In addition to consuming copious amounts of “adult beverages” during the session (wheee!), we also discussed the now infamous Bresnitz paper, as well facilitating a lively Q&A session with the audience.

Banks go under the bus, and @Unblakeable comes with the smiley face on for a “Look Who Gets It” segment.  Another great selection of listener emails and a dash of StartupLounge humor to top it all off. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us the Atlanta Technology Angels elevator pitch.
• More specifically, what kinds of deals are you looking for?
• What are the criteria to be an ATA member?
• Explain the process for a company to present itself for consideration by the ATA
• How do most deals find you?
• Tell us about 1-2 investments the ATA has made in the past year?
• How has the economy impacted the ATA’s membership and by extension, the ATA’s funding activity?
• How do deals get funded in the ATA?
• Are you personally invested in any deals?
• Once the ATA invests in the deal, how active is your participation in the company’s management?
• Are the deal terms more or less standard or do they vary deal to deal?
• How long does the evaluation process take?
• How did your background lead you to angel investing and the ATA?
• What do you think your strengths are as an investor?
• Why did you want to become the ATA President?
• What are your key agenda items for the ATA under your leadership?
• Who are some of the other key leaders at the ATA?
• What do you see as the key challenges of the Atlanta venture environment?
• What’s your assessment of the funding environment today and a year from now?
• What’s an instant turnoff for you when companies present?
• What are your thoughts on the paper published recently published by Georgia Tech professor Danny Bresnitz?
• What’s some advice you can give to companies to maximize their opportunity with the ATA?

Listener Emails Read and Answered on the Show:

AJ: Recently there was some drama around an academic paper co-authored by Georgia Tech professor Danny Bresnitz.  In the paper, the authors came to a number of conclusions about the Atlanta startup ecosystem – what do you guys think?  I’d also be curious to hear Gordon Rogers’ thoughts on this topic as well.

OTP4Ever: I am looking to raise some capital for my startup and have a corporate structure question. I know that outside investors typically invest in “C-Corp”, so there can be multiple classifications of stock and what not.  But obviously, as a green-field startup, I don’t want to do a C-Corp initially, because of the dual taxation.  If I form an S-Corp or LLC initially, is that going to be a turn-off for an angel investor or?  Can I switch the company structure when I have a term sheet, or do I have to start out as a C-Corp?  Any guidance you guys could provide would be helpful! Thanks!I am launching a new internet business and I need to get a quote for web design work.  My question is this.  How can someone get an accurate quote for Web design on their new internet business without giving away the idea?

Karl: Scott/Mike, I just discovered your podcast and absolutely love it! I have an issue that you guys can hopefully help me with.  I have been asked by a friend of mine to function as the Company’s CFO and Treasurer during the development phase of the Company. The agreement is for this not to be more than 20 hours per week and involves maintaining the accounting records, preparing corporate tax filings, develop the business plan and to assist in the search for venture or angel capital funding. Whatever equity interest I agree to take will be substantially diminished by the introduction of outside capital. I have some thoughts of my own, but I’m interested to see what you guys think is a fair way to go about measuring this?

Guest Bios:
Gordon Rogers, President, Atlanta Technology Angels

Gordon is an economist, entrepreneur and angel investor. After working as a financial analyst, in 1988 he established a business (Meliora Systems, Inc.) that created one of the pioneering products in the corporate e-learning & talent management field (Ingenium). He guided the growth of the company from a start-up to IPO through a merger in 1998 with Paul Allen’s company, Asymetrix Learning Systems (ASYM). This exit event yielded a 12X return for initial investors in the business.

After leaving ASYM/CLKS/SUMT in 2000, he spent the next several years investing in and serving on the advisory boards of various tech startups in the e-learning and online coaching sectors. He now focuses primarily on helping early stage ventures in the the digital media and edutainment sectors raise capital and create strategic partnerships.

He is President of Atlanta Technology Angels, and a member of Angel Lounge , the MIT Enterprise Forum, and the Atlanta CEO Council. He is also Managing Director of Vernon Bridge Ventures, an early stage capital/advisory firm. He serves on the boards of Rapid LD and Good Egg Studios.  He is also an angel investor in Elf Island, a new social MMO for kids.

