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Raising Capital Takes 3 P's

Grace Yi - Thursday, January 12, 2012

Posted by Brian Jenkins

 

 

 

I believe that every challenge presents an opportunity.

Identifying the capital to move your idea from the dream stage to launch stage is both a challenge and an opportunity. First know this: you are not alone.  For many launching their first business, or even for those who have successfully launched, identifying start-up and growth capital is a daunting task.

My own experience in raising capital proved to expose and engender me to opportunities that I had never expected. However, the difference between chasing capital versus securing it has more to do with you than you think it does.

A few years ago, I was invited to pitch a project to a new group of potential investors that I had never met at their investment club meeting. A few of the people there were some of Chicago's key business leaders and represented significant wealth--the 1% as politicians would refer to them as. For the most part, they were regular people that happened to be friends of the host, and I enjoyed meeting with them. Though nervous at the onset of my presentation, I kept it focused and clear while confidently sharing about the opportunity involved. The host pulled me aside as people were preparing to leave shortly after my presentation and informed me that enough funding was secured to move the project forward. I was elated! What occurred next was remarkable.

On my drive back to Chicago, I received a call from a couple that had attended the presentation, asking if they could schedule a meeting to learn more about my story and the details of the company. I was shocked at their interest, but knew I had to be prepared for an opportunity I hadn’t anticipated.

We met as scheduled over breakfast and connected while learning about our respective backgrounds, families, and future goals. A single question was then asked of me: “What would you do with $250,000 in investment?” Though caught off guard due to the nature of their interest in my work, I responded—to their amazement—by pulling out 2 copies of my business plan for their review. Surprises were exchanged both ways, but it wasn’t for any lack of preparation on my end that prevented our conversation from moving forward.

The next day, I received a call asking when I would like to stop by their home to pick up the check. I had secured investment capital and found partners who wanted to join me. That experience has informed me to advise many entrepreneurs, both youth and adults, to always: Pitch your ideas, identify Partners, and always be Prepared for success.

The 3 P’s in Raising Capital:

  1. Pitch, Pitch, Pitch (and then pitch some more) your idea within your circle. A colleague shared, “If you don’t pitch…you won’t know what the questions are.” Most presentations and pitch opportunities will likely lead to future prospects to pitch, allowing you to “Tell Your Story” while connecting you to seasoned experts in the field as well as their networks. 
  1. Partner – Identify a capital partner within and outside your circle of influence. Many will immediately say, “But I don’t have a capital partner!” My response: new ideas may require new relationships. It’s likely you’ll have to expand your circle. They’re out there, but where do potential capital relationships “hang out”? Find out who they are, where they work, what do they do, and what social gatherings they typically attend to get to where you want to go.
  1. Preparation – Total preparation demands strategic anticipation. Simply put, if you want to successfully secure capital, you must anticipate securing the capital before the meeting takes place. Developing a healthy Positive Visual Outcome (PVO) will hone your awareness. Visualizing yourself executing the steps in your business plan requires prior planning to achieve outcomes for yourself as well as the potential investor(s) you meet with. Many entrepreneurs have great ideas but have not planned for success, thereby limiting their own opportunities.

 

photo credit: Liz Song

 

eTech Students Get Exposed in the City

L. Brian Jenkins, MA - Thursday, December 01, 2011

Posted by Grace Yi

 

Students from the StartingUp Now eTech IT Training Program got exposed to their first business pitch event at the November Technori Pitch gathering last night.

 

Through the generous support of Seth Kravitz and team at Technori (thanks, everyone!), almost 50 high school students and their eTech instructors from our 2 program locations, YMEN and Tha House, sat inside the Chase Auditorium with 500 other entrepreneurs, developers and tech enthusiasts listening to 6 startups pitch their product and services.

The event, though normally a buzz with plenty of enthusiasm from the crowd, was all the more exciting as I overheard students sitting next to me whisper thoughtful and humorous comments about the companies’ pitches. Each of them had their favorites, running the gamut for why they liked the pitch—ranging from the usability of the product to the way team members presented their information and fielded questions by the audience. It was clear their interest was piqued as the evening progressed, culminating into conversations post-event about the types of businesses many of them envisioned to launch themselves.

We're hoping that this event, along with many other field trips we've got lined up, will help cultivate real opportunities for students to access inspiring ideas, information, and networks to help develop their budding entrepreneurial futures.

It’s never too early to start dreaming and planning, and we couldn’t think of a better way for getting them plugged in to a dynamic, growing and creative industry than technology. Let the developing begin…

 


 

 

           

 

 

 

 

 

 

 

 

 

 

StartingUp Now eTech students & trainers with Technori Co-founders, Seth Kravitz and Val Chulamorkodt

 

photo credit: Brad Wilkening

& Yolanda Richards-Albert  

 


 

 


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