Funding Day is fast approaching. While the teams have disbanded, we remain in close contact. Mike has held one-on-one meetings with a number of the teams—helping them refine their presentations. Bertrand Navarrete, Internet Capital Group, has also introduced us to a number of early-stage investors who we hope will attend the event next week.
Peter Key’s article was released today in the Philadelphia Business Journal and features quotes from Mike Levinson and Vuzit’s Chris Cera and Brent Matzelle. To read the article, click here.
Thursday, August 28, 2008
Saturday, August 23, 2008
Party On
After rehearsal at Morgan Lewis, the program concluded with a night of food and fun at North Bowl just down the street from SnackFeed’s new headquarters in Northern Liberty.Friday, August 22, 2008
Practice, Practice, Practice
The top floor of 18th and Market Streets was abuzz with nervous energy this morning as we gathered today to practice for Funding Day at Morgan Lewis. Each team presented and gathered final comments before parting for two weeks to polish their “pitch.”
Steve Goodman and Morgan Lewis graciously hosted the day. Steve expressed his own excitement for the upcoming event, adding that it has been his pleasure to be involved with such an important initiative.
Peter Keys, journalist for the Philadelphia Business Journal, also stopped by for a sneak peak and to follow-up on two stories he wrote earlier in April about the program.
Steve Goodman and Morgan Lewis graciously hosted the day. Steve expressed his own excitement for the upcoming event, adding that it has been his pleasure to be involved with such an important initiative.
Peter Keys, journalist for the Philadelphia Business Journal, also stopped by for a sneak peak and to follow-up on two stories he wrote earlier in April about the program.
Thursday, August 21, 2008
So Long, Farwell...
Today was a sad day—our last official day in the Science Center. We’ve had lots of fun over the last three months in this space. The bonding that occurred between the 11 companies in the 2008 program was a pleasant surprise for us all. We figured “Work Where You Like” would be a draw for the Innovators; individuals craving the freedom to work independently on their dreams. But it became apparently early on that many preferred to work in the common space we provided. The energy of the larger group was infectious and a friendly competition developed within these walls. At a moment’s notice, they could bounce ideas off each other, learning lessons from the other companies and accelerating their own development. The group built its own collaborative network; sharing contacts and creating a culture all their own.
After the last box was packed, most the group departed for 32nd and Chestnut, the scene of so many ultimate Frisbee games before, to unwind and before a busy Friday.
After the last box was packed, most the group departed for 32nd and Chestnut, the scene of so many ultimate Frisbee games before, to unwind and before a busy Friday.
Wednesday, August 20, 2008
Visiting Angels
Three Angels from Robin Hood Ventures led our final Tuesday Night Speakers series-- Larry Brotzge, Tom Olenzak and Coley Brown. While all three are members of the same Philadelphia-based angel group, they represent the broad array of angel perspectives. Coley is from a technology background, having recently joined Robin Hood after retiring from CTB Consulting, a company he founded. He emphasizes the importance of mentoring, something he’s learned starting five companies. Larry, by contrast, comes from more of a financial background. He is a former CPA at a Big Four firm and Controller for a Fortune 500 financial services firm who co-founded Robin Hood Ventures. His interests were always more entrepreneurial and he has been working with start-ups for the past 14 years. Tom is a mix. Experienced entrepreneur, independent Angel, Investment Banker, and Venture Capitalist; running FCG's corporate healthcare venture fund. He also founded Cutting Edge Computer Solutions, Inc. Tom is currently a founding partner of Fountainhead Venture Group and DreamIt Ventures Guru.
The evening opened with introductions and important advice from the three angels. All three agreed that angels are motivated by their own self-interest. While they may be interested in the product and people, they are investors who expect to earn a return on their money. Turn offs included unrealistic value estimates, ludicrous statements (we have no competition), and being unprepared. In an introductory setting, Coley recommended offering a “Reader’s Digest” version of your idea, with the goal being to create an invitation to talk later. Tom emphasized the “Why” element. Having a great idea isn’t enough. You need to explain why it matters and why it is a big idea.
They also spent some time discussing different funding options that might be appropriate depending on where the company was in its growth curve: family & friends in the concept stage, individual Angels when looking for $50-100k, Angel Groups and Venture Capitalists for more significant sources of capital. They also suggested that when seeking individual Angels, look for people in related fields. Identifying someone with expertise in your area will create an opening for dialogue, feedback and ultimately sponsorship.
When creating financial projections, one Innovator queried, “Would you prefer we make our best guess or build something based on the size of the market?” All three agreed that there should be a logical progression through your assumptions. The numbers need to be reasonable, and be built from the bottom up. Financial projections and the model used to build them are the numerical representation of your business plan. Larry added that if you can’t give revenue, at a minimum you needed to outline the steps, timeline and milestones for getting to that point.
