Funding Options for High Tech Entrepreneurs

FountainBlue was pleased to host a High Tech Entrepreneurs' Forum on Alternative Funding Options for High Tech Entrepreneurs on Monday, November 13, 2006. Featured panelists included Dirk Michels, Partner, KLN&G; Jake Schwarz, Partner, KLN&G; and Ed Lambert, Senior VP, Bridge Bank.

Below is a Summary of Notes and Advice for early stage, pre-Series A, seed funding, drawn on the wisdom of our facilitators and each of you as participants.

• There is a lot of venture money right now, but in general entrepreneurs need to have a beta test, prototype or product launch in order to be fundable.
• To achieve the beta test, prototype, product launch phase, entrepreneurs need a first level of funding. Alternative funding options include: Credit Cards, Friends & Family, Home Equity Loans, SBA Loans, Purchase Order Financing
• If your company survives that level, the next lefl of financing includes: Grants, Forums, Contests
• At all times, encourage organic growth and bootstrapping to continue to grow the business. Not only will your successes in organic growth and bootstrapping successes look good for your fundraising efforts, your very successful efforts might even overcome the need to raise money
• One option for raising money is through customer orders. If choosing this option: 1) Make sure that you don't become a contract engineering firm rather than a product development and distribution firm (e.g. don't let the customers get in the way of delivering your business objectives), 2) Protect your IP
• Leverage your connections and previous successes. Your track record and connections will increase your likelihood of getting funding.
• When you're ready to seek outside funding from angels and other sources, have a concise executive summary: See Bill Joos' (previously from Garage.com) Nine Points on creating a compelling summary

http://www.brendonwilson.com/projects/the-art-of-the-start/the-art-of-positioning-and-presenting/ or Visit http://www.svase.org/index.php?option=com_elist&Itemid=249 and select the 10-slide PowerPoint slide template, courtesy of SVASE

For more information, visit http://www.FountainBlue.biz.