Blue Bootstrap

PitchCamp

Live blogging from StartupLounge's PitchCamp.

Going around the table with introductions and initial pitches.A lot of interesting ideas that people are pursuing.

"Drink your own Kool-Aid. Learning Should Never Stop. The day you think you know it all, you're done. Embrace change and other viewpoints" - Scott

Part 1: The Pitch

One-line pitch - answers 4 key questions:

• Who are you?
• What do you do?
• What pain do you solve?
• And for whom? (what customer?)

i.e. "Acme Software provides a web-based Enterprise Resource Planning (ERP) system aimed at middle market companies that cannot afford the expensive products offered by current vendors in the market."

Conversational Pitch:

• Intro
• Describe
• Hook
• Close

Georgia Tech Business Plan Competition Exhibition

Last Thursday I went to the see the participants in the Georgia Tech Business Plan Competition exhibit their ideas and hear a bit about their products. I was impressed by the wide range of products I saw and the enthusiasm of the students.

Companies

Accerleryes

"Personal Supercomputing" - Their software uses a graphics card's processor, or GPU, to perform mathematically intensive operations; one of the demos they were running was real-time edge detection in a video. They have 150 beta customers that includes some big names such as Google and Siemens. From a pure computer science perspective, these guys are on the bleeding edge and has the potential to be a breakout company.

DiagNano

"Teflon for molecules" - this is a biomedical product that allows doctors to provide a faster and more accurate cancer diagnosis. Their technology prevents molecules from sticking together.

Zeus Portal

An online collaboration and portal software product that allows companies to provide an internal social network for their employees. They're targeting small & medium-sized businesses. A product to keep an eye on.

Syzygy Memory Plastics

This product was the coolest product I saw; plastic that becomes soft when held in your hand but retains its shape when it cools. I'm waiting until they come out with an earpiece for my Bluetooth ear piece. A great product that's simple.

Payflex

An electronic payment system for restaurants and retailers that enables consumers to authorize payment via SMS or a keyfob.

Puritech

"Artificial kidney" - They've created new dialysis technology based on the separation of molecules in the presence of an electric field.

Audiallo

Wave signal processing that based on biological audio processing. I had an interesting discussion about how the human ear processes soundwaves. The technology is initially targeted towards producing better hearing aids; not a bad move considering all those baby boomers fried their ears listening to that demon music, rock 'n' roll.

Travel Relics

Creates custom travel posters using a customer's photos.

JAT Biodiesel

Creates diesel from the seeds of the jatroepa tree which contain 40% oil. The jatroepa tree is easy to grow and be harvested only 3 years after planting. The company claims it can produce biodiesel at ½ the cost of ethanol.

Kilorie

A mobile-phone health and nutirition management services. For now, they allow a customer to get nutrition information via SMS and upload what you ate so a doctor can track what a patient eats. They are launching in 4 weeks.

ElectriSense

Uses a buildings internal wiring to locate anything that's been tagged with custom transmitter; initially targeted towards the healthcare industry.

 

Awards

Sustainability

• JAT Biodiesel – winner 
• Puritech – runner-up 

Best Elevator Pitch

• ElectriSense 

Showstopper

• Accelereyes 

Innovation

• Syzygy

Gang of 5

We're getting the band back together.

At Capital Connections last week, I saw Anne Simons of brandeo. I haven't seen her in a long while and we talked about how we both missed the Gang of 5 meetings so we decided to get it rolling again.

What's Gang of 5? The FAQ is below but I describe it as open-source entrepreneurship – a group of people, no more than 5, who share their successes, failures, networks, knowledge, and opinions. The Gang of 5 had a big impact on me as I started Blue Violin. For me the most important are that the gang supported what I was doing (I love my wife but at times she thinks I'm a bit daft with this "entrepreneur" thing) and gave me a sense of accountability. It forced me to start thinking about Blue Violin as a business as opposed to a programming project.

The gang itself had a good mix of marketing, sales, and overall business knowledge and that's one of the keys to forming a group – make sure you have a good mix of talent across the spectrum. I'll be starting a Go5 in the north Atlanta area in the next week and am encouraging others to form groups in their area – Buckhead, Midtown, wherever. If you have any questions or would like help in starting your own group, please feel free to contact me.

frequently asked questions

Q: In layman's terms, what is the "gang of five"?
A: Gang of 5, or Go5, is a group of entrepreneurs that get together to discuss the challenges of starting a business. Our goal is to offer constructive advice for our members and assist them by offering an environment where ideas can be exchanged in confidence. By building a network of local entrepreneurs, we can encourage and support entrepreneurial activity.

In short, we are a group of entrepreneurs helping each other - it's that simple.