Another Innovator asked, “Should you state possible exits options?” Again, all three agreed, especially when dealing with Venture Capitalists and Angel Groups, sharing that Investors will want to know the type of companies that might ultimately find your company attractive.
Our thanks to Larry, Coley and Tom for another helpful evening. Their insights will no doubt be useful as the Innovators prepare for Funding Day, September 4th.
The evening opened with introductions and important advice from the three angels. All three agreed that angels are motivated by their own self-interest. While they may be interested in the product and people, they are investors who expect to earn a return on their money. Turn offs included unrealistic value estimates, ludicrous statements (we have no competition), and being unprepared. In an introductory setting, Coley recommended offering a “Reader’s Digest” version of your idea, with the goal being to create an invitation to talk later. Tom emphasized the “Why” element. Having a great idea isn’t enough. You need to explain why it matters and why it is a big idea.
They also spent some time discussing different funding options that might be appropriate depending on where the company was in its growth curve: family & friends in the concept stage, individual Angels when looking for $50-100k, Angel Groups and Venture Capitalists for more significant sources of capital. They also suggested that when seeking individual Angels, look for people in related fields. Identifying someone with expertise in your area will create an opening for dialogue, feedback and ultimately sponsorship.
When creating financial projections, one Innovator queried, “Would you prefer we make our best guess or build something based on the size of the market?” All three agreed that there should be a logical progression through your assumptions. The numbers need to be reasonable, and be built from the bottom up. Financial projections and the model used to build them are the numerical representation of your business plan. Larry added that if you can’t give revenue, at a minimum you needed to outline the steps, timeline and milestones for getting to that point.
Another Innovator asked, “Should you state possible exits options?” Again, all three agreed, especially when dealing with Venture Capitalists and Angel Groups, sharing that Investors will want to know the type of companies that might ultimately find your company attractive.
Our thanks to Larry, Coley and Tom for another helpful evening. Their insights will no doubt be useful as the Innovators prepare for Funding Day, September 4th.
Thursday, August 14, 2008
PhrazIt Gets TechCrunched
David Kosslyn, Ryan Schoen and Shankar Ramaswamy unveiled PhrazIt to positive reviews. “With so many detailed opinion pieces available, getting to the bottom line can be difficult,” according to Jason Kincaid of TechCrunch who broke the story.
PhrazIt is a revolutionary way to share condensed opinions on the web by creating a visual representation of consensus. “Reviews” are created by users by adding short phrases (30 characters or less) to topics, or clicking on existing opinions to agree. The more the crowd agrees, the larger the comment becomes. Additionally, users can track the opinions of others.
The story was quickly picked up by David Speers of Phillypreneurs and Digg. Killer Startups decreed that Phrazit might be a killer because “[The] reviews on the site are really short (that’s the idea) and amazingly concise. This makes the site a sort of Twitter for reviews, and everyone loves Twitter.” John DeCesaro of Ad Outsider, an experienced marketing professional who blogs on advertising, used PhrazIt as an example of the importance of the simplicity of ideas. “A big part of brand perception is out of the hands of the branders and in control of the market. “ As this transition occurs, tools like PhrazIt will become pivotal to assess market perception.
Congratulations, PhrazIt, on a successful launch.
PhrazIt is a revolutionary way to share condensed opinions on the web by creating a visual representation of consensus. “Reviews” are created by users by adding short phrases (30 characters or less) to topics, or clicking on existing opinions to agree. The more the crowd agrees, the larger the comment becomes. Additionally, users can track the opinions of others.
The story was quickly picked up by David Speers of Phillypreneurs and Digg. Killer Startups decreed that Phrazit might be a killer because “[The] reviews on the site are really short (that’s the idea) and amazingly concise. This makes the site a sort of Twitter for reviews, and everyone loves Twitter.” John DeCesaro of Ad Outsider, an experienced marketing professional who blogs on advertising, used PhrazIt as an example of the importance of the simplicity of ideas. “A big part of brand perception is out of the hands of the branders and in control of the market. “ As this transition occurs, tools like PhrazIt will become pivotal to assess market perception.
Congratulations, PhrazIt, on a successful launch.
Wednesday, August 13, 2008
Speed Bumps and Patent Trolls
We were fortunate tonight to host Hal Fullmer and Jake Soumis who led the discussion on protecting your intellectual property. Hal and Jake are IP attorneys for Washburn Woodcock, a leading national intellectual property firm named the top intellectual property firm in Pennsylvania by Chambers USA. Both Hal and Jake have engineering and/or scientific backgrounds in addition to acquiring, enforcing and leveraging intellectual property rights—a hallmark of Washburn Woodcock.
Hal reviewed the differences between patents, trademarks, copyrights, and trade secrets paying careful attention to registration requirements. His conversation expanded to include useful tips for contracts, including assigning IP rights, non-compete clauses, issues of confidentiality, licensing, warranty of originality and ownership. Given the nature of our companies, the remainder of the evening focused on in-depth questions surrounding patents. Entrepreneurs often file for provisional patent applications while they explore the full functionality and development of their innovations. Provisional patent applications, in contrast to regular patent applications, are valid for a period of one year (after which a regular application must be applied or the rights expire) and cost significantly less.
