By Staff Writer –

Perhaps, this study might make you more angry about CEO bonuses than the banker bonuses. Scientists have found that appearances are everything, even on the executive level. If you are a white male, who looks competent, then you’ll make more than a CEO that doesn’t look the part.

Duke University researchers found that CEOs that looked better made more money – even though this had no relation to how the company profited. Obviously, this is frustrating that salary can depend on how someone looks.

The researchers said in a statement:

“I thought the appearance thing was possible for politicians winning elections — but for CEOs, no way,” said [finance professor Campbell] Harvey. “We are told that CEOs are very carefully vetted by boards of directors and professional consultants – as they should be for their multi-million dollar jobs. The fact that our research shows that appearance is unquestionably significant turns my stomach.”

“Given there is no relation between appearance and company performance, I hope our research changes the way we select our corporate leaders: ‘looks’ should not be a factor!”

Only pictures of white CEOs were used. It would be interesting to the spread applies to women and minorities. As we know from a recent New York Times article, women are totally MIA in Silicon Valley. The numbers tell the sad story:

Women own 40 percent of the private businesses in the United States, according to the Center for Women’s Business Research. But they create only 8 percent of the venture-backed tech start-ups, according to Astia, a nonprofit group that advises female entrepreneurs.

That disparity reaches beyond entrepreneurs. Women account for just 6 percent of the chief executives of the top 100 tech companies, and 22 percent of the software engineers at tech companies over all, according to the National Center for Women and Information Technology. And among venture capitalists, the population of financiers who control the purse strings for a majority of tech start-ups, just 14 percent are women, the National Venture Capital Association says.

Image: flickr/ filipinoj

If you’re a competent looking CEO, you’ll make more money is a post from: TechStartups.com

By Staff Writer –

The Financial Times Weekend Magazine featured one technology investor’s vision for start-ups in Europe.

According to the FT, venture capitalist, Saul Klein thinks big: “Start-up X will be the Skype of software. Company Y will be Europe’s Apple. Group Z is Google meets Ebay. He’s like a book agent – with a lot more money to hand.”

It’s a number’s game. Out of 30 investments, only a few will work out.

Klein is leading IndexSeed, part of Index Ventures. IndexSeed will spend $50k to $1m for 20 deals, in the next few years. This is certainly good news for the European startup scene.

According to The Guardian:

Though Klein described London as “an amazing place to raise money and support for startups”, the focus of Index’s funding is Europe-wide. Previous winners at the annual Seedcamp startup bootcamp have been Estonian, Romanian, Polish, Jordanian and Slovakian. Even South African startups are becoming part of the ‘European’ startup scene that acts as an escalator to the US.

“There’s a better ebb and flow between the US and Europe today; we have co-investments with Union Square Ventures, O’Reilly Alphatech, Dave McClure, Jeff Clavier… That’s a very good early stage ecosystem.”

Index Venture writes in their blog:

The world has opened up to entrepreneurs and you can really get a running jump by becoming part of the conversation on Twitter, going to one of 80+ OpenCoffee Clubs around the world, reading great blogs from the likes of Fred Wilson, Mark Suster, Brad Feld, Chris Dixon, Steve Blank, Eric Ries, Sean Ellis and Dave McClure, getting your news from Techcrunch and getting your first support from Seedcamp, YCombinator and Techstars.

IndexSeed is looking for technology companies with global ambitions. And they have put together a dedicated team to help their chosen entrepreneurs get their feet off the ground.

New seed investments through IndexSeed might help create the next Google of Europe is a post from: TechStartups.com

By Staff Writer –

The startup scene in any city has cliques — London is no different. If you know Rob Kniaz, then you’ll know the tech scene. If you go to poker night or other startup networking events, you’ll likely find Kniaz drinking nearby, secretly scouting out new talent to invest in.

What is the tech scene like in London? What do you expect the event tonight to be like?

The tech scene is still nascent in London but it’s growing fantastically each year.  The advent of programs like Seedcamp have created a fresh atmosphere for startups and there’s a growing camaraderie among founders here.  More than ever, startups from all across Europe are choosing London for their home or for their first expansion office.

DrinkTank is a helpful way for startups and those in the ecosystem to mix and make acquaintances.  It’s always packed to capacity hours after the invitation goes up on MeetUp.com.

