an important topic that a lot of entrepreneurs struggle with how to raise
entrepreneurs struggle with how to raise
entrepreneurs struggle with how to raise investment for your business how to get
investment for your business how to get
investment for your business how to get the dollars you need to start and grow
the dollars you need to start and grow
the dollars you need to start and grow your company and I’m super excited to
your company and I’m super excited to
your company and I’m super excited to have my special guest Stephen Kelly CEO
have my special guest Stephen Kelly CEO
have my special guest Stephen Kelly CEO of stage back on with me again Stephen
of stage back on with me again Stephen
of stage back on with me again Stephen how you doing great I would Greta me
how you doing great I would Greta me
how you doing great I would Greta me back up it seems a little while since
back up it seems a little while since
back up it seems a little while since we’ve been together but it’s fantastic
we’ve been together but it’s fantastic
we’ve been together but it’s fantastic rightfulness I love it I love the tie
rightfulness I love it I love the tie
rightfulness I love it I love the tie back home when London you’re off to
back home when London you’re off to
back home when London you’re off to Dublin next week right you’re always
Dublin next week right you’re always
Dublin next week right you’re always jet-setting we’re speaking I think I’m
jet-setting we’re speaking I think I’m
jet-setting we’re speaking I think I’m keynote in it I’m cynical Web Summit
keynote in it I’m cynical Web Summit
keynote in it I’m cynical Web Summit which is about hundred and twenty five
which is about hundred and twenty five
which is about hundred and twenty five thousand people turned up in Dublin but
thousand people turned up in Dublin but
thousand people turned up in Dublin but a huge conference around both technology
a huge conference around both technology
a huge conference around both technology but for entrepreneurship as well and
but for entrepreneurship as well and
but for entrepreneurship as well and we’ve got loads of tech companies there
we’ve got loads of tech companies there
we’ve got loads of tech companies there but absolutely tons of startups so we’re
but absolutely tons of startups so we’re
but absolutely tons of startups so we’re talking about all kind of else age can
talking about all kind of else age can
talking about all kind of else age can help them in terms of managing that
help them in terms of managing that
help them in terms of managing that money which is really critical to their
money which is really critical to their
money which is really critical to their business interesting like you know a lot
business interesting like you know a lot
business interesting like you know a lot of our customers are saying that we can
of our customers are saying that we can
of our customers are saying that we can get paid twice as quickly as they were
get paid twice as quickly as they were
get paid twice as quickly as they were before so it’s kind of getting there the
before so it’s kind of getting there the
before so it’s kind of getting there the fuel the pumps the growth of companies
fuel the pumps the growth of companies
fuel the pumps the growth of companies around cash flow we’re all about the
around cash flow we’re all about the
around cash flow we’re all about the disruptive technology that’s going out
disruptive technology that’s going out
disruptive technology that’s going out there so it’s a crazy time we live in
there so it’s a crazy time we live in
there so it’s a crazy time we live in and we want to make sure all those great
and we want to make sure all those great
and we want to make sure all those great entrepreneurs are taking advantage of
entrepreneurs are taking advantage of
entrepreneurs are taking advantage of that I love it I love it now most people
that I love it I love it now most people
that I love it I love it now most people wouldn’t think a CEO would know a lot
wouldn’t think a CEO would know a lot
wouldn’t think a CEO would know a lot about angel investing and how to raise
about angel investing and how to raise
about angel investing and how to raise capital for a company and I know you’re
capital for a company and I know you’re
capital for a company and I know you’re not the typical CEO so for some extra
not the typical CEO so for some extra
not the typical CEO so for some extra contacts for the people watching can you
contacts for the people watching can you
contacts for the people watching can you give people a little background of what
give people a little background of what
give people a little background of what you’ve done on the angel investing side
you’ve done on the angel investing side
you’ve done on the angel investing side yeah and I walked in the shoes of a
yeah and I walked in the shoes of a
yeah and I walked in the shoes of a start-up so I’ve been strapped to
start-up so I’ve been strapped to
start-up so I’ve been strapped to business initially out of Europe and
business initially out of Europe and
business initially out of Europe and then out of California and raised money
then out of California and raised money
then out of California and raised money there but one of the principles we had
there but one of the principles we had
there but one of the principles we had was kind of I think is what are your
was kind of I think is what are your
was kind of I think is what are your phrases actually made money before you
phrases actually made money before you
phrases actually made money before you raise money and we kind of lived that in
raise money and we kind of lived that in
raise money and we kind of lived that in our DNA but since then I’ve done at
our DNA but since then I’ve done at
our DNA but since then I’ve done at least a dozen angel investments for
least a dozen angel investments for
least a dozen angel investments for businesses that have bootstrapped and
businesses that have bootstrapped and
businesses that have bootstrapped and grown some of them actually in tens of
grown some of them actually in tens of
grown some of them actually in tens of millions of dollars of revenue growth
millions of dollars of revenue growth
millions of dollars of revenue growth now so they’ve done really really well
now so they’ve done really really well
now so they’ve done really really well and they’ve provided some of the core
and they’ve provided some of the core
and they’ve provided some of the core principles we’ll talk about
principles we’ll talk about
principles we’ll talk about this Google house and I think evident
this Google house and I think evident
this Google house and I think evident you know probably should set the scene
you know probably should set the scene
you know probably should set the scene when you and I are talking about his
when you and I are talking about his
when you and I are talking about his almost a disruptive thinking is it’s the
almost a disruptive thinking is it’s the
almost a disruptive thinking is it’s the University of Life of MIT of Harvard of
University of Life of MIT of Harvard of
University of Life of MIT of Harvard of Stanford but we real practitioners so
Stanford but we real practitioners so
Stanford but we real practitioners so I’ve done myself you know every does
I’ve done myself you know every does
I’ve done myself you know every does name drew investments of bootstrap to
name drew investments of bootstrap to
name drew investments of bootstrap to business I was a CEO of a start-up in
business I was a CEO of a start-up in
business I was a CEO of a start-up in the US so I’m like you actually walked
the US so I’m like you actually walked
the US so I’m like you actually walked in the shoes of the guys who are on here
in the shoes of the guys who are on here
in the shoes of the guys who are on here today and I think a lot a lot of
today and I think a lot a lot of
today and I think a lot a lot of practical experience and tips that we
practical experience and tips that we
practical experience and tips that we can share I love it and for those of you
can share I love it and for those of you
can share I love it and for those of you who don’t fully know my background after
who don’t fully know my background after
who don’t fully know my background after I sold my first company I joined a
I sold my first company I joined a
I sold my first company I joined a venture capital firm was helping raise
venture capital firm was helping raise
venture capital firm was helping raise half a million to 15 million for people
half a million to 15 million for people
half a million to 15 million for people who wanted to grow and expand their
who wanted to grow and expand their
who wanted to grow and expand their companies and I’ve done angel investing
companies and I’ve done angel investing
companies and I’ve done angel investing myself I’m actually in the process of
myself I’m actually in the process of
myself I’m actually in the process of taking over one of the business that I
taking over one of the business that I
taking over one of the business that I invested in to be the full owner of it
invested in to be the full owner of it
invested in to be the full owner of it because I believe in it that much and so
because I believe in it that much and so
because I believe in it that much and so yeah super excited an important topic
yeah super excited an important topic
yeah super excited an important topic and let’s dive in on the question so for
and let’s dive in on the question so for
and let’s dive in on the question so for those of you watching if you want to ask
those of you watching if you want to ask
those of you watching if you want to ask us a question on the right side does
us a question on the right side does
us a question on the right side does that chat window you can put your
that chat window you can put your
that chat window you can put your question there and we’ll do our best to
question there and we’ll do our best to
question there and we’ll do our best to get to it the first one came in from Jay
get to it the first one came in from Jay
get to it the first one came in from Jay your eyes how does a CEO gauge whether
your eyes how does a CEO gauge whether
your eyes how does a CEO gauge whether their business is at the investment
their business is at the investment
their business is at the investment stage or not do people often seek
stage or not do people often seek
stage or not do people often seek investment they don’t need yeah I think
investment they don’t need yeah I think
investment they don’t need yeah I think also Evan people probably and I saw this
also Evan people probably and I saw this
also Evan people probably and I saw this a lot back in the crazy kind of calm
a lot back in the crazy kind of calm
a lot back in the crazy kind of calm boons California people raised it’s
boons California people raised it’s
boons California people raised it’s crazy to set but almost too much money
crazy to set but almost too much money
crazy to set but almost too much money and when you do that it just drives the
and when you do that it just drives the
and when you do that it just drives the whole mentality of the DNA of the
whole mentality of the DNA of the
whole mentality of the DNA of the company in the wrong direction and it’s
company in the wrong direction and it’s
company in the wrong direction and it’s a real great sensitive almost bootstrap
a real great sensitive almost bootstrap
a real great sensitive almost bootstrap of business and have that hunger every
of business and have that hunger every
of business and have that hunger every day and worry about making payroll and
day and worry about making payroll and
day and worry about making payroll and sitting down on Sunday evening and
sitting down on Sunday evening and
sitting down on Sunday evening and working at new expenses your cash flow
working at new expenses your cash flow
working at new expenses your cash flow your pipeline and all that sort of stuff
your pipeline and all that sort of stuff
your pipeline and all that sort of stuff so I think my my and I learned this from
so I think my my and I learned this from
so I think my my and I learned this from you actually is kind of make money
you actually is kind of make money
you actually is kind of make money before you raise money let’s build a
before you raise money let’s build a
before you raise money let’s build a business build value for customers and
business build value for customers and
business build value for customers and obviously you need to kind of keep a
obviously you need to kind of keep a
obviously you need to kind of keep a real-time weather eye on the cash flow
real-time weather eye on the cash flow
real-time weather eye on the cash flow and the fuel growth which is cash
and the fuel growth which is cash
and the fuel growth which is cash but you kind of really want to focus on
but you kind of really want to focus on
but you kind of really want to focus on the fundamentals of business and that’s
the fundamentals of business and that’s
the fundamentals of business and that’s how the face and that’s on the market in
how the face and that’s on the market in
how the face and that’s on the market in the customers and the value provided and
the customers and the value provided and
the customers and the value provided and then you can build your financial model
then you can build your financial model
then you can build your financial model and it doesn’t have to be three
and it doesn’t have to be three
and it doesn’t have to be three dimensional sixteen dimensional
dimensional sixteen dimensional
dimensional sixteen dimensional spreadsheet can be pretty simple and
spreadsheet can be pretty simple and
spreadsheet can be pretty simple and then really focus on running the
then really focus on running the
then really focus on running the business and generating the cash you
business and generating the cash you
business and generating the cash you need to fuel the worth and then go and
need to fuel the worth and then go and
need to fuel the worth and then go and get investment when you need to acquire
get investment when you need to acquire
get investment when you need to acquire points in time yeah I think the answer
points in time yeah I think the answer
points in time yeah I think the answer that I think to many entrepreneurs do
that I think to many entrepreneurs do
that I think to many entrepreneurs do start looking for capital too soon and
start looking for capital too soon and
start looking for capital too soon and you’re gonna lose too much of your
you’re gonna lose too much of your
you’re gonna lose too much of your company right this is a lot of risk
company right this is a lot of risk
company right this is a lot of risk associated with a start-up and any angel
associated with a start-up and any angel
associated with a start-up and any angel investor VC coming in if they see a lot
investor VC coming in if they see a lot
investor VC coming in if they see a lot of risks and they want more equity as a
of risks and they want more equity as a
of risks and they want more equity as a result and so the more that you can show
result and so the more that you can show
result and so the more that you can show momentum some traction some sales some
momentum some traction some sales some
momentum some traction some sales some media something something that separates
media something something that separates
media something something that separates you from everybody else then your
you from everybody else then your
you from everybody else then your valuation will get much richer and it’ll
valuation will get much richer and it’ll
valuation will get much richer and it’ll be a lot easier to close the sales we
be a lot easier to close the sales we
be a lot easier to close the sales we would always in the venture capital firm
would always in the venture capital firm
would always in the venture capital firm try to look for companies that want a
try to look for companies that want a
try to look for companies that want a growth capital not startup capital so
growth capital not startup capital so
growth capital not startup capital so like you’ve shown a proof of concept
like you’ve shown a proof of concept
like you’ve shown a proof of concept that works maybe you’re selling in a
that works maybe you’re selling in a
that works maybe you’re selling in a local geographic market and now you need
local geographic market and now you need
local geographic market and now you need money to expand that expansion capital
money to expand that expansion capital
money to expand that expansion capital is the easiest kind of money to raise
is the easiest kind of money to raise
is the easiest kind of money to raise where the startup capital is the hardest
where the startup capital is the hardest
where the startup capital is the hardest so if you don’t absolutely need it I try
so if you don’t absolutely need it I try
so if you don’t absolutely need it I try to figure a way to bootstrap it up
to figure a way to bootstrap it up
to figure a way to bootstrap it up yeah but the key thing is we’ve said
yeah but the key thing is we’ve said
yeah but the key thing is we’ve said that you’ve got to know how you can
that you’ve got to know how you can
that you’ve got to know how you can invest money and even even the words I
invest money and even even the words I
invest money and even even the words I use are pretty pathetic on this I hate
use are pretty pathetic on this I hate
use are pretty pathetic on this I hate the word spend because as soon as you
the word spend because as soon as you
the word spend because as soon as you spend money implies waste if you’re in
spend money implies waste if you’re in
spend money implies waste if you’re in return so as an entrepreneur you should
return so as an entrepreneur you should
return so as an entrepreneur you should have a really kind of tight I um when do
have a really kind of tight I um when do
have a really kind of tight I um when do you need to raise money to fuel the
you need to raise money to fuel the
you need to raise money to fuel the growth and then you need to know how you
growth and then you need to know how you
growth and then you need to know how you going to invest it you is no one just
going to invest it you is no one just
going to invest it you is no one just raising money and having two million
raising money and having two million
raising money and having two million dollars in the bank and not knowing how
dollars in the bank and not knowing how
dollars in the bank and not knowing how you’re going to deploy it to grave
you’re going to deploy it to grave
you’re going to deploy it to grave business at scale that’s a really
business at scale that’s a really
business at scale that’s a really interesting distinction do you do you
interesting distinction do you do you
interesting distinction do you do you encourage that so you have a staff of
encourage that so you have a staff of
encourage that so you have a staff of over 10,000 people 14,000 people
over 10,000 people 14,000 people
over 10,000 people 14,000 people something like that do you do you
something like that do you do you
something like that do you do you encourage them to eliminate the word
encourage them to eliminate the word
encourage them to eliminate the word spend from their vocabulary and look at
spend from their vocabulary and look at
spend from their vocabulary and look at invest yeah when I was actually another
invest yeah when I was actually another
invest yeah when I was actually another CEO it’s about 15 years ago one of my
CEO it’s about 15 years ago one of my
CEO it’s about 15 years ago one of my baby
baby
baby the marketing came in and you can
the marketing came in and you can
the marketing came in and you can imagine it in those days 1880 slight
imagine it in those days 1880 slight
imagine it in those days 1880 slight PowerPoint deck you lose the will to
PowerPoint deck you lose the will to
PowerPoint deck you lose the will to live and the last slide slide 79 is the
live and the last slide slide 79 is the
live and the last slide slide 79 is the punchline I need a 50 million dollar
punchline I need a 50 million dollar
punchline I need a 50 million dollar budget for a brand campaign or something
budget for a brand campaign or something
budget for a brand campaign or something happening I said look I kind of get
happening I said look I kind of get
happening I said look I kind of get yellow fit in the room let’s get real
yellow fit in the room let’s get real
yellow fit in the room let’s get real about this and the guy kept on talking
about this and the guy kept on talking
about this and the guy kept on talking about spend spend spend I said wow we’re
about spend spend spend I said wow we’re
about spend spend spend I said wow we’re not going to spend money in this company
not going to spend money in this company
not going to spend money in this company ever like drunken sailors we’re going to
ever like drunken sailors we’re going to
ever like drunken sailors we’re going to kind of focus on investment return on
kind of focus on investment return on
kind of focus on investment return on investment and and it’s what we talked
investment and and it’s what we talked
investment and and it’s what we talked about before test drive and stuff test
about before test drive and stuff test
about before test drive and stuff test drive stuff till we get the data to know
drive stuff till we get the data to know
drive stuff till we get the data to know what really works so we can really scale
what really works so we can really scale
what really works so we can really scale our business and I think in the world
our business and I think in the world
our business and I think in the world you know it’s great digital economy
you know it’s great digital economy
you know it’s great digital economy digital marketing everything’s
digital marketing everything’s
digital marketing everything’s accelerated now so what two years takes
accelerated now so what two years takes
accelerated now so what two years takes weeks and months now and I think you can
weeks and months now and I think you can
weeks and months now and I think you can really from an investment point of view
really from an investment point of view
really from an investment point of view you can actually move to where this I’m
you can actually move to where this I’m
you can actually move to where this I’m sure should I go for one big lump sum of
sure should I go for one big lump sum of
