Wisconsin Governor Signs Investment Capital Bill For Startups

Wisconsin startups just had another victory on Thursday as Governor Scott Walker signed an investment capital bill.

The bill, which drew bipartisan support in the state legislature, provides $25 million dollars to startup companies in Wisconsin. Unlike other states, though, this bill was specifically for tech startups vs biotechnology and life sciences. In most states it’s harder for general tech companies to draw this kind of support from the government.

In the case of the Wisconsin bill, startups in agricultural technology, information technology, engineered products, advanced manufacturing, medical devices, and imaging are all eligible for the new funding.

While biotechnology and life sciences companies can create jobs over a much longer period of time, Wisconsin is looking for companies that can create jobs quicker.

“The $25 million allocated for this program in the state budget will help grow private sector jobs by investing in start-up companies,” Walker said in a statement. “One hundred percent of the funds from this program will go to Wisconsin-based businesses, and there are a number of measures in place to ensure accountability and transparency for the hard-working taxpayers.”

Fox11online.com reports that the $25 million dollars in tax payer money will be matched with $50 million in private donations.

“I hope that once success is shown, it will lead to additional measures to increase the amount of capital for new businesses and more Wisconsin jobs,” Walker said in a statement.

Chicago Startups Raise $146 Million In Q2 2013

Wow! Builtinchicago.com has published their latest Digital Startup Report for Q2 2013. As expected the Chicago startup community has performed extremely well. 37 startups raised $146 million dollars in the second quarter of 2013.

If you’ve ever been to visit Chicago’s startup and technology scene you would see for yourself the creators, the innovators and the synergy that surrounds the third largest city in the United States. Two weeks ago we were in Chicago for Chicago TechWeek 2013 where over 100 different startups were showing off their stuff. In addition they hosted a job fair, where over 1000 engineers, developers and designers pined for jobs from over 100 Chicago based technology companies.

Chicago being a focal point for technology in the midwest is nothing new. Big Marker published this infographic in celebration of Chicago TechWeek highlighting some technology companies like CDW, Cars.com, and Groupon that have become household names.

In the second quarter of 2013 Chicago saw 26 new startups launched, 37 companies funded, and 4 exits to the beat of $396 million dollars.

These Chicago companies raised money in Q2 2013:

AvantCredit
Blitsy
Blue Health Intelligence
Care Team Connect
CareXtend
Civis Analytics
ClaraStream
Fandium
Fooda
GreenPSF
Healthation
Inventables
Narrative Science
Neohapsis
OptionsCity
Optyn
Pangea
Pervasive Health
Project Fixup
Purple Binder
Resultly
Rocketmiles
SimpleRelevance
SocialCrunch
Spare To Share
Supply Vision
Target Data
Total Attorneys
uBid Holdings
walkby
Whittl
Whoozat Inc
YCharts Inc
Purchasing Platform
Zipfit

These are the companies that made an exit in Q2

Textura (IPO)
Acquity Group (Acquired)
Spooky Cool Labs (Acquired)
Cartavi (Aquired)

Source: Builtinchicago.com

Mark Cuban, NEA And More Back Boston Startup Tivli

Mark Cuban, Tivli, Startup, Boston Startup

Mark Cuban (photo: JD Lasica flickr)

Tivli is a startup that’s bringing college students live TV over the internet. The company streams live TV, including broadcast channels, to students on their web connected devices, no matter where they are on campus.

The Boston Business Journal reports that Tivli was founded by 2009 Harvard engineering graduates Tuan Ho and Nicholas Krasney. They also beta tested the product on Harvard’s campus in 2011. The Tivli service has since expanded to Yale, Texas A&M, The University of Washington, and Wesleyan University.

“Tivli is a fast-growing entertainment service for college campuses that streams live, time-shifted and on-demand TV content to students on their terms — when they want, where they want, and on the devices they want,” said Christopher Thorpe, the company’s CEO in a news release on their website. “Tivli also provides an innovative service to the universities with cost-effective, secure video distribution over their existing data networks. Moreover, students tell us that Tivli makes their on-campus living experience even better. We’re proud to have earned the support of our world-class investors and look forward to working with them as we build a great company.”

