Thursday, April 9, 2009
Women Entrepreneurs' Rock!
Yesterday was a spectacular day here in Syracuse. Yes, the weather was cold but the conversation on entrepreneurship was red hot as we hosted the seventh annual WISE (Women Igniting the Spirit of Entrepreneurship) Symposium. Over 1,000 women entrepreneurs attend this wonderful event. The group heard from a wide range of speakers which include three inspiring keynotes from Cindy Solomon, Linda Dulye and Melissa Aronson (Emme). What was particularly interesting was to watch those in attendance use the day to learn from our speakers, learn from each other, and enhance their personal networks. The business expo, which was added to the program for this year, sold out and will be a permanent addition to the event. This program also was a great opportunity for those in attendance to hear more about our WISE Center, which is a permanent location to help women entrepreneurs take their thoughts and dreams of a business, and turn them into an entrepreneurial reality. As one of my staff is so fond of saying: women entrepreneurs’ rock!
Monday, April 6, 2009
Angel Investors Recap 2008
From Jeff Cornwall of Belmont University and his excellent blog on all things entrepreneurship.
Angel investors were just as active in 2008 when measured in terms of deal flow, but the money they pumped into these deals was down from the previous year according to the annual summary conducted by The Center for Venture Research at the University of New Hampshire.
Some additional findings from this report:
§ 55,480 firms received angel investments in 2008, a 2.9% increase over 2007 -- as I have been telling folks, there is still money out there
§ Dollar flow into these deals was down 24% from the previous year -- an indication of a more cautious stance by investors
§ Healthcare and software led the way in deals -- no surprise here
§ Exits in 2008 were mostly through mergers and acquisitions (70%). 26% of exits were through bankruptcy. Only 4% of exits happened via an IPO -- thank you Sarbanes-Oxley for killing this as an option.
§ Most of the angel deals were still seed stage or early start-up
§ Yield rates for these angels were down to 10%. Just as comparison the yield rate in 2005 was 23%.
Thanks to Jeffrey Sohl at UNH for putting this report together each year.
Angel investors were just as active in 2008 when measured in terms of deal flow, but the money they pumped into these deals was down from the previous year according to the annual summary conducted by The Center for Venture Research at the University of New Hampshire.
Some additional findings from this report:
§ 55,480 firms received angel investments in 2008, a 2.9% increase over 2007 -- as I have been telling folks, there is still money out there
§ Dollar flow into these deals was down 24% from the previous year -- an indication of a more cautious stance by investors
§ Healthcare and software led the way in deals -- no surprise here
§ Exits in 2008 were mostly through mergers and acquisitions (70%). 26% of exits were through bankruptcy. Only 4% of exits happened via an IPO -- thank you Sarbanes-Oxley for killing this as an option.
§ Most of the angel deals were still seed stage or early start-up
§ Yield rates for these angels were down to 10%. Just as comparison the yield rate in 2005 was 23%.
Thanks to Jeffrey Sohl at UNH for putting this report together each year.
The Real Credit (Card) Crunch
On Wall Street and in the popular press, the words “Credit Crunch” have taken on a life almost of their own. And while it means one thing to the investment banks, the car companies and other large Fortune 500 businesses, to the entrepreneur it can mean something entirely different, something entirely more focused on the day to day aspect of running a business. Take a look at the article that ran in the Saturday Wall Street Journal by Jane J. Kim, Credit Woes Hit Home.
Friday, April 3, 2009
We're Cool!
Oh, it’s good to be cool. But are you cool when the Economist magazine say’s you’re cool or does that automatically make you, well, less than so. In any event, a friend from the left coast sent this to me and made me promise that I would post it on the blog.
But here it is, in a subheading to the piece that is a special report on entrepreneurship: Entrepreneurialism has become cool. The lead of the article begins with:
VICTOR HUGO once remarked: “You can resist an invading army; you cannot resist an idea whose time has come.” Today entrepreneurship is such an idea.