sure should I go for one big lump sum of investment or should I do it in a number
investment or should I do it in a number
investment or should I do it in a number of small economy fermented series and I
of small economy fermented series and I
of small economy fermented series and I would always advocate go for kind of
would always advocate go for kind of
would always advocate go for kind of small test drive stuff and to your point
small test drive stuff and to your point
small test drive stuff and to your point you don’t give away half your business
you don’t give away half your business
you don’t give away half your business and lose total control of it yeah I love
and lose total control of it yeah I love
and lose total control of it yeah I love that and so again I love the distinction
that and so again I love the distinction
that and so again I love the distinction between spend and invest and to add to
between spend and invest and to add to
between spend and invest and to add to that point of raisin and rounds what you
that point of raisin and rounds what you
that point of raisin and rounds what you can do is bet on yourself and so you can
can do is bet on yourself and so you can
can do is bet on yourself and so you can raise your first round at maybe a
raise your first round at maybe a
raise your first round at maybe a million dollar valuation and then say
million dollar valuation and then say
million dollar valuation and then say hey if I hit these milestones will you
hey if I hit these milestones will you
hey if I hit these milestones will you come and fund me but at a 1.5 million or
come and fund me but at a 1.5 million or
come and fund me but at a 1.5 million or two million or five million valuation
two million or five million valuation
two million or five million valuation and so you’re betting on yourself that
and so you’re betting on yourself that
and so you’re betting on yourself that you go and hit those milestones but if
you go and hit those milestones but if
you go and hit those milestones but if you do then it’s a lot less riskier for
you do then it’s a lot less riskier for
you do then it’s a lot less riskier for the investor to get involved in so you
the investor to get involved in so you
the investor to get involved in so you can end up raising the same amount of
can end up raising the same amount of
can end up raising the same amount of money but over time so you get the money
money but over time so you get the money
money but over time so you get the money you need to grow and you’ve lost less of
you need to grow and you’ve lost less of
you need to grow and you’ve lost less of the company through dilution cool so
the company through dilution cool so
the company through dilution cool so next question comes in from Salvador he
next question comes in from Salvador he
next question comes in from Salvador he has a clothing company it’s one years
has a clothing company it’s one years
has a clothing company it’s one years old if he’s going for an investor how
old if he’s going for an investor how
old if he’s going for an investor how much money do you think I should ask for
much money do you think I should ask for
much money do you think I should ask for so that’s a pretty generic question but
so that’s a pretty generic question but
so that’s a pretty generic question but how do you how do you address how much
how do you how do you address how much
how do you how do you address how much money you should ask for at any point in
money you should ask for at any point in
money you should ask for at any point in time in your business yeah I think hey
time in your business yeah I think hey
time in your business yeah I think hey so no you need to almost turn the
so no you need to almost turn the
so no you need to almost turn the question around and say how much do I
question around and say how much do I
question around and say how much do I need to fuel the growth
need to fuel the growth
need to fuel the growth so again you don’t need to you know go
so again you don’t need to you know go
so again you don’t need to you know go to Harvard or meu you know your business
to Harvard or meu you know your business
to Harvard or meu you know your business you know your customers you could put a
you know your customers you could put a
you know your customers you could put a projection around how you could grow
projection around how you could grow
projection around how you could grow your business and then whether you need
your business and then whether you need
your business and then whether you need to take on extra employees or to service
to take on extra employees or to service
to take on extra employees or to service them or sales or marketing and this
them or sales or marketing and this
them or sales or marketing and this little functions you need to keep
little functions you need to keep
little functions you need to keep customers delight customers and grow us
customers delight customers and grow us
customers delight customers and grow us a sustainable business model and then
a sustainable business model and then
a sustainable business model and then once you do that is kind of work
once you do that is kind of work
once you do that is kind of work backwards about over the next year what
backwards about over the next year what
backwards about over the next year what do I need to fund that growth look here
do I need to fund that growth look here
do I need to fund that growth look here your cash balance look at all the
your cash balance look at all the
your cash balance look at all the obvious things about whether you’ve got
obvious things about whether you’ve got
obvious things about whether you’ve got revolving credit a lot of businesses
revolving credit a lot of businesses
revolving credit a lot of businesses probably at that stage they’re still
probably at that stage they’re still
probably at that stage they’re still using their credit card to fund some of
using their credit card to fund some of
using their credit card to fund some of their growth as well and then think you
their growth as well and then think you
their growth as well and then think you know have a really rock-solid plan over
know have a really rock-solid plan over
know have a really rock-solid plan over the next year 18 months this is the
the next year 18 months this is the
the next year 18 months this is the best-case if I accelerate it to a sort
best-case if I accelerate it to a sort
best-case if I accelerate it to a sort of stretch plan back to Evans point
of stretch plan back to Evans point
of stretch plan back to Evans point could I go back and say have an option
could I go back and say have an option
could I go back and say have an option with an investor to really kind of ramp
with an investor to really kind of ramp
with an investor to really kind of ramp it up and grow faster so I think the key
it up and grow faster so I think the key
it up and grow faster so I think the key question here is it’s not how much money
question here is it’s not how much money
question here is it’s not how much money do I wanna raise it’s what is the
do I wanna raise it’s what is the
do I wanna raise it’s what is the business plan to grow responsibly and
business plan to grow responsibly and
business plan to grow responsibly and sustainably but as fast as you can to
sustainably but as fast as you can to
sustainably but as fast as you can to execute them on the opportunity and then
execute them on the opportunity and then
execute them on the opportunity and then work backwards to look at the funding
work backwards to look at the funding
work backwards to look at the funding requires yeah I agree I like looking at
requires yeah I agree I like looking at
requires yeah I agree I like looking at well here’s where we want to go in the
well here’s where we want to go in the
well here’s where we want to go in the next year and how do we fund that before
next year and how do we fund that before
next year and how do we fund that before we’re in about how do we fund the next
we’re in about how do we fund the next
we’re in about how do we fund the next 10 years who’s got to actually execute
10 years who’s got to actually execute
10 years who’s got to actually execute your 1 year plan first and if you do
your 1 year plan first and if you do
your 1 year plan first and if you do that right it’ll be way easier to raise
that right it’ll be way easier to raise
that right it’ll be way easier to raise for what you’re gonna be doing ongoing I
for what you’re gonna be doing ongoing I
for what you’re gonna be doing ongoing I would add to that when you are talking
would add to that when you are talking
would add to that when you are talking to an investor you need to have absolute
to an investor you need to have absolute
to an investor you need to have absolute clarity over how much you need and what
clarity over how much you need and what
clarity over how much you need and what its gonna be invested into because if
its gonna be invested into because if
its gonna be invested into because if there’s any hesitation if there’s any
there’s any hesitation if there’s any
there’s any hesitation if there’s any doubt then you’re gonna make the
doubt then you’re gonna make the
doubt then you’re gonna make the investor scared they’re gonna be spooked
investor scared they’re gonna be spooked
investor scared they’re gonna be spooked and they’re gonna not want to invest in
and they’re gonna not want to invest in
and they’re gonna not want to invest in you so you have to have absolute clarity
you so you have to have absolute clarity
you so you have to have absolute clarity you have to know exactly where you’re
you have to know exactly where you’re
you have to know exactly where you’re gonna be spending that money and the
gonna be spending that money and the
gonna be spending that money and the Stevens point you make your plan one
Stevens point you make your plan one
Stevens point you make your plan one year here’s what we want what we want to
year here’s what we want what we want to
year here’s what we want what we want to do here’s where we’re gonna go and then
do here’s where we’re gonna go and then
do here’s where we’re gonna go and then in your projections here’s what will
in your projections here’s what will
in your projections here’s what will often happen an investor at least in the
often happen an investor at least in the
often happen an investor at least in the VC world will look at the executive
VC world will look at the executive
VC world will look at the executive summary of your business plan then we’ll
summary of your business plan then we’ll
summary of your business plan then we’ll look at who
look at who
look at who as part of this deal like the horse for
as part of this deal like the horse for
as part of this deal like the horse for the course they call it right who is the
the course they call it right who is the
the course they call it right who is the jockey who’s the team and then we look
jockey who’s the team and then we look
jockey who’s the team and then we look through the financials do the financials
through the financials do the financials
through the financials do the financials make sense you know here’s where you
make sense you know here’s where you
make sense you know here’s where you want to be and you have to be able to
want to be and you have to be able to
want to be and you have to be able to explain every single number in your
explain every single number in your
explain every single number in your financial statement why it’s there and
financial statement why it’s there and
financial statement why it’s there and if you can’t then it’s going to be
if you can’t then it’s going to be
if you can’t then it’s going to be really hard to convince an investor to
really hard to convince an investor to
really hard to convince an investor to want to come on board with you
want to come on board with you
want to come on board with you yappity thing evidence you’ve got to
yappity thing evidence you’ve got to
yappity thing evidence you’ve got to know where you’re going to invest it so
know where you’re going to invest it so
know where you’re going to invest it so no bet on the management team and the
no bet on the management team and the
no bet on the management team and the longer you’ve executed successfully the
longer you’ve executed successfully the
longer you’ve executed successfully the more back in you’ll get but you’ve got
more back in you’ll get but you’ve got
more back in you’ll get but you’ve got to know how you invest it because I’ve
to know how you invest it because I’ve
to know how you invest it because I’ve seen companies even when they get to
seen companies even when they get to
seen companies even when they get to like 15 20 people they go and raise a
like 15 20 people they go and raise a
like 15 20 people they go and raise a load of money and all the stuff the bear
load of money and all the stuff the bear
load of money and all the stuff the bear behavior kicks in like they design a new
behavior kicks in like they design a new
behavior kicks in like they design a new logo go and you brand and stuff and you
logo go and you brand and stuff and you
logo go and you brand and stuff and you start traveling first-class and all the
start traveling first-class and all the
start traveling first-class and all the kind of nonsense that I would say waste
kind of nonsense that I would say waste
kind of nonsense that I would say waste money rather than focused on the mission
money rather than focused on the mission
money rather than focused on the mission of driving body for customers and
of driving body for customers and
of driving body for customers and growing your business yeah you know the
growing your business yeah you know the
growing your business yeah you know the other thing to keep in mind there for
other thing to keep in mind there for
other thing to keep in mind there for those of you watching is raising money
those of you watching is raising money
those of you watching is raising money can become a full-time job which means
can become a full-time job which means
can become a full-time job which means you are not spending time executing on
you are not spending time executing on
you are not spending time executing on your business yeah and so you can often
your business yeah and so you can often
your business yeah and so you can often a fourth hat if you’re a social
a fourth hat if you’re a social
a fourth hat if you’re a social entrepreneur and no investor wants to
entrepreneur and no investor wants to
entrepreneur and no investor wants to put money into a company that isn’t
put money into a company that isn’t
put money into a company that isn’t gaining traction momentum and so if you
gaining traction momentum and so if you
gaining traction momentum and so if you can focus on executing and getting some
can focus on executing and getting some
can focus on executing and getting some results over the next six 12 months
results over the next six 12 months
results over the next six 12 months that’ll give you a lot of ammunition to
that’ll give you a lot of ammunition to
that’ll give you a lot of ammunition to go talk to investors with yeah Adam one
go talk to investors with yeah Adam one
go talk to investors with yeah Adam one other thing we should probably have
other thing we should probably have
other thing we should probably have further guys out there is I think we
further guys out there is I think we
further guys out there is I think we need to separate the bootstrap phase
need to separate the bootstrap phase
need to separate the bootstrap phase from the growth capital phase and you’re
from the growth capital phase and you’re
from the growth capital phase and you’re right the growth capital phase it’s a
right the growth capital phase it’s a
right the growth capital phase it’s a sales job you’ve got a effectively if
sales job you’ve got a effectively if
sales job you’ve got a effectively if you want to do the best of your company
you want to do the best of your company
you want to do the best of your company and get the best terms you’ve got to
and get the best terms you’ve got to
and get the best terms you’ve got to have a great presentation a great story
have a great presentation a great story
have a great presentation a great story but just let’s not kid ourselves you can
but just let’s not kid ourselves you can
but just let’s not kid ourselves you can burn up a huge amount of time going
burn up a huge amount of time going
burn up a huge amount of time going around the hole our growth capital
around the hole our growth capital
around the hole our growth capital investors pitch in to them and they draw
investors pitch in to them and they draw
investors pitch in to them and they draw you into their own sales cycles and
you into their own sales cycles and
you into their own sales cycles and process and that’s a big discretion from
process and that’s a big discretion from
process and that’s a big discretion from running the business so you need to be
running the business so you need to be
running the business so you need to be really conscious that you’re spending
really conscious that you’re spending
really conscious that you’re spending time first of all or running your
time first of all or running your
time first of all or running your business growing your business and then
business growing your business and then
business growing your business and then the funding should be really light touch
the funding should be really light touch
the funding should be really light touch to support the growth of the business
to support the growth of the business
to support the growth of the business and it’s sometimes easier said than done
and it’s sometimes easier said than done
and it’s sometimes easier said than done yeah I love it
yeah I love it
yeah I love it very true I
very true I
very true I reishi Captiva hello Evan hello Steven
reishi Captiva hello Evan hello Steven
reishi Captiva hello Evan hello Steven beyond money what should an entrepreneur
beyond money what should an entrepreneur
beyond money what should an entrepreneur look for when choosing the ideal
look for when choosing the ideal
look for when choosing the ideal investor thank you
investor thank you
investor thank you so I’d say definitely in the
so I’d say definitely in the
so I’d say definitely in the bootstrapping phase Evan I’d say not
bootstrapping phase Evan I’d say not
bootstrapping phase Evan I’d say not only the investor but I also extend this
only the investor but I also extend this
only the investor but I also extend this to a sort of employees I love to see
to a sort of employees I love to see
to a sort of employees I love to see companies getting partners employees
companies getting partners employees
companies getting partners employees investors even supply strategic supplies
investors even supply strategic supplies
investors even supply strategic supplies can’t put skin in the game of following
can’t put skin in the game of following
can’t put skin in the game of following your dream believing in your story and
your dream believing in your story and
your dream believing in your story and making your business a success so that
making your business a success so that
making your business a success so that sort of things that look for certainly
sort of things that look for certainly
sort of things that look for certainly from the investor and this translates to
from the investor and this translates to
from the investor and this translates to our employees as well someone who’s
our employees as well someone who’s
our employees as well someone who’s really committed on the idea who gets
really committed on the idea who gets
really committed on the idea who gets the story gets the idea that you’ve got
the story gets the idea that you’ve got
the story gets the idea that you’ve got whether it’s a service business product
whether it’s a service business product
whether it’s a service business product business and then more importantly can
business and then more importantly can
business and then more importantly can add value to the growth of your business
add value to the growth of your business
add value to the growth of your business so particularly as an angel investor I
so particularly as an angel investor I
so particularly as an angel investor I sat on a few of the boards and I chaired
sat on a few of the boards and I chaired
sat on a few of the boards and I chaired a couple of the boards when we started
a couple of the boards when we started
a couple of the boards when we started the businesses and I gave a lot of time
the businesses and I gave a lot of time
the businesses and I gave a lot of time to coach and mentor that you can take
to coach and mentor that you can take
to coach and mentor that you can take again for those businesses and even
again for those businesses and even
again for those businesses and even through to the phase when they are
through to the phase when they are
through to the phase when they are beyond to a growth capital as an advisor
beyond to a growth capital as an advisor
beyond to a growth capital as an advisor and a coach to those guys over to y’all
and a coach to those guys over to y’all
and a coach to those guys over to y’all at 32 years experience in the industry
at 32 years experience in the industry
at 32 years experience in the industry and there’s a lot of guys like me out
and there’s a lot of guys like me out
and there’s a lot of guys like me out there who have had very successful
there who have had very successful
there who have had very successful careers and they can be really good
careers and they can be really good
careers and they can be really good mentors and they’re also non-invasive
mentors and they’re also non-invasive
mentors and they’re also non-invasive where you get into the world of VCS
where you get into the world of VCS
where you get into the world of VCS there’s all restrictive covenants they
there’s all restrictive covenants they
there’s all restrictive covenants they want to put warrants but also they’ve
want to put warrants but also they’ve
want to put warrants but also they’ve got a seat around the board table and
got a seat around the board table and
got a seat around the board table and they could be quite invasive in terms of
they could be quite invasive in terms of
they could be quite invasive in terms of you having freedom to run your company
you having freedom to run your company
you having freedom to run your company and pursue your dreams so I’d look for