Why should entrepreneurs consider starting their business in the UK, if they can’t raise funding in New York?

While New York is of course an attractive city these days for startups, the UK offers quite a bit for European founders or those wanting to reach the European market.  For non-US passport holders, there are much more favorable work visa programs here, and for EU passport holders it’s incredibly easy to just pack up and move to London.

Is there anything that turns you off when people come in for meetings? When they won’t shut up or when they have a terrible business plan or if they have snot in their nose?

I’m usually happy as long as they’re not playing on their iPhone or Blackberry and can fit their presentation to the allotted time.  This is of course reciprocal as well!

Do you think it’s hard to raise money these days? What should budget strapped entrepreneurs do? Take out loans? Or wait until they find the right person to invest?

While it’s all the rage to tell entrepreneurs to “be lean” in starting up their company, that’s most crucially important at the early stages.  Startups may choose to “fatten up” once they are confident they’ve found their market fit and are beginning to scale, but until then they have to really focus on finding the minimally acceptable product for their target market.  The challenge is finding the right person that shares the product vision, or self-funding until the market fit really starts to demonstrate itself.

And do you think women have an equal shot at getting money for their company? Or is it still the boys club in the tech scene?

I hope so!  Companies like Skimlinks have shown that female-founded companies can indeed get funded as well as any other company.  Unfortunately, at university, there are fewer women enrolled in disciplines such as computer science, so that leads to fewer women available to found startups.   I firmly believe though that women have an equal shot in the tech industry these days.

What companies are you looking to invest in? What’s your background?

I’m independently investing right now while working on a new project here in London.  Formerly, I was at Fidelity Ventures, which has recently changed its name and strategy to Fidelity Growth Partners. While there, I focused on early-stage and growth-stage European startups.  Before that, I was an early product manager at Google and worked closely on the growth of the AdSense product, as well as new initiatives in AdWords.  Before that, I was at Intel in Latin America and California working on market development.

Besides obsessively going to tech events, what do you like to do in London?

I like jazz music, champagne, cigars, and rich mahogany bookcases.  All the classy old man stuff! Just kidding.

VC Rob Kniaz discusses the tech scene in London is a post from: TechStartups.com

By Staff Writer –

IBM restored the feeling of hope for some business owners this week at the Global Entrepreneur initiative. When many owners have been left to take care of themselves without venture backing, IBM wisely steps in.

By helping startups, IBM hopes it will build a robot software library. This would help ramp up WebSphere, the premier tool for developers.

According to Physorg.com, to be considered by IBM:

Entrepreneurs worldwide are invited to apply, with IBM choosing startups that the US technology powerhouse thinks are “strategically relevant to the market we serve.”

The startups must be privately held and less than three years old.

While Silicon Valley venture capitalists tend to crave Internet firms, IBM said it will be looking for startups using technology to improve performance of key industries from telecommunications and energy to health care and government.

The New York Times adds, people also want advice on how to start a business. It’s bootcamp for startups:

• TaKaDu wants to save you money on utilities.
• TreeMetrics is a company that makes “tree-harvesting” optimal.

The companies are reinforcing the Smarter Planet campaign. But there’s a catch: The company must be up to 3 years old and has to fit the IBM corporate mold.

Image: flickr/ mEGaPHiLL

IBM has eyes for startups is a post from: TechStartups.com

By Staff Writer – Boonsri Dickinson (@boonspoon)

Tech Crunch is bringing a game show approach to elevator pitches. At an event on May 24-26 in New York City, entrepreneurs will dish out their startup ideas in front of a thousand people — and the audience will vote American Idol style for the top products.

At TechCrunch Disrupt, entrepreneurs will get feedback from a panel of all star judges. And the winner will walk away with $50,ooo cash. According to The Washington Post:

It’ll be a little bit like pitching a top VC, except it will be done live on stage in front of thousands. Audience voting as well as expert feedback will factor into final competition scores.One startup will emerge the overall winner and take home a $50,000 cash prize. But all of the startups get an incredible launch event for their product, and priceless feedback from people who can really help. And, best of all, it’s free for startups to launch at TechCrunch Disrupt.

Calm down. You have until March 26 to apply.

And even better news: The venture capital firm, Andreessen Horowitz, with the help of startup lawyer Ted Wang, has created a website called www.seriesseed.com. On the site, entrepreneurs can find 30 documents made to cater to companies looking to secure $300,000 to $1.5 million of funding  — without having to go through the headaches involved in the paper trail.

