Tweets from Triangle Entrepreneurship Week track the final day which focused on how startups should go about raising funds.
Check them out. In 140-or-so characters, TEW and attendees are sharing some interesting insights and advice.
Unless noted by bullet(s), the tweets are from the Triangle Entrepreneurship Week crew (hash tag #TEW2012)
Update from Friday’s closing events:
- Tri Entre Week @TriangleEW
HUGE thanks to all our amazing partners, interns & volunteers! Could not have done it without you!
- JT Vaughn @jt_vaughn
What a week! Way to go, Leo and Sarah — #TEW2012 @TriangleEW pic.twitter.com/KNwQy7hN
- Tri Entre Week @TriangleEW
And for our 1300th tweet: Thanks again to EVERYONE that helped out. You all are amazing!!!
And that wraps it up. Our last panel just ended. It’s been one AWESOME week. Time for the after party! ATC Underground Bay 7. See you there!
Advice: remove all adjectives from your pitch. Take out words like “large,” “phenomenal,” or “promising.” #usedalltoooften
One key piece of advice: have perseverance. This theme has been echoed throughout the entire week.
Perseverance is so key. You’re going to fail. Success is pushing through.
You must accept that the vast majority of your pitches are going to fail. It’s exhausting, but it’s so worth it.
If you’re not willing to be the go-getter, then you shouldn’t be in the CEO position.
A HUGE thank you to our rockstar team for making #TEW2012 happen @SladeDevGroup, @BrascoMarketing, @EventsByLegacy
Investors love introductions. If you can’t succeed at meeting your investor, then you won’t look like a good business owner.
Think about using local universities as networks. These are huge places for referrals.
Investors want you to use their money for business purposes. They don’t want to see you then invest that money elsewhere.
A source for good business partners is investors themselves.
Advice: you may have the tech and idea down, but you may need to think about getting a partner if you don’t understand business.
Some investors love it when the engineer comes in to help pitch, and some care less. But the CEO should ALWAYS be there.
A good return is a good return. You don’t have to be the next Google to attract investors.
Try and think like an investor. When you demonstrate that you understand the risk that investors take, you are more appealing.
Another thing investors look for is work-ability (with you as a person). They care about the relationship too.
Investor viewpoint: Different investors have different needs and objectives. Your approach cannot be one size fits all.
Sometimes it’s easier to sell your idea than it is to pitch once your business has started making money.
- J. King White @JKingWhite
Investor viewpoint: Best investor communities still reside outside of NC. But money is money, regardless of zip origin.
- Tri Entre Week @TriangleEW
Remember, investors don’t make your business successful. YOU do.
The money doesn’t come to you. You must go to it.
Don’t limit yourself. There are investors beyond the borders of NC. Think about asking around in Seattle or New York.
When pitching to angel investors, try to show that they will get AT LEAST a 25% IR.
Look at investors as board members first. Then look at them as investors.
Investors are not your enemies. They all want you to succeed. #thingstoremember #TEW2012
But remember, you also now have someone else interested in your success.
Accepting someone else’s money really changes the dynamic of the relationship. It’s an adjustment all entrepreneurs go through.
A lot of people go into entrepreneurship because they don’t want to work for someone. That dynamic ends when you have an investor.
- J. King White @JKingWhite
Investor viewpoint: Raise money against the known milestones in your particular space.
- Tri Entre Week @TriangleEW
Try and be 3 steps ahead when it comes to fundraising. You don’t want to raise .25 mil $ and then end up stranded.
When pitching, you’ve got to sell both the dream and the reality.
Uncertainty isn’t necessarily a bad thing. Just know what it is and why you are uncertain.
Thank you to our sponsor @PayPerClickManagement
If you need 5 million, don’t ask for 500,000 to “bide time.” Investors are very good at picking up on how much you really need.
It’s often easier to ask for a larger amount of money. Don’t be afraid to ask for more than a million dollars.
Getting a “no” is far better than a “maybe.” At least you now have feedback. “Maybe” is the worst.
If you don’t want to raise money, then you shouldn’t be a CEO. Interesting point from our panelists.
- J. King White @JKingWhite
Investor viewpoint: Don’t try to tell an investor what $ your startup will be worth in X years.
- Tri Entre Week @TriangleEW
One important tip for pitching: practice, practice, practice. And then continue to practice.