and pursue your dreams so I’d look for
and pursue your dreams so I’d look for someone with experience they’ve got time
someone with experience they’ve got time
someone with experience they’ve got time they’ve got they’ve got real appetite
they’ve got they’ve got real appetite
they’ve got they’ve got real appetite for your story and supporting you grow
for your story and supporting you grow
for your story and supporting you grow your business and and therefore connect
your business and and therefore connect
your business and and therefore connect as a tremendous coach and mentor as well
as a tremendous coach and mentor as well
as a tremendous coach and mentor as well as the money they can provide at key
as the money they can provide at key
as the money they can provide at key stages and if it works
stages and if it works
stages and if it works most of these into investors I’ve been
most of these into investors I’ve been
most of these into investors I’ve been involved in go through the distance of
involved in go through the distance of
involved in go through the distance of multiple routes so they go through the
multiple routes so they go through the
multiple routes so they go through the whole journey with
whole journey with
whole journey with the companies as they scale and grow
the companies as they scale and grow
the companies as they scale and grow them through their success I love it in
them through their success I love it in
them through their success I love it in the VC world here we call the dumb money
the VC world here we call the dumb money
the VC world here we call the dumb money smart money I don’t the same thing in
smart money I don’t the same thing in
smart money I don’t the same thing in the UK but dumb money is just money and
the UK but dumb money is just money and
the UK but dumb money is just money and you you really want that as a last
you you really want that as a last
you you really want that as a last resort because you want somebody where
resort because you want somebody where
resort because you want somebody where smart money they’re providing contacts
smart money they’re providing contacts
smart money they’re providing contacts at providing information training
at providing information training
at providing information training mentoring open up doors for you help you
mentoring open up doors for you help you
mentoring open up doors for you help you get clients help you get media whatever
get clients help you get media whatever
get clients help you get media whatever it is that you need to help grow the
it is that you need to help grow the
it is that you need to help grow the business you want somebody who is
business you want somebody who is
business you want somebody who is obviously yes passionate about where
obviously yes passionate about where
obviously yes passionate about where you’re going
you’re going
you’re going somebody you feel you can work with but
somebody you feel you can work with but
somebody you feel you can work with but somebody who brings something extra
somebody who brings something extra
somebody who brings something extra beyond it right whether those contacts
beyond it right whether those contacts
beyond it right whether those contacts customers opening some kind of door for
customers opening some kind of door for
customers opening some kind of door for you alongside the mentoring and training
you alongside the mentoring and training
you alongside the mentoring and training that’s what you really want to look for
that’s what you really want to look for
that’s what you really want to look for and I would honestly hold out until you
and I would honestly hold out until you
and I would honestly hold out until you find that right person if that’s your
find that right person if that’s your
find that right person if that’s your goal then just to accept the first check
goal then just to accept the first check
goal then just to accept the first check that comes in the door because you can’t
that comes in the door because you can’t
that comes in the door because you can’t you can’t easily get rid of investors
you can’t easily get rid of investors
you can’t easily get rid of investors that that’s a that’s a long-term
that that’s a that’s a long-term
that that’s a that’s a long-term decision you’re making right there so
decision you’re making right there so
decision you’re making right there so just like when you get married you want
just like when you get married you want
just like when you get married you want to make sure that you’re making the
to make sure that you’re making the
to make sure that you’re making the right decision sir yeah I mean just to
right decision sir yeah I mean just to
right decision sir yeah I mean just to add a hitch as one of the firm’s of his
add a hitch as one of the firm’s of his
add a hitch as one of the firm’s of his chief executive law actually a couple of
chief executive law actually a couple of
chief executive law actually a couple of times I’ve got a customer to come on the
times I’ve got a customer to come on the
times I’ve got a customer to come on the board and be a mentor for me and later
board and be a mentor for me and later
board and be a mentor for me and later an investor so I kind of think this is a
an investor so I kind of think this is a
an investor so I kind of think this is a great time if you’re bootstrapping your
great time if you’re bootstrapping your
great time if you’re bootstrapping your business to think outside the box who
business to think outside the box who
business to think outside the box who would you like around the table giving
would you like around the table giving
would you like around the table giving you all business advice that’s got a
you all business advice that’s got a
you all business advice that’s got a tremendous insight into the market the
tremendous insight into the market the
tremendous insight into the market the future the product innovation you’re
future the product innovation you’re
future the product innovation you’re trying to lead that could give you
trying to lead that could give you
trying to lead that could give you invaluable advice and give you a real
invaluable advice and give you a real
invaluable advice and give you a real sanity check
sanity check
sanity check so I aren’t always back smart money I’m
so I aren’t always back smart money I’m
so I aren’t always back smart money I’m always back people who got skin in the
always back people who got skin in the
always back people who got skin in the game and who have got a strong
game and who have got a strong
game and who have got a strong commitment to you and your business grow
commitment to you and your business grow
commitment to you and your business grow and being successful I love it
and being successful I love it
and being successful I love it next Warren in an industry where in the
next Warren in an industry where in the
next Warren in an industry where in the beginning all you can offer is a lot of
beginning all you can offer is a lot of
beginning all you can offer is a lot of exposure how do you approach investors
exposure how do you approach investors
exposure how do you approach investors what is the formula of exposure versus
what is the formula of exposure versus
what is the formula of exposure versus dollar yeah maybe I’ll go first
dollar yeah maybe I’ll go first
dollar yeah maybe I’ll go first I think obviously I’d run at the star
I think obviously I’d run at the star
I think obviously I’d run at the star you’ve got an idea you might have a
you’ve got an idea you might have a
you’ve got an idea you might have a product you might have a prototype if
product you might have a prototype if
product you might have a prototype if you’re in the area is like advisory or
you’re in the area is like advisory or
you’re in the area is like advisory or Consulting or recruiting or services
Consulting or recruiting or services
Consulting or recruiting or services business my kind of view is you should
business my kind of view is you should
business my kind of view is you should be profitable and cash generated from
be profitable and cash generated from
be profitable and cash generated from the get-go so one of the businesses I
the get-go so one of the businesses I
the get-go so one of the businesses I set up in Europe literally we were
set up in Europe literally we were
set up in Europe literally we were profitable from the get-go and and part
profitable from the get-go and and part
profitable from the get-go and and part of that is we build ourselves out to
of that is we build ourselves out to
of that is we build ourselves out to clients so you know it’s pretty simple
clients so you know it’s pretty simple
clients so you know it’s pretty simple business model and then I kind of think
business model and then I kind of think
business model and then I kind of think the key areas all we’re talking about is
the key areas all we’re talking about is
the key areas all we’re talking about is execution risk so one of the things that
execution risk so one of the things that
execution risk so one of the things that any investor would look at what’s the
any investor would look at what’s the
any investor would look at what’s the operational risk you know just a
operational risk you know just a
operational risk you know just a strategy makes sense is the remark here
strategy makes sense is the remark here
strategy makes sense is the remark here is this a compelling idea is the
is this a compelling idea is the
is this a compelling idea is the management team really strong and then
management team really strong and then
management team really strong and then it’s all about operational and execution
it’s all about operational and execution
it’s all about operational and execution risk and obviously the further you go on
risk and obviously the further you go on
risk and obviously the further you go on the journey and you get referenceable
the journey and you get referenceable
the journey and you get referenceable customers and you get momentum then
customers and you get momentum then
customers and you get momentum then obviously it’s easier to you know I have
obviously it’s easier to you know I have
obviously it’s easier to you know I have a flock of people knocking at your door
a flock of people knocking at your door
a flock of people knocking at your door and you get a lot of inbound so in those
and you get a lot of inbound so in those
and you get a lot of inbound so in those early early stages I would advocate you
early early stages I would advocate you
early early stages I would advocate you know get your idea together get a really
know get your idea together get a really
know get your idea together get a really good story together in terms of how to
good story together in terms of how to
good story together in terms of how to pitch the idea domain it’s the sort of
pitch the idea domain it’s the sort of
pitch the idea domain it’s the sort of thing that your ever you could take to
thing that your ever you could take to
thing that your ever you could take to your mom tell her the story and she’d
your mom tell her the story and she’d
your mom tell her the story and she’d say that’s a great idea and and she
say that’s a great idea and and she
say that’s a great idea and and she could get it so we did mystify and then
could get it so we did mystify and then
could get it so we did mystify and then they’re not relieved they’re back in the
they’re not relieved they’re back in the
they’re not relieved they’re back in the management team and to your point I put
management team and to your point I put
management team and to your point I put a few gates in there for them around
a few gates in there for them around
a few gates in there for them around milestones of what you wouldn’t wanted
milestones of what you wouldn’t wanted
milestones of what you wouldn’t wanted to live on a business plan yeah in that
to live on a business plan yeah in that
to live on a business plan yeah in that was in the VC world we had something
was in the VC world we had something
was in the VC world we had something called the grand amount of the test and
called the grand amount of the test and
called the grand amount of the test and that was your business plan especially
that was your business plan especially
that was your business plan especially the executive summary is it something
the executive summary is it something
the executive summary is it something that your grandmother would understand
that your grandmother would understand
that your grandmother would understand so is this something that’s easy to
so is this something that’s easy to
so is this something that’s easy to understand that anybody can understand
understand that anybody can understand
understand that anybody can understand it where a lot of people write in ways
it where a lot of people write in ways
it where a lot of people write in ways that make sense to them but are so
that make sense to them but are so
that make sense to them but are so filled with jargon and technical terms
filled with jargon and technical terms
filled with jargon and technical terms we remember that investors are
we remember that investors are
we remember that investors are generalists for the most part they don’t
generalists for the most part they don’t
generalists for the most part they don’t know your industry as well as you will
know your industry as well as you will
know your industry as well as you will know your industry and so has to be
know your industry and so has to be
know your industry and so has to be something that everybody can understand
something that everybody can understand
something that everybody can understand so I love that point about about clarity
so I love that point about about clarity
so I love that point about about clarity warrants your question about exposure
warrants your question about exposure
warrants your question about exposure selling exposure versus investment I
selling exposure versus investment I
selling exposure versus investment I would probably not look at them as an
would probably not look at them as an
would probably not look at them as an investor in my business if I could only
investor in my business if I could only
investor in my business if I could only offer them exposure the kind of company
offer them exposure the kind of company
offer them exposure the kind of company that that would work with you for
that that would work with you for
that that would work with you for exposure may not be the best company
exposure may not be the best company
exposure may not be the best company that work with as an investor in your
that work with as an investor in your
that work with as an investor in your business so I try to sell some kind of
business so I try to sell some kind of
business so I try to sell some kind of sponsorship deal with them if you can
sponsorship deal with them if you can
sponsorship deal with them if you can get them great exposure they
get them great exposure they
get them great exposure they you for it it’s a transaction that you
you for it it’s a transaction that you
you for it it’s a transaction that you guys create their pain for that service
guys create their pain for that service
guys create their pain for that service but they don’t own a piece of your
but they don’t own a piece of your
but they don’t own a piece of your business unless they get what your
business unless they get what your
business unless they get what your company is all about the way we’re
company is all about the way we’re
company is all about the way we’re trying to go and they can help you along
trying to go and they can help you along
trying to go and they can help you along that path if you’re only offer an
that path if you’re only offer an
that path if you’re only offer an exposure it may not be a good investment
exposure it may not be a good investment
exposure it may not be a good investment opportunity for you right now the next
opportunity for you right now the next
opportunity for you right now the next two questions Dasani and Bulo are
two questions Dasani and Bulo are
two questions Dasani and Bulo are talking about basically how do you find
talking about basically how do you find
talking about basically how do you find investors what’s the process of finding
investors what’s the process of finding
investors what’s the process of finding an investor what direction you take
an investor what direction you take
an investor what direction you take you’re trying to get capital how do you
you’re trying to get capital how do you
you’re trying to get capital how do you go and actually find those didn’t invest
go and actually find those didn’t invest
go and actually find those didn’t invest as your business yeah I think probably
as your business yeah I think probably
as your business yeah I think probably the the most difficult time is when you
the the most difficult time is when you
the the most difficult time is when you start up so you know you’re
start up so you know you’re
start up so you know you’re bootstrapping a business I think once
bootstrapping a business I think once
bootstrapping a business I think once you get to sort of critical mass you’ve
you get to sort of critical mass you’ve
you get to sort of critical mass you’ve got revenues million two three four five
got revenues million two three four five
got revenues million two three four five million there’s a whole kind of network
million there’s a whole kind of network
million there’s a whole kind of network of growth capital venture capitalists
of growth capital venture capitalists
of growth capital venture capitalists out there but in reality you know I
out there but in reality you know I
out there but in reality you know I looked at some data the other day about
looked at some data the other day about
looked at some data the other day about 80 to 90 percent of the startups are
80 to 90 percent of the startups are
80 to 90 percent of the startups are funded through people like us starting
funded through people like us starting
funded through people like us starting businesses yourselves so that’s your own
businesses yourselves so that’s your own
businesses yourselves so that’s your own life savings remove within your home
life savings remove within your home
life savings remove within your home your credit card maybe getting a loan
your credit card maybe getting a loan
your credit card maybe getting a loan from the bank stuff like that and then
from the bank stuff like that and then
from the bank stuff like that and then the other you know factories all the
the other you know factories all the
the other you know factories all the friends and family stuff although you
friends and family stuff although you
friends and family stuff although you don’t want to take the friends and
don’t want to take the friends and
don’t want to take the friends and family money you’ve got to agree some
family money you’ve got to agree some
family money you’ve got to agree some parameters with this stuff because you
parameters with this stuff because you
parameters with this stuff because you don’t want to go on vacation with them
don’t want to go on vacation with them
don’t want to go on vacation with them and every night is like an investment
and every night is like an investment
and every night is like an investment meeting you know you’ve got to make sure
meeting you know you’ve got to make sure
meeting you know you’ve got to make sure if you do friends and families you have
if you do friends and families you have
if you do friends and families you have delineation between the investment and
delineation between the investment and
delineation between the investment and your relationship and you know all these
your relationship and you know all these
your relationship and you know all these things you’ve got to tell them you can
things you’ve got to tell them you can
things you’ve got to tell them you can make money you might get ten times or
make money you might get ten times or
make money you might get ten times or you know I work 80 hours a week and it
you know I work 80 hours a week and it
you know I work 80 hours a week and it doesn’t work out they go understand that
doesn’t work out they go understand that
doesn’t work out they go understand that but then the other things I’d say is
but then the other things I’d say is
but then the other things I’d say is that’s the obvious one so you sell
that’s the obvious one so you sell
that’s the obvious one so you sell friends and family then there’s a whole
friends and family then there’s a whole
friends and family then there’s a whole world out there of crowdsourcing and
world out there of crowdsourcing and
world out there of crowdsourcing and there’s the indigo goes the Kickstarter
there’s the indigo goes the Kickstarter
there’s the indigo goes the Kickstarter has all these sort of guys out there as
has all these sort of guys out there as
has all these sort of guys out there as well in terms of crowdsourcing know I
well in terms of crowdsourcing know I
well in terms of crowdsourcing know I saw relations and the crowdsourcing
saw relations and the crowdsourcing
saw relations and the crowdsourcing market would actually exceed in terms of
market would actually exceed in terms of
market would actually exceed in terms of the capital deployed I think it’s by
the capital deployed I think it’s by
the capital deployed I think it’s by 2017 the VC marketplace
2017 the VC marketplace
2017 the VC marketplace so we’re seeing that whole impact of
so we’re seeing that whole impact of
so we’re seeing that whole impact of digital and social around crowdsourcing
digital and social around crowdsourcing
digital and social around crowdsourcing zhaveri way to go so the office places
zhaveri way to go so the office places
zhaveri way to go so the office places as well you know let’s start if you’re
as well you know let’s start if you’re
as well you know let’s start if you’re if you’re up in Massachusetts or you’re
if you’re up in Massachusetts or you’re
if you’re up in Massachusetts or you’re out in Kansas you could go down to your
out in Kansas you could go down to your
out in Kansas you could go down to your local by the state or even go on the
local by the state or even go on the
local by the state or even go on the federal websites there’s loads of ways
federal websites there’s loads of ways
federal websites there’s loads of ways to get help around and find capital if
to get help around and find capital if