Ten big name venture firms such as Polaris Ventures have signed on. If the funding process can be hastened, then it will be easier to get startups going.

Image: flickr/ svenwerk

Pitch your startup idea: The winner takes home a grand prize of $50,000 is a post from: TechStartups.com

By Staff Writer – Boonsri Dickinson (@boonspoon)

VC money may be going down the toilet in other areas, but clean tech seems to be doing well. But even clean tech took a hit last year— dropping by 45% from the third to fourth quarter. Now all VC eyes are on energy efficiency.

According to ReadWriteWeb:

“Energy efficiency is in the sweet spot of many venture capital investors in terms of skill sets and funding parameters, particularly given its basis in information technology,” says [Ernst & Young cleantech director John de Younge]. “Consequently, we may see investor participation in cleantech broaden.”

And the growth in renewable electricity could help create 274,000 jobs.

Before any more clean tech start-ups decide to name their company, it’s worth reading the reflective blog post on Greentech Media. The Web 2.0 companies come up with catchy, meaningless names and make the news every day through blogs such as TechCrunch, Mashable and Techstartups. The URLs are short and names like Foursquare are made to stick.

However, the clean tech companies tend to name their start-ups more literally — and if they continue, they will just keep adding to the confusion. For some reason, all the solar companies want to stick “sol” in the name. Solar Power, Solar City, and SolFocus all begin to sound the same after a while. Clean tech companies could learn something from Web 2.0 folks.

Images: flickr/ RS_joe

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Reflecting On Clean Tech Investments And Names is a post from: TechStartups.com

By Staff Writer – Boonsri Dickinson (@boonspoon)

I was at Dogpatch Labs yesterday and I could feel the excitement in the air. Young entrepreneurs were sitting in open tables, typing on their computers. The  guys running the dating service, Good Crush, were busy folding T-Shirts and posters.

Mike Green of Collecta welcomed me into this start-up wonderland. I finally got to meet David Lifson of Postling in person. Lifson began talking about the start-up community in New York and said small amounts of funding are available for companies who need it.

Where’s a good place to start looking for investors? Try Venture Hacks, a blog for entrepreneurs written by Nivi and Naval.

Venture Hacks created an AngelList, a source that includes some big-time angels. Once you find an angel you want to pitch to, you can email them (if they allow it), use your own network to get to them through Facebook/LinkedIn, or send a 150-word pitch to Venture Hacks for the possibility of them connecting you to the right person. Or you can try all three strategies of attack, so you’ll have the best shot of getting a meeting with the angels.

Any entrepreneur should try Venture Hack’s new StartupList. Each week, Venture Hacks send an email to angels on the AngelList, highlighting the top three start-ups who have asked for intros. This StartupList should help breakdown the barrier between entrepreneurs and investors.

Venture Hacks wrote on their blog:

I’m psyched because StartupList is already working. We released it on Twitter a few weeks ago and 9 investors like Mike Hirshland (Polaris), Matt Mullenweg (Founder of WordPress), and David Cohen (Techstars) have already asked for intros to 7 early-stage startups and counting.

So if you are a start-up owner in need of funding, write up your short elevator pitch and send it to Venture Hacks. You never know who might be interested in pumping money into your company. Hopefully, you’ll have more luck than this poor cop who tried to play the lottery today and walked away empty-handed.

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New York Entrepreneurs Meet Venture Hacks is a post from: TechStartups.com

Today is the early edition of Tech Startups focused on money. Not really but this my second post of the day that is focused on money. More specifically, the finances of nerds.

The Wall Street Journal, last evening published a piece, “Silicon Valley Tech Workers Earning Less Than in 2000,” that highlights salary data from the Bureau of Labor Statistics for tech workers in the Valley.

It turns out that they earn approximately 13.8% less than they were nearly decade ago right before the tech bubble burst.

However, the average wage is actually better than it has ever been for tech workers in the Valley if the bubble number for 2000 is removed due to the inflated equity stakes that individuals were able to claim. The workers are earning real money now.

Another bright spot of this data was:

Silicon Valley’s high-tech workers still make significantly more than similar workers elsewhere in the U.S., though that gap has narrowed since the dot-com bust. In 2000, high-tech workers in Silicon Valley made 88% more than their counterparts in other parts of the country. In 2008, they made 62% more, the BLS said.