A good idea is not as appealing to investors if there’s no business plan associated with it as well.
Something investors are really concerned with is answering HOW you will get your product to market and sell it.
Try to simplify things when getting investors. 1 idea is to put all small investors into a sub-unit so they come in as “1 company.”
- Entrepreneur @EntMagazine
When you have a startup, you wear a lot of hats. Here are some strategies to get it done — and right. http://entm.ag/EntGetsDone
- Tri Entre Week @TriangleEW
Don’t forget about grants as an option for funding. You need to look under every rock.
The investor relationship is like a marriage. Make sure it’s someone you can see yourself working with for a long time.
Going out and getting money from anywhere may not be the best idea. An ignorant business partner isn’t a good business partner. #
This way, the investors will also be able to provide advice.
It’s key to line yourself of with a strategic investor, meaning an investor who knows a lot about your field of business.
A good investor doesn’t want you starving. A good investor does want a roof over your head. #thingstoremember
The number one thing investors look for in decision making is the level of commitment made by the entrepreneur.
- J. King White @JKingWhite
Investor viewpoint: Go ask for advice long before you go asking for money.
- Tri Entre Week @TriangleEW
True successful entrepreneurs have been all in. Again, passion for your idea is HUGELY important.
Often times, people don’t explain what the return is to the investor. This is a common mistake in pitching.
“If you want money, ask for advice; if you want advice, ask for money.” Don’t be afraid to ask for advice. You’ll be surprised.
Don’t let your pitch be the first time you meet your investor. They want to know you as an entrepreneur before investing.
When pitching to an investor, try to be concise. If it takes 40 minutes to explain your idea, you are less likely to get a deal.
What’s a helpful tip for the process of getting money? You must be “doggedly determined” and “exude passion.”
The amount of money that you need to get started is much smaller today than it used to be.
If your in the software business, start coding or learn how to code before pitching to investors.
- Sarah Wechsberg @TheEcofoodie
Great job moderating @Bernie_ThePower ! Rock star panel for ‘How to Raise Money’ at @AmerUnderground
- Tri Entre Week @TriangleEW
If you don’t believe in your own idea, why would an investor? You have GOT to have passion behind your company.
VC’s invest more from a business point of view since investing is their job, and it’s often not their own money they are investing.
Angels invest more based on whether or not a company resonates with them since it’s their own money they are investing. #TEW2012
Getting a .25 million $ venture investment probably doesn’t mean you have a full partner sign on. #thingstoremember #TEW2012
More and more of the angel groups are avoiding deals that will eventually require venture investing.
The people you want to look for investment first are friends and family. If you can’t sell to them, then you’re in trouble.
- Avatar @AvatarRock
Raising Funds roundtable just kicking off @TriangleEW @ATCDurham w/ a panel of investors and local startups… Let the games begin.
- J. King White @JKingWhite
@Bernie_ThePower is moderating a rock star panel for ‘How To: Raising Money’ at @AmerUnderground for #TEW2012.
19h Tri Entre Week @TriangleEW
- Teju Ravilochan @tejuravi
10 Things Entrepreneurs Should Be Tweeting About http://ow.ly/flSMn from @EntMagazine
- Tri Entre Week @TriangleEW
We can’t wait to see the footage from @Soleil919. Thank you for filming the week for us!
1 thing investor can’t control is the market. But a solution to a problem is worth investing in
Need 2 show how $ translates into value. Investors more interested in how you will get that 1st customer
Don’ts for pitches: $ for salaries, 10-yr plans, $ for paying debts or shareholders, assuming there’s no competitors
- Bill Gates @BillGates
Foundation CEO @jeffraikes answers the question he gets most: How do you decide what issues to invest in? http://b-gat.es/WfbwHO via @Forbes
- Tri Entre Week @TriangleEW
Pre-revenue evals are more art than science. It’s more uncertain and unpredictable
Having a strong team is a large factor in getting funded by Angels or VC’s. They are investing in team as much as the product @ScaleFinance
There’s a lot more deals chasing $ than $ chasing deals @ScaleFinance
Angel funds becoming more sophisticated–acting more like venture funds
Craig Stone, Angel Investor from TAP, says local entrepreneurial scene in Raleigh is improving.
“A lot of the process of being an entrepreneur is just duct tape & chicken wire” Kristin Adams of Afterglow Cosmetics