to get help around and find capital if you’re in a minority group there’s
you’re in a minority group there’s
you’re in a minority group there’s specific things done for you know
specific things done for you know
specific things done for you know minority agencies and upon the Commerce
minority agencies and upon the Commerce
minority agencies and upon the Commerce there’s loads of stuff out in New York
there’s loads of stuff out in New York
there’s loads of stuff out in New York and York State I think nice star where
and York State I think nice star where
and York State I think nice star where they connect you with a network of
they connect you with a network of
they connect you with a network of entrepreneurs there’s a whole load of
entrepreneurs there’s a whole load of
entrepreneurs there’s a whole load of range of Android Vestas and the other
range of Android Vestas and the other
range of Android Vestas and the other thing I’d say Evan is just to sort of
thing I’d say Evan is just to sort of
thing I’d say Evan is just to sort of throw away mobile all the angel
throw away mobile all the angel
throw away mobile all the angel investors I know a regular guys they’ve
investors I know a regular guys they’ve
investors I know a regular guys they’ve done very well they’ve been very
done very well they’ve been very
done very well they’ve been very successful they’re very approachable so
successful they’re very approachable so
successful they’re very approachable so one of the kind of things in our heads
one of the kind of things in our heads
one of the kind of things in our heads and voices to prevent us being
and voices to prevent us being
and voices to prevent us being successful is and I couldn’t pick up the
successful is and I couldn’t pick up the
successful is and I couldn’t pick up the phone to someone I couldn’t email
phone to someone I couldn’t email
phone to someone I couldn’t email someone but you never know
someone but you never know
someone but you never know you know if there’s someone you really
you know if there’s someone you really
you know if there’s someone you really respect who’s created the business in
respect who’s created the business in
respect who’s created the business in your industry with a lot of domain
your industry with a lot of domain
your industry with a lot of domain experience I’d say try and reach out to
experience I’d say try and reach out to
experience I’d say try and reach out to them because they could be an amazing an
them because they could be an amazing an
them because they could be an amazing an angel investor and they might you know
angel investor and they might you know
angel investor and they might you know look at you at the age of twenty seven
look at you at the age of twenty seven
look at you at the age of twenty seven twenty eight and say I really admired
twenty eight and say I really admired
twenty eight and say I really admired I’ve got a great story disruptive
I’ve got a great story disruptive
I’ve got a great story disruptive innovator and I’m not in any danger of
innovator and I’m not in any danger of
innovator and I’m not in any danger of bet I could be a mentor in that business
bet I could be a mentor in that business
bet I could be a mentor in that business so I think there’s a lot of ways around
so I think there’s a lot of ways around
so I think there’s a lot of ways around there to find the investment beyond sort
there to find the investment beyond sort
there to find the investment beyond sort of friends and family and yourself and
of friends and family and yourself and
of friends and family and yourself and all the traditional things that I think
all the traditional things that I think
all the traditional things that I think go digital go crowdsourcing but also
go digital go crowdsourcing but also
go digital go crowdsourcing but also just kind of use your common sense have
just kind of use your common sense have
just kind of use your common sense have no fear and being prepared to pick up to
no fear and being prepared to pick up to
no fear and being prepared to pick up to the phone to people but to Evans point
the phone to people but to Evans point
the phone to people but to Evans point the more expensive you go in terms your
the more expensive you go in terms your
the more expensive you go in terms your search for capital the more time it
search for capital the more time it
search for capital the more time it takes and that’s a distraction from
takes and that’s a distraction from
takes and that’s a distraction from running the business I love it
running the business I love it
running the business I love it for clarification for those of you guys
for clarification for those of you guys
for clarification for those of you guys watching a lot of the crowdsourcing is a
watching a lot of the crowdsourcing is a
watching a lot of the crowdsourcing is a fantastic way to raise money but you’re
fantastic way to raise money but you’re
fantastic way to raise money but you’re off-putting and usually not giving up a
off-putting and usually not giving up a
off-putting and usually not giving up a piece of your company but if you go to
piece of your company but if you go to
piece of your company but if you go to Kickstarter it’s more like marketing
Kickstarter it’s more like marketing
Kickstarter it’s more like marketing right you’re you want to pitch this new
right you’re you want to pitch this new
right you’re you want to pitch this new product that you want to launch we need
product that you want to launch we need
product that you want to launch we need a million dollars to do it
a million dollars to do it
a million dollars to do it $10,000 to do it your pre-selling and
$10,000 to do it your pre-selling and
$10,000 to do it your pre-selling and you’re giving them bonuses but you don’t
you’re giving them bonuses but you don’t
you’re giving them bonuses but you don’t lose a chunk of your company there are
lose a chunk of your company there are
lose a chunk of your company there are other crowdsourcing options where you
other crowdsourcing options where you
other crowdsourcing options where you are giving up you’re looking for angels
are giving up you’re looking for angels
are giving up you’re looking for angels basically but majority of it is not
basically but majority of it is not
basically but majority of it is not actually giving up an equity position
actually giving up an equity position
actually giving up an equity position your business so it’s definitely
your business so it’s definitely
your business so it’s definitely something worth looking at because if
something worth looking at because if
something worth looking at because if you don’t have to give up equity it
you don’t have to give up equity it
you don’t have to give up equity it saves you an insane amount of money down
saves you an insane amount of money down
saves you an insane amount of money down the road in terms of finding investors I
the road in terms of finding investors I
the road in terms of finding investors I think to Stevens Point most of the angel
think to Stevens Point most of the angel
think to Stevens Point most of the angel investors are regular guys and guys and
investors are regular guys and guys and
investors are regular guys and guys and girls ladies and most of them don’t go
girls ladies and most of them don’t go
girls ladies and most of them don’t go to angel investment meetings most of
to angel investment meetings most of
to angel investment meetings most of them are not part of an angel investment
them are not part of an angel investment
them are not part of an angel investment group most of them find their deals
group most of them find their deals
group most of them find their deals through their connections to their
through their connections to their
through their connections to their networks and so I would want to be
networks and so I would want to be
networks and so I would want to be telling my story the people who are
telling my story the people who are
telling my story the people who are connected into those networks great
connected into those networks great
connected into those networks great places to start with our accountants and
places to start with our accountants and
places to start with our accountants and lawyers because they deal with business
lawyers because they deal with business
lawyers because they deal with business people on an ongoing basis it’s their
people on an ongoing basis it’s their
people on an ongoing basis it’s their job to be connected to a bunch of these
job to be connected to a bunch of these
job to be connected to a bunch of these guys so if they like your story they
guys so if they like your story they
guys so if they like your story they could probably introduce you to somebody
could probably introduce you to somebody
could probably introduce you to somebody who could probably help you out at least
who could probably help you out at least
who could probably help you out at least have a conversation with you and it’s
have a conversation with you and it’s
have a conversation with you and it’s probably on your point you’re on the
probably on your point you’re on the
probably on your point you’re on the crowd so that makes important almost the
crowd so that makes important almost the
crowd so that makes important almost the other thing I’ll say you have a view on
other thing I’ll say you have a view on
other thing I’ll say you have a view on this is you need to look at the number
this is you need to look at the number
this is you need to look at the number of levels of kind of how do you raise
of levels of kind of how do you raise
of levels of kind of how do you raise cash number one we should have probably
cash number one we should have probably
cash number one we should have probably said this at the start there’s really
said this at the start there’s really
said this at the start there’s really critical ways in your business to
critical ways in your business to
critical ways in your business to preserve cash so things like payment
preserve cash so things like payment
preserve cash so things like payment terms you want the quickest payment
terms you want the quickest payment
terms you want the quickest payment terms your customers to play and you
terms your customers to play and you
terms your customers to play and you want flexible payment terms to pay your
want flexible payment terms to pay your
want flexible payment terms to pay your suppliers obvious thing you just drive
suppliers obvious thing you just drive
suppliers obvious thing you just drive this ethos in every every employee you
this ethos in every every employee you
this ethos in every every employee you hire in the company to treat the
hire in the company to treat the
hire in the company to treat the company’s money as if it’s your own when
company’s money as if it’s your own when
company’s money as if it’s your own when employees join your company if they
employees join your company if they
employees join your company if they believe in you and the product try and
believe in you and the product try and
believe in you and the product try and get them to be investors in the company
get them to be investors in the company
get them to be investors in the company you know maybe they take shave their
you know maybe they take shave their
you know maybe they take shave their salary reduce their salary to a set of
salary reduce their salary to a set of
salary reduce their salary to a set of what the market is 70% but give them a
what the market is 70% but give them a
what the market is 70% but give them a little equity in the company so again
little equity in the company so again
little equity in the company so again everything you should be thinking in
everything you should be thinking in
everything you should be thinking in terms of run your business you know
terms of run your business you know
terms of run your business you know stage one is preserving cash and then
stage one is preserving cash and then
stage one is preserving cash and then the other things around this is very
the other things around this is very
the other things around this is very often when you go to customers you’ll
often when you go to customers you’ll
often when you go to customers you’ll find customers one about your business
find customers one about your business
find customers one about your business especially if it’s a product business so
especially if it’s a product business so
especially if it’s a product business so they’re heavily invested in your future
they’re heavily invested in your future
they’re heavily invested in your future and then almost give cash on delivery so
and then almost give cash on delivery so
and then almost give cash on delivery so so they’ll they’ll pump try and they’ll
so they’ll they’ll pump try and they’ll
so they’ll they’ll pump try and they’ll even forward load your cash so there’s a
even forward load your cash so there’s a
even forward load your cash so there’s a great place to go sometimes to go and
great place to go sometimes to go and
great place to go sometimes to go and get your customers to fund your growth
get your customers to fund your growth
get your customers to fund your growth then the second sort of category is
then the second sort of category is
then the second sort of category is where can you get cheap money without
where can you get cheap money without
where can you get cheap money without dilution without giving up equity and I
dilution without giving up equity and I
dilution without giving up equity and I think around that we’ve had a couple of
think around that we’ve had a couple of
think around that we’ve had a couple of suggestions around that and you know
suggestions around that and you know
suggestions around that and you know could use a credit card and all these
could use a credit card and all these
could use a credit card and all these other things and then the third phase is
other things and then the third phase is
other things and then the third phase is really you know many conscious decisions
really you know many conscious decisions
really you know many conscious decisions I’m prepared to relinquish some degree
I’m prepared to relinquish some degree
I’m prepared to relinquish some degree of equity to really build growth and get
of equity to really build growth and get
of equity to really build growth and get some more capital in the business and
some more capital in the business and
some more capital in the business and then the fourth level is probably more
then the fourth level is probably more
then the fourth level is probably more growth but what you’re prepared to give
growth but what you’re prepared to give
growth but what you’re prepared to give up in terms of control and there’s a
up in terms of control and there’s a
up in terms of control and there’s a whole kind of spectrum but they’re kind
whole kind of spectrum but they’re kind
whole kind of spectrum but they’re kind of the key thing I would advocate and
of the key thing I would advocate and
of the key thing I would advocate and it’s so easy when you’re running your
it’s so easy when you’re running your
it’s so easy when you’re running your business run that thousand miles an hour
business run that thousand miles an hour
business run that thousand miles an hour I just think every day how do I reserve
I just think every day how do I reserve
I just think every day how do I reserve cash as long as possible make it work
cash as long as possible make it work
cash as long as possible make it work actually another thing I someone told me
actually another thing I someone told me
actually another thing I someone told me 20 years ago 25 years ago a nice backup
20 years ago 25 years ago a nice backup
20 years ago 25 years ago a nice backup Oracle which is an early-stage company
Oracle which is an early-stage company
Oracle which is an early-stage company in those days always do the one dollar
in those days always do the one dollar
in those days always do the one dollar challenge as it kind of should exactly
challenge as it kind of should exactly
challenge as it kind of should exactly be business if you have one dollar where
be business if you have one dollar where
be business if you have one dollar where would you invest it well if you’re
would you invest it well if you’re
would you invest it well if you’re marketing digital marketing product
marketing digital marketing product
marketing digital marketing product innovation R&D and always to remember
innovation R&D and always to remember
innovation R&D and always to remember that one dollar challenge because what
that one dollar challenge because what
that one dollar challenge because what you find when you grow your business
you find when you grow your business
you find when you grow your business you’re not totally in control of it
you’re not totally in control of it
you’re not totally in control of it after three or four years and people
after three or four years and people
after three or four years and people start hiring people and expenses that
start hiring people and expenses that
start hiring people and expenses that are increasing and that’s a dangerous
are increasing and that’s a dangerous
are increasing and that’s a dangerous time for business so you always come
time for business so you always come
time for business so you always come back to the core basics of treating the
back to the core basics of treating the
back to the core basics of treating the company’s money as if it’s your own and
company’s money as if it’s your own and
company’s money as if it’s your own and the ethos around the one dollar
the ethos around the one dollar
the ethos around the one dollar challenge so having any thoughts around
challenge so having any thoughts around
challenge so having any thoughts around that kind of preserving cash and then
that kind of preserving cash and then
that kind of preserving cash and then moving up through the spectrum where you
moving up through the spectrum where you
moving up through the spectrum where you ultimately dilute a bit of control
ultimately dilute a bit of control
ultimately dilute a bit of control yeah I love it yeah you’re gonna lose a
yeah I love it yeah you’re gonna lose a
yeah I love it yeah you’re gonna lose a lot of equity at the early stage if you
lot of equity at the early stage if you
lot of equity at the early stage if you go to investors now because again it’s
go to investors now because again it’s
go to investors now because again it’s so risky for them and I would I would
so risky for them and I would I would
so risky for them and I would I would encourage you to love the idea I love
encourage you to love the idea I love
encourage you to love the idea I love the one dollar idea that’s great I would
the one dollar idea that’s great I would
the one dollar idea that’s great I would also say if you’re targeting customers
also say if you’re targeting customers
also say if you’re targeting customers as potential investors you may be able
as potential investors you may be able
as potential investors you may be able to do it where they fund your growth
to do it where they fund your growth
to do it where they fund your growth without you having to give up anything
without you having to give up anything
without you having to give up anything in your company as an example you know I
in your company as an example you know I
in your company as an example you know I had a software company our first
had a software company our first
had a software company our first business was 19 was a biotech software
business was 19 was a biotech software
business was 19 was a biotech software company and
company and
company and one of our customers wanted the software
one of our customers wanted the software
one of our customers wanted the software to be in Spanish as an example well we
to be in Spanish as an example well we
to be in Spanish as an example well we didn’t have the funds to hire a Spanish
didn’t have the funds to hire a Spanish
didn’t have the funds to hire a Spanish development team and put everything into
development team and put everything into
development team and put everything into Spanish and translate everything over
Spanish and translate everything over
Spanish and translate everything over and so we said you know we could do this
and so we said you know we could do this
and so we said you know we could do this for you but it’s gonna cost you X
for you but it’s gonna cost you X
for you but it’s gonna cost you X thousands of dollars and they said yes
thousands of dollars and they said yes
thousands of dollars and they said yes because they really wanted it and so
because they really wanted it and so
because they really wanted it and so they funded our development and then now
they funded our development and then now
they funded our development and then now we have a Spanish version that we could
we have a Spanish version that we could
we have a Spanish version that we could sell and anytime our customers wanted
sell and anytime our customers wanted
sell and anytime our customers wanted these features we would charge them the
these features we would charge them the
these features we would charge them the development cost for and then be able to
development cost for and then be able to
development cost for and then be able to sell it to everybody else in the future
sell it to everybody else in the future
sell it to everybody else in the future that wanted it too and so we were able
that wanted it too and so we were able
that wanted it too and so we were able to you know a young company bootstrap it
to you know a young company bootstrap it
to you know a young company bootstrap it up get the money we need it without
up get the money we need it without
up get the money we need it without having to go to invest without having to
having to go to invest without having to
having to go to invest without having to give anything up but still build the
give anything up but still build the
give anything up but still build the fuel or growth so as much as you can I
fuel or growth so as much as you can I
fuel or growth so as much as you can I mean that’s part of entrepreneurial
mean that’s part of entrepreneurial
mean that’s part of entrepreneurial thinking you got it you got to think
thinking you got it you got to think
thinking you got it you got to think like that you got to come up with
like that you got to come up with
like that you got to come up with creative ways to fund things because you
creative ways to fund things because you
creative ways to fund things because you don’t have a pile of money to sit in