On Wednesday the company reported that they had closed a Series A round led by New Enterprise Associates (NEA), with participation from Felicis Ventures, Rho Ventures, HBO, Mark Cuban’s Radical Investments, WME, and CBC New Media Group.

Cuban, the owner of the Dallas Mavericks, ABC Shark Tank shark, and angel investor routinely invests in startups in a wide variety of technologies. Tivli was especially appealing to him because it’s in the video space ,which he is very familiar with. Cuban is also the founder of HDNet which is now AXS TV. He also made his first billion selling broadcast.com to Yahoo.

“I’m excited to be part of Tivli and think they are the future of entertainment on college campuses,” Cuban said in a statement.“Tivli is a great complement for AXS TV and my other entertainment investments.”

You can find out more about Tivli here.

Here’s a way not to get an investment from Mark Cuban.

Mobile App Development Companies Are $262 Million Dollars Hot!

CB Insights has released a new report on mobile app development companies. According to the industry publication, mobile app development companies have taken in $262 million dollars in venture funding since 2012.

The magnitude of that number is all relative to how you view the overall startup world, because many startups are mobile first. In this case CB Insights is reporting on “startups that provide tools and platforms to build mobile applications.” This encompasses startups that are building apps for other companies and clients, internal apps, and web tools and do-it-yourself platforms. 59% of total funding for these startups has come since 2012.

The $262 million dollars is across 36 deals. That 59% is of the $446 million to the mobile app development space overall, reports CB Insights.

Huge acquisition deals like Facebook’s acquisition of Parse in for $85M and IBM’s $70M acquisition of Worklight in January 2012 contributed to the steady growth.

There are also mobile app development companies like Florida’s Appsbar which provides a DIY platform for small businesses and individuals looking to create apps that haven’t taken any venture capital and have already started generating healthy revenues.

Check out CB Insights chart below.

Ann Arbor Venture Firm Raises First $11 Million Dollar Fund

Huron River Ventures, an Ann Arbor and Grand Rapids, Michigan-based venture capital firm, announced late last week that they have raised their first venture capital fund.

“We started working on this fund in 2010 and we had our first close at $7.5 million in March 2011,” managing director Tim Streit told AnnArbor.com.

Huron River Ventures is a ten year fund and to date they’ve deployed about 30% across seven different companies. They plan to invest in another 7 or 8 companies within the next two to three years and round out the fund at 15.

The fund was started by Streit and college friend Ryan Waddington, who met at the University of Michigan. The goal of the fund was to invest in Michigan companies and with that mission they were able to raise an initial $6 million dollars from the State of Michigan as part of their Accelerator Fund Program.

“We’re here, we want Michigan deals, and that’s what we focus on… we invest in Michigan-based companies or companies that have a strong presence in the state. Almost all of our capital is from the state or investors who are from Michigan or still live here.” Streit said.

Announcing a fund’s closing is basically a formality; however it sends a signal to Michigan entrepreneurs that Huron River is funded and ready to invest.

Find out more about Huron River Ventures here.

source

Check out this new startup accelerator in Michigan, Coolhouse Labs.

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NY Emotional Commerce Startup Fab Raises $150 Million At A $1 Billion Valuation

We’ve seen some crazy venture funding, and even crazier valuations, lately. We’ve even some some crazy acquisitions like the $1 billion dollar Tumblr deal.

Unlike some of these other deals though, Fab, a startup that CEO Jason Goldberg calls “emotional commerce,” has customers, revenue, and a big plan for all of the money they just raised. How much was that? Well according to multiple sources the New York based startup raised $150 million dollars at a $1 billion dollar valuation. What’s more is that TechCrunch is reporting Fab has another $100 million dollars on the way.

Investors in Fab’s recent deal included Andreessen Horowitz and Atomico. New investor, Chinese firm, TenCent is also reported in the deal. This latest round brings their total venture funding up to $310 million.

