" /></a></div>
<br />
In the late 90s I started making my own wine. To learn more about winemaking I traveled throughout Texas visiting wineries to talk to professional wine makers. At that time, there were about 40 wineries in Texas but it was growing. <br />
<br />
Personally, I like red wines and took every opportunity to try them. The vast majority were Cabernet Sauvignons. Almost all of them were absolutely terrible. One winery explained that the Cabernet grape doesn't do so well in Texas because the weather doesn't cool off enough at night to make as good a wine as it does on the West Coast. It's just too hot here for that type of grape.<br />
<br />
To make my own wine, I ordered Cabernet grapes from California. Peter Brehm would travel up and down the coast gathering up buckets of grapes from various wineries and then put them in cold storage in Oakland. When I ordered the grapes, he would put them a Southwest flight to Austin where I would pick them up at the cargo lot. From there I would crush the grapes, ferment the juice and bottle it. Not a bad way to have your own vineyard.<br />
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Today, the Texas wine industry has over 240 vineyards and growing even faster. In checking back into the Texas wine scene recently I was surprised at how many wineries have shifted over to Tempranillo and Tannat grapes. Those varietals come from Italy where the weather is similar to Texas. I was pleasantly surprised at how good those wines are. It may be the industry has improved on its winemaking techniques but I believe the fundamental choice of grape makes the most difference.<br />
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I tell this story because I work with startups and growth companies and I see many Texas companies trying to emulate the Bay Area model of startup funding. Of course, it's hard to raise funding for a startup company anywhere. It's especially hard if you're trying to use a California model to fund a Texas business. Texas startups hear about the vast amounts of funding raised by California startups who appear from a distance to having nothing more than a great idea. It also looks like every startup in California is getting funded. The reality is that only 1% of California startups raise substantial funding. The other 99% don't get much press coverage so the perception from the outside is somewhat skewed. <br />
<br />
In Texas, there are not as many venture capital funds. There is a great deal of funding available -- it's just not in the venture capital model. In Texas it's in the family office and the venture arms of corporations. These investors want to see traction, proven business models, and raising funding on an idea alone doesn't resonate well them.<br />
<br />
My advice to Texas companies is to choose a startup funding model that works well in Texas and not try to emulate the California model. Cater to the funding sources that are here and not look for the rare venture capital funding source as it will be like trying to find a decent Cabernet wine that's made in Texas. I still like Cabernets from California, but found the Tempranillos in Texas are just as good once you try them.Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0tag:blogger.com,1999:blog-8386773129504238089.post-37821146999003716452016-03-22T06:43:00.000-05:002016-04-05T06:27:09.919-05:00Braden Snyder of Updata Partners -- Venture Capital Profile<div class="MsoNormal">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXGJKbOEhHZHHzCH18i1FK5efi3sQy60Ln1L2-hwEGceT4CRgUWHyXHKZ92bYJC1zzsgQykJ10k3LVwAjGeg-_nzm7vUG1BNa2IOjq2uFhSu6WTOGnHCJ80BcFd3oIwD4aFnbFvJkZLmE/s1600/team-940612_1920.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXGJKbOEhHZHHzCH18i1FK5efi3sQy60Ln1L2-hwEGceT4CRgUWHyXHKZ92bYJC1zzsgQykJ10k3LVwAjGeg-_nzm7vUG1BNa2IOjq2uFhSu6WTOGnHCJ80BcFd3oIwD4aFnbFvJkZLmE/s320/team-940612_1920.jpg" width="320" /></a></div>
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<br />
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><a href="http://updatapartners.com/">Updata Partners </a>by Braden Snyder -- Venture Capital Profile<o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
is the history of Updata Partners?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Updata is a technology-focused growth equity firm
based in Washington, D.C. The firm was founded in 1998 and was an early leader
in the growth equity category. We have invested in more than 60
industry-leading companies and have built and sold businesses exceeding $3
billion in shareholder value. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you invest in?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">As a growth equity investor, we invest in businesses
that have reached between $5 to $50 million in revenue, that are growing
greater than 25% per year, and that have a proven and capital efficient
business model. Within the technology market, we focus our efforts on software,
internet / digital media, and technology-enabled services companies. Our
capital is used to accelerate growth by investing in sales and marketing,
expanding into new geographies, developing complementary products, and / or
financing a potential acquisition. We generally target bootstrapped or lightly
capitalized companies and are flexible when it comes to deal structure. We
invest between $5 and $20 million into companies in the form of both primary
and secondary capital, and we partner with other investors on larger
transactions. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you not invest in?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Within technology, we stay away from <a href="https://www.blogger.com/null" name="_GoBack"></a>hardware-based businesses. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">How do you handle syndication deals?<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">We are typically the lead investor, but we welcome
the opportunity to invest with partners that can add value. We are not
typically part of large group deals. We also have strong support from our LPs,
who actively look for co-investment opportunities and help support us on larger
transactions. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Where
do you invest geographically and have you invested in Texas deals?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">We invest across the U.S. and internationally. We
have had success targeting geographies with a strong technology ecosystem, talent
pool and early stage capital sources, but lack a growth equity capital pool. We
have experience investing in Texas, including Alert Logic, based in Houston,
which was acquired by Welsh Carson, and Merlin Technologies, based in Dallas,
which was acquired by Trident Capital. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you think about the Texas-based deals?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Texas has a strong history in our core software
markets, producing leaders like BMC Software, i2 Technologies, Dell and others.