don’t have a pile of money to sit in
don’t have a pile of money to sit in your bank account and it’s it’s good
your bank account and it’s it’s good
your bank account and it’s it’s good training to try keep throughout the
training to try keep throughout the
training to try keep throughout the lifetime of your company because once
lifetime of your company because once
lifetime of your company because once you do build and grow and you’re his
you do build and grow and you’re his
you do build and grow and you’re his beasts funny admit frivolously
beasts funny admit frivolously
beasts funny admit frivolously I remember one company came to us at the
I remember one company came to us at the
I remember one company came to us at the venture capital business they wanted
venture capital business they wanted
venture capital business they wanted half a million dollars there were four
half a million dollars there were four
half a million dollars there were four of them they figured they’re each worth
of them they figured they’re each worth
of them they figured they’re each worth $100,000 a year so that was their salary
$100,000 a year so that was their salary
$100,000 a year so that was their salary and then they had $100,000 to actually
and then they had $100,000 to actually
and then they had $100,000 to actually put into the business and grow and like
put into the business and grow and like
put into the business and grow and like that is not something that any investor
that is not something that any investor
that is not something that any investor is gonna fund right I’m not I’m not
is gonna fund right I’m not I’m not
is gonna fund right I’m not I’m not paying for view a hundred thousand
paying for view a hundred thousand
paying for view a hundred thousand dollars each so you can quit your jobs
dollars each so you can quit your jobs
dollars each so you can quit your jobs and do this thing and then you only have
and do this thing and then you only have
and do this thing and then you only have a hundred thousand dollars in working
a hundred thousand dollars in working
a hundred thousand dollars in working capital in the business and so asking
capital in the business and so asking
capital in the business and so asking for less bootstrapping finding
for less bootstrapping finding
for less bootstrapping finding alternative sources
alternative sources
alternative sources ideally ones where you’re not having to
ideally ones where you’re not having to
ideally ones where you’re not having to lose equity for all part of the
lose equity for all part of the
lose equity for all part of the entrepreneur’s journey and i think super
entrepreneur’s journey and i think super
entrepreneur’s journey and i think super important to help you get your business
important to help you get your business
important to help you get your business off the ground I love it I just add in
off the ground I love it I just add in
off the ground I love it I just add in there you know everything we do we do
there you know everything we do we do
there you know everything we do we do legally but moonlighting if you’re
legally but moonlighting if you’re
legally but moonlighting if you’re employed by a big company now you’ve got
employed by a big company now you’ve got
employed by a big company now you’ve got a big idea
a big idea
a big idea you’ve got evenings you’ve got weekend
you’ve got evenings you’ve got weekend
you’ve got evenings you’ve got weekend start test-driving and start your
start test-driving and start your
start test-driving and start your business before you leave you come on it
business before you leave you come on it
business before you leave you come on it so I got called Marc Benioff he’s the
so I got called Marc Benioff he’s the
so I got called Marc Benioff he’s the chief executive and chairman of
chief executive and chairman of
chief executive and chairman of salesforce.com was an employee of Oracle
salesforce.com was an employee of Oracle
salesforce.com was an employee of Oracle and he actually started Salesforce
and he actually started Salesforce
and he actually started Salesforce within the mothership of Oracle so
within the mothership of Oracle so
within the mothership of Oracle so there’s the
there’s the
there’s the the great stories where you’ve got
the great stories where you’ve got
the great stories where you’ve got safety financial security and you can
safety financial security and you can
safety financial security and you can really test whether your idea will work
really test whether your idea will work
really test whether your idea will work with your dream can come true and that’s
with your dream can come true and that’s
with your dream can come true and that’s a great platform and then typically I’ll
a great platform and then typically I’ll
a great platform and then typically I’ll be honest all the businesses are angel
be honest all the businesses are angel
be honest all the businesses are angel funded all the executives are taking a
funded all the executives are taking a
funded all the executives are taking a haircut because they said skin in the
haircut because they said skin in the
haircut because they said skin in the game is my time the worst thing we can
game is my time the worst thing we can
game is my time the worst thing we can do is charge the company in the market
do is charge the company in the market
do is charge the company in the market rate because cash is king we got to
rate because cash is king we got to
rate because cash is king we got to preserve it and typically most of some
preserve it and typically most of some
preserve it and typically most of some of them will work for nothing for two
of them will work for nothing for two
of them will work for nothing for two years but typically they take a haircut
years but typically they take a haircut
years but typically they take a haircut like 50% on their salary take no bonuses
like 50% on their salary take no bonuses
like 50% on their salary take no bonuses take no cash out of the company put all
take no cash out of the company put all
take no cash out of the company put all the cash to work for growth I love it
the cash to work for growth I love it
the cash to work for growth I love it next question from Jason thanks for
next question from Jason thanks for
next question from Jason thanks for hosting this event Evan and Stephen
hosting this event Evan and Stephen
hosting this event Evan and Stephen should I wait until I have proof proof
should I wait until I have proof proof
should I wait until I have proof proof of concept before I pitch investors or
of concept before I pitch investors or
of concept before I pitch investors or funding or go on shows like Shark Tank I
funding or go on shows like Shark Tank I
funding or go on shows like Shark Tank I think it depends on I think two things
think it depends on I think two things
think it depends on I think two things you’ve got to have a great idea and test
you’ve got to have a great idea and test
you’ve got to have a great idea and test it with the market if you don’t stuff
it with the market if you don’t stuff
it with the market if you don’t stuff like Shawn tanked and you haven’t got
like Shawn tanked and you haven’t got
like Shawn tanked and you haven’t got your ideas together around the market
your ideas together around the market
your ideas together around the market you know what the issues are if it’s a
you know what the issues are if it’s a
you know what the issues are if it’s a consumer product
consumer product
consumer product you know what the competition’s doing
you know what the competition’s doing
you know what the competition’s doing all this sort of stuff you’re gonna get
all this sort of stuff you’re gonna get
all this sort of stuff you’re gonna get ripped to shreds but ultimately if
ripped to shreds but ultimately if
ripped to shreds but ultimately if you’ve got a great idea
you’ve got a great idea
you’ve got a great idea I’d always say test drive it as quickly
I’d always say test drive it as quickly
I’d always say test drive it as quickly as you can and then get kind of real
as you can and then get kind of real
as you can and then get kind of real velocity in terms of momentum as you get
velocity in terms of momentum as you get
velocity in terms of momentum as you get early customers early adopters and stuff
early customers early adopters and stuff
early customers early adopters and stuff like that and just as Evan said the
like that and just as Evan said the
like that and just as Evan said the longer you can leave it if you can
longer you can leave it if you can
longer you can leave it if you can actually be making money before you
actually be making money before you
actually be making money before you raise money the less you die leave
raise money the less you die leave
raise money the less you die leave yourself the less their ownership you
yourself the less their ownership you
yourself the less their ownership you give up so that’s all good because you
give up so that’s all good because you
give up so that’s all good because you keep control of something you love your
keep control of something you love your
keep control of something you love your baby ultimately though if you want to go
baby ultimately though if you want to go
baby ultimately though if you want to go and pitch it one of the things you need
and pitch it one of the things you need
and pitch it one of the things you need to do is have a really crisp story and
to do is have a really crisp story and
to do is have a really crisp story and be able to tell that story and try and
be able to tell that story and try and
be able to tell that story and try and tell it if you can do visually in things
tell it if you can do visually in things
tell it if you can do visually in things that land really well and then obviously
that land really well and then obviously
that land really well and then obviously have all the stuff around the market
have all the stuff around the market
have all the stuff around the market data market size the growth potential so
data market size the growth potential so
data market size the growth potential so I think it’s really important to get
I think it’s really important to get
I think it’s really important to get your pitch together get your story
your pitch together get your story
your pitch together get your story together and you don’t want to have to
together and you don’t want to have to
together and you don’t want to have to do a different story every kind of time
do a different story every kind of time
do a different story every kind of time you’re going to pitch it you want to do
you’re going to pitch it you want to do
you’re going to pitch it you want to do this once and picture to a few people
this once and picture to a few people
this once and picture to a few people and I think that you could save yourself
and I think that you could save yourself
and I think that you could save yourself a lot of time because to Evans point
a lot of time because to Evans point
a lot of time because to Evans point what you where you want to spend those
what you where you want to spend those
what you where you want to spend those precious 60 70 hours a week
precious 60 70 hours a week
precious 60 70 hours a week is gone and starting your company
is gone and starting your company
is gone and starting your company recruiting people recruiting customers
recruiting people recruiting customers
recruiting people recruiting customers building your product you don’t want to
building your product you don’t want to
building your product you don’t want to be spending it just going out pitching
be spending it just going out pitching
be spending it just going out pitching your company to investors or not but in
your company to investors or not but in
your company to investors or not but in the business yeah and you know the add
the business yeah and you know the add
the business yeah and you know the add to that if you’re in that early stage
to that if you’re in that early stage
to that if you’re in that early stage you may want to instead of going and
you may want to instead of going and
you may want to instead of going and pitching something because you won’t
pitching something because you won’t
pitching something because you won’t have it over no you’re gonna have so
have it over no you’re gonna have so
have it over no you’re gonna have so many holes in your business plan and a
many holes in your business plan and a
many holes in your business plan and a season investable poke holes in it all
season investable poke holes in it all
season investable poke holes in it all day long and that makes you look bad I
day long and that makes you look bad I
day long and that makes you look bad I would probably go in and ask for help I
would probably go in and ask for help I
would probably go in and ask for help I would go in and and show your young on
would go in and and show your young on
would go in and and show your young on Ratner and you want ten minutes at their
Ratner and you want ten minutes at their
Ratner and you want ten minutes at their time to get some feedback on a project
time to get some feedback on a project
time to get some feedback on a project and see what kind of advice and ideas
and see what kind of advice and ideas
and see what kind of advice and ideas they give you and that opens the door
they give you and that opens the door
they give you and that opens the door people to come back and say hey I
people to come back and say hey I
people to come back and say hey I followed your advice and here’s how I’ve
followed your advice and here’s how I’ve
followed your advice and here’s how I’ve grown if they really love it they’re
grown if they really love it they’re
grown if they really love it they’re gonna they’re gonna be thinking
gonna they’re gonna be thinking
gonna they’re gonna be thinking investment anyway we’ve becoming
investment anyway we’ve becoming
investment anyway we’ve becoming pitching and you don’t have a solid plan
pitching and you don’t have a solid plan
pitching and you don’t have a solid plan you know it’s hard to go back to those
you know it’s hard to go back to those
you know it’s hard to go back to those guys because they’re think you know
guys because they’re think you know
guys because they’re think you know that’s the guy who came in who didn’t
that’s the guy who came in who didn’t
that’s the guy who came in who didn’t know what he was talking about like
know what he was talking about like
know what he was talking about like you’ve made a really bad first
you’ve made a really bad first
you’ve made a really bad first impression but going and asking for help
impression but going and asking for help
impression but going and asking for help and then taking that knowledge put into
and then taking that knowledge put into
and then taking that knowledge put into your business and coming back and
your business and coming back and
your business and coming back and showing what you’ve done and worked on
showing what you’ve done and worked on
showing what you’ve done and worked on it if they see that you’re listening to
it if they see that you’re listening to
it if they see that you’re listening to them and you’re acting on their
them and you’re acting on their
them and you’re acting on their suggestions it’s way easier to go back
suggestions it’s way easier to go back
suggestions it’s way easier to go back and then pitch them whatever do you have
and then pitch them whatever do you have
and then pitch them whatever do you have to grow it and gray someone you need
pastor D is asking about events what do
pastor D is asking about events what do you think about events to find angel
you think about events to find angel
you think about events to find angel investors and venture capitalists and
investors and venture capitalists and
investors and venture capitalists and private equity I kind of think it’s
private equity I kind of think it’s
private equity I kind of think it’s unless you really know around an event
unless you really know around an event
unless you really know around an event why are you going there again I’m not a
why are you going there again I’m not a
why are you going there again I’m not a big fan be honest so they could be I
big fan be honest so they could be I
big fan be honest so they could be I don’t know say I’m thinly but quality
don’t know say I’m thinly but quality
don’t know say I’m thinly but quality the pharmaceutical industry is so if
the pharmaceutical industry is so if
the pharmaceutical industry is so if it’s very specific it may be worthwhile
it’s very specific it may be worthwhile
it’s very specific it may be worthwhile but again I think it’s kind of a bit of
but again I think it’s kind of a bit of
but again I think it’s kind of a bit of a lottery and it’s really difficult in
a lottery and it’s really difficult in
a lottery and it’s really difficult in terms of that I think what you want to
terms of that I think what you want to
terms of that I think what you want to do with raising money is bring as much
do with raising money is bring as much
do with raising money is bring as much science to it as possible and let people
science to it as possible and let people
science to it as possible and let people find you and if you’re just going to
find you and if you’re just going to
find you and if you’re just going to event with a thousand people there it’s
event with a thousand people there it’s
event with a thousand people there it’s really hard to find your way around so
really hard to find your way around so
really hard to find your way around so I’ll be honest I’ll prefer you to be
I’ll be honest I’ll prefer you to be
I’ll be honest I’ll prefer you to be sitting down doing your business thing
sitting down doing your business thing
sitting down doing your business thing around your business and kind of making
around your business and kind of making
around your business and kind of making money and then at the right time
money and then at the right time
money and then at the right time go to the right events and if you get it
go to the right events and if you get it
go to the right events and if you get it right you should be keynote in at these
right you should be keynote in at these
right you should be keynote in at these events you shouldn’t be paying a
events you shouldn’t be paying a
events you shouldn’t be paying a delicate fee and paying for your own
delicate fee and paying for your own
delicate fee and paying for your own hotel room they should be playing for
hotel room they should be playing for
hotel room they should be playing for you to turn up and you should be on
you to turn up and you should be on
you to turn up and you should be on front for the stage there so so it’s
front for the stage there so so it’s
front for the stage there so so it’s creating that excitement demand and you
creating that excitement demand and you
creating that excitement demand and you do that by creating a great business and
do that by creating a great business and
do that by creating a great business and I don’t know I’ve use that money you use
I don’t know I’ve use that money you use
I don’t know I’ve use that money you use that time more importantly very business
that time more importantly very business
that time more importantly very business I love that I love that they should be
I love that I love that they should be
I love that I love that they should be paying you to come fix it you can always
paying you to come fix it you can always
paying you to come fix it you can always count on Steve and Kelly to think big I
count on Steve and Kelly to think big I
count on Steve and Kelly to think big I love it I would be looking at events
love it I would be looking at events
love it I would be looking at events only in a marketing contact so you know
only in a marketing contact so you know
only in a marketing contact so you know if TechCrunch is doing their annual
if TechCrunch is doing their annual
if TechCrunch is doing their annual contest and you go for that you know the
contest and you go for that you know the
contest and you go for that you know the winners they are good an insane amount
winners they are good an insane amount
winners they are good an insane amount of coverage and I can really help put
of coverage and I can really help put
of coverage and I can really help put your startup on the map in terms of just
your startup on the map in terms of just
your startup on the map in terms of just meeting investors most angels and VCs
meeting investors most angels and VCs
meeting investors most angels and VCs they’re not part of these groups right
they’re not part of these groups right
they’re not part of these groups right especially on the angel level they don’t
especially on the angel level they don’t
especially on the angel level they don’t go to these angel investment dinners and
go to these angel investment dinners and
go to these angel investment dinners and again is found through informal
again is found through informal
again is found through informal connections so if your goal is to raise
connections so if your goal is to raise
connections so if your goal is to raise money then I would be working my
money then I would be working my
money then I would be working my connections again accountants lawyers
connections again accountants lawyers
connections again accountants lawyers bookkeepers people who are connected to
bookkeepers people who are connected to
bookkeepers people who are connected to others we have a term in the industry
others we have a term in the industry
others we have a term in the industry called DDI
called DDI
called DDI dentists and doctors with disposable
dentists and doctors with disposable
dentists and doctors with disposable income those are often the first
income those are often the first
income those are often the first investors into a lot of businesses but
investors into a lot of businesses but
investors into a lot of businesses but if your goal is marketing and putting a
if your goal is marketing and putting a
if your goal is marketing and putting a name out there for yourself then that’s
name out there for yourself then that’s
name out there for yourself then that’s what I would look at more the bigger
what I would look at more the bigger
what I would look at more the bigger events Tom when or how do you determine
events Tom when or how do you determine
events Tom when or how do you determine is the right time to allow investors
is the right time to allow investors