Q: What will it do for me, or help me achieve?
A: Go5 gives you honest feedback, advice, and moral support. We can also help make introductions to other entrepreneurs or business people. Just as important is that by helping others you're helping yourself. When you're listening to a group member discuss his/her problems or pitching his/her business, you're going to get help for your business. It's a feedback loop of the best kind.

Q: How do I actually start my own "gang of five"?
A: You probably know some entrepreneurs through other networking events. Grab a couple and meet at a local coffee house or restaurant and discuss your ideas. Once you get going, reach out to other entrepreneurs and invite them. We can help you get started with our meeting template and advising you as your group grows.

Q: Is one "gang of 5" related to others?
A: The Go5 is a loose confederation of gangs that are united in purpose but may differ in how they are run. All that we ask is that you encourage entrepreneurial activity in your area, are accepting of new members, and welcome Go5 members from another group.

Q: Who runs the "gang of 5"?
A: While it's helpful to have someone lead the group, you and your group run the gang. If your Go5 isn't achieving the results you think it should, feel free to retool your meeting template or try something new. There isn't a "right" or "wrong" way to run the gang.

Q: What does it cost?
A: Money is a precious resource for the bootstrapping entrepreneur. You might have to spring for the occasional cup of coffee but that's it.

Q: Where do the "gangs" meet?
A: Your local coffee shop, restaurant, neighborhood park, a member's dining room - anywhere you want.


Q: What if I can't attend the weekly meetings due to a conflict (like my day job)?
A: Try to stay in touch with your gang as much as you can. While it's important to make occasional appearances at your Go5 meeting, you can offer your assistance through phone or email. You can also start a Go5 group that meets at a time that's convenient for those who are holding down a day job while they're getting started.

Q: What are the thoughts or recommendations on having more than one person from the same startup in the same "gang"?
A: That's fine but the startup only gets one slot for an update or roundtable discussion to prevent a meeting from being monopolized. It's also worth having each member join a different gang, if possible.

Demo Diary

John Cook, of the Seattle Post-Intelligencer, has an interesting series of a start-up prepping for the Demo Conference.

How to Work the Room

I came across this article at FoundRead on 10 tips for founders en route to the power-party circuit. I thought this was good advice given that Capital Connections and SoCon08 are a few weeks away.

1. Be more of a host and less of a guest.
2. Avoid permanently joining a "rock pile."
3. Dress for the party.
4. Don't "hotbox."
5. Put your coat and bad down.
6. Mentor someone about your – or you company's – core competence.
7. Don't forget to get mentored as well.
8. Be a good host while you're someone else's guest.
9. Managing the party host.
10. Always, always, always: Thank the host before you leave.

January TAG/ATDC Entrepreneur Society meeting

Live and on the scene for the above mentioned meeting talking about the GRA/TAG Business Launch competition - $100K in cash & $100K+ in services for the winner. At the meeting today we have 2 former winners of the contest speaking about their experiences with the contest.

Damnit! Laptop blue-screened on me again.

Ok, back after a reboot.

First up, Sandeep Agate, CEO of REACH Call, a web-based telemedicine service. Made the decision to bootstrap (after winning the business competition) talked to the New York Dept. of Health and landed them as the first customer. Deferred salaries, 120+ hour weeks over a summer. Made the decision to get cash positive as quickly as possible. Did not put together a business plan (put together an executive presentation and financial model) and focused on building the business. Interesting story but the "questions" and "challenges" he's listing are well known to anybody who's opened a lemonade stand. *Yawn* I wish he'd talk more about his experience with the competition instead of giving us a history of REACH Call. Overall, not a compelling speaker.

Up next is Greg Warren of IVOX (listen to his StartupLounge interview), a provider of asset vehicle tracking technology. A couple of good sound bites

• "drive to the no" - ignore those who say you can't do it
• "in an ham and eggs breakfast, the chicken is involved but the pig is committed" when he decided to go full-time on IVOX.

Another business presentation but he's moving through it much faster to have a Q&A session. Just put up a slide showing sources of funding. No institutional money and cash invested comes from board members & convertible debt.

 

Competition benefits:

• business plan refinement
• message definition
• access
• exposure
• money
• validation
• support/community

From the meeting description: "Learn what made these two companies stand out from the crowd. Hear a progress report as well.Learn what made these two companies stand out from the crowd. Hear a progress report as well."

 

It's mostly a progress report i.e. sales/investing pitch. Greg does a much better job explaining the process and experience of going through the business competition on the StartupLounge podcast linked above.

Skydiving...

The big news I promised in the last post is a bit late. I am now an honest-to-goodness full-time employee of Blue Violin where I'll be able to focus my energies on world domination and kick-ass software. I'm consulting to pay the bills (damn kids insist on eating everyday!) while BV spins up. In that realm, things are really looking up with about 3-4 really good prospects for pilot customers or, as I prefer to call them, virtuosos. I'm very excited and if any of my 3 4 readers (thanks Anne!) need some black-belt software kung-fu, give me a buzz at josh dot watts at blue-violin dot com or look me up on Facebook.