We have been very impressed with the quality of the investment opportunities in
Texas, and since raising a new fund, we have focused closely on enhancing our
presence in Texas. We are excited about the opportunity to further these
efforts and continue to evaluate the great opportunities in the region. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
kind of operational support do you offer your portfolio?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">All of our GPs are former operators and
entrepreneurs, which is a great benefit our portfolio companies can leverage.
Having been in the seat before, we understand how to add value and develop a
successful management team / board of directors / investor dynamic. Also, we open
up an extensive network of industry contacts, experts, and companies our
portfolio companies can access. We view our involvement as a true partnership
and do everything we can to set up our portfolio companies for success. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
is the history of Updata Partners?<o:p></o:p></span></i></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Updata is a technology-focused growth equity firm
based in Washington, D.C. The firm was founded in 1998 and was an early leader
in the growth equity category. We have invested in more than 60
industry-leading companies and have built and sold businesses exceeding $3
billion in shareholder value. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you invest in?<o:p></o:p></span></i></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">As a growth equity investor, we invest in businesses
that have reached between $5 to $50 million in revenue, that are growing
greater than 25% per year, and that have a proven and capital efficient
business model. Within the technology market, we focus our efforts on software,
internet / digital media, and technology-enabled services companies. Our
capital is used to accelerate growth by investing in sales and marketing,
expanding into new geographies, developing complementary products, and / or
financing a potential acquisition. We generally target bootstrapped or lightly
capitalized companies and are flexible when it comes to deal structure. We
invest between $5 and $20 million into companies in the form of both primary
and secondary capital, and we partner with other investors on larger
transactions. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you not invest in?<o:p></o:p></span></i></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Within technology, we stay away from <a href="https://www.blogger.com/null" name="_GoBack"></a>hardware-based businesses. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">How do you handle syndication deals?<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">We are typically the lead investor, but we welcome
the opportunity to invest with partners that can add value. We are not
typically part of large group deals. We also have strong support from our LPs,
who actively look for co-investment opportunities and help support us on larger
transactions. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Where
do you invest geographically and have you invested in Texas deals?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">We invest across the U.S. and internationally. We
have had success targeting geographies with a strong technology ecosystem, talent
pool and early stage capital sources, but lack a growth equity capital pool. We
have experience investing in Texas, including Alert Logic, based in Houston,
which was acquired by Welsh Carson, and Merlin Technologies, based in Dallas,
which was acquired by Trident Capital. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
do you think about the Texas-based deals?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Texas has a strong history in our core software
markets, producing leaders like BMC Software, i2 Technologies, Dell and others.
We have been very impressed with the quality of the investment opportunities in
Texas, and since raising a new fund, we have focused closely on enhancing our
presence in Texas. We are excited about the opportunity to further these
efforts and continue to evaluate the great opportunities in the region. <o:p></o:p></span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">What
kind of operational support do you offer your portfolio?<o:p></o:p></span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">All of our GPs are former operators and
entrepreneurs, which is a great benefit our portfolio companies can leverage.
Having been in the seat before, we understand how to add value and develop a
successful management team / board of directors / investor dynamic. Also, we open
up an extensive network of industry contacts, experts, and companies our
portfolio companies can access. We view our involvement as a true partnership
and do everything we can to set up our portfolio companies for success. <o:p></o:p></span></div>
Hall T. Martinhttp://www.blogger.com/profile/08379024168697344634noreply@blogger.com0