The triumph of entrepreneurship is driven by profound technological change. A trio of inventions—the personal computer, the mobile phone and the internet—is democratising entrepreneurship at a cracking pace. Today even cash-strapped innovators can reach markets that were once the prerogative of giant organisations.
The piece brings an interesting international flare to a subject that is all too often US-focused.
But here it is, in a subheading to the piece that is a special report on entrepreneurship: Entrepreneurialism has become cool. The lead of the article begins with:
VICTOR HUGO once remarked: “You can resist an invading army; you cannot resist an idea whose time has come.” Today entrepreneurship is such an idea.
The triumph of entrepreneurship is driven by profound technological change. A trio of inventions—the personal computer, the mobile phone and the internet—is democratising entrepreneurship at a cracking pace. Today even cash-strapped innovators can reach markets that were once the prerogative of giant organisations.
The piece brings an interesting international flare to a subject that is all too often US-focused.
Thursday, April 2, 2009
I’m trying to get Twitter…I really am.
For me, as someone in the halls of academia, I use Twitter as a source for interesting articles, posts, video’s etc that will help me in my classes, my discussions with students and my conversations with entrepreneurs. I also get the value if I’m a political candidate or someone working in the Beltway. But if I was back in my hard-driving days of running a business, I’m not sure if I would see it the same way, which is the reason that I’m trying to understand the value of Twitter.
After reading the recent blog from Josh Bernoff, perhaps I’m a bit closer to getting the value of Twitter. Take a look at see what you think.
For me, as someone in the halls of academia, I use Twitter as a source for interesting articles, posts, video’s etc that will help me in my classes, my discussions with students and my conversations with entrepreneurs. I also get the value if I’m a political candidate or someone working in the Beltway. But if I was back in my hard-driving days of running a business, I’m not sure if I would see it the same way, which is the reason that I’m trying to understand the value of Twitter.
After reading the recent blog from Josh Bernoff, perhaps I’m a bit closer to getting the value of Twitter. Take a look at see what you think.
Thursday, March 26, 2009
Mompreneurs
OK…we all know that entrepreneurship is hot, but now a word on that subject that I had not heard before has entered my dictionary. The word is…mompreneur. Take a look at the item below which comes from our friends at Ask the VC . The advice provided below works for all entrepreneurs, not just mompreneurs.
This is a guest post by Lucy Sanders, the CEO of the National Center for Women & Information Technology.
Q: When evaluating a start-up by a mompreneur (or to go broader female first-timer) what do you typically see as the weakest link (in supporting roles, research, presentation, concept etc). With respect to this, if you could give mompreneurs or female first-timers advice on building their support system or fine-tuning their concept before asking for funding, what would it be?
A: (Lucy) In the course of my work at NCWIT and as a technology enthusiast, I speak to many people who have started and/or funded technology companies. The advice they offer would-be entrepreneurs is pretty consistent, and genderless. First, is your idea compelling? Does it address a current or future market need? You must be excited about the potential and that passion needs to be conveyed confidently, not just in formal funding presentations, but in the numerous conversations you have as you build your business. So, brush up your communication skills and ask others to critique your efforts. Your first pitch for funding should definitely not be your "first" pitch - practice makes perfect. Your business case will really come together the more times you tell others about it. You should also take the time to create a one page business brief that contains company details, the market need, market projections, revenue stream, potential products, management team and potential competition. Fitting all this information on one page will force you to hone your pitch, making it far more concise and easy to understand.
Next, be prepared to work hard. I love the excitement and risk taking involved with startup organizations, but it often requires long hours. Some entrepreneurs find that they let their personal lives slide when faced with such demands. But I am convinced from many years of experience that one can successfully integrate personal pursuits with demanding career endeavors. Since you asked explicitly about "mompreneurs", I assume you are wondering specifically about balancing family and entrepreneurial pursuits. Take heart - it is possible. You can hear successful women IT entrepreneurs talk about integrating work and family by listening to the NCWIT podcast series.