Why on earth does an e-commerce site need so much money? Well the folks at GigaOm got a hold of this excerpt from a blog post Goldberg plans to post next week.

“Fab is focused on the long term. We are focused on creating “Wow!” shopping experiences that will result in customers making 20+ purchases from Fab within a couple of years. We are focused on being the global brand that represents emotional commerce for decades to come. Fab is not about a single transaction. Fab is about creating Wow! experiences in everything we do, from the unique merchandise we offer, to the user experience on our website and mobile apps, to fast delivery and a delightful out-of-box experience, to the follow-on customer service. We truly believe that it takes investing in Wow! in order to build the next $10B+ E-commerce company, and that’s what we’re doing.”

You can check out Fab here

CentUp Comes to Nibletz, See What It Does

Have you ever read a great blog post and wished there was some way to show your support? Sure, you could leave a comment or tweet a link. That stuff’s great. But you know what content creators really need?

Cash. Just like the rest of us.

There’s been a slowly growing trend of micropayment companies in the last few years. The deal is that you, the reader, give a very small amount–even a few pennies–to your favorite bloggers or content companies when they create something you like. It’s another way of showing your gratitude and helping them stay in business. Win-win.

Now, though, Chicago company CentUp is upping the ante even more. Instead of transactions straight from consumer to content company, there’s a third party benefiting from your pennies: charities.

CentUp will take 10% of all donations, and the other 90% will be split evenly between 1 of 6 charities and the content provider. The charities include national nonprofits such as Love146 and The Fender Music Foundation. As the company grows, they plan to add more charities.

Nibletz is proud to be a CentUp publisher. Our button is right there at the top of each post. All you have to do is sign up with CentUp, then start clicking. Besides designating how much you want to give, you can also use the button to Tweet about your donation. It’s similar to a Facebook “like” button, but benefits a couple of great organizations.

For our part, we will use our portion to continue our Sneaker-Strapped Road Trip. This enables us to travel the country, get in the trenches with great startups, and talk to amazing investors. It’s also when we cover awesome events like SXSW and Southland, which starts tomorrow. In fact, the majority of our content (which we know you love!) comes from our Sneaker-Strapped Road Trip. Love Nibletz? Every little bit helps us continue to be the voice of startups everywhere else.

Andreessen Horowitz & More Back DC 500 Startups Company Spinnakr

We’ve been in DC meeting startups from 1776 DC, hearing Mayor Vince Gray speak, attending a party for Speek, and also attending AngelHack. And, there’s other big news.

This morning Spinnakr announced a substantial seed round led by iconic Silicon Valley venture firm Andreesen Horowitzh. Co-founder Michael Maynerick wouldn’t comment on the exact amount, but he told Nibletz that the round was “substantial.” It also included 500 Startups, Point Nine Capital, Sand Hill Angels, and others.

Last year the Washington, DC company was chosen for the 500 Startups accelerator program in Silicon Valley. While the team moved across the country (and is still out there), Mayernick is still firmly planted in the DC Tech scene. He’s one of the organizers for the DC Tech Meetup, the curator for Startup Digest DC, and was named a Tech Titan by Washingtonian Magazine in 2011.

Back in March when we visited 500 Startups, we spoke to Mayernick, who talked about how important it was to lay foundational roots in Washington DC before trekking out to 500 Startups. Dave McClure, the founder and Managing Partner at 500 startups, grew up and went to college not too far from Washington, DC. Paul Singh, a 500 startups partner who has now ventured out on his own, is also from the DC area. Markerly, founded by Sarah Ware and Justin Kline, is also a DC startup that went out to 500 Startups for the 2013 winter session.

For the past year, the company has quietly been working on a novel approach to web optimization. “We found it intolerable that users should have to do all this work to extract any value from their analytics,” noted Spinnakr co-founder Adam Bonnifield in a statement. “We saw a future of analytics where insights are simply delivered to you, alongside actionable recommendations that you can deploy instantly.”