He has extensive experience serving on boards of non-profit organizations (YMCA of Greater Atlanta, Interfaith Outreach Home, Teacher Support Network, The Lionheart School). He received the 2006 Volunteer of the Year Award from the YMCA of Metro Atlanta. He recently completed his first Olympic distance triathlon to raise money for the Leukemia & Lymphoma Society.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player. You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Underground by Roadside Attraction
• Tweetin’ on a Jet Plane by Steve Goodie
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.  And if you still think our shows are too long, frankly, we just don’t care.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Gordon for coming in and hanging out with us!  Also thanks to Ed Riecker and the gang down at 151 Locust for hosting us and throwing a great party!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

Apologies to everyone for us going over our time limit.  We quite literally threw the presentation together a day or two before the event.  In retrospect, we probably could have done a better job in marrying our content to Schinkel’s schedule.  We will most likely have an initial meeting with all the volunteers, then have another community meeting which will be a *very brief* presentation of where the group is, and to solicit additional ideas and direction.  As Schink points out in his opening remarks, this particular meeting was just the first meeting of many, and will eventually involve a lot of other groups within the community (not just AWE).

This edition of the StartupLounge.com podcast is actually a screencast/video.  You can use the links below to view.

In short, our Startup Cloud concept is an effort to address provide several key services to the community:

1. Provide a “jumpoff” point – where new entrepreneurs and investors can “get plugged into” what is happening within the Atlanta early-stage scene.
2. Provide better event coordination between the bazillion startup groups in Atlanta – i.e. shared calendar .. yay!
3. Provide a “virtual incubator” whereby the community incubates itself
4. Provide a vehicle to bridge into the corporate world, to bring Atlanta’s corporate players to the table to look at the innovations that are happening here (side note: Since this meeting, we’ve made some progress on this front – looks like we have quite a number of Fortune 1000 companies already interested in hosting events and playing an active role in this).

This was a platform that we started building about a year ago, but as we mention in the presentation, it will take us 20 years to finish the thing given our current schedules.  So, we decided that opening up the initiative to the community is an even better way to go – more hands involved, and more importantly, additional voices and input.

Oh, and for the person who emailed me about the “Boss Hogg” slide – the three personas illustrated are not a reference to anyone specifically, but rather stereotypes that we’ve all come to know and love.

Unfortunately, our A/V guy had to leave the event after the break, so we were unable to record the audio Q&A session at the end.  Which is probably a good thing, because some of it went a bit tangential.  But we did take copious notes, so we’ll be putting something up online soon.

At the end of the day, we pitched a very abstract concept, and managed to get an absolute boatload of people to sign up to volunteer to pitch in and help with the project.  Since the night of the AWE meeting, we’ve since reached out to some of our VC and startup contacts in North Carolina, and they are interested in simultaneously launching the Startup Cloud concept in North Carolina as well.

We have been woefully behind in our reaching out to those who have volunteered to help.  Thanks for your patience!

More soon …

Enjoy!

Unblakeable brings the heat behind the wheel of the bus, this time knocking some pretenders silly.  And, to commemorate Memorial Day, Scott spontaneously bursts into song with an acappella stadium rendition of the Star Spangled Banner (yes, lol – that is really Scott singing – your call as to whether it is comedy, tragedy, or both). Another great selection of listener emails and a dash of StartupLounge humor to top it all off. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us the 30-second elevator pitch on Value Plus Ventures
• Describe your consulting/investing hybrid model
• The model sounds as if you invest in companies with the result that they turn around and pay you for consulting fees?  Is that an accurate picture?
• How does the hybrid model differ from any active early stage investment firm’s model?
• Are there other investment firms that have had success with a similar model?
• Have you found the model makes it harder or easier to do deals?
• Why did you choose that model?
• Your web site mentions that VPV will look at deals across most any sector – but are there sectors or trends that are of particular interest to you right now?
• Can you talk about some deals that VPV has done recently?
• Was it hard to raise this fund, given the economic climate?
• What is the story you tell potential limited partners that excites them about investing in Georgia and the Southeastern US?
• How long does your deal evaluation process take?
• How do deals generally find you?
• What is the impact of the current economic climate on your investing behavior?
• What impact is the current economic climate having on your portfolio companies?
• What advice do you give to entrepreneurs regarding addressing the current economic environment?
• What impact is the current economic climate having on your deal flow?
• What is the VPV view of the Atlanta and Southeast early stage venture scene right now?
• When looking at a deal or an entrepreneur, what gets you very excited?
• When dealing with you guys, what’s one thing that’s an absolute no-no?
• How involved are you day to day with your portfolio companies?
• If you were to “sell” yourself to an entrepreneur to take you on as an investor, what do you think is your biggest selling point?
• What is a piece of advice you would give to new early-stage investors?
• If you could change something in the environment to make your jobs easier, what would that be?
• What is the best way to get an opportunity in front of you?
• If you were to give one piece of advice to entrepreneurs that might want to approach you for capital, what would that be?