It seems that those still left with jobs in the Valley are doing superb by global standards and pretty good by domestic ones.

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A Decade Later, Silicon Valley Tech Workers Earn Less is a post from: TechStartups.com

By Staff Writer – Boonsri Dickinson (@boonspoon)

To some, it feels like it’s 1997 again. However, investors and business leaders at the JP Morgan Conference in San Francisco were slightly more optimistic. The rooms were filled with investors sitting on the floor and hope was in the air. Then the health care storm drenched that spirit. Surely, the outcome of the Massachusetts election put those pushing for health care reform in a bad mood.

But the numbers tell a different story, a more uplifting one. More than $1 billion went to biotech investments, with $3.5 billion put into 406 deals. Businessweek reports funding for start-ups has settled:

“Biotech was the largest industry for the quarter and the only one to hit the billion-dollar mark,” said Tracy Lefteroff, global managing partner of Pricewaterhouse’s venture-capital practice.

Many start-ups in drug development will reap the benefits when patent protection expires on blockbuster drugs.

The Washington Post reports:

For the Washington area, some of the largest investments last year targeted the software, biotech and telecommunications industries. Software led the pack, with venture capital investments totaling almost $98 million. Biotech firms and telecommunications companies took in $88 million and more than $82 million, respectively.

As biotech and pharmaceutical companies begin outsourcing their infrastructure, the biotech leaders say they are “pushing the limits of the science.” For example, drugs for heroin and OxyContin addiction are in the pipeline.

There is hope. 2010 might be a good year for biotech investments.

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Biotech Is The Best Place For Venture Investment is a post from: TechStartups.com

OneForty, the Twitter App Directory has raised $1.6 million according to an FCC filing. Founded by Laura Fitton (@pistachio), the Company’s CEO and author of Twitter for Dummies, the site provides visitors with the ability to find, use – and purchase – all types of applications for Twitter web-based, desktop and mobile apps.

No word yet on who the investors are but Flybridge Capital Partners’ Jeffrey Bussgang is named as a director, according to the filing. Laura tells Xconomy that there will be “some really cool company news in January.”

We’d like to know, Laura!

[paidContent]

Disclosure of Material Connection: http://dsclzr.us/0

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There’s An App For That. Twitter App Directory OneForty Raises $1.6 Million is a post from: TechStartups.com

We try to stick to tech startups around here for obvious reasons, ahem. However, I can’t pass up a chance to talk about something that isn’t very techy.

It fits the bill for being startupy, but certainly not tech in nature. The topic at hand is sustainable (word of the day) coffee sleeves. I’m not very green and most certainly couldn’t even estimate what my carbon footprint is, but this is a great real world startup niche.

It is an opportunity to fill a void for certain consumers based on a lifestyle using the product of someone else. It is the original API in effect.

The industrious folks have found a problem and are working to solve it. That sounds like a startup to me. Not sure what sort of venture capital they could get behind them but I have ridden in shared cars with strange investors. The types that know the scrap market, failing franchises and fire safety products. I’m sure there is something for these folks.

The first that I found was on Etsy in the form of a little denim wonder. It not is sustainable in nature but started its life as another product. You would think that the seller hailed from Boulder, but not so, New Orleans is where they call home.

The second on Etsy was one that would appeal to the grannies in the crowd. It is a knit sleeve from yarn that has multiple colors and varying textures. The one texture it appears to be lacking is one that will grip the cup firmly and not let it twist as you hold the cup. Sometimes gravity will cause the cup to shift and you’ll end up wearing it. Maybe another reason the would work for your nana. She’ might use … right after she’s done yelling at you for spending $4.00 on a cup of coffee.

The third, I found not on Etsy but the regular interwebs – then it led me back to Etsy. This one is the cozy/cuff that doubles as an accessory for the ladies or the cuff loving dude. It is made of wool and comes in a variety of colors. I am not sure that the cuff wearing coffee drinking crowd had a need for this one but someone is now there to fill it.

I think that entrepreneurs of all types should consider looking to this type of model to build their next business. This type being an API style based on a related need. That need might simply be an improvement upon the original product.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Thinking Outside The Cup is a post from: TechStartups.com

Friend, smart dude and all-around good guy Micah Baldwin wrote up a post yesterday that hurt me a little bit – quite a bit, if I must be honest. It bothers me because he’s right.