Here’s how it works: Spinnakr’s novel real-time insight engines analyze the endless stream of visitor data the instant a visitor arrives to a site. These insight engines can detect changes and trends on the fly, such as the arrival of a certain type of visitor, a spike in a set of search terms, or a surge of traffic from an article. Site owners are notified immediately of the event and are empowered to “respond” to these events by changing their site or adding custom messaging targeted to that visitor segment. These changes can be made directly in the Spinnakr application, sent from an email, or crafted using Spinnakr’s on-site editor. Once the changes are made, this custom messaging is shown to arriving the visitor segment. Over time, this leads to a powerful and complete personalization of a site owner’s content.

Spinnakr’s real leg up on the competition: traditional analytics products require you to analyze meaning by working through charts and graphs, a process that takes time and expertise. “Spinnakr automatically discovers these insights in real-time, and tells you exactly what you need to do to benefit from that intelligence, closing the loop as quickly as the data comes in,” Maynerick said.

Bonnifield adds, “All of our evented insights contain actionable recommendations to boost signups and sales for our users. They can choose to accept the recommendation, and if they like, deploy custom, targeted messaging to their site to respond to the traffic event directly from the app.”

Notably, Spinnakr has found so far that this approach to website optimization produces strong and immediate improvements in conversions that significantly outperform existing approaches. Spinnakr users frequently see over 100% conversion lift on messaging compared to the 10 – 30% typical of traditional web optimization methods like A/B testing.

Spinnakr’s founders believe this represents a new web analytics paradigm for the big data era. “When people think about website optimization they think of a slow-moving, marginal process,” said Mayernick. “But the world is filling up with data, creating an endless stream of opportunities. The real winner is the person who can discover them instantly and react in moments. We see a future where analytics will work this way, and we believe we’re building the product that will help define it.”

Spinnakr currently serves SMB, ecommerce, and emerging enterprise customers, while currently optimizing 10 million page views per month.

Spinnakr founders Mayernick and Bonnifield had previously built some of the first online targeting systems used in politics, working with Congressional, Senatorial and gubernatorial campaigns while setting fundraising records in 2006 and 2008. Spinnakr was previously awarded the top startup at both the Data 2.0 Summit and the Founders Showcase.

Check out Spinnakr here.

See what DC Mayor Vince Gray had to say about DC Tech this week!

Check out this must attend conference early bird deals are almost up!

When It Comes to Communications, Startups Need the Whole Package

These days, you can start a company sitting in your pajamas with a laptop. Buoyed by cutting edge technology, the wisdom of crowds, and cloud computing, there are more startups than ever before. Separating the heroes from the hype can be quite the challenge for investors, so it’s important that entrepreneurs have a clear and attractive startup communications package from the get-go.

Pitch with Clarity and Authenticity

To get up and running, startups have to sell their sizzle before there’s any meat near the table. They must communicate their dreams and talk about how they’re ushering in the future. But they’ve got to be smart about selling those dreams to investors. For example, I recently received an automated email to consider investing in a startup called Crave. At first glance, it looked promising. The email contained praise from a successful male venture capitalist, and the CEO is a Stanford man.

Then, I found out what the company’s product was: vibrators. For women. So I had two men telling me how superior their vibrators were. I don’t think I need to break out the “mechanic who doesn’t drive a car” analogy here; Crave wasn’t going to pass the sniff test.

Ironically, if you dig a little deeper, you’ll find that Crave actually has a female co-founder who fits the bill of authentically leading product development. Crave could benefit from using her when pitching investors. Being clear from the start about what the product is, as well as having an authentic spokesperson, is much more sensible.

Show off the Good Stuff

When pitching investors, it’s crucial to highlight business components savvy investors will be looking for. It starts with having the right team members, front and center, to communicate your idea. Startups capable of enticing investors typically have these qualities:

A seasoned entrepreneurial team — This doesn’t mean all the execs must have salt-and-pepper hair, but not everyone should be fresh off campus. Your money, sales, and operations people need to be experienced.
The best execution — You don’t necessarily need a new idea, but a high-quality startup will have the best way to execute a solution to a big problem and be able to explain to investors why your way will be profitable.
Clear commitment — Your team’s personal passion should be visible, with everyone committed to your dream.
A solid exit strategy — A viable startup has smart ideas about who could eventually acquire it.