Skydiving... while building the parachute on the way down.

Cluster----

Will Price , a partner at Hummer Winblad Venture Partners, asked the question "Does Geography Matter?" in reference to Silicon Valley's gravitational pull for technology start-ups. He references Michael Porter's article  "Clusters and the new economics of competition" (Harvard Business Review Nov/Dec 1998) and says

"The most important insight for me is that the modern economy competes on innovation and that operating within a cluster shortens the cycle time to identifying, resourcing, and realizing areas of need and opportunity.

The genesis for this post was a conversation I had with two founders, currently based in Atlanta, about the merits of moving to the Bay Area to start their company. Michael Porter's thoughtful analysis helps me better understand why the Bay Area 'cost premium' is well worth it. Market cap is a function of innovation and growth, and innovation is a function of access to ideas, talent, and supporting resources that eliminate frictions and catalyze connections and progress."

What I found curious is that he mentions two founders from Atlanta that about the merits of moving to the Bay Area to start a company. Atlanta needs those 2 founders to stay here and build their business. I don't have any idea what the company does but I do know that in order for Atlanta's technology community to hit critical mass we need to retain homegrown talent. Those 2 founders staying here helps me, you, and the start-up that is 6 months away from being founded. Atlanta has the ideas and talent. Supporting resources? Maybe not so much.

As Alan Taetle, General Partner at Noro-Moseley,   wrote in a post titled "What is world-class in the Southeast?" on Jeff Haynie's blog:

"Many of you know that we at Noro-Moseley have spent the past year raising our sixth fund. We have had met with at least 70 groups in the U.S. and in Europe. What you’re looking at above was one of the questions most posed to us. After all, we are a regional early-stage and early-growth venture fund focused on the region - who better than us to know?...

...What I wrote above sounds like its a great world class story save for three things. First none of the companies remain public. ISS will not be Cisco. It’s now part of IBM. Ciphertrust is part of Secure Computing. All of the major public Internet security companies are based in the Valley. Second, why is RSA, far and away the largest trade show for Internet Security, in San Francisco? Why isn’t RSA located in Atlanta, the home of Internet Security? Third, what has our region done to market itself as a center of excellence for Internet security? Nothing that I’m aware of.

If we want to really move to the next stage of venture evolution with more capital invested, more start-ups and most importantly, more black swans, we are going to have to market our region more systematically on what we are world-class in. Excellent quality of life alone will not do it."

If Alan really wants to help move to the next level, I'd like to see him and Noro-Moseley get involved with true early-stage companies; the best part - it doesn't even have to cost him or his fund a dime. Show up to the regular YnR gatherings to help mentor entrepreneurs and offer to be on the board of advisors for very early stage companies. Open your network and help "catalyze connections". Start blogging regularly so you're part of the discussion. Market to the start-ups in Atlanta and the Southeast and tell them "Stay here, don't go to the Valley - you have the ideas and talent and we have your back." 

Is the Southeast world-class? You're damn right - we just need to help each other so that everybody else sees it as well.

Big Advice

Business plans are like resumes. A resume will never ever get you a job. Most resumes are only looked at for only 10-12 seconds before a hiring manager or recruiter makes a decision to trash it or save it. At best, a resume gets you the first interview; after that, it's all up to you.

Paul Freet has a good piece of advice over at Big Thinkr: quit writing your business plan and focus on your product. I couldn't agree more. Writing a business plan is a long, arduous process that's never done. It sucks up the most valuable resource you have - time. It's much more impressive to actually build something than to waste a lot of paper describing what you want to do.

I'm not saying you should never write a business plan. A potential investor may want one. It's a good thought exercise that makes you think through all aspects of your business. Just make sure you're doing it for the right reasons and not because you think it's a gold ticket to the world of angel and venture capital.

StartupLounge puts on a party

Props to Scott and Mike at StartupLounge for putting on a fantastic event last night. Capital Connections was a huge success and showed how much activity is buzzing around Atlanta. I had a good time meeting new people, learning more about some fascinating technologies, and talking to some people I haven't seen in a while. Below are some observations:

• Entrepreneurs show up at these events to chase the money and that's important. I like talking to other entrepreneurs about what they're doing. Maybe I can learn something from them, maybe I might be able to help them, you never know. Enjoy the journey.
• Michael Blake has a very wry sense of humor, more so when he has a couple of Newcastles.
• One investor told me some of his criteria for choosing investments and technology wasn't one of them - wow. Important to remember.

Thanks guys.