is the right time to allow investors into your business yeah and again I
into your business yeah and again I
into your business yeah and again I think it’s when you need growth capital
think it’s when you need growth capital
think it’s when you need growth capital to scale it up and then I think there’s
to scale it up and then I think there’s
to scale it up and then I think there’s a second element to that question
a second element to that question
a second element to that question ultimately when you need advice and
ultimately when you need advice and
ultimately when you need advice and input in terms of growing the business
input in terms of growing the business
input in terms of growing the business and I think that’s a whole different
and I think that’s a whole different
and I think that’s a whole different category of conversation so you need the
category of conversation so you need the
category of conversation so you need the investment but then you know being a CEO
investment but then you know being a CEO
investment but then you know being a CEO and a business is hard work and it can
and a business is hard work and it can
and a business is hard work and it can be pretty learning and if you’ve got
be pretty learning and if you’ve got
be pretty learning and if you’ve got someone who’s drawn that part the number
someone who’s drawn that part the number
someone who’s drawn that part the number of times before they can show you a lot
of times before they can show you a lot
of times before they can show you a lot of shortcuts so if you get the right
of shortcuts so if you get the right
of shortcuts so if you get the right angel
angel
angel and you get an angel Rhys down
and you get an angel Rhys down
and you get an angel Rhys down you’ve done a couple of times before and
you’ve done a couple of times before and
you’ve done a couple of times before and is prepared to invest as most dangers
is prepared to invest as most dangers
is prepared to invest as most dangers are then they’ll give their time freedom
are then they’ll give their time freedom
are then they’ll give their time freedom and generously and can save you a whole
and generously and can save you a whole
and generously and can save you a whole lot of time with a lot of fame I kind of
lot of time with a lot of fame I kind of
lot of time with a lot of fame I kind of like the bravado in this question how he
like the bravado in this question how he
like the bravado in this question how he worded it to allow investors into your
worded it to allow investors into your
worded it to allow investors into your business you even got to watch the ego
business you even got to watch the ego
business you even got to watch the ego check you know you don’t want to go in
check you know you don’t want to go in
check you know you don’t want to go in with a massive ego
with a massive ego
with a massive ego but at the same time you don’t want to
but at the same time you don’t want to
but at the same time you don’t want to be desperate to you never want to be
be desperate to you never want to be
be desperate to you never want to be desperate going into talking to
desperate going into talking to
desperate going into talking to investors or ever really in your
investors or ever really in your
investors or ever really in your business you want to act out a
business you want to act out a
business you want to act out a confidence in knowing that you have a
confidence in knowing that you have a
confidence in knowing that you have a successful business concept that will
successful business concept that will
successful business concept that will take off but it turns up yeah I mean I
take off but it turns up yeah I mean I
take off but it turns up yeah I mean I totally agree with Stephen I don’t think
totally agree with Stephen I don’t think
totally agree with Stephen I don’t think I have anything else to have on that one
I have anything else to have on that one
I have anything else to have on that one the other thing put your hat on SBC when
the other thing put your hat on SBC when
the other thing put your hat on SBC when I when I’m living in California we did
I when I’m living in California we did
I when I’m living in California we did raise some money and got Sand Hill Road
raise some money and got Sand Hill Road
raise some money and got Sand Hill Road if you think about it you’ve got to put
if you think about it you’ve got to put
if you think about it you’ve got to put yourself in the shoes of these species
yourself in the shoes of these species
yourself in the shoes of these species if you’re looking for growth capital
if you’re looking for growth capital
if you’re looking for growth capital they see hundreds of businesses it’s
they see hundreds of businesses it’s
they see hundreds of businesses it’s like Groundhog Day you know every day
like Groundhog Day you know every day
like Groundhog Day you know every day their diary that calendars packed with
their diary that calendars packed with
their diary that calendars packed with kind of pictures so how do you stand out
kind of pictures so how do you stand out
kind of pictures so how do you stand out how do you make yourself different how
how do you make yourself different how
how do you make yourself different how do you make yourself compelling how do
do you make yourself compelling how do
do you make yourself compelling how do you make use yourself the most beautiful
you make use yourself the most beautiful
you make use yourself the most beautiful baby that they’ve ever seen so it’s
baby that they’ve ever seen so it’s
baby that they’ve ever seen so it’s worth thinking about that and if you
worth thinking about that and if you
worth thinking about that and if you just go in with a standard picture
just go in with a standard picture
just go in with a standard picture standard presentation boy have you got
standard presentation boy have you got
standard presentation boy have you got to have your data together and really
to have your data together and really
to have your data together and really knock the ball out the park but I would
knock the ball out the park but I would
knock the ball out the park but I would encourage you to think differently and
encourage you to think differently and
encourage you to think differently and stand out from the crowd because you’ll
stand out from the crowd because you’ll
stand out from the crowd because you’ll gather attention that way not do crazy
gather attention that way not do crazy
gather attention that way not do crazy stuff but there’s ways to think
stuff but there’s ways to think
stuff but there’s ways to think differently and do something very
differently and do something very
differently and do something very different
different
different Evan you know you’ve set in the issues
Evan you know you’ve set in the issues
Evan you know you’ve set in the issues of a B C yeah my my role with the VC was
of a B C yeah my my role with the VC was
of a B C yeah my my role with the VC was weeping out all the business plans that
weeping out all the business plans that
weeping out all the business plans that came in and in like 99 percent of the
came in and in like 99 percent of the
came in and in like 99 percent of the plans got a no no thank you
plans got a no no thank you
plans got a no no thank you before you even get a meeting like most
before you even get a meeting like most
before you even get a meeting like most of people come in for meeting also get
of people come in for meeting also get
of people come in for meeting also get rejected but just to get to the meeting
rejected but just to get to the meeting
rejected but just to get to the meeting you’re already facing at 90 99 % you
you’re already facing at 90 99 % you
you’re already facing at 90 99 % you know failure rate
know failure rate
know failure rate mostly it’s because of one there’s not
mostly it’s because of one there’s not
mostly it’s because of one there’s not enough momentum it’s like it’s just an
enough momentum it’s like it’s just an
enough momentum it’s like it’s just an idea and a VC typically doesn’t fund
idea and a VC typically doesn’t fund
idea and a VC typically doesn’t fund just an idea and to it’s not clear you
just an idea and to it’s not clear you
just an idea and to it’s not clear you know there was some tech companies that
know there was some tech companies that
know there was some tech companies that I was reading their executive summary
I was reading their executive summary
I was reading their executive summary and I couldn’t understand it like I come
and I couldn’t understand it like I come
and I couldn’t understand it like I come from a software background so I’m not
from a software background so I’m not
from a software background so I’m not I’m not a tech idiot but I’m also not a
I’m not a tech idiot but I’m also not a
I’m not a tech idiot but I’m also not a tech genius and back to the grandmother
tech genius and back to the grandmother
tech genius and back to the grandmother to test if I can understand what your
to test if I can understand what your
to test if I can understand what your company is doing and I have to read
company is doing and I have to read
company is doing and I have to read paragraphs three times to try to figure
paragraphs three times to try to figure
paragraphs three times to try to figure it out then it’s not going to be a fit
it out then it’s not going to be a fit
it out then it’s not going to be a fit so again we look at executive summary
so again we look at executive summary
so again we look at executive summary and then the management team and then
and then the management team and then
and then the management team and then the financials and if all that looked
the financials and if all that looked
the financials and if all that looked good then you being divided for I’m
good then you being divided for I’m
good then you being divided for I’m reading to come in what what order you
reading to come in what what order you
reading to come in what what order you I’m curious for you Stephen when you get
I’m curious for you Stephen when you get
I’m curious for you Stephen when you get when you get pitched something somebody
when you get pitched something somebody
when you get pitched something somebody sends you they’re playing how do you
sends you they’re playing how do you
sends you they’re playing how do you read through it what’s what you skip
read through it what’s what you skip
read through it what’s what you skip around how do you read through that
around how do you read through that
around how do you read through that business plan yeah I think I get first
business plan yeah I think I get first
business plan yeah I think I get first question is there a market or could they
question is there a market or could they
question is there a market or could they create a market secondly their
create a market secondly their
create a market secondly their management management is really really
management management is really really
management management is really really compelling and then if they haven’t got
compelling and then if they haven’t got
compelling and then if they haven’t got the experience that’s that’s not a
the experience that’s that’s not a
the experience that’s that’s not a negative but then they need to do more
negative but then they need to do more
negative but then they need to do more kind of test drive it and then
kind of test drive it and then
kind of test drive it and then underpinning that as the financials so
underpinning that as the financials so
underpinning that as the financials so they’re the kind of sort of things and
they’re the kind of sort of things and
they’re the kind of sort of things and then obviously you know you know this
then obviously you know you know this
then obviously you know you know this Evan as well
Evan as well
Evan as well truly entrepreneurs out there you want
truly entrepreneurs out there you want
truly entrepreneurs out there you want to give up the minimum control your
to give up the minimum control your
to give up the minimum control your Canada company and you want to give up
Canada company and you want to give up
Canada company and you want to give up the minimum equity so the longer you
the minimum equity so the longer you
the minimum equity so the longer you leave it and the more you make more
leave it and the more you make more
leave it and the more you make more money and grow your business without
money and grow your business without
money and grow your business without raising cash and just back to the fact
raising cash and just back to the fact
raising cash and just back to the fact that I think 90% of businesses are
that I think 90% of businesses are
that I think 90% of businesses are self-funded ish initially through the
self-funded ish initially through the
self-funded ish initially through the bootstrap phase the longer you can leave
bootstrap phase the longer you can leave
bootstrap phase the longer you can leave it or you can actually skin even grounds
it or you can actually skin even grounds
it or you can actually skin even grounds down to manageable chunks over like 12
down to manageable chunks over like 12
down to manageable chunks over like 12 to 18 months rather than the go alpha
to 18 months rather than the go alpha
to 18 months rather than the go alpha kind of enough cash to survive there’s
kind of enough cash to survive there’s
kind of enough cash to survive there’s five years the more you actually
five years the more you actually
five years the more you actually preserve the value and the equity in the
preserve the value and the equity in the
preserve the value and the equity in the company yeah one thing that we haven’t
company yeah one thing that we haven’t
company yeah one thing that we haven’t talked about that also is more important
talked about that also is more important
talked about that also is more important for the angels and especially the VCS is
for the angels and especially the VCS is
for the angels and especially the VCS is what is their exit strategy gonna be
what is their exit strategy gonna be
what is their exit strategy gonna be they want to see that you’re gonna be
they want to see that you’re gonna be
they want to see that you’re gonna be out usually angel lasts longer a
out usually angel lasts longer a
out usually angel lasts longer a lifecycle of an angel investment
lifecycle of an angel investment
lifecycle of an angel investment companies around eight years where VC
companies around eight years where VC
companies around eight years where VC would be more closer to five years where
would be more closer to five years where
would be more closer to five years where they want to basically be in and out of
they want to basically be in and out of
they want to basically be in and out of your business in five years or VC and
your business in five years or VC and
your business in five years or VC and they want around 30% growth per year on
they want around 30% growth per year on
they want around 30% growth per year on average in their investments now that’s
average in their investments now that’s
average in their investments now that’s not going to happen in the first year
not going to happen in the first year
not going to happen in the first year but by the time you sell it’s a
but by the time you sell it’s a
but by the time you sell it’s a cumulative average and so not all in
cumulative average and so not all in
cumulative average and so not all in this trees are built for that like a lot
this trees are built for that like a lot
this trees are built for that like a lot of industries
of industries
of industries if you are not in the high profit margin
if you are not in the high profit margin
if you are not in the high profit margin high growth potential industry is
high growth potential industry is
high growth potential industry is probably not a fit for a special
probably not a fit for a special
probably not a fit for a special adventure capital investor and they’ll
adventure capital investor and they’ll
adventure capital investor and they’ll want to see that it’s one of two ways
want to see that it’s one of two ways
want to see that it’s one of two ways either this you know go public so you’re
either this you know go public so you’re
either this you know go public so you’re gonna IPO or somebody’s gonna buy you
gonna IPO or somebody’s gonna buy you
gonna IPO or somebody’s gonna buy you and if nobody in uni has ever gone
and if nobody in uni has ever gone
and if nobody in uni has ever gone public and there’s never been any big
public and there’s never been any big
public and there’s never been any big mergers and acquisitions in the industry
mergers and acquisitions in the industry
mergers and acquisitions in the industry it’s also gonna be hard to attract an
it’s also gonna be hard to attract an
it’s also gonna be hard to attract an investor because they’re thinking how am
investor because they’re thinking how am
investor because they’re thinking how am I going to ever get my money back out of
I going to ever get my money back out of
I going to ever get my money back out of this deal and so it’s not the first
this deal and so it’s not the first
this deal and so it’s not the first thing that investors will look for but
thing that investors will look for but
thing that investors will look for but it better be thought out in some way
it better be thought out in some way
it better be thought out in some way because if that’s a concern of theirs
because if that’s a concern of theirs
because if that’s a concern of theirs then they won’t want to put the money in
then they won’t want to put the money in
then they won’t want to put the money in yeah actually have an ear the other
yeah actually have an ear the other
yeah actually have an ear the other thing kind of thinking way down the
thing kind of thinking way down the
thing kind of thinking way down the track upset around the board where there
track upset around the board where there
track upset around the board where there have been some really high-quality PCs
have been some really high-quality PCs
have been some really high-quality PCs involved and you can see that how the
involved and you can see that how the
involved and you can see that how the behavior over the five years changed
behavior over the five years changed
behavior over the five years changed from their input and this is the company
from their input and this is the company
from their input and this is the company where about one example thirty percent
where about one example thirty percent
where about one example thirty percent of the equity was owned by the venture
of the equity was owned by the venture
of the equity was owned by the venture capitalists another one where about 25
capitalists another one where about 25
capitalists another one where about 25 percent was owned by a couple of growth
percent was owned by a couple of growth
percent was owned by a couple of growth capital funds and they had a seat at the
capital funds and they had a seat at the
capital funds and they had a seat at the table of the board and their attention
table of the board and their attention
table of the board and their attention span diminished over the period of time
span diminished over the period of time
span diminished over the period of time you know they’re our first two years
you know they’re our first two years
you know they’re our first two years strategic influence mentoring last two
strategic influence mentoring last two
strategic influence mentoring last two years all about what about the exit who
years all about what about the exit who
years all about what about the exit who we’re talking to what inbound
we’re talking to what inbound
we’re talking to what inbound conversations so it changes the dynamic
conversations so it changes the dynamic
conversations so it changes the dynamic and am I actually a totally different
and am I actually a totally different
and am I actually a totally different topic but you know you never sell a
topic but you know you never sell a
topic but you know you never sell a company you only ever get all so the
company you only ever get all so the
company you only ever get all so the best time to be bought is when you
best time to be bought is when you
best time to be bought is when you receive the inbound and you’ve got the
receive the inbound and you’ve got the
receive the inbound and you’ve got the hottest product in the market all the
hottest product in the market all the
hottest product in the market all the best services company in the market or
best services company in the market or
best services company in the market or whatever it is and then you can have a
whatever it is and then you can have a
whatever it is and then you can have a competitive bake-off and maximize the
competitive bake-off and maximize the
competitive bake-off and maximize the exit position for the investors so it
exit position for the investors so it
exit position for the investors so it does change the dynamic so if you will
does change the dynamic so if you will
does change the dynamic so if you will point in heaven I think you’re bang on
point in heaven I think you’re bang on
point in heaven I think you’re bang on the money and if you’ve given up a ball
the money and if you’ve given up a ball
the money and if you’ve given up a ball position or something like that in the
position or something like that in the
position or something like that in the growth capital phase you need to make
growth capital phase you need to make
growth capital phase you need to make sure these guys have got a really good
sure these guys have got a really good
sure these guys have got a really good track record of sticking around for the
track record of sticking around for the
track record of sticking around for the long term and not just kind of
long term and not just kind of
long term and not just kind of exercising the time clock and then
exercising the time clock and then
exercising the time clock and then turning the key at the end of the five
turning the key at the end of the five
turning the key at the end of the five years yeah and just like they’re doing
years yeah and just like they’re doing
years yeah and just like they’re doing an insane amount of due diligence on you
an insane amount of due diligence on you
an insane amount of due diligence on you you should do due diligence on them too
you should do due diligence on them too
you should do due diligence on them too right
right
right talk to some of the other companies that