Eliminate Red Flags

The things that turn off investors are the same things that hurt startups in the long run. If your company exhibits any of these characteristics, you may have a problem convincing investors it’s the real deal.

Part-timers — There are exceptions, but if an entrepreneur is working part-time for her dream and part-time for “The Man,” she probably doesn’t believe in it as much as she wants an investor to. If you’re not ready to take the leap as a full-time entrepreneur, you’re probably not ready to take your idea to investors.
Family on the team — There are some killer family combos out there, but more often than not, family members are hired out of convenience and not because of any super skills they possess. If your business partner is family, make sure there’s a compelling attribute she brings to the team, and be able to sell that to investors.
Perceptible lack of process — Anything can look slick and stunning with today’s racy design platforms. But is anything actually getting done? With the rapid pace of the tech world, delays tell investors your company isn’t serious about breaking into the space.
No dream — Elon Musk. Richard Branson. Steve Jobs. These are entrepreneurs whose names are synonymous with “dreams.” It’s not just a matter of having passion for your business — it’s being able to communicate your dream to investors and make your excitement contagious.

Have the Right Answers

So, what questions should you be prepared to answer to show investors your startup is worthwhile? These three help expose a startup’s entrepreneurial DNA:

If you were going to be acquired today, who should acquire you, for how much, and why? Your answer must be thoughtful, with a clear plan for execution.
What’s the biggest problem with executing your dream? You can — and should — admit that you wrestle with this question on a daily basis.
Why does the world need you? The perfect answer here should not include a financial spreadsheet.

Show the Startup’s Full Potential

Being passionate about dreams is vital, but for a startup to be taken seriously, it also needs to be functional. You must show confidence in these practical aspects of your startup when pitching to investors:

The Technical — Does your startup have capable, mature technology that’s easy to execute?
The Financial — Can your business be scaled from the running start investors might give you? Do you need $1 million, or several million, to get significant scale?
The Managerial — Are the right leaders in place? Will they help optimize and scale your technology?

The Basic Communications Toolkit

Additionally, a basic communications toolkit gives startups a strong foundation to draw in investors. Pack your toolkit with these tips:

Maintain a website with a compelling story that encapsulates your voice and vision.
Create an engaging tagline for your elevator pitch. Think Kabbage’s “Easy cash for online sellers.”
Memorize the key components of your pitch deck, from market size to customers of note.
Be able to give detailed financials upon requested.
Utilize websites like AngelList and LinkedIn to build your online presence and spread your mission.

At the end of the day, daring visions capture investors’ attention, and substance convinces them. If a communications package shows passion on the outside and holds up to the logistics within, investors will be confident of getting a substantial return, which equals success for the startup.

Because this article was published, a donation will be made to Reading Is Fundamental so a book can be given to a child.

Lisa Calhoun is the CEO of Write2Market, an industry leadership consultancy that changes the world by helping tech and energy companies gain the reputations they deserve. Write2Market helps its clients scale by nabbing headlines, speaking engagements, and key business development opportunities, all with an eye on creating the best possible exit for the founding and investment team. Connect with Lisa on Twitter or LinkedIn or at her personal blog.

Gainesville Startup Fracture Secures $500,000 Investment For Their Photo To Glass Platform

Fracture, a Gainesville Florida startup, specializes in preserving digital photos on beautiful glass works of art.

The end result is a stunning piece of art you can hang on your wall or put on your desk. It comes out a lot nicer than the canvas prints you can order from places like Walmart. The do-it-yourself ordering system is simple enough for anyone who has a basic grasp of taking and printing digital pictures to handle.

