Written by Jay Turo on Sunday, August 30, 2009
Did you know that in the last 10 years, every major stock market index has LOST investors money?
And up until recently, access to quality early-stage private equity return vehicles has been a) cost and time prohibitive for most institutional investors and b) simply inaccessible to the smaller, individual investor.
1. The ability to source, research, and monitor deals via the Internet
2. The ability to take a data - versus a personality - driven approach to deal diligence
3. The ability to better price deals utilizing regression analysis
4. The ability to exit deals faster - both via alternative investment trading platforms like Second Market - and also simply because of the increasing velocity of business, especially technology business.
5. The ability and opportunity to properly apply "black swan," or "randomness" modeling to deal diligence
Best regards, and look forward to connecting.
P.S. Are you prepared to be saying in 2019 - "Darn - It has now been 20 years since I made any money with my investments?" The world has changed - time to change with it.
Written by Dave Lavinsky on Wednesday, August 26, 2009
According to the book "How To Be Like Mike: Life Lessons About Basketball's Best," Jordan's practice habits and conditioning regimen amounted to an "almost alarming harshness."
In fact, many experts, such as Florida State University professor K. Anders Ericsson, argue that practice continually trumps talent. Prominent examples of success attributed to continuous practice besides Jordan include:
These same practicing principles apply when you are selling your company and your products/services to investors, customers, partners and/or employees.
With regards to your elevator pitch, which is often your opening communications with all outside constituents, practice it over and over again until it flows from your mouth and causes prospects to nod in agreement and understanding each and every time.
With regards to your investor presentations, you should practice them over and over again. And when you practice them, you should think about the goals of your presentation and simulate the questions you might be asked.
For example, you should be thinking:
By practicing your presentation over and over, you will get better and better at it. Just hearing yourself saying the words out loud will help. You will hear what sounds good and what doesn't.
Likewise, you should practice your presentation on real people -- your advisors, friends or family members. And after these mock presentations, ask them to recite back to you the key points you made. Importantly, make sure they recall the key points that you want to convey. If not, continue to improve your presentation content and your delivery until it reaches perfection.
Written by Jay Turo on Wednesday, August 26, 2009
I am very happy to report that Growthink was named to the Inc. 5000 list for the 2nd year in a row.
Written by Jay Turo on Sunday, August 23, 2009
It is no secret that Hispanic America is exploding. As the fastest-growing sector of the U.S. population, the U.S. Hispanic population is projected to triple from its current 45.5 million, to over 150 million by 2050.
Why Should You Care?
Who Says So?
Best regards, and look forward to connecting.
Written by Dave Lavinsky on Tuesday, August 18, 2009
I attended a great online marketing conference a few months ago and learned a lot about marketing your business via Twitter.
The key Twitter advice that was given was to treat Twitter interactions just as if they were offline in the "real world." That is, act just like you'd act as if you were meeting at a cocktail party.
For example, at a cocktail party you wouldn't go up to someone and start screaming "this is what I do" and "buy my product now." (A lot of people do this on Twitter.)
Rather, you would get to know the person, ask them some questions, and hopefully provide some valuable information and advice. This process builds rapport, shows them that you care about them, and positions them to reciprocate in the form of wanting to learn more about and support your business.
So, how does this relate to pitching investors?
Well, I recently read an interesting blog post by Nic Brisbourne, a venture capitalist based on the UK. The key message of Brisbourne's post was that entrepreneurs should pitch him as if they were pitching their best friend.
In doing so, entrepreneurs should:
Like in your Twitter conversations, it's not all about you. You need to listen to the needs of your investor audience before you pitch them. You must develop rapport. And you can't pitch, pitch, pitch. You need to slow down and deliver your pitch in a more integrated fashion (such as giving some information, allowing the investor to ask questions, and responding as appropriate).
So, before you speak with your next prospective investor, you should create a checklist in your mind. Make sure you understand the needs of the investor, make sure you ask questions and do a lot of listening, and make sure that you effectively convey your message without being overbearing.
Written by Dave Lavinsky on Tuesday, August 11, 2009
I came across a very interesting advertisement in my Sunday paper the other day.
Start learning now to start, finance, grow, and exit your company.
2) Have a monthly income of $5,000.00
Start a business. Work hard. Make it successful. $5,000/month is nothing if you have a successful business.
3) Win enough money to never have to work again
Build a successful company. Sell it.
4) See my kids do really well in their studies
Work hard in starting and growing your successful company. Because you are the boss, you can spend more time with your kids helping them. Your hard work will also provide the funds to hire a tutor as needed.
5) Be on TV
Once you've started that successful company I've mentioned a couple of times- hire a good PR firm.
6) Attract men/women
Working hard and being successful will give you the confidence to better attract members of the opposite sex.
In fact, the majority of things on this "wish" list...
Written by Jay Turo on Monday, August 10, 2009
If you're like me, there's one thing you probably take for granted. Interestingly, this one thing is something you can't live without. At least not for long.
Best regards, and look forward to connecting.
Written by Dave Lavinsky on Monday, August 10, 2009
Several months ago, I came across YouNoodle, a website which offers tools and a platform to help startup companies succeed. What I was initially drawn to was their Startup Predictor tool. The idea of a tool that could help predict the success, or lack thereof, of a new company really intrigued me.
Written by Growthink on Tuesday, August 4, 2009
We just published a new series of capital-raising articles on the Growthink website, within our new "Capital Raising Resource Center."
Angel Funding Articles
Bank & SBA Loan Articles
Creative & Alternative Financing Articles
Venture Capital Articles
Stay tuned! In the coming weeks and months, we'll be adding new articles and videos.
Are there any specific capital-raising topics you'd like us to cover? Let us know by leaving a comment below.
Written by Dave Lavinsky on Monday, August 3, 2009
I'll be the first to admit that this fundraising strategy isn't for me. But I have a wife and kids, so maybe, a few years back, I would have given this one a shot.
The strategy: renting out the extra space in my apartment or house to travelers on a budget.
For three entrepreneurs, this fundraising strategy took on a life of its own. The three entrepreneurs, Joe Gebbia, Brian Chesky, and Nathan Blecharczyk, used this creative fundraising strategy (renting out the extra space in their apartments) to generate revenue after they quit their jobs to become entrepreneurs.
But, interestingly, they found the strategy so successful, that that turned it into a business that is now thriving.
The business, Airbnb is essentially the "eBay of space." It works like this...People list their apartments and houses (if they aren't going to be home), and even spare guest rooms, futons, and couches on the site and set a price per night. And then travelers who are looking for a place to stay search the listings for an accommodation that's right for them.
So, real estate owners and renters earn money, travelers get a discount, and Airbnb earns a 10% fee on all transactions. A true win-win-win. As you might imagine, Airbnb is doing very well, and is now in over 1150 cities in 82 countries.
My takeaways/lessons here are two-fold: first, if you have extra space or are traveling, you should consider listing your space on Airbnb to generate some revenues to invest in your business. Second, as this company illustrates, you can never be too creative in coming up with ideas to fund your business.
If you want to see a brief video of the Airbnb team, including their story of how Barry Manilow's drummer is one of their top users, here is a cool clip:
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