talk to some of the other companies that
talk to some of the other companies that they’ve invested in and see what they’re
they’ve invested in and see what they’re
they’ve invested in and see what they’re like as a mentor and as an investor
like as a mentor and as an investor
like as a mentor and as an investor because you want to make sure you’re
because you want to make sure you’re
because you want to make sure you’re getting the records on on your company
getting the records on on your company
getting the records on on your company this is like getting married and it is
this is like getting married and it is
this is like getting married and it is hard to kick somebody out once they’re
hard to kick somebody out once they’re
hard to kick somebody out once they’re on board
on board
on board bhima queen is writing to say what
bhima queen is writing to say what
bhima queen is writing to say what should i have available with me when i
should i have available with me when i
should i have available with me when i meet with an investor i think yeah
meet with an investor i think yeah
meet with an investor i think yeah obviously a great company story that
obviously a great company story that
obviously a great company story that you’re really proud of number one that
you’re really proud of number one that
you’re really proud of number one that you could explain to Grandma
you could explain to Grandma
you could explain to Grandma you should have stuff about market
you should have stuff about market
you should have stuff about market market opportunity you should have stuff
market opportunity you should have stuff
market opportunity you should have stuff about competitors if there’s people out
about competitors if there’s people out
about competitors if there’s people out there already doing what you plan to do
there already doing what you plan to do
there already doing what you plan to do and why you’re different you know key
and why you’re different you know key
and why you’re different you know key thing is what do you do who you serve
thing is what do you do who you serve
thing is what do you do who you serve and why you’re different and you should
and why you’re different and you should
and why you’re different and you should have the financial model certain you
have the financial model certain you
have the financial model certain you don’t have to do it kind of 25 year plan
don’t have to do it kind of 25 year plan
don’t have to do it kind of 25 year plan but you should certainly have a sketched
but you should certainly have a sketched
but you should certainly have a sketched out view of the three year plan i’m
out view of the three year plan i’m
out view of the three year plan i’m pretty good detail around this fiscal
pretty good detail around this fiscal
pretty good detail around this fiscal year and how you gonna deploy the
year and how you gonna deploy the
year and how you gonna deploy the investment that they’re going to make
investment that they’re going to make
investment that they’re going to make why you know back to heavens first point
why you know back to heavens first point
why you know back to heavens first point really where are you going to invest
really where are you going to invest
really where are you going to invest that so you really accelerate the growth
that so you really accelerate the growth
that so you really accelerate the growth of the business how are you gonna deploy
of the business how are you gonna deploy
of the business how are you gonna deploy and if they get into you know if I was
and if they get into you know if I was
and if they get into you know if I was in my angel days and they were raising a
in my angel days and they were raising a
in my angel days and they were raising a couple of million dollars I’d say well
couple of million dollars I’d say well
couple of million dollars I’d say well tell me where you can invest it you must
tell me where you can invest it you must
tell me where you can invest it you must have a pretty good idea there what’s
have a pretty good idea there what’s
have a pretty good idea there what’s your marketing plan alright what’s to do
your marketing plan alright what’s to do
your marketing plan alright what’s to do referee expansion what you reinvest on
referee expansion what you reinvest on
referee expansion what you reinvest on digital mark and all these sort of
digital mark and all these sort of
digital mark and all these sort of things so you need a pretty clear idea
things so you need a pretty clear idea
things so you need a pretty clear idea because you run in the business they’re
because you run in the business they’re
because you run in the business they’re going to trust you as a management team
going to trust you as a management team
going to trust you as a management team and you’ve got to have the confidence
and you’ve got to have the confidence
and you’ve got to have the confidence and the plans in place to very credible
and the plans in place to very credible
and the plans in place to very credible yeah I love it I mean there’s a number
yeah I love it I mean there’s a number
yeah I love it I mean there’s a number of resources and what needs to go into a
of resources and what needs to go into a
of resources and what needs to go into a business plan there’s a lot of the
business plan there’s a lot of the
business plan there’s a lot of the common stuff I don’t know if there’s
common stuff I don’t know if there’s
common stuff I don’t know if there’s anything that you guys offer on Sage on
anything that you guys offer on Sage on
anything that you guys offer on Sage on the website or a blog post somewhere
the website or a blog post somewhere
the website or a blog post somewhere that out lights and details but most
that out lights and details but most
that out lights and details but most business plans are pretty standard and
business plans are pretty standard and
business plans are pretty standard and there’s a reason why all those sections
there’s a reason why all those sections
there’s a reason why all those sections are in write is the reason why you need
are in write is the reason why you need
are in write is the reason why you need to have the executive summary enough
to have the executive summary enough
to have the executive summary enough financials and a management team the
financials and a management team the
financials and a management team the operations plan and the sales and
operations plan and the sales and
operations plan and the sales and marketing strategy all that stuff is
marketing strategy all that stuff is
marketing strategy all that stuff is information that it was a business owner
information that it was a business owner
information that it was a business owner should know throughout the business and
should know throughout the business and
should know throughout the business and also investors will be interested in I
also investors will be interested in I
also investors will be interested in I think the most important thing when
think the most important thing when
think the most important thing when you’re going to a meeting with somebody
you’re going to a meeting with somebody
you’re going to a meeting with somebody is to be able to talk to the business
is to be able to talk to the business
is to be able to talk to the business plan but not basically read it where a
plan but not basically read it where a
plan but not basically read it where a lot of the pictures that I saw the the
lot of the pictures that I saw the the
lot of the pictures that I saw the the the entrepreneur comes in they’re like
the entrepreneur comes in they’re like
the entrepreneur comes in they’re like okay
okay
okay here we go let’s talk about my sales and
here we go let’s talk about my sales and
here we go let’s talk about my sales and marketing plan and they’re like having
marketing plan and they’re like having
marketing plan and they’re like having always to refer back to their notes it’s
always to refer back to their notes it’s
always to refer back to their notes it’s like well if I wanted to read what was
like well if I wanted to read what was
like well if I wanted to read what was on there I could just take it and read
on there I could just take it and read
on there I could just take it and read it myself I’m interested in having a
it myself I’m interested in having a
it myself I’m interested in having a conversation so you should be willing
conversation so you should be willing
conversation so you should be willing and able to talk to the points in your
and able to talk to the points in your
and able to talk to the points in your business plan and without having to look
business plan and without having to look
business plan and without having to look through and memorize it I think that’s
through and memorize it I think that’s
through and memorize it I think that’s super important also I would use my ears
super important also I would use my ears
super important also I would use my ears like any good salesperson you got to use
like any good salesperson you got to use
like any good salesperson you got to use your ears every investor has their own
your ears every investor has their own
your ears every investor has their own way of their own investment of
way of their own investment of
way of their own investment of philosophy their own way of attacking
philosophy their own way of attacking
philosophy their own way of attacking things and often we get locked into this
things and often we get locked into this
things and often we get locked into this is my sales pitch and you don’t deviate
is my sales pitch and you don’t deviate
is my sales pitch and you don’t deviate from that where they may not care about
from that where they may not care about
from that where they may not care about five of the things in your sales page
five of the things in your sales page
five of the things in your sales page and so let them ask questions of you and
and so let them ask questions of you and
and so let them ask questions of you and answer them openly honestly and give
answer them openly honestly and give
answer them openly honestly and give them more contacts where they want that
them more contacts where they want that
them more contacts where they want that context they ever want what are they if
context they ever want what are they if
context they ever want what are they if you’re gonna go do pitches it’s so much
you’re gonna go do pitches it’s so much
you’re gonna go do pitches it’s so much like girl for a job in reality you got
like girl for a job in reality you got
like girl for a job in reality you got anybody believe between 30 seconds and
anybody believe between 30 seconds and
anybody believe between 30 seconds and two minutes to really grab their
two minutes to really grab their
two minutes to really grab their attention and come you know jumping out
attention and come you know jumping out
attention and come you know jumping out of their seats and I’ve got to have all
of their seats and I’ve got to have all
of their seats and I’ve got to have all of this so if you’re a product company
of this so if you’re a product company
of this so if you’re a product company the best way to do that you should show
the best way to do that you should show
the best way to do that you should show them the thing you’re really proud about
them the thing you’re really proud about
them the thing you’re really proud about the product just get your product out
the product just get your product out
the product just get your product out and show em and again just be sensible
and show em and again just be sensible
and show em and again just be sensible with I don’t know if your product needs
with I don’t know if your product needs
with I don’t know if your product needs Wi-Fi check all the Wi-Fi let’s test
Wi-Fi check all the Wi-Fi let’s test
Wi-Fi check all the Wi-Fi let’s test drive everything so that when when you
drive everything so that when when you
drive everything so that when when you get in there and it’s show time it’s a
get in there and it’s show time it’s a
get in there and it’s show time it’s a show time they really remember for the
show time they really remember for the
show time they really remember for the right reasons yeah so if you could give
right reasons yeah so if you could give
right reasons yeah so if you could give them like a two minute three minute
them like a two minute three minute
them like a two minute three minute product demo say start at the end this
product demo say start at the end this
product demo say start at the end this is why we’re different you look grab
is why we’re different you look grab
is why we’re different you look grab their attention and then everything else
their attention and then everything else
their attention and then everything else will follow from that rather than just
will follow from that rather than just
will follow from that rather than just do the kind of standard picture turn it
do the kind of standard picture turn it
do the kind of standard picture turn it off management team the market and all
off management team the market and all
off management team the market and all that sort of standard stuff so grab them
that sort of standard stuff so grab them
that sort of standard stuff so grab them around why you’re so excited and why you
around why you’re so excited and why you
around why you’re so excited and why you believe in in your product I mean it’s a
believe in in your product I mean it’s a
believe in in your product I mean it’s a great way to go yeah I love that point
great way to go yeah I love that point
great way to go yeah I love that point if you couldn’t visualize what’s
if you couldn’t visualize what’s
if you couldn’t visualize what’s happening if you could do some kind of
happening if you could do some kind of
happening if you could do some kind of visual demo I remember reading about the
visual demo I remember reading about the
visual demo I remember reading about the guy who who popularized the bulletproof
guy who who popularized the bulletproof
guy who who popularized the bulletproof vest he would go to police
vest he would go to police
vest he would go to police Asians and tell the officer to shoot him
Asians and tell the officer to shoot him
Asians and tell the officer to shoot him in the chest and of course he did it
in the chest and of course he did it
in the chest and of course he did it didn’t go through and that won them over
didn’t go through and that won them over
didn’t go through and that won them over just right there that one act
just right there that one act
just right there that one act landed a whole bunch of deals for them
landed a whole bunch of deals for them
landed a whole bunch of deals for them and so if you have a product that can’t
and so if you have a product that can’t
and so if you have a product that can’t be demonstrated then you absolutely want
be demonstrated then you absolutely want
be demonstrated then you absolutely want to bring it back because it’s something
to bring it back because it’s something
to bring it back because it’s something different memorable bits of food
different memorable bits of food
different memorable bits of food products of them gonna be tasted bright
products of them gonna be tasted bright
products of them gonna be tasted bright anything that you can show that more
anything that you can show that more
anything that you can show that more than just reading off of paper or
than just reading off of paper or
than just reading off of paper or PowerPoint slide helps make you stand
PowerPoint slide helps make you stand
PowerPoint slide helps make you stand out from the competition yeah they are
out from the competition yeah they are
out from the competition yeah they are they doing a graphic if you’ve got real
they doing a graphic if you’ve got real
they doing a graphic if you’ve got real customers and customers are great on
customers and customers are great on
customers and customers are great on this say the customers can you send me a
this say the customers can you send me a
this say the customers can you send me a video 30-second clip of what why you
video 30-second clip of what why you
video 30-second clip of what why you love my product and why we’re different
love my product and why we’re different
love my product and why we’re different and which competitors you looked at and
and which competitors you looked at and
and which competitors you looked at and literally build build a visual
literally build build a visual
literally build build a visual presentation and the best best thing is
presentation and the best best thing is
presentation and the best best thing is showing the front of yourself bullet
showing the front of yourself bullet
showing the front of yourself bullet point vest is a great fruit point but
point vest is a great fruit point but
point vest is a great fruit point but secondly if you haven’t got that you can
secondly if you haven’t got that you can
secondly if you haven’t got that you can stand out through customers so if you
stand out through customers so if you
stand out through customers so if you know all these investors will say we’re
know all these investors will say we’re
know all these investors will say we’re customers like that love your product
customers like that love your product
customers like that love your product this is real a little bit sherry and
this is real a little bit sherry and
this is real a little bit sherry and Phillip are both reading in basically
Phillip are both reading in basically
Phillip are both reading in basically the same issue where they’re there they
the same issue where they’re there they
the same issue where they’re there they want a sort of business but they haven’t
want a sort of business but they haven’t
want a sort of business but they haven’t you know they don’t have any help around
you know they don’t have any help around
you know they don’t have any help around them they feel like they need to invest
them they feel like they need to invest
them they feel like they need to invest me before they can launch into their
me before they can launch into their
me before they can launch into their business what kind of advice do you have
business what kind of advice do you have
business what kind of advice do you have for them who you know they haven’t
for them who you know they haven’t
for them who you know they haven’t launched their business fully until they
launched their business fully until they
launched their business fully until they feel like they need investment to do it
feel like they need investment to do it
feel like they need investment to do it well yeah well I guess we don’t have the
well yeah well I guess we don’t have the
well yeah well I guess we don’t have the quantum of the investment they need to
quantum of the investment they need to
quantum of the investment they need to stay on their business but I also we
stay on their business but I also we
stay on their business but I also we don’t know if they’re in full-time
don’t know if they’re in full-time
don’t know if they’re in full-time employment but but if they are I think
employment but but if they are I think
employment but but if they are I think of anyways how can they shortcut or test
of anyways how can they shortcut or test
of anyways how can they shortcut or test drive their business plan and their
drive their business plan and their
drive their business plan and their product to say what are the things we
product to say what are the things we
product to say what are the things we need to refine to really be ready for
need to refine to really be ready for
need to refine to really be ready for primetime and then then it’s back to all
primetime and then then it’s back to all
primetime and then then it’s back to all the other things we’ve said about you
the other things we’ve said about you
the other things we’ve said about you know making money before we raise money
know making money before we raise money
know making money before we raise money but if you do need a significant
but if you do need a significant
but if you do need a significant investment you know if it’s a capital
investment you know if it’s a capital
investment you know if it’s a capital intensive business or something like
intensive business or something like
intensive business or something like that and you do need to invest it and
that and you do need to invest it and
that and you do need to invest it and pump crime the investment side then
pump crime the investment side then
pump crime the investment side then probably we’re talking about a different
probably we’re talking about a different
probably we’re talking about a different class of investors we’re not talking
class of investors we’re not talking
class of investors we’re not talking about bootstrapping your business
about bootstrapping your business
about bootstrapping your business and around that a good way to go for his
and around that a good way to go for his
and around that a good way to go for his capital intensive go to the potential
capital intensive go to the potential
capital intensive go to the potential largest customers because again if it’s
largest customers because again if it’s
largest customers because again if it’s a really good idea and if you offered it
a really good idea and if you offered it
a really good idea and if you offered it you know even if one one angel
you know even if one one angel
you know even if one one angel investment I did we offered the customer
investment I did we offered the customer
investment I did we offered the customer I think it was a three-month exclusivity
I think it was a three-month exclusivity
I think it was a three-month exclusivity period on a rolling basis and for that
period on a rolling basis and for that
period on a rolling basis and for that they actually invested in the product
they actually invested in the product
they actually invested in the product and the product development so so
and the product development so so
and the product development so so there’s some things you can play around
there’s some things you can play around
there’s some things you can play around with are pretty creative to really allow
with are pretty creative to really allow
with are pretty creative to really allow you to have confidence so when you hit
you to have confidence so when you hit
you to have confidence so when you hit the ground running you’ve got a ensure a
the ground running you’ve got a ensure a
the ground running you’ve got a ensure a for success area yeah love it that’s a