A user simply creates an account on fractureme.com, chooses the picture they want printed, decides on the size of the printout, pays and–voila–their picture is turned into a stunning piece of glass. Prices range from $15 to $125. Printing takes between 24-48 hours and orders are shipped shortly after.

On Monday, the startup, created by two University of Florida students in 2009, announced a $500,000 angel investment from Tamiani Angel Fund. They also raised $430,000 from TAFI in May of 2012. The Miami Herald reports that they also received a $530,000 convertible debt investment, of up to $1 million dollars from the Florida Opportunity Fund.

“We are grateful for the support the Tamiami Angel Fund has given to our burgeoning company,” Abhi Lokesh, co-founder and CEO of Fracture, told the Herald. “It’s clear they share our vision and appreciate the growth potential of the printed photo display market – a multi-billion dollar market that InfoTrends predicts will grow 40% by 2017.”

Fracture reports that revenue was up 211% in Q1 2013 from the previous year.

Check out Fracture here.

Startup Tips: 11 Tips For Increasing Customer Loyalty

Texas’ Cowtown Angels Announces Largest Investment To Date

The Fort Worth Texas based Cowtown Angels, part of TECH Fort Worth have announced their fourth and largest investment to date. Cowtown has invested $620,000 into Wisegate Inc. This was also the first time that Cowtown Angels have led a round of financing.

The Cowtown Angels members have invested $1,415,000 in four companies to date and currently have two more deals under consideration. In addition to Wisegate, members have invested:

$345,000 in PerioSciences, which has developed a line of antioxidant oral care products

$125,000 in National Dental Implant, developing a non-surgical tooth replacement for non-functional teeth

$325,000 in Inview Technology Corporation, a developer of compressive sensing cameras.

Wisegate is an online community designed to enable IT professionals to exchange ideas and solve problems. The company was founded in 2007 and is generating revenue from their $3,000 annual memberships. Wisegate CEO told the Austin Business Journal that the company has “thousands of members”

Cowtown Angels were the lead investor in a $2.8 million dollar round with 23 participants. They previously raised $461,000 in 2011 and $900,000 in 2010.

TECH Fort Worth receives applications of companies who want to “pitch” to Cowtown Angels members at their monthly meetings, presents the qualified applicants to the Angels’ screening committee and helps companies selected by the screening committee prepare their presentations. Angel members decide individually whether they want to invest in a company.

“I see this investment as validation for our idea that there was a need for a local angel network,” said Darlene Ryan, Executive Director of TECH Fort Worth. “We believe that the Cowtown Angels program increases the amount of entrepreneurial activity here and helps the entire community.”

There are currently 20 members in the Cowtown Angel network.

Have you seen Dialexa, one of the coolest startups in Texas.

12 Of The Hardest Questions Venture Capitalists Will Ask You

What Is Your Hole?

“The classic VC role is that of an interrogator, trying to break you for a key secret. But it doesn’t have to be that way. Folks who watch the TV show “Shark Tank” know this feeling. Time after time, a well-rehearsed entrepreneur goes through his pitch, and everyone loves it. But the Sharks (VCs) keep poking at the startup until they finally find a hole. Maybe the company has zero revenue, a poor growth strategy or a weak CEO. Know your weaknesses better than your strengths. Before our first VC meetings, my team sat down and asked each other “gotcha” questions until we were all experts.”

– Neil Thanedar | CEO and Founder, LabDoor

How Are You Different?

“With proper due diligence and competitive analysis, you should be able to make a case for how you differ from other folks in the marketplace. How can you prove that you have a truly unique value proposition? What is it about your offering, your approach, your technology and your team that makes your company able to achieve and execute on this opportunity? ”

– David Ehrenberg | Chief Financial Officer, Early Growth Financial Services

How Much Is Your Company Valued at?

“The reason why determining the valuation of your company is so difficult is because there is no right answer. On the one hand, you need to be realistic, but on the other hand, you do not want to undervalue your company, as the VC may think something is wrong. The best way to handle this question, and most others that arise when negotiating with a VC, is to do all you can to have several VCs interested in your company. Like in most negotiations, if you have several interested parties, they may bid against each other, which will allow you to obtain the best terms for you and your company.”