On every account of where the failure to find funding comes from – us, me, you – he’s right. Whether it’s not searching in the right spot, pitching the wrong story, a flawed product or the inability to get over ones self-importance, the blame can go to one person, you.

Let’s break this down . . .

I want to focus on one section from the post and give it a bit more fleshing out for those that might need it. This is especially important for those that are preparing to go out for funding the first time.

“If you are struggling to raise money, look back at the decision points:

1. Does your idea excite the people you are talking to;
2. Do you excite the people you are talking to;
3. Are you talking to the ‘right’ people (not the ‘easy’ or ‘big name’ people)?”

Three

I’d like to speak to them in a new order with number 3 being first. This is the hardest one to get right and the most important. Being enamored by the ‘big name’ will only lead to heart break and misery when the ‘big name’ investors tell you no. That no could be for one of a million reasons but most likely number 1 or 2.

The right people are those that don’t already have portfolio of companies that can do what you are looking to do, they could be someone that you strike up a conversation with at a conference or the seat next to you on a plane.

Believe me on this from when I went through it, the people I should have focused on pitching were right in front of my face and asked for more of my time. I was too enamored with big names and brands to see these opportunities.

The right people also don’t have to be early investors in other up and coming startups. There are plenty of investors in the fringe that might be able to help even more. It is a matter of finding them.

One

On the account of number 1, Does your idea excite the people your are talking to? It must if you’ve gotten your foot through the door. If you haven’t haven’t, don’t be disheartened with a quick no from a potential investor. They are respecting your time by not wasting it.

To maintain this excitement, prepare like you have never prepared before. Take the time to analyze your business, role play your presentation and be certain to understand the investor you are pitching. If a friend helped to put you in this position, ask them for some advice. Cover your bases.

Two

On the account of number 2, Do you excite the people you are talking to? The answer is really up to you. If you get number one right and convey the passion that you have for the startup then the answer is yes. If you get elements of number one right but not all of them, you’ll definitely lose points. Those points could cost you the funding and more importantly a future relationship with the potential investor.

Conclusion

Micah’s post is brilliant. Any entrepreneur that is looking to raise capital should study, answer all of the questions he asks and fill in any other missing components that they see fit. It is a blue print for how to be a digital hustler and mean it.

Now that I think about it, there is another set of guidelines that combined with Micah’s thoughts could be the ultimate startup cocktail – Mike Dunn’s Tech Due Diligence. That is a cocktail worth whipping up.

Photo credit: (cc) Kenneth Yeung – www.thelettertwo.com

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

The Right Investor and You is a post from: TechStartups.com

When it comes to deciding what direction you should take your next great idea it is helpful to sort out what you want from the startup.

In every case you should be answering that with – revenue. But, also at the top of that list should be your decision of going for VC backing or turning your idea into a lifestyle startup.

A VC backed startup is a different beast than a lifestyle startup.

Lifestyle startups in this case being a business that you start and run to make your living from. The type of startup that you hope to sell for better than $500k so you can float till the next idea comes along or simply a business that dissolves into your next business based on a newer greater idea. It is a two to three year investment of your time that pays dividends closer to a traditional mom and pop type business.

Here are five reasons you should choose a lifestyle startup:

1. You’ve got a lot of passion (read: hard headed)

There’s not much to say about this one.

Being the captain of your own destiny is something that you thrive on and know that the only way you can make this startup work is with your vision.

That, and if someone recommended how to do something differently there might be a physical altercation. You might get to this point if your idea has elements of the next reason.

2. You’re idea is future forward (read: hard to pitch)

At your first pitch to a VC you’re told that you should integrate X service. Of course, X, being the hottest new startup that isn’t even in their portfolio. This is the moment you should realize that your pitch has failed for any number of reasons. On the ride back to the airport you run through the list of variables with friends and realize that idea if solving a future problem. One that is a little farther in the future than you are going to be able to pitch successful for funding. And that’s cool.

Without pulling back the scale of your vision too much, you should look for an opportunity to move forward building it out. Especially, if you got number 3 covered.

3. You can really focus (read: blinded by desire to succeed)

You’re a competitive freak that is only competing with yourself. Really. You might be a laid back person but you’ve got an inner desire to win that could turn a three legged pony into a stakes winner.

