The crew at Venture 360 (a North venture…) has just teamed up with Marc and Clint over at Startup Weekend to bring their throngs of ambitious entrepreneurs some valuable insight and to support Startup Weekend in their mission to foster more innovation around the globe.
Startup Weekend is a 54 hour startup event that provides networking, resources, and incentives for individuals and teams to go from idea to launch. Yep, you read it right. Attend a weekend and you’ll be able to network with like-minded local developers, innovators and entrepreneurs. Be apart of creating a company. And as they like to say about their events, they’re “No Talk. All Action”.
Attendees of upcoming Startup Weekend events will not only receive some pocket-pleasing discounts on Full Venture 360 analysis reports, each formed team will receive complimentary access to the Venture 360 analysis software to help them develop their business plans and put their weekend ventures on the right track.
The strategic partnership will kick off at the upcoming Women 2.0 Startup Weekend in San Francisco, August 28-30, 2009 and the Startup Weekend Redmond @ BizSpark on the exact same weekend. Both events will have excellent turnouts, so we recommend you snatch up a ticket fast.
Read Full Post »
Is Your Revenue Model Automated?
The purpose of this element is to determine whether or not the company can automate the revenue model. Transactions and sales take time (time is money); even retailers spend a fortune on making checkout happen just a few seconds faster. For a business to successfully scale and grow, a turn key sales process will prove invaluable. If each transaction requires many human hours and long contractual negotiations then the revenue model will surely suffer.
Transactions that happen automatically without any human interaction (web sales) are certainly the most effective in terms of volume of transactions. The ability for a company to sell its wares at any time makes sure they are leaving no money on the table. A key to speedy growth is the ability for a business to sell their stuff 24/7/365.
Quick simple transactions that make sense to the consumer are more likely to achieve smooth predictable growth than an overly complicated model or processes. If the transaction process is overly manual, time consuming or difficult, than even the best unit economics may start to break down quickly.
Some key questions we ask when taking an in-depth look at a new venture’s ability to automate their revenue model: Does the business have a long sales cycle (>90 days)? Can it make money quickly (<5 days) without any human interaction?
This is just one of the key criteria forward-thinking investors use when evaluating the strength of entrepreneurs and their new ventures. How do you measure up? Go to www.venturephenomeproject.com to read all 80 criteria and swap knowledge with other entrepreneurs & investors.
Read Full Post »
Posted in Entrepreneurial Insights, Investor Insights, tagged Angel investing, efficiency, filtering, focus, innovation, money, raising money, Trust, Venture Analysis on March 23, 2009|
Leave a Comment »
The following excerpt is taken from Breaking Through The Broken: The Transparent Guide To Overcoming The Inefficiencies In Early Stage Venture Capital.
A good presentation with a good PowerPoint given by an individual with a strong personality can easily sway a room full of investors into cutting a check. Investors need to be sure they’re not getting charmed out of their hard earned cash and that the great presentation was great because of what was being offered. Investors need a better mechanism for filtering investments, a standardized venture “combine” if you will. There are simply too many new ventures looking for help and money, and the process for filtering these opportunities is still based on a complex network of personal relationships that will never scale to meet the market needs. As the global economy expands and moves forward, new systems and technologies need to be implemented to accelerate American innovation as well.
As we mentioned, trust is key, so an investor may make a move on a deal because it was given to him or her from a trusted individual (as a favor, for example) even though it may not be the best deal for them. Angel networks provide some buffer between enthusiastic entrepreneurs and investors, but more often than not the Angels are the ones who are doing all the screening work anyway; it’s not as if they can just show up with the confidence that all the pitches they see will be high quality opportunities.
The answer to this problem is pretty simple; look at the entire investing ecosystem and see where there are constraints. Then we need to collectively implement plans that remove those constraints. The systems and technologies are at our fingertips, it’s time we stepped up and innovated ourselves.
Entrepreneurs need to stop jumping in just upstream of a logjam and wondering why they aren’t floating downstream to paradise. Here’s a tip; paddle to shore, load your canoe onto your back, and hike around the blockage, and then put in downstream. Ignore the reams of angry entrepreneurs clamoring on and on about how the market is this or how the market is that, or go ahead and join the masses pushed up against the dam who are wondering what will happen next.
If you’re interested in learning more about how a Venture 360 due diligence engagement can make you a more effective and efficient investor or entrepreneur, please contact us by sending a short email introduction to email@example.com and we’ll set up some time to discuss how we can help you avoid the logjam.
Read Full Post »