– Doug Bend | Founder/Small Business & Startup Attorney, Bend Law Group, PC

What’s Your Customer Acquisition Cost?

“The best way to tackle this question is to show reasonable estimates for customer acquisition, using well-researched numbers and reasonable conversion rates. If you can’t explain how you are going to acquire customers for less than what you sell them on average, at a fundamental level, you have failed to explain your business.”

– Patrick Curtis | Chief Monkey and Founder, WallStreetOasis.com

When Are You Paying Me Back?

“There are many entrepreneurs with amazing ideas. Ideas are a dime a dozen, but execution is everything. Every investor will ask you when and how he will recoup his investment. What experience do you have? What is your track record? Before going into a meeting with a VC, make sure to tell him about your experience, your track record and, most importantly, how you will recoup his money. Lots of people pitch the idea before the finances. Pitch the finances and how the VC will make money; if he asks you a question, then you got him to bite — now it’s all about your elevator pitch. ”

– Ak Kurji | Chairman & CEO, Gennex Group

Why Won’t a Huge Corporation Build Something Like This?

“VCs will ask, “Why won’t a huge corporation build something like this and use their existing customer base and capital to capture market share?” The best way to defend against this is to have technology and intellectual capital that the company will want to acquire, rather than destroy. ”

– Matt Wilson | Co-founder, Under30Media

Why Hasn’t This Worked Before?

“Zaarly raised $14.1 million in a Series A in fall of 2011. But it was a question earlier that spring from Marc Andreessen in our pitch meeting that gave our founding team the most pause, “Why do you think this hasn’t worked in the past?” We didn’t have a great answer — more of a hunch really that mobile technology didn’t exist to allow distribution of information in real time previously. But the question forced us to examine our predecessors who had tried and failed to learn what landmines to avoid. Our lesson: Know your landscape and learn from prior failures and success. ”

– Eric Koester | Founder, Zaarly

How Do You Define Success for Yourself and Your Company?

“VCs want to invest in founders who are dedicated to “hitting a home run.” If you’re satisfied with building a small company, that’s a big red flag for VCs. As we’ve all heard, a number of founders have said yes to exits their VCs wanted them to say no to. Other founders have taken the middle ground by cashing out some of their shares to secure their personal finances, and then continued to go big. Either way, VCs want to invest in founders who are focused on a disruptive, game-changing product/idea. This is a vital point to keep in mind as you consider whether funding is right for you.”

– Mitch Gordon | CEO/ Co-Founder, Go Overseas

Do You Know [Insert Company]? Why Not?

“Anytime a VC throws out the name of a potential competitor that you don’t know or haven’t looked into, it can throw you off balance for a minute. The fact is, it may be a company that you don’t think is a viable competitor, so you don’t know much about it. The best way to tackle it: Tell them the truth, “We looked at our key competitors and that company did not meet the criteria. But we’ll look into it further after this meeting.” The key is to maintain control of the conversation because it shows you can handle a curveball. ”

– Benish Shah | Co-Founder/CEO, Vicaire Ny

What Is Your Plan To Grow?

“The most difficult thing to explain to an investor is your plan to grow. They want to know how you’ll outdo everything you’ve already done. Prep by picturing your future: What staffing or product creation will help you have the business you want to have?”

– Brian Moran | Founder/ Director of Online Sales, Get 10,000 Fans

Why Haven’t You Gotten Traction?

“The best way to handle that question is by not approaching VCs until you have achieved traction. Venture capital should be looked at as an accelerator for existing success, not as a runway extender to get it right.”

– Brent Beshore | Owner/CEO, AdVentures

Debt or Equity?