Listener Emails Read and Answered on the Show:

Bill: I have reached the point where I am talking to an angel investor about my project. They are interested and trying to evaluate whether my invention has the potential to succeed. O.K. that’s great… but my mind is reeling, what happens next? What are the next steps to when an angel does say, “Yes, I want to get involved and supply you with funding.”???I want to stay ahead of the curve, and not get caught flat footed, if I get the green light.

MarketMaker John: All investors are obviously looking for a strong return on their investments. I’m interested in those who want a high capital ROI but also want those investments to simultaneously influence positive change in the world. I am of the belief that “social” and “capital” investments do not need to be separate. How do I find investors that share this same viewpoint? Do they exist?

MGreene: Scott has said many times before that entrepreneurs should never be afraid to reinvent themselves (as it pertains to the direction and focus of their company).  Thinking about that earlier today made me curious about something.  If you guys (Scott and Mike) could create StartupLounge all over again, what would you do differently?

Guest Bio:
Lee Provow, Partner, Value Plus Ventures

Prior to joining Value Plus Ventures, Lee served as President, Global Operations for Premier Global Services and has more than 20 years experience in the data and business services industry.

Prior to joining Premiere Global in 2003, Lee served as Chairman of the Executive Committee and Chairman of the Board of Comdial Corporation, a converged voice and data communications service provider offering advanced business phone systems, Voice over IP (VoIP), voice processing, unified messaging, and computer telephony integration solutions.

In 2002, Lee was President and Managing Director of Commonwealth Holdings, LLC, a private investment fund. He served as President and Chief Executive Officer of Intelispan, a provider of network solutions and enabler of electronic communications, from January 2000 until McLeod USA acquired it in December 2001, and he served as a director since August 1988.

Provow was a founder and Chief Operating Officer of GridNet International, a provider of enhanced data communications services, from 1995 to July 1997 when it was acquired by WorldCom. Lee began his career in the transaction processing division of NCR where he spent 15 years in various domestic and international technical, marketing, product management, strategic planning, and execution positions.

He is married, has two children, and is a resident of Atlanta, Georgia.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.  You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Underground by Roadside Attraction
• 10,000 Friends on MySpace by Project Sisyphus
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Lee for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

The bus is back, and man is the driver upset.  Scott brings the hammer down on another misguided service provider who recently took advantage of a local entrepreneur. Another great selection of listener emails and a dash of StartupLounge humor to top it all off. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us the 30-second elevator pitch on Intersouth Partners
• Why does Intersouth have a large geographic investing area (primarily the Southeast U.S)?
• What are the challenges of investing out-of-state for Intersouth, and how do they impact how you do business?
• Why do more early-stage investors seem to be more comfortable with investing outside their immediate area?
• What is attractive about Georgia to Intersouth, and what types of deal flow do you see here?
• How does the deal flow you see in North Carolina contrast to that coming from Georgia?
• How does the general preparedness of entrepreneurs in North Carolina contrast to that of Georgia?
• Where do most of your investment opportunities come from, and what is the best way to get a deal in front of you?
• In which Atlanta-area companies has Intersouth made investments?
• What is Intersouth doing to establish a name or presence in the local market?
• Why is it that a number of North Carolina venture capital firms appear to be actively developing a presence in Georgia?
• Do you see any Georgia investors doing deals in North Carolina?
• How active or strong is the angel investment community in North Carolina and Georgia?
• Do you any regional or local trends in deal valuations?
• Do terms and valuations for investments in Georgia differ significantly from those in the other states where you operate?
• Do you agree with the common perception that there is insufficient capital available in Georgia to fund good opportunities?
• What are some characteristics in our market that make Georgia more challenging than other states? Are there things we can do better?
• Are there certain business models that you see evolving within the technology space that are of interest to you right now?
• What mistakes do you see entrepreneurs with SaaS deals make?
• How do taking advantage of things like cloud-computing factor into deal quality?
• Can you walk us through your investment in Atlanta-based Purewire?
• Tell us one mistake that entrepreneurs make that is an instant turn-off?
• How is Intersouth responding to the current economic environment?
• What are you advising entrepreneurs to do as they react to the economy?
• What is the one piece of advice you’d like to leave with entrepreneurs listening to this show ?

