Funding your ideas…T.A. McCann

I just like to start things, go fast and push the technical limits, and work with great teams to create incredible resultsBackground

IncubationMicrosoft - Hosted Exchange, MS Anti-spam, Exchange 2003, Mobile SDP (think iPhone app store), MSRPolaris - started Message Gate and worked on ideas like Evenflow, OutlookBI and HelpShareNew companies including MOD Systems and Jump2Go Vulcan (Evri – Virtual Worlds, Faceweb, Gist)30-60-90 planTriage, Plan, Prototype, 4Ps of marketing, Company or KillLessons learned: it always takes longer, pick a customer you want to embrace, Know your own space

Where does it come from…Your bank accountBootstrap (work for hire)Bootstrap from customersStrategic investment by partners/customersAngelsVCsChoose what you need and can get…The bigger the idea, the more latitude and connections and experience you will need to succeed

So, you really want investors….Angles take just as much time as VCsRelationships are key; develop them now with all funding sourcesvet your ideas, early and often, discover your championsOther CEOs are your friends, leverage themYour plan is your plan Raise money at the right timePlan – Promise – Prototype – Product – Performance

VC is about smart money…Accelerates value as soon as they get involvedBrings smarts and experience to help to driveActively engages with your product and marketBrings credibility, higher likelihood of more fundingBrings people, knowledge, connectionsKnow what you are looking for (skills)

It’s a sales processQualify your prospectsWho you know, focus on personal introsPrevious investments/success in the spaceGeneral beliefs about future innovation (in your space)Key connections with thought leaders (in your space)Fund progress$ total size, allocation, room for new investments, stage focusCurrent successDecision makers and processBoard member – how many boards, of what type, activity, commitmentDo your diligence on the person, find other CEOsDrive the process and timelineAlign to the calendar (your milestones, their rhythm)Show a vision (not too much)Define a horizon and hit itCreate competition for your dealGang up your work, you need to drive the process

Why you…25% of the VC decision is out of your controlWrong space, wrong size, wrong partner, wrong metrics, wrong time, already invested, once burned…You have the goods, act like it – exude confidenceMy read on their decision50% is the guy/team – smart, passionate, credible, connected, leader, motivator, tactical/strategic….25% is the space/idea – how big, how much risk, how many other players, capital risk, likely exits…25% is the progress, execution – can you get stuff done, good decisions, efficient with capital…

SummaryIf it were easy everyone would do itLove your customers more than your ideaRaise the smartest money you canKnow where to spend and saveIf you were rich, would you still be doing it?

T.A. McCanntam@gist.comhttp://tamccann.blogspot.comhttp://www.twitter.com/tamccannhttp://www.linkedin.com/in/tamccann206.229.9991

Strategy – magic quadrant Create the smallest circle that is big enoughYou can only change 1 thing/quarterThis is your elevator pitchLessons learned: it should not be complicated

Strategy – know your customerPersonify your customerFocus on pain vs. opportunityKnow 10-50 by nameSell them your PPTMake sure they payUnderstand their toolsetDetermine their buying habit and timelineLessons learned: this is the fun part and you should love it, iterate quickly

OperationsPlan and Pitch in PPT (lies), Operate in Excel (truth)Time bound and list your goals – stay honest with yourselfDeliver email status updates every 2 weeks to your investors/board/advisorsAlways cut yourself off one quarter earlier than you need and 2 quarters before you think you shouldLessons learned: good entrepreneurs will make too many sacrifices

TeamWinning the Americas Cup is like running a startupValue = 5(passion) + 2(brains) + 1(experience)The best advisors are only one small step away from conflict of interestOutsource routine tasks, hire for thought leadershipKnow your service providers (Atlas, Fenwick…)Startups should never partner with startups

You are the VP of MarketingMake yourself a brand and thought leaderGoto and present at conferencesBecome a guest contributorCommunicate online and in-personBlog (1-2 per month)Twitter (1-2 per day, blend of personal, content and business)Facebook (connect to Twitter and your blog)LinkedInUnderstand what resonates, the message the space and timing, the competitionSell, Sell, Sell your idea and yourself

Tools that cost very little moneyOpen source stackPrototype + LowPro, Ruby/Rails, Java, AMQ, MySql Textmate/Netbeans, SVN, Rspec, CruiseControlGoogle is our friendGoogle Domains (mail and docs)Google forms (interview and VC feedback tracking)App engine – web site hostingAnalytics – web data trackingPBWiki – corporate plans and broad strategy, Unfuddle – bug and feature database and Skitch – screen caps and commentsSoft Layer – hosting, Amazon S3 – storageSurvey Monkey - end user surveys, Vertical Response – keeping the beta users engaged and GotoMeeting- presentations, TweetDeck– monitoring the Twitter stream