The Innovators had a number of questions. One Innovator asked if enhancements were covered in a patent or if they required the filing of a new patent, another how frequently patents were enforced. Hal offered the following statistic—the average price to defend a case valued at $25M is $2M through trial. Realistically, this means that patents act as speed bumps, not brick walls in defending rights. Hal and Josh also warned of the dangers of “Patent Trolls.” Trolls are people who make a living by filing, purchasing and enforcing patents.
Thank you, Hal and Josh for an informative evening.
Hal reviewed the differences between patents, trademarks, copyrights, and trade secrets paying careful attention to registration requirements. His conversation expanded to include useful tips for contracts, including assigning IP rights, non-compete clauses, issues of confidentiality, licensing, warranty of originality and ownership. Given the nature of our companies, the remainder of the evening focused on in-depth questions surrounding patents. Entrepreneurs often file for provisional patent applications while they explore the full functionality and development of their innovations. Provisional patent applications, in contrast to regular patent applications, are valid for a period of one year (after which a regular application must be applied or the rights expire) and cost significantly less.
The Innovators had a number of questions. One Innovator asked if enhancements were covered in a patent or if they required the filing of a new patent, another how frequently patents were enforced. Hal offered the following statistic—the average price to defend a case valued at $25M is $2M through trial. Realistically, this means that patents act as speed bumps, not brick walls in defending rights. Hal and Josh also warned of the dangers of “Patent Trolls.” Trolls are people who make a living by filing, purchasing and enforcing patents.
Thank you, Hal and Josh for an informative evening.
Friday, August 8, 2008
Vuzit Gets Funding
On August 6, 2008, Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP) announced that they had approved Hovitate LLC, the parent company of Vuzit, for a $100k investment. Hovitate’s Vuzit product had already won the Most Innovative Product or Service award at the 2008 Ben Franklin Emerging Business Awards earlier in the year.
Wednesday, August 6, 2008
Pearls of Wisdom from Mike Levinson
Our own Mike Levinson was the featured speaker tonight. Throughout the 2008 program, Mike has been keeping a notebook of tips and advice to share with the group. Tonight, he shared these bits of wisdom.
The first part of the evening covered his successes and challenges. He spoke about the first companies he founded and the lessons learned throughout his career. He recalled an early turning point in his career when a Venture Capitalist pointed out the downside of his service business— “your assets walk out the door every night”. This led Mike to shift his business over time until 70% of his revenues came from product sales: “A product can be generating revenue even when you are asleep.”
Having a great partner was another key to his success. While sharing core values was integral to the partnership, they were very different people. Mike loved the challenge of building the business. His partner, on the other hand, excelled at selling and being an evangelist for their products and services.
He discussed his creative approaches to marketing and market share. He talked about a few of his favorite books “Positioning” and “Crossing the Chasm,” both of which helped him identify and build unique market segments. He also encouraged the Innovators to be creative not only in solving product problems but also attracting capital. Understanding the motivations at both sides of the table often led him to propose a solution that was a win for both parties. He concluded by sharing insights into angel investing.
During the second part of his session Mike focused on advice regarding the business aspects of what they were doing: accounting, legal, human resources, insurance and marketing. He offered tips to the Innovators as they begin to hire and grow their businesses. He shared tips about hiring, payroll services, legal documents, and terms sheets.
With product launches and staff expansion on the horizon, these tips couldn’t have come at a better time!
The first part of the evening covered his successes and challenges. He spoke about the first companies he founded and the lessons learned throughout his career. He recalled an early turning point in his career when a Venture Capitalist pointed out the downside of his service business— “your assets walk out the door every night”. This led Mike to shift his business over time until 70% of his revenues came from product sales: “A product can be generating revenue even when you are asleep.”
Having a great partner was another key to his success. While sharing core values was integral to the partnership, they were very different people. Mike loved the challenge of building the business. His partner, on the other hand, excelled at selling and being an evangelist for their products and services.
He discussed his creative approaches to marketing and market share. He talked about a few of his favorite books “Positioning” and “Crossing the Chasm,” both of which helped him identify and build unique market segments. He also encouraged the Innovators to be creative not only in solving product problems but also attracting capital. Understanding the motivations at both sides of the table often led him to propose a solution that was a win for both parties. He concluded by sharing insights into angel investing.
During the second part of his session Mike focused on advice regarding the business aspects of what they were doing: accounting, legal, human resources, insurance and marketing. He offered tips to the Innovators as they begin to hire and grow their businesses. He shared tips about hiring, payroll services, legal documents, and terms sheets.
With product launches and staff expansion on the horizon, these tips couldn’t have come at a better time!
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