“Many investors will know going into a deal whether they want preferred stock or a convertible note. Sometimes, however, they will leave it up to the company. Angel investors, in particular are likely to leave it up to the company as the more sophisticated party. For the company, this is an opportunity to maximize the value of the investment, but they must also be wary of getting off on the wrong foot with the investor by being overly aggressive or appearing uninformed. A crash course in VC deals and a good deal lawyer will make sure you maximize the former and mitigate the latter. ”

– Peter Minton | Founder & President, Minton Law Group, P.C

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

Now check out Fred Wilson’s Venture Capital Do’s And Dont’s

New Zealand Startup Accelerator, Lightning Lab, Attracts $3 Million In Follow On Funding

Lightning Lab, the only New Zealand based startup accelerator that is part of the Global Accelerator Network, held their demo day early this month in Wellington. Now in it’s third year, Lightning Lab is a partnership between a group of private professional investors, the science and innovation arm of New Zealand’s Ministry of Business and Creative HQ a coworking and incubation hub in New Zealand.

The nine startups that participated in the 12 week program were:

Publons: a platform for crowd-sourced peer-review of academic articles, where academics build reputation for their contributions. It provides an alternative to the extremely slow, expensive, and closed status quo that hasn’t changed in 300 years.

WIP: a beautifully simple video workflow platform that lets you watch, share and comment on your work-in-progress videos, so you get better feedback faster.

KidsGoMobile: a startup developing a software service to help parents teach their children to become responsible users of their first smartphone. This tool will notify parents if their child engages in potentially risky activity on their phone and gives them tips on how to resolve it.

Teamisto: a startup changing the way sports clubs raise money by generating new streams of sponsorship revenue.

Expander: A cloud-based tracking and analytics platform that gives manufacturers a weapon to fight back against counterfeits, while connecting them to consumers and procuring valuable data in emerging markets.

Adeez: a startup that provides a specialist mobile marketing solution which enables brands and marketing agencies to improve their ROI with mobile campaigns.

LearnKO delivers online learning programs to English language organisations in Asia. We do this by harnessing the talent of Australasian tutors and delivering this via an online classroom to English language organisations.

Promoki a social media gaming platform for photo and video contests

Questo: a startup using game mechanics in real world activities to increase family engagement for organizations.

Their demo day drew 140 investors from across the country and while they haven’t said which of the nine startups received follow on funding stuff.co.nz reports that $3 million dollars in follow on funding has been committed and details will be released shortly.

“Watching Lightning Lab in action was incredible. These results are what makes it worthwhile for the companies which grow out of weeks of hard work, for the investors and mentors who support them, and for the other entrepreneurs who see it and are inspired into action, turning their own ideas into great startup companies going global from downunder.” Tui Te Hau the CEO of Creative HQ said.

You can find out more about Lightning Lab at lightninglab.co.nz

Now check out Startup America joins forces with Startup Weekend for UpGlobal

Fred Wilson, PrivCo’s Report On Tumblr Deal Is Total Garbage

Fred Wilson, who some consider the godfather of New York venture capital, made some money in the Tumblr deal. However he is quick to point out that a PrivCo report that suggested his firm, Union Square Ventures, netted a 5,000% return is “total garbage” Business Insider reported late Tuesday.

PrivCo is a private firm that reports on startups and they claim that they had access to details of exactly how much everyone made in the landmark $1.1 billion dollar deal between Yahoo and Tumblr.

Wilson took to Hacker News where he said “Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.”

Time Magazine is reporting the Privco data, that Tumblr founder David Karp is taking home $253 million dollars in the deal. They’re also reporting that on a combined investment of $5.25 million dollars over 2007 and 2008, and in conjunction with Boston based Spark Capital Union Square Ventures saw a return of 50x which was worth $253 million to USV and $231 million to Spark.

Privco also suggests that Sequoia yielded $176 million and a combined, Greylock Partners, Insight Venture Partners, CrunchFund and Draper Fisher Jurveston made $88 million.

Wilson has not revealed what the actual numbers are, and probably won’t which could make this information just a shot in the dark.

Another early Tumblr backer, Bijan Sabet said on Twitter that the PrivCo report was “complete garbage and incorrect”.

Now check out Fred Wilson’s Venture Capital Do’s & Dont’s