Listener Emails Read and Answered on the Show:

Kevin (from Michigan): I am loving the show and think you guys are doing an awesome job. I stumbled across your Podcast a few weeks ago while searching for an entrepreneur/venture capital educational program. The first show I listened to was Angels in Atlanta, from then on I was hooked. I then started listening from the beginning – I am currently on #23 and listen to at least one show every 1-2 days while driving back and forth to work.

I have always had the entrepreneur spirit but it really caught on fire a few years ago with some consumer product inventions we developed. My recent interest in learning how to raise capital is due to a new venture my partners and myself are taking on, a high performance, high tech, electric motorcycle. It is very exciting and everyone we end up working with is just as passionate about it as we are.

We have completed the bike design and almost finished with our business plan. It appears our seed capital will at least need to be $1M for the R&D phase. This would give us all engineering, tooling and prototypes where we can go into production.

I think the capital lounge is an awesome opportunity for start-ups and I wish we had a connection like that up here in Michigan. Do you think entrepreneurs from outside the Atlanta area could benefit from this event? What areas of the country do the attending investors like to play in? Would a EV start-up from Michigan be considered? Thanks again for the education guys!

Danna: If I were interested in funding a start-up…what is the initial range of buy-in and then return on investment?

David: Just found you last week and listening to your podcast – In the Pandora episode you slammed the slime who prey on start-ups – I actually did a “wahoo!” at J. Christopher’s in Midtown to a series of strange stares. I have recently started focusing on the new venture area and I am disappointed at how far some people justify taking advantage of those who are at maximum flexibility.  When someone has a concept – so often they are willing to do almost anything to see that realized – often to their own detriment.  Not only in the financing arena – but on our side too – the technology side.  U guys rock!  Thanks for doing what you are doing – it is badly needed!

Guest Bio:
John Glushik, Partner, Intersouth Partners

John joined Intersouth in September 1999 and focuses primarily on the technology portfolio. Since joining Intersouth, he has managed the full-cycle venture investment process from deal origination to successful exit, serving as a diligent and respected board member and advisor to management.

John has a background in engineering and consulting within the telecommunications and aerospace industries. His previous experience includes management consulting at Booz-Allen & Hamilton, telecommunications satellite engineering at General Electric and data communications research as a Draper Fellow at the Massachusetts Institute of Technology. He is on the board of five Intersouth companies.

John is an adjunct professor at the UNC Kenan-Flagler School of Business. He sits on the board of VentureSouth, the Southern states task force on venture capital, and serves on the executive committee of the board of directors of the Council for Entrepreneurial Development. He serves on the advisory board of the Entrepreneurs Foundation of the Southeast and is an active member at the Duke University Engineering Council. John holds a B.S. in Mechanical Engineering and Materials Science from Duke University, an M.S. in Aeronautics and Astronautics from the Massachusetts Institute of Technology and an M.B.A. from the J.L. Kellogg Graduate School of Management at Northwestern University.

Comedy Break Lyrics:

Just in time for tax season – enjoy “Kiss This! (Hey IRS)”, by Robert Lund/Michele Davis/Spaff, a parody of Faith Hill’s “This Kiss”:

I don’t want no April 15th
I don’t need another judgment day (no)
Anything the good Lord giveth
Uncle Sam he
Taketh
A-way
‘Cause Big Brother’s got a big debt
Baby, guess who has to pay?

