Leveraging Non-Existing Networks Into Guerilla Revenue Generating Strategies

Tech Capital Overview Overview Currently investing second fund $95 million under management – latest fund closed July 2005 Fourteen portfolio companies to date Fund Mandate Typical seed round investment: $250,000 to $4 million Start-up and early-stage technology companies (full lifecycle investor) Many technology sectors – not biotech/life sciences Very hands on

Overview

Currently investing second fund

$95 million under management – latest fund closed July 2005

Fourteen portfolio companies to date

Fund Mandate

Typical seed round investment: $250,000 to $4 million

Start-up and early-stage technology companies (full lifecycle investor)

Many technology sectors – not biotech/life sciences

Very hands on

A Few Words About Entrepreneurs Scrappy Persistent Intelligent Strong Focused Creative Brave Survivors Networks….. Money….. Financing vs. Revenue

Scrappy

Persistent

Intelligent

Strong

Focused

Creative

Brave

Survivors

Networks…..

Money….. Financing vs. Revenue

The sales / distribution / partner channel An often overlooked area / pushed to bottom of pile How do your customers buy? Draw out the sales / distribution / partner chain – identify companies / people that fall along this network Where is the value? (aka Who controls the power in these relationships?) Who creates customer demand? Who interacts with the customer? Do you add real value? Follow the money… This is an area that can make or break your company – in technology sector, sales channels are significant competitive advantages [Microsoft, Cisco] – expensive to build (acquisition vs. IPO)

An often overlooked area / pushed to bottom of pile

How do your customers buy?

Draw out the sales / distribution / partner chain – identify companies / people that fall along this network

Where is the value? (aka Who controls the power in these relationships?)

Who creates customer demand? Who interacts with the customer?

Do you add real value?

Follow the money…

This is an area that can make or break your company – in technology sector, sales channels are significant competitive advantages [Microsoft, Cisco] – expensive to build (acquisition vs. IPO)

Industry Ecosystem What matters? Focus. Who matters? Why? Gaps? Power? PixStream Video Head-end Infrastructure Cisco, Nortel, Next Level Alcatel, Viagate, Marconi, World Wide Packets, Alloptic Set Top Box Vendors PACE Next Level, Motorola, Stellar One, Samsung, Acer, NEC Software/ Middleware iMagicTV, Liberate, Hewlett Packard, Myrio, YesTV Conditional Access Nagra, Irdeto, Conax Video On Demand/ Ad Insertion nCube, Sun Microsystems, SGI, Concurrent, SeaChange, Oracle Content, Aggregation & Transport WSNet, BskyB, HITS, Federal Hill, Americast/ Disney Systems Integrators & Engineering Consultants Comlink, HDTD, Diversified Systems, Clover

What matters? Focus.

Who matters? Why?

Gaps?

Power?

Content, Aggregation & Transport

WSNet, BskyB, HITS, Federal Hill, Americast/ Disney

Systems Integrators & Engineering Consultants

Comlink, HDTD, Diversified Systems, Clover

Relationships Matter! IMHO - This is our biggest issue! How are you building relationships?

IMHO - This is our biggest issue!

How are you building relationships?

Relationships Matter! How I build my network: Objective Map ecosystem, prioritize (industry expert?) Target events/people – have a reason for making the connection Contact ahead of time: Introduction via email Phone call then face-to-face (party?!?) Listen Relevant follow up Document (Outlook, LinkedIn, Facebook, Twitter) and keep in touch Trust

How I build my network:

Objective

Map ecosystem, prioritize (industry expert?)

Target events/people – have a reason for making the connection

Contact ahead of time:

Introduction via email

Phone call then face-to-face (party?!?)

Listen

Relevant follow up

Document (Outlook, LinkedIn, Facebook, Twitter) and keep in touch

Trust

Relationships Matter! Tools: Google / blogs / RSS – be informed, know who you need to know Outlook – keep records, categorize, search LinkedIn (PEOPLE) – news feed, pay attention, search, reach out, build Jigsaw – contact info for almost anyone, are you in there? Twitter / Blog – share relevant info, become a broadcaster, industry expert, speaker Facebook – more personal, closer bond Organizations – Communitech, MaRS, OCRI, Consulates Careful not to “drink the koolaid” Provide more value than you consume. Be a connector. Get on a plane, regularly. Make sure you’re going somewhere relevant. Optimize travel.

Tools:

Google / blogs / RSS – be informed, know who you need to know

Outlook – keep records, categorize, search

LinkedIn (PEOPLE) – news feed, pay attention, search, reach out, build

Jigsaw – contact info for almost anyone, are you in there?

Twitter / Blog – share relevant info, become a broadcaster, industry expert, speaker

Facebook – more personal, closer bond

Organizations – Communitech, MaRS, OCRI, Consulates

Careful not to “drink the koolaid”

Provide more value than you consume. Be a connector.

Get on a plane, regularly. Make sure you’re going somewhere relevant. Optimize travel.

Tradeshows / Events Bigger is not always better How do you figure out which events to attend? Have a strategy… Developed well ahead of time. Implementation should start weeks before the event (introducing yourself and setting up meetings) Good opportunity to talk to people in industry (potential customers, potential partners, industry analysts, suppliers, etc.) – build relationships Ask each person you meet to introduce you to someone else Use the names of the people you meet to meet with other people Don’t need a booth

Bigger is not always better

How do you figure out which events to attend?

Have a strategy… Developed well ahead of time. Implementation should start weeks before the event (introducing yourself and setting up meetings)

Good opportunity to talk to people in industry (potential customers, potential partners, industry analysts, suppliers, etc.) – build relationships

Ask each person you meet to introduce you to someone else

Use the names of the people you meet to meet with other people

Don’t need a booth

Tradeshow Hit List Relationships to Develop at XXX Company Contact Task Owner Due Date Status Comment Partnerships Service Integrators Advisors Customers

Tech Capital Partners Inc. www.techcapital.com [email_address] 519-883-8656 Twitter: @jacquimurphy http://www.linkedin.com/in/jacquimurphy http://blog.techcapital.com