This in turn gives you an ability to focus on a business plan or road map with precision. It aids you in your ability to execute at a C-Level all the while handling low level strategy and tactics. This is how you make your startup profitable. That brings me to number 4.

4. You understand physical labor (read: you grew up on or near a farm)

Look – manual labor of the farming variety is enough to skew the tables greatly in comparison to a tech startup. Waking up at 3:30 a.m. to milk and feed cows followed by a day of bailing hay, walking beans or other intense physical labor makes working at a startup a piece of cake. Sure, you’ll be working all the time, just like the farm but you’re going to be using a different set of skills and attributes that aren’t as physically demanding.

However, if you found that this type of physical labor suited you, a lifestyle startup could be for you. See number 5.

5. You need to always be working (read: hobby is job/job is hobby)

You eat, sleep, breathe your idea. When you are in the shower you are solving problems from the night before while you take a huff of your bar soap. You find great satisfaction it the ability to get work done in your down times while you should be relaxing.

I don’t think this one is very healthy, but for many people it is a reality and something that would be difficult for you to change. This behavior is learned or is a mechanism to avert from another issue . . . either way the behavior is ingrained in you and should be embraced as an asset for building a successful lifestyle business.

Lifestyle startups can be very rewarding for those that enjoy having the ability see their ideas blossom. They’re also a great fit for those that aren’t ready to jump into the startup world with both feet. If you’ve got a job or career that can keep you afloat while you dabble with a startup, this one is for you.

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The Lifestyle Startup – 5 Reasons to Do It is a post from: TechStartups.com

Last week we had a search come in for “what happens in a startup merger?” A brilliant question that is most likely being asked at the worst time – the merger.

This question might have been asked by an employee of the startup, but let’s for this instance suppose that it came from the lucky founder of a startup that found an exit well before the business has matured. This merger allows them financial compensation and just how much is at stake.

What appears to be missing from this founders startup experience and vocabulary is a very important term and process – due diligence.

One of the best, if not the best, resources for helping this startup founder would be the Technology Due Diligence (TechDD) written by Mike Dunn (@glemak). Mike’s current role is CTO of Hearst Interactive Media. He’s a tech veteran with stripes pre and post bubble that guides Hearst’s technology investments like Brightcove, BuzzFeed and UGO.

Dunn’s document is a view behind the curtain of venture capital. It gives a startup a view that a potential investor or a more experienced merging company has of the process that is about to unfold and seeks to make it as smooth as possible.

Dunn describes his open source TechDD as:

“The goal of this due diligence process is to allow us to fully understand the technology practice of your company, including how you are staffed, your tactical and strategic utilization of technology and the processes that allow them all to work together to produce what you do for your company. We would like to be able to understand this for both your current state and your roadmap. So where relevant to your business, please be prepared to discuss and provide written answers for the following scoping questions…”

And scoping they are.

The documentation is broken down into three sections:

1. Technical Staffing
2. Infrastructure and Architecture
3. Workflows and Processes

Each with a keen focus on extracting the most information that will allow outsiders to understand the inner workings of the startup. If  these questions are answered truthfully by a startup before being approached by a potential investor the process of a merger wouldn’t cause anxiety but provide for a source of relief that from the very beginning the building of the business was transparent.

The Technology Due Diligence documentation that Dunn has created isn’t designed to trip up an entrepreneur. It is written in the spirit of the open source community to be a transparent and genuine glimpse into what is often the most fear inducing a process and unprepared startup can find itself in.

The document is a comprehensive primer for any tech startup to integrate with their business plan. It clears the way for building a business that is investment or acquisition ready at any time.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Tech Startup Due Diligence is a post from: TechStartups.com

I’m not one for the nostalgia of the good old days, but this year’s BlogWorldExpo is really bringing out the sentimentalist in me. A few of the same faces and connections rekindled but there are many new faces that are ready to ride this new wave into what is no doubt going to be the mainstream in the next few years.

I’ve talked with tons of bloggers, media makers and agency folks that helping to keep money flowing into the space. There is a renewed energy around media making that hasn’t been there for the last three years. It was always something that wasn’t professional enough for media buys and too independent to be respected as a viable news or information outlet by the public. Not anymore.