One final thing you asked about is building your support system. Heidi Roizen has achieved success as an entrepreneur, a corporate executive, a corporate director and venture capitalist. In this interview she talks about how networking is a key component of launching a company, and how people can build successful networks. Her secret? "Be a friend", "Get a friend" - in that order. If you look at networking as relationship building and nurture those ties like you would the others in your life, you'll be on your way to building a strong entrepreneurial support system.
This is a guest post by Lucy Sanders, the CEO of the National Center for Women & Information Technology.
Q: When evaluating a start-up by a mompreneur (or to go broader female first-timer) what do you typically see as the weakest link (in supporting roles, research, presentation, concept etc). With respect to this, if you could give mompreneurs or female first-timers advice on building their support system or fine-tuning their concept before asking for funding, what would it be?
A: (Lucy) In the course of my work at NCWIT and as a technology enthusiast, I speak to many people who have started and/or funded technology companies. The advice they offer would-be entrepreneurs is pretty consistent, and genderless. First, is your idea compelling? Does it address a current or future market need? You must be excited about the potential and that passion needs to be conveyed confidently, not just in formal funding presentations, but in the numerous conversations you have as you build your business. So, brush up your communication skills and ask others to critique your efforts. Your first pitch for funding should definitely not be your "first" pitch - practice makes perfect. Your business case will really come together the more times you tell others about it. You should also take the time to create a one page business brief that contains company details, the market need, market projections, revenue stream, potential products, management team and potential competition. Fitting all this information on one page will force you to hone your pitch, making it far more concise and easy to understand.
Next, be prepared to work hard. I love the excitement and risk taking involved with startup organizations, but it often requires long hours. Some entrepreneurs find that they let their personal lives slide when faced with such demands. But I am convinced from many years of experience that one can successfully integrate personal pursuits with demanding career endeavors. Since you asked explicitly about "mompreneurs", I assume you are wondering specifically about balancing family and entrepreneurial pursuits. Take heart - it is possible. You can hear successful women IT entrepreneurs talk about integrating work and family by listening to the NCWIT podcast series.
One final thing you asked about is building your support system. Heidi Roizen has achieved success as an entrepreneur, a corporate executive, a corporate director and venture capitalist. In this interview she talks about how networking is a key component of launching a company, and how people can build successful networks. Her secret? "Be a friend", "Get a friend" - in that order. If you look at networking as relationship building and nurture those ties like you would the others in your life, you'll be on your way to building a strong entrepreneurial support system.
Tuesday, March 24, 2009
Innovation is the Answer
If you’re looking for a quick version of what the heck happened in the economic meltdown and where we go from here, take a look at the article in the current issue of Fortune written by Glenn Hutchins (Co-Founder and Co-CEO of Silver Lake Partners) titled, After the Panic of ’08. He begins the piece simply…“It is axiomatic that to solve a problem, one must first understand it.” He goes on from there to spell out his timeline and reasoning for the collapse. While he has the government clearly in his sights as one of the key offending parties, he adds that it is much more than that.
For a generation, the American consumer over-spent, under-saved while running up large personal debts. People purchased homes they couldn't afford with mortgages they couldn't support. The U.S. government ran unsustainable budget deficits, and neglected massive trade deficits - all of which required gargantuan amounts of foreign financing. The Bush administration pushed through lower taxes but lacked the resolve to cut spending. Politicians across the spectrum pressed the government-sponsored mortgage lenders to heedlessly over-expand home ownership - distorting incentives and diminishing discipline in the mortgage markets.
Main Street banks facilitated this binge with generous consumer loans of all flavors - mortgages, home equity lines, credit cards, auto, tuition, etc. Wall Street firms - egged on by generous compensation schemes - packaged these securities into complex products that were distributed worldwide. The rating agencies debased the AAA rating and the regulators lost sight of the forest for the bark on the trees. From its lofty perch, the Fed abetted all of this with cheap money and a deregulatory bias.