for success area yeah love it that’s a
for success area yeah love it that’s a cool story what I would add to it one I
cool story what I would add to it one I
cool story what I would add to it one I would try if you’ve been a bootstrap it
would try if you’ve been a bootstrap it
would try if you’ve been a bootstrap it I would try to start a service business
I would try to start a service business
I would try to start a service business over a product business one to get to
over a product business one to get to
over a product business one to get to know your customers better and two to
know your customers better and two to
know your customers better and two to build a stable cash flow stream it’s a
build a stable cash flow stream it’s a
build a stable cash flow stream it’s a lot harder to leverage your service
lot harder to leverage your service
lot harder to leverage your service business and a product as you’re always
business and a product as you’re always
business and a product as you’re always trading your time for money but it gives
trading your time for money but it gives
trading your time for money but it gives you an income that then you can support
you an income that then you can support
you an income that then you can support yourself on get close to your customers
yourself on get close to your customers
yourself on get close to your customers learn about them and then launch a
learn about them and then launch a
learn about them and then launch a product around their needs it delays a
product around their needs it delays a
product around their needs it delays a timetable a little bit but helps ensure
timetable a little bit but helps ensure
timetable a little bit but helps ensure that you’re building the business the
that you’re building the business the
that you’re building the business the right way another idea would be to go
right way another idea would be to go
right way another idea would be to go work at a company where you can learn a
work at a company where you can learn a
work at a company where you can learn a lot of this stuff from I would try to
lot of this stuff from I would try to
lot of this stuff from I would try to target a company that I want to be like
target a company that I want to be like
target a company that I want to be like so not some huge company of a wouldn’t
so not some huge company of a wouldn’t
so not some huge company of a wouldn’t go try to work at you know one of the
go try to work at you know one of the
go try to work at you know one of the biggest companies in the world I try to
biggest companies in the world I try to
biggest companies in the world I try to work at somebody who has ten employees
work at somebody who has ten employees
work at somebody who has ten employees or less who’s really doing well on my
or less who’s really doing well on my
or less who’s really doing well on my name is I respect the work that they’re
name is I respect the work that they’re
name is I respect the work that they’re doing go work for them learn from them
doing go work for them learn from them
doing go work for them learn from them take on as many projects as you can you
take on as many projects as you can you
take on as many projects as you can you know no entrepreneur is gonna say no I
know no entrepreneur is gonna say no I
know no entrepreneur is gonna say no I don’t want you to do more work right
don’t want you to do more work right
don’t want you to do more work right they’re always they always want their
they’re always they always want their
they’re always they always want their team to do more work so if you’re
team to do more work so if you’re
team to do more work so if you’re volunteering they’ll help you along the
volunteering they’ll help you along the
volunteering they’ll help you along the path and they’re you’re learning right
path and they’re you’re learning right
path and they’re you’re learning right you’re learning how to how your industry
you’re learning how to how your industry
you’re learning how to how your industry works you’re making contacts you’re
works you’re making contacts you’re
works you’re making contacts you’re making money so you’re getting paid to
making money so you’re getting paid to
making money so you’re getting paid to learn about your in the streets and that
learn about your in the streets and that
learn about your in the streets and that will help you get the contacts and
will help you get the contacts and
will help you get the contacts and connections to be able to then leave and
connections to be able to then leave and
connections to be able to then leave and do your own thing so you know start on
do your own thing so you know start on
do your own thing so you know start on the side like Stephen said before but if
the side like Stephen said before but if
the side like Stephen said before but if you can get a job in the industry that
you can get a job in the industry that
you can get a job in the industry that you want to learn from if you really
you want to learn from if you really
you want to learn from if you really help that transition yeah Jason we
help that transition yeah Jason we
help that transition yeah Jason we created a great product and service but
created a great product and service but
created a great product and service but we need to make about $30,000 in
we need to make about $30,000 in
we need to make about $30,000 in adjustments to our software in order to
adjustments to our software in order to
adjustments to our software in order to scale
scale
scale and move on to the second phase of our
and move on to the second phase of our
and move on to the second phase of our business plan who should I be targeting
business plan who should I be targeting
business plan who should I be targeting oh you know if you’ve got customers
oh you know if you’ve got customers
oh you know if you’ve got customers already out there with sort of a phase
already out there with sort of a phase
already out there with sort of a phase one product it’s almost a certainty
one product it’s almost a certainty
one product it’s almost a certainty they’d want to take your phase two
they’d want to take your phase two
they’d want to take your phase two product so I don’t know i don’t actually
product so I don’t know i don’t actually
product so I don’t know i don’t actually got to say even in that example 30 30
got to say even in that example 30 30
got to say even in that example 30 30 customers or 300 customers it will be
customers or 300 customers it will be
customers or 300 customers it will be worth going to a few of them and say you
worth going to a few of them and say you
worth going to a few of them and say you know you selling a bit of the future you
know you selling a bit of the future you
know you selling a bit of the future you show them a prototype but you actually
show them a prototype but you actually
show them a prototype but you actually get them to fund the next phase of R&D
get them to fund the next phase of R&D
get them to fund the next phase of R&D and you can do that through maintenance
and you can do that through maintenance
and you can do that through maintenance or you could do it through contractual
or you could do it through contractual
or you could do it through contractual vehicle that allow them to have the next
vehicle that allow them to have the next
vehicle that allow them to have the next couple of upgrades or whatever so phase
couple of upgrades or whatever so phase
couple of upgrades or whatever so phase 2 and phase 3 see that that would be a
2 and phase 3 see that that would be a
2 and phase 3 see that that would be a good way I’m just thinking like you’re
good way I’m just thinking like you’re
good way I’m just thinking like you’re not diluting the company and are keeping
not diluting the company and are keeping
not diluting the company and are keeping up equity and actually you really focus
up equity and actually you really focus
up equity and actually you really focus on what you pulled around getting
on what you pulled around getting
on what you pulled around getting customers to love you your product so
customers to love you your product so
customers to love you your product so that’s the first place I’d go and then
that’s the first place I’d go and then
that’s the first place I’d go and then the other place if you need to actually
the other place if you need to actually
the other place if you need to actually take on some guys around R&D for phase 2
take on some guys around R&D for phase 2
take on some guys around R&D for phase 2 get them to come in I will always with
get them to come in I will always with
get them to come in I will always with early-stage companies with employees
early-stage companies with employees
early-stage companies with employees getting to invest in the company as well
getting to invest in the company as well
getting to invest in the company as well so and that could be really investment
so and that could be really investment
so and that could be really investment where they actually contribute for some
where they actually contribute for some
where they actually contribute for some equity in the company or you know taking
equity in the company or you know taking
equity in the company or you know taking a bit of a haircut I said on salary for
a bit of a haircut I said on salary for
a bit of a haircut I said on salary for the first couple of years so I think
the first couple of years so I think
the first couple of years so I think there’s a number of ways of doing it and
there’s a number of ways of doing it and
there’s a number of ways of doing it and I think around this if you’ve got a
I think around this if you’ve got a
I think around this if you’ve got a product you got customers that’s a great
product you got customers that’s a great
product you got customers that’s a great platform to go back to your customers or
platform to go back to your customers or
platform to go back to your customers or partners and say I need more investment
partners and say I need more investment
partners and say I need more investment this is where you get for it show them
this is where you get for it show them
this is where you get for it show them what it might be like you know like
what it might be like you know like
what it might be like you know like Missouri men and women you know showing
Missouri men and women you know showing
Missouri men and women you know showing me show me show me and if you’ve got a
me show me show me and if you’ve got a
me show me show me and if you’ve got a proof point of reality there then I
proof point of reality there then I
proof point of reality there then I think you’ll get a lot of back in for I
think you’ll get a lot of back in for I
think you’ll get a lot of back in for I love it one thing we didn’t touch on was
love it one thing we didn’t touch on was
love it one thing we didn’t touch on was who to go to for different size amounts
who to go to for different size amounts
who to go to for different size amounts so typically if you’re looking at
so typically if you’re looking at
so typically if you’re looking at venture capitalists under half a million
venture capitalists under half a million
venture capitalists under half a million they’re really not that interested in
they’re really not that interested in
they’re really not that interested in you have to have an insane story for
you have to have an insane story for
you have to have an insane story for them they want to jump in because for
them they want to jump in because for
them they want to jump in because for them to do a half a million dollar deal
them to do a half a million dollar deal
them to do a half a million dollar deal and a 15 million dollar deal is the same
and a 15 million dollar deal is the same
and a 15 million dollar deal is the same amount of work and so they don’t want to
amount of work and so they don’t want to
amount of work and so they don’t want to do the smaller deals
do the smaller deals
do the smaller deals angels usually are around they feel that
angels usually are around they feel that
angels usually are around they feel that middle ground like 50,000 to half a
middle ground like 50,000 to half a
middle ground like 50,000 to half a million
million
million you’re looking at an angel round some
you’re looking at an angel round some
you’re looking at an angel round some angels will come in at less than $50,000
angels will come in at less than $50,000
angels will come in at less than $50,000 but again it’s a lot of time for them to
but again it’s a lot of time for them to
but again it’s a lot of time for them to do the due diligence and they want to
do the due diligence and they want to
do the due diligence and they want to see the opportunity and if you know you
see the opportunity and if you know you
see the opportunity and if you know you only asked for $10,000 that’s probably
only asked for $10,000 that’s probably
only asked for $10,000 that’s probably not something that an angel investor is
not something that an angel investor is
not something that an angel investor is interested in now a single investor who
interested in now a single investor who
interested in now a single investor who does this as a business if it’s if it’s
does this as a business if it’s if it’s
does this as a business if it’s if it’s a dentist that wants to put money in and
a dentist that wants to put money in and
a dentist that wants to put money in and it might be dumb money they don’t
it might be dumb money they don’t
it might be dumb money they don’t understand the industry then maybe but
understand the industry then maybe but
understand the industry then maybe but under $50,000 you’re really looking at
under $50,000 you’re really looking at
under $50,000 you’re really looking at friends and family and bootstrapping
friends and family and bootstrapping
friends and family and bootstrapping for the most part so if you’re looking
for the most part so if you’re looking
for the most part so if you’re looking for $30,000 it’d be I’d be looking at
for $30,000 it’d be I’d be looking at
for $30,000 it’d be I’d be looking at myself like how can I get $30,000 I love
myself like how can I get $30,000 I love
myself like how can I get $30,000 I love Stephens idea talk to your customers if
Stephens idea talk to your customers if
Stephens idea talk to your customers if they might give you an advance if you’re
they might give you an advance if you’re
they might give you an advance if you’re a software company you know you’re not
a software company you know you’re not
a software company you know you’re not going out and you don’t need to buy
going out and you don’t need to buy
going out and you don’t need to buy equipment so it’s it’s labor it’s
equipment so it’s it’s labor it’s
equipment so it’s it’s labor it’s teamwork so to Stevens Point can you get
teamwork so to Stevens Point can you get
teamwork so to Stevens Point can you get those guys to donate their time and in
those guys to donate their time and in
those guys to donate their time and in exchange for some kind of equity or some
exchange for some kind of equity or some
exchange for some kind of equity or some kind of deferred payment because the
kind of deferred payment because the
kind of deferred payment because the other investment categories you need to
other investment categories you need to
other investment categories you need to be asking for more money it doesn’t mean
be asking for more money it doesn’t mean
be asking for more money it doesn’t mean you sure it doesn’t gonna go I need
you sure it doesn’t gonna go I need
you sure it doesn’t gonna go I need $50,000 now so I’m gonna go after an
$50,000 now so I’m gonna go after an
$50,000 now so I’m gonna go after an angel to our point back at the beginning
angel to our point back at the beginning
angel to our point back at the beginning and what Stephen was talking about much
and what Stephen was talking about much
and what Stephen was talking about much you want and then execute against that
you want and then execute against that
you want and then execute against that plan I am and on that bomb one of the
plan I am and on that bomb one of the
plan I am and on that bomb one of the things that did one of Aqaba days is I
things that did one of Aqaba days is I
things that did one of Aqaba days is I think we’re the time we needed three
think we’re the time we needed three
think we’re the time we needed three developers like three months and we went
developers like three months and we went
developers like three months and we went out to a third-party consultancy company
out to a third-party consultancy company
out to a third-party consultancy company pitch to the chief executives there they
pitch to the chief executives there they
pitch to the chief executives there they gave us free people and they did the
gave us free people and they did the
gave us free people and they did the work free of charge I think we gave them
work free of charge I think we gave them
work free of charge I think we gave them allowing half a percent of equity away
allowing half a percent of equity away
allowing half a percent of equity away and we’ve teed them up to be a
and we’ve teed them up to be a
and we’ve teed them up to be a distribution channel and seller market
distribution channel and seller market
distribution channel and seller market the product as well so again think
the product as well so again think
the product as well so again think creatively if there’s people out there
creatively if there’s people out there
creatively if there’s people out there it would be a channel to the marketplace
it would be a channel to the marketplace
it would be a channel to the marketplace and they’ve got some of the resources in
and they’ve got some of the resources in
and they’ve got some of the resources in place where you could use them for a
place where you could use them for a
place where you could use them for a period of time on a project and get our
period of time on a project and get our
period of time on a project and get our version 2 of the product out there’s
version 2 of the product out there’s
version 2 of the product out there’s lots of creative ways you could do
lots of creative ways you could do
lots of creative ways you could do structuring of the commercial
structuring of the commercial
structuring of the commercial relationship around that to minimize the
relationship around that to minimize the
relationship around that to minimize the equity dilution get the product to
equity dilution get the product to
equity dilution get the product to market as quickly as possible and get
market as quickly as possible and get
market as quickly as possible and get moving on your business I love it
moving on your business I love it
moving on your business I love it there’s something comments or questions
there’s something comments or questions
there’s something comments or questions coming in it looks like we put the great
coming in it looks like we put the great
coming in it looks like we put the great topic but I you know
topic but I you know
topic but I you know we’re kind of bumping up against the
we’re kind of bumping up against the
we’re kind of bumping up against the clock stiva thank you so much for
clock stiva thank you so much for
clock stiva thank you so much for spending some time with us and giving us
spending some time with us and giving us
spending some time with us and giving us your time spent here you are going to be
your time spent here you are going to be
your time spent here you are going to be at the web summit next week people can
at the web summit next week people can
at the web summit next week people can watch that yeah I think we got some
watch that yeah I think we got some
watch that yeah I think we got some periscope stuff going on so you if you
periscope stuff going on so you if you
periscope stuff going on so you if you follow me at s Kelley CEO I think it
follow me at s Kelley CEO I think it
follow me at s Kelley CEO I think it might be on this Google hell and then
might be on this Google hell and then
might be on this Google hell and then we’ll be letting you know through
we’ll be letting you know through
we’ll be letting you know through Twitter all the stuff and the location
Twitter all the stuff and the location
Twitter all the stuff and the location periscope stuff and all the stuff around
periscope stuff and all the stuff around
periscope stuff and all the stuff around web so I mean it’s all going to be our
web so I mean it’s all going to be our
web so I mean it’s all going to be our broadcast online so come and join us for
broadcast online so come and join us for
broadcast online so come and join us for that love love you today Evan as always
that love love you today Evan as always
that love love you today Evan as always inspirational I always see that massive
inspirational I always see that massive
inspirational I always see that massive word of belief that’s where we start and
word of belief that’s where we start and
word of belief that’s where we start and for the perfect conversation and it’s
for the perfect conversation and it’s
for the perfect conversation and it’s been a great we’re going to have Steve
been a great we’re going to have Steve
been a great we’re going to have Steve would come on again next month and we
would come on again next month and we
would come on again next month and we wanted advice from you guys on what
wanted advice from you guys on what
wanted advice from you guys on what topic you want us to cover so if you
topic you want us to cover so if you
topic you want us to cover so if you want to leave it in the chat live or in
want to leave it in the chat live or in
want to leave it in the chat live or in the comments after the video is done let
the comments after the video is done let
the comments after the video is done let us know your thoughts in the next topic
us know your thoughts in the next topic
us know your thoughts in the next topic and we’ll do our best to accommodate so
and we’ll do our best to accommodate so
and we’ll do our best to accommodate so thank you everybody for watching Steven
thank you everybody for watching Steven
thank you everybody for watching Steven that really appreciate the time and have
that really appreciate the time and have
that really appreciate the time and have an amazing time next week and we’ll see
an amazing time next week and we’ll see
an amazing time next week and we’ll see everybody soon back Sarah thanks buddy
”
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