BlogWorldExpo is officially an industry event now. Enough of the niche communities and major media makers, like those that fill your cable box, are coming together to build the next version of media as we know it. Independent media makers for years have chipped away at high wall that was traditional media and they have finally made their way through to find on the other side the major media makers aren’t so bad. The majors, as well, are wandering the halls here interviewing people gorilla style and letting anyone else that wants to shoot video or record audio of the same interview roll right next to them.

The other huge take away from day one is that many of the people I know that are working on startups and putting their blood, sweat and intellectual equity into them are finding investors that believe in their projects. This is huge. The past year and a half have been devastatingly tough for entrepreneurs looking for venture capital. It seems that the tide has turned. This is a great time to be building a business.

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Startups Are Getting Funded! is a post from: TechStartups.com

I am sitting down with my favorite comfort food, Lucky Charms, to write this post.

What i am about to share is a real world account of how to spend six valuable months on the prowl for vc investment money from 2009. My goal is to summarize, by using lots of words, how not to crack the vc code. And in doing so, giving you the ability to not make some of the mistakes.

The story goes like this . . .

Wait, I just get a red diamond. Must crunch it with my molars. So good.

The story goes that starting in January of this year when I knew that my services were no longer going to be needed by the startup I was at (you have to be able to sense these things like yoda when you work in startups) I began to figure out my next move. When I looked at all the code I had piled up from midnight hobby writing sessions to stay sharp, the alternative ‘get a real job landscape’ and my bank account, it was a no brainer. I needed to talk to the wife, convince her that this is going to be it and prepare to batten down the hatches as I launch a new startup.

February rolls around, I’ve read the cards correctly at my current job, it doesn’t work out, and I launch the startup with a business partner. We’ve got out operating agreement in place, incorporated, had legal counsel review our documentation, build a business plan – complete with projections, aggregated all the code needed build a prototype to demo and buffeted our immediate contacts for their seed, angel and VC contacts just in case we can’t boot strap it.

It turned out that boot strapping was not going to be possible for the vision that we had of the business. We needed scale at a massive exponential that we hadn’t considered for the opportunity to service a larger market, both consumer and business. We knew that we would have to go after the money.

So my business partner crafted a killer deck from our business plan and projections and I set about on nailing down the tech and finding a handful of folks that would come on board if we received funding enough to pay them an adequate salary. Convincing talented folks to leave their jobs for a startup is no small feat and another post all in and of itself.

Wait, just got a four leaf clover.

Once we had these elements in place we were ready to move and my partner began to network and get us on the calendars of some of the most respected VC’s and seed funders in the States. We began taking the meetings having only worked out our pitch over the phone and on skype video together. The first of these was with a major media company’s corporate development department that likes to strategically invest in startups if it can used the service in house.

My partner killed it, as we say in the biz ,and a few hours later they were asking us to fly to another of their offices and meet with the group that would use our technology. We agree, wait two days, and get on planes heading to the locale.

The meeting goes great. Sure there were some road bumps, but all in all it was a win for us. So we thought. We’ll probably never know why but the group that would have used our technology didn’t bite. And like we were told about VC responses being vague, so to was this. Keep in mind, corporate development money is also venture capital and it come with all the same risks that rock star VC’s take.

Now, it’s like April and we’re still taking VC and seed meetings. We’re trying to keep our hopes up, working on the prototype and tightening up our deck. During this time we were still pounding our networks for feedback. We we’re beginning to doubt ourselves as capital doors one after another were being shut in our faces. Then, out of the blue, one of the major tech blogs does a post about us. We are off to the races again!

We have a who’s who of online players signing up in hopes to get at a forthcoming alpha release, the comments are flowing on the blog about how awesome of an idea the business is and we start to buy into every bit of it. At this point our awesomeness knows no bounds. They call that hubris in the biz.

OK, this is getting long and I am running out of Lucky Charms in my bowl to continue this guided metaphor. So I am going to speed this up by putting a spell on you to take you into the future with all the necessary knowledge to understand where you’ve landed, June.

Wait, a half melted purple horse shoe. Mmmmmm . . .

Here we are, six months of travel, late nights and cash out of pocket following our dream of building a successful business together. We’re both road weary, tired of being told come back and see us. Tired of going back to the same offices three times to receive feedback like, “add twitter to this and you’ve got a winner.” And finally, tired that we are pushing this so hard and not seeing any uptake by potential investors.

