I am on the optional board of a business that is creating an extremely interesting software product. As an Internet-based product, it’s in a white-hot market space. Along with because we’re dealing with a one-of-a-kind product, the business is racing to get it not just produced, however sold.
But there is a difficulty. The market into which the business sells is considered stodgy. That means the folks the business actually has to impress now, specifically those with the money, are not tripping over them to invest.
Along with let’s face it. To get a product completed and sold, you need cash. This business needs $120,000 a month for its bare-bones staff, its bizarre rabbit warren of shared office space, the length of with its passel of computers, Internet connections, Web sites, along with fee-hungry lawyers and accountants.
In short, forget the undertaking capitalists. This is a fledgling by means of a “product” that’s other than an example and big dreams for changing an old-style business. It has to be creative about getting financing. Along with that means heading straight for individual investors by means of bushels of cash along with plenty of dreams of their own: “angels.”
It’s Not What You Know…
At the present, with a challenge similar to that, you’d believe the CEO of this business would walk into our advisory board meeting each six or eight weeks, put his head on the table, sob hysterically, and say, “What have I made to for my part?”
I’m amazed; on the other hand, that such a scene never happens. My friend recognizes the old saying, “It’s not what you know but whom you know.” What’s more, he has abundance of friends of his own, along with better yet, he knows how to create even more friends.
Each month, this CEO rises among $60,000 and $200,000 for the reason that he does not concentrate on making money. He focuses on making friends. Along with that’s the name of the angel game.
But Whom You Know
My friend found each month by means of a panicked look on his face also an edge in his voice; however he pulls it off, month after month. I am evermore impressed with his capability to turn over a new rock, dig down deep, along with pull out some more dollars. Just how has he done this?
Well, he has a record of people he calls on. He sends out an investment inform. He has a schedule of VC types that’s about 50 deep; along with he calls on those people intended for names of angels they might know. He has lunch through friends and friends of friends anybody through a pocket to pick. He has a list of some 100 people whom he is continuously working.
Each person my advisee encounters is a guide. Each person he meets is scrutinized along with examined for information about additional acquaintances that may have money to invest. Along with since he’s in the entrepreneur-rich section of New York known as Silicon Alley, along with he frequents regularly verdant areas in Massachusetts and California, the people he moreover purposefully otherwise accidentally meets tend to have connections who can assist. His list of investors includes stand-alone angels, angel investor groups, and friends, family.
Working the Room
As soon as I started advising his business, I worried that he wouldn’t be able to pull it off each 30 days. At the same time as I am still not used to the consideration that the company never seems to crash, I am now convinced that every month the dollars will come in.
The CEO lives for the contract. He is forever asking, “Who do you know?” If you give him a person’s name, he calls, along with, using your name, he either gets one more name or gets somewhat from the person. That’s how he got to me, throughout a friend of mine. I, in turn, introduced him to other people.
As a salesman, he is good. Boy is he good! He knows the product along with the pitch in his sleep. He’s immense with analysts; along with he has gained super press for a business without a product. He loves to influence relationships. Furthermore he has huge passion for the business, the product, along with his confidence that there is a need for the product.
All of which comes in the course of in his communication with people. People desire to see him along with his company thrive, and they are willing to assist him.
Playing the Game
In actual fact, this is my only anxiety about this CEO. His product will ultimately catch the eye of the VCs, along with I worry that once that happens, and he won’t know what to perform!
Otherwise will he? On second consideration, I can’t wait for the call while he says, “We got the millions! We signed on a VC!” After that he can unleash his firmness, enthusiasm, and passion on his potential consumers. He’ll create the VCs happy, the business successful, along with shareholders giddy over the increase in the value of their stock.
