tag:blogger.com,1999:blog-2423709309687562006.post-59510409481771618542008-07-05T14:10:00.008+02:002008-07-05T15:50:42.377+02:00<div style="text-align: justify;">On June 10th, I've travelled to the great city of Boston with my 19 <a href="http://www.venturelab.ch/fr/vLeaders.asp">venture leaders</a> fellows!<br />We've spent 10 days there learning everything there is to know on entrepreneurship, how to move to the U.S with a swiss company, what is paramount to make it work, and most importantly, we've met with greatly experienced people who have given us important feedbacks on our projects and next milestones.<br />On our first morning there, June 11th 2008, we've met Jerry Schaufeld, an Angel full of expertise in entrepreneurship and management. His talk was very interesting. The slides of his presentation are available hereunder.</div><br /><center><br /><div style="width:425px;text-align:left" id="__ss_500093"><object style="margin:0px" width="425" height="355"><param name="movie" value="http://static.slideshare.net/swf/ssplayer2.swf?doc=sharepresentation0620081-shrt-1215264841282978-9"/><param name="allowFullScreen" value="true"/><param name="allowScriptAccess" value="always"/><embed src="http://static.slideshare.net/swf/ssplayer2.swf?doc=sharepresentation0620081-shrt-1215264841282978-9" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="355"></embed></object><div style="font-size:11px;font-family:tahoma,arial;height:26px;padding-top:2px;"><a href="http://www.slideshare.net/?src=embed"><img src="http://static.slideshare.net/swf/logo_embd.png" style="border:0px none;margin-bottom:-5px" alt="SlideShare"/></a> | <a href="http://www.slideshare.net/babsyersin/jerryschaufeldpresentation-500093?src=embed" title="View Jerry_Schaufeld_presentation on SlideShare">View</a> | <a href="http://www.slideshare.net/upload?src=embed">Upload your own</a></div></div></center><br /><div style="text-align: justify;"><br />Just a few of my notes taken on the fly while Jerry was presenting:<br /></div><br /><span style="font-weight:bold;">The commercialization cycle (see slide 7)</span><br /><div style="text-align: justify;"><br />Basically, there was a time (before the internet bubble) when Business Angels (BAs) used to invest when the risks were very high, right after Family, Friends and Fools' (FFF's) funds had been used. <br /><br />At that time, Venture Capitalists (VCs) used to invest at the bottom of the curve.<br /><br />Now, they come after the first customers. They basically take much less risk, they want to see sales, IP, etc, before investing. In summary, they want to see all the things you need money to get!!!<br />In consequence, BAs started to invest later in the process too.<br /><br />People investing on the left side of the curve have 2 characteristics: they believe in your vision, and they usually invest their own money.<br /><br />People on the right side of the curve are professional investors.<br /><br />The implications of this cycle is that everything changes. You have to anticipate these changes. For instance, in finance, you have to anticipate how many people you’ll have to hire, the expenses, etc in order to have correct accounting. Otherwise you are fooling yourself and the investor. <br /><br />You need to find the resources that will help you anticipate these changes.<br /></div><br /><br /><span style="font-weight:bold;"><br />Questions (slide 11)</span><br /><div style="text-align: justify;"><br />1. Should you grow slowly and avoid VC funding or go for VC in order to grow fast?<br />A lifestyle company is a very nice alternative, but more difficult to liquidate.<br />If you don’t expect big promises with outside capital as compared to a lifestyle alternative, don’t do it. Otherwise, it’s worth thinking about. It’s a math question. What does it bring to you and is it worth losing majority? Calculate your “Return On Equity” (what you get in exchange of this tough deal).<br /><br />2. How do you create a board of directors/advisors?<br />A board of advisors is composed of known scientists and they are useful to comfort the investors, but the decision making is up to you in the end. They add value with their names and that’s about it. If it’s advice you’re looking for, you can get the same input with consulting and avoid creating a board of advisors. <br />A board of directors is responsible for the shareholders’ interests. In the USA, it’s a very formal process and it takes years to make it work.<br />You can create ideal profiles of who you’d like in your board in order to choose the board: what sources you will lack in the future that you can’t get with consulting? Anticipate your needs and choose the board accordingly. People of experience. Only bring people that have knowledge and experience in the domain you lack.</div>Barbarahttp://www.blogger.com/profile/05710833314004885986noreply@blogger.com