We pin our hopes on one final meeting with a venture capital firm in Boston. The meeting goes great, it is our luck time . . . until the very last thing that the principal at the firm says. What did he say? I’ll have to tell you that over a beer someday. But what I can say is that he had a desire to follow up with fellow investors in portfolio companies . . . some of which we had already unsuccessfully pitched.

A few days later it was over. There was no more interest from venture folks, our resources were depleted beyond the demarcation point we had both set stop the venture and we had failed in producing a prototype that could bring in the money needed to scale.

Wait, what is that? Is that a pink heart stuck to the side of the bowl? Awww, yes!

And if there is one thing that I know is that you’ve got heart after reading this that your startup will be different. Even, I have hope that my next startup, whenever it rolls around, will be different. We’ve got heart enough to try to succeed and not worry about failing.

Let me breakdown how we didn’t crack the VC code in 2009:

1. We needed a better prototype with live demos. We told potential investors that we could get it to scale in the cloud but couldn’t deliver that demo.
2. We were in a hurry to make it happen and let that drive us into making snap decisions that took us away from our core. Potential investors could sense it and perceive it as a lack of focus, being dispassionate or incompetence.
3. We didn’t bring our A game to every initial call with investors . . . even if word on the street is that they are dumb money. Remember, because your friend couldn’t make it a go doesn’t mean that you can’t
4. We didn’t set aside enough personal resources and didn’t plan for funding or growth to take three times as long as we thought it would. All three of these will impress upon potential investors that you don’t understand what is ahead if you get funded.
5. All of these could be wrong and the VC’s simply didn’t like us, didn’t want to work with us because we had goatees or think that we kick kittens and puppies. These couldn’t be farther from the truth. We failed to make a viable business case for investors in a rough economy. The burden for failing to crack the VC code in 2009 falls upon our shoulders. It was a great idea but all the pieces weren’t in place.

And as an entrepreneur at heart, like yourself, I can’t help but think about how I would do it over again if I knew then what I know now. Best of luck to you! I need to refill my bowl.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

How to not crack the VC code in 2009 is a post from: TechStartups.com

If you’re a startup and have a great idea, what are you going to do to get your business off the ground? You’re probably going to need some cash to get things going and that’s why many startups start looking for venture capital or angel funding to help them get their idea or product into production.

Jason Calacanis, always one to stir things up a bit, has taken it upon himself to point out something that’s known to happen on a fairly regular basis. When venture capitalists and angel investors charge startups to gain an audience with the decision makers on whether or not they’ll be given any funding.

There’s the argument that charging an application serves the purpose of weeding out the long list of people that come out of the woodwork and ask for money. That makes sense, but I’d think the better option would be get a brief intro and quickly make a decision on whether or not you think there’s anything about the idea that has merit and make you want to invest.

A friend of mine is working on a startup of his own and I’m always amazed at just how much goes into getting your idea to reality. I was aware of the time and extra hours that it would take to get things going, but I never really thought about all the expenses that come into play as well.

If I were in a position to fund some startups, I wouldn’t charge a fee to be heard. I’d be very selective on who I talked to and what I invested my money and my time and hopefully that would workout for me and my partners in the process.

Making Tech Startups Pay is a post from: TechStartups.com

A little bit of news in the startup industry itself. Not of a new tech startup really, but more of a consolidation for those companies interested in tracking all the startups happening.

VentureBeat has been tracking what’s happening in the venture capital arena. Their recent purchase of TradeVibes, an online catalog setup in a wiki structure of startup organizations, will pull two related efforts into a single source for information that’s already tied closely together. VentureBeat has renamed the TradeVibes website as VentureBeatProfiles.

When you’re a new startup, aside from focusing on developing your service or application, you’re also trying to figure out how to keep the lights on and the office fridge stocked with Red Bull. Combining the knowledge and network of VentureBeat into the catalog of what’s happening into the new VentureBeatProfiles site, is an efficient way of bringing these areas in alignment.

Keeping tabs on what’s the latest news in the industries of startups and startup capital can be like hunting for Moby Dick. Helping bring the news together in a handful of places is a welcome change. Having multiple sources is always going to be a benefit of making sure there are avenues available to get news out. Maintaining a diversity of opportunity with a balance of organization will benefit in a variety of areas.

Consolidation in Startup Tracking is a post from: TechStartups.com