The denouement came when the consumer rolled over and began to default on mortgages - particularly of the subprime variety. This triggered a cascade of consequences that we are only now beginning to understand. But to really grasp what happened and why, we have to begin at the beginning.
His solution…innovation will set us free.
So, the real question is "what's next"? The answer resides where it has always been - in innovation and entrepreneurship. Lost in the fog of today's economic storm is the fact that this is an exciting time to be a technology investor and entrepreneur. The way out of the doom and gloom of the seventies - which was a period much like today - was a wave of technology innovation that spurred a generation of company formation, job creation, productivity gains, wealth accumulation and GDP growth.
Today's opportunities are every bit as big if not bigger. For instance, we stand on the cusp of perhaps one of the mightiest technology trends of our lifetime in the field of wireless broadband mobility. The innovation and opportunity in all corners of that ecosystem - devices, components, semiconductors, network gear, operating systems, applications software, content and services - are nothing short of game-changing.
Innovation backed by entrepreneurial capital is also rampant in green technologies, biotechnology and stem cell research, nanotechnology, and other information technologies such as VOIP, virtualization, cloud computing, collaboration, software as a service and social networking. The economic and social benefits that will flow from this tsunami of innovation stand to propel another quarter century of prosperity.
Given the pessimism in the marketplace, it’s nice to see a story that leaves us with real hope. Now let’s just hope that the government doesn’t get in the way of making this happy ending a reality.
For a generation, the American consumer over-spent, under-saved while running up large personal debts. People purchased homes they couldn't afford with mortgages they couldn't support. The U.S. government ran unsustainable budget deficits, and neglected massive trade deficits - all of which required gargantuan amounts of foreign financing. The Bush administration pushed through lower taxes but lacked the resolve to cut spending. Politicians across the spectrum pressed the government-sponsored mortgage lenders to heedlessly over-expand home ownership - distorting incentives and diminishing discipline in the mortgage markets.
Main Street banks facilitated this binge with generous consumer loans of all flavors - mortgages, home equity lines, credit cards, auto, tuition, etc. Wall Street firms - egged on by generous compensation schemes - packaged these securities into complex products that were distributed worldwide. The rating agencies debased the AAA rating and the regulators lost sight of the forest for the bark on the trees. From its lofty perch, the Fed abetted all of this with cheap money and a deregulatory bias.
The denouement came when the consumer rolled over and began to default on mortgages - particularly of the subprime variety. This triggered a cascade of consequences that we are only now beginning to understand. But to really grasp what happened and why, we have to begin at the beginning.
His solution…innovation will set us free.
So, the real question is "what's next"? The answer resides where it has always been - in innovation and entrepreneurship. Lost in the fog of today's economic storm is the fact that this is an exciting time to be a technology investor and entrepreneur. The way out of the doom and gloom of the seventies - which was a period much like today - was a wave of technology innovation that spurred a generation of company formation, job creation, productivity gains, wealth accumulation and GDP growth.
Today's opportunities are every bit as big if not bigger. For instance, we stand on the cusp of perhaps one of the mightiest technology trends of our lifetime in the field of wireless broadband mobility. The innovation and opportunity in all corners of that ecosystem - devices, components, semiconductors, network gear, operating systems, applications software, content and services - are nothing short of game-changing.
Innovation backed by entrepreneurial capital is also rampant in green technologies, biotechnology and stem cell research, nanotechnology, and other information technologies such as VOIP, virtualization, cloud computing, collaboration, software as a service and social networking. The economic and social benefits that will flow from this tsunami of innovation stand to propel another quarter century of prosperity.
Given the pessimism in the marketplace, it’s nice to see a story that leaves us with real hope. Now let’s just hope that the government doesn’t get in the way of making this happy ending a reality.
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