the first roundtable
Was not so much a roundtable as a freewheeling, snap series of conversations between Josh Grey-Emmer (Haas-Loft Seven) and Robbie Gonzalez (netvolution) about ongoing projects.
Josh, a wunderkind of marketing is focused on all things downtown and developing business through his very particular and effective marketing and branding techniques.
Robbie, the co-founder of Netvolution, and our (Forbes Legacy Ventures LLC) strategic-alliance partner, is an high-level strategist and is in the process of upgrading Netvolution’s systems-they are already best-of-breed, he is taking it to the next level with Stalin Mendoza, his co-partner, by adding secondary, fail-safe systems on behalf of his clients.
Tomorrow I will be posting next week’s expected guests and the topic.
-Martin Cavanaugh Porter III, ceo Forbes Legacy Ventures LLC, Co-Managing Partner, South Park Development Group
the future…simple as that. – build tribes, not customers- or face market share degradation and profit loss.
forbes legacy ventures’ llc-south park development response to business week (see post before)
we cannot remain locked in a disparate darkness of financial road blocks to innovation.
the best time to innovate, invest, and grow is through a recession by supporting groundbreaking start up-entrepreneurs who often lack the ‘get in the door’ credentials to accelerate their product to market and reach the payback period to investors.
the los angeles business war room round table must assist start-ups and on-going businesses receive a degree of credit from suppliers, obtain second rounds of financing, and have access to state-of-the art technology to leverage their innovation and bring their product or service to market.
let us look at the present value, beta, efficiency frontier modelling through the lens: degree to which we can support an innovator succeed.
credit scores: one part of a whole- many individuals credit scores have taken a hit these last years and/or young men and women don’t have enough credit history to have an adequate score.
Let us move beyond the obvious in our collective thinking ”We can’t solve problems by using the same kind of thinking we used when we created them.” – Einstein.
lets also talk about: innovation scores (can product or service be brought to market or improved and be re-branded in short order with a reasonable expectation of success) and credibility scores (what is the individual’s relationship with his freinds and family like-this is a prime new way of balancing a potentially low credit score). full due-diligence adding criteria that allows for a more balanced view of the potential investment.
brett and I propose the 50 for 500 club to begin to provide direct, technical,branding, ongoing strategic advice and limited financial ‘boot strap’ assistance to one potential innovative, entrepreneurial graduate from the USC Marshall School of Business through the South Park Business Incubator (a private business incubator, a business unit of the South Park Development Group). much more to come about the 50 for 500 club in the days ahead.
south park biz incubator (also called la biz incubator) would provide legal, technical, office, branding and marketing assistance (unlimited email marketing campaign blasts, free, best of breed website-on line ecommerce presence, viral-SEO marketing, business planning, and assistance in 2nd and third round financing) for the life of the start-up company, taking a 10% interest.
members of the 50 for 500 club in return for each member putting up a $500.00 stake in the venture, collectively own 10% interest.
it’s a new model: double down on the angel investor model and drive innovation and the hopes of start-up businessmen and women.
the 50 for 500 club will be on the agenda at the first war room round table.
questions? ideas? email: btomich@southparkbusinessincubator.biz or mcporter@southparkbusinessincubator.biz
So You Want to Get Funded?
BusinessWeek and startup tracker YouNoodle assess what types of innovation and invention might attract funding dollars in the downturn
By Reena Jana and Damian Joseph
According to the National Venture Capital Assn. (NVCA), total venture capital investment for the first quarter of this year was at its lowest in 12 years, down 47% in dollar amounts from the fourth quarter of 2008, and 58% from the same period last year. “The VC industry isn’t immune from the downturn,” says Mark Heesen, NVCA’s president.
But deals haven’t ground to a halt, even if they are smaller. “The first-quarter numbers might be down on last year,” says Bob Goodson, co-founder and chief executive of YouNoodle, a San Francisco company that tracks startups. “But we’ve been seeing activity every day lately.” Last month, for instance, medical innovator Lycera received $36 million in Series A funding to continue work on drugs to boost the immunity of patients with abnormal cell growth.
BusinessWeek asked YouNoodle to compile statistics of VC investment from mid-March to mid-April 2009. The idea was to gauge what types of innovation and invention might attract dollars in a downturn. The data could help innovators in various industries assess their odds of obtaining funding at this time.
In the month from Mar. 15, YouNoodle tracked 149 venture capital deals worth $1.55 billion among the 53,000 startups it follows. Of this dollar amount, 26% was invested in biotech and medical devices; 16.5% in energy and clean tech; 14.3% in consumer Internet; 11.4% in hardware (including semiconductors, gadgets, and PC-related goods); 11.2% in finance; 6.2% in software; and the remaining 14% spread across four other categories such as mobile phones and education, each with less than 6%.
Most of the funding was later stage (34%), followed by Series B (33%), suggesting that investors are taking fewer risks and following established ideas.
Biotech Buildup
NVCA’s first-quarter 2009 numbers, compiled in partnership with PricewaterhouseCoopers and Thomson Financial (TRI), also showed that biotech grabbed more dollars than startups in other industries. “We’re really seeing incredible life science advancement in a very short period,” observes NVCA’s Heesen. He points to the fact that raw research and lab experiments supported by National Institutes of Health grants, which Congress agreed to double in 1999 to spark innovation, are finally reaching a stage where their commercial purpose is clear. So scientists and inventors are now forming startups around them and seeking funding.
Perhaps surprising for entrepreneurs and job seekers paying attention to the Obama Administration’s much-publicized call for clean-energy solutions, clean tech is currently struggling to find backers. According to the NVCA, the category saw an 84% drop in dollar-level investments from the fourth-quarter of 2008 into the first-quarter of 2009—to $154 million in 33 deals.
“Clean tech is an almost schizophrenic category,” Heesen says. “And it’s more volatile because of oil prices.” In other words, with oil currently inexpensive, investors feel less urgency to back green companies.
Heesen adds that clean-tech inventors and investors will eventually see growth in their field as new, commercial innovations in solar, thermal, wind, and other areas surface from labs. “This won’t happen overnight,” he says. But the sector could likely see a delayed upswing similar to the biotech field. Biotech was unpopular with VCs a decade ago, even as the sector was beginning to receive highly visible grants and government support.
More Scrutiny Than Ever
So what advice does Gary Glick, founder and chief scientific officer of newly funded Lycera have for would-be entrepreneurs and innovators? “Being persistent and really critically evaluating and understanding the product and technology, and appreciating all aspects of it, is probably the key to getting funding,” he suggests. In other words, those competing for the smaller pool of cash should be prepared to face ever more scrutiny from would-be investors. Those without a solid business plan—and well-proven inventions—need not apply.
And, of course, even those receiving funding need to maintain momentum. A national survey of American VCs and startup owners by the National Association of Seed & Venture Funds (NASVF), conducted the first week of April, showed that 90% of already-funded companies, across industries, weren’t able to obtain follow-on funds this year.
Jim Schoeneck, chief executive of San Diego-based BrainCells, which creates treatments for people suffering from central nervous system diseases and saw $50 million in Series B funding a year ago, urges entrepreneurs to consider the long-term up-front. “Certainly now would be more challenging for us [to get funding]. Now, we have a different eye toward survivability,” he says. “I’d advise startups to consider, how will you bridge the current economic situation? Do you have 18 months of cash?”
we will be inviting stake holders to join the war room round table at the hope business centre
this Thursday, one week from the first round table, the south park development group, FLV LLC, will be sending out invitations to key stake holders in los angeles-young entrepreneurs and other influencers to drive a brighter, better conversation about business in l.a-especially in downtown l.a.
there is no point in accepting the status quo-change must be wrought from the grasp of ineptitude.
it will be an interesting collective of excellence and we can all look forward to moving from talk to collective, entrepreneurial action.
“It takes a lot of courage to release the familiar and seemingly secure, to embrace the new. But there is no real security in what is no longer meaningful. There is more security in the adventurous and exciting, for in movement there is life, and in change there is power.”- alan cohen
www.labizwarroomblog.com
posted by: charter members of the LABWR Round Table
every thursday, effective may 21 from 6:30-8 (complimentary cigars and espresso bar).
last saturday of every month 10am-12pm with special micro-pinnacle warrior-leadership session by internationally renowned leadership coach and front-line neurologist,Dr.Singh (complimentary breakfast, coffee bar, followed by reviveE elixir ‘shot’).
invite only via email or/and regular post