It’s the way you mug me
It’s unspeakable pain
It’s a personal washout
Down a bottomless drain
It’s abhorrently taxing
It’s (uhhnn) believable

KISS THIS! KISS THIS!
Hey IRS -
KISS THIS! KISS THIS!

Doing taxes ain’t so scary
Simply add up what you made (oh)
Take it to the actu-ary
Where he sub-tracts
The tax
You’ve paid
Then you mail in twice the difference
Plus a check for Medicaid

It’s a Form 1040
It’s a penalty clause
It’s inscrutable worksheets
It’s nonsensical laws
It’s unspendable income
It’s (uhhnn) deductible

KISS THIS! KISS THIS!
Hey IRS -
KISS THIS! KISS THIS!

You can tax me on my taxes
Then you tax the funds that remain (oh)
You can tax me on bikini waxes
For a jolt of similar pain (ow)
Slap on sadistic audits
Don’t let anything pass
You’ve bent me over
So kiss – my – assets

It’s the way you mug me
It’s relentlessly lame
It’s aggressively wasteful
This unwinnable game
It’s unsportsmanlike conduct
It’s (uhhnn) depreciable

KISS THIS! KISS THIS!
It’s criminal
KISS THIS! KISS THIS!

Kiss – my bottom line there, baby
Kiss – my bottom line there, darlin’…

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.  You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Underground by Roadside Attraction
• Kiss This! (Hey IRS) by Robert Lund/Michele Davis/Spaff
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to John for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

The 2009 TAG/GRA Business Launch Competition is coming up, and we discussed it in the opening of the show.  “Under the Bus” or “Look Who Gets It?” – Tune in to find out!  Mike also challenges Scott to a startup mentoring challenge for charity (the gloves are off now, folks). Another great selection of listener emails and a dash of StartupLounge humor to top it all off. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us your 30-second elevator pitch
• Can you tell us about your recent closing of Frontier’s latest venture fund?
• Was it hard to raise this fund, given the current economic climate?
• What is the story you tell potential limited partners that excites them about investing in Georgia and the Southeastern US?
• Do you have meaningful competition for deal flow?
• What’s the wackiest deal that’s been pitched to you?
• Could you highlight a success story of which you’re particularly proud?
• What is attractive to you about the Atlanta market?
• When you receive an opportunity and you’re inclined to pursue it, what is your process for examining that opportunity?
• On average, how long does it take to get you from that starting point to an agreement on an investment?
• What’s your overall assessment of the Atlanta early stage market? Is it improving, and if so, how do you see that?
• What is the impact of the current economic climate on your investing behavior?
• What impact is the current economic climate having on your portfolio companies?
• How are valuations holding up given the bad economic outlook?
• What advice do you give to entrepreneurs regarding addressing the current economic environment?
• What impact is the current economic climate having on your deal flow?
• How many opportunities do you get exposed to a year and how many investments do you make?
• When dealing with you guys, what’s one thing that’s an absolute no-no?
• How involved are you day to day with your portfolio companies?
• If you were to “sell” yourself to an entrepreneur to take you on as an investor, what do you think is your biggest selling point?
• What is a piece of advice you would give to new early-stage investors?
• If you could change something in the environment to make your jobs easier, what would that be?
• What is the best way to get an opportunity in front of you?
• If you were to give one piece of advice to entrepreneurs that might want to approach you for capital, what would that be?

Listener Emails Read and Answered on the Show:

Gia: Gia: Hey guys love the show!  I’ve heard you guys use the phrase “cram down” several times in past shows. What the heck does it mean?

Cassandra: Cassandra: Scott and Mike, I am starting up a new company and as part of this I am trying to put together a detailed breakdown of my target market.  It seems that the data is readily available out there if I am willing to pay for it.  I am bootstrapping this company by working two jobs, sometimes three.  What’s a poor girl to do?  I can’t afford to spend thousands of dollars on marketing reports.  Help!

ImTakingoff: I am moving forward with filing a series of patents around my technology and have a question regarding the selection of the best attorney/firm to do the job.  I have done a good bit of research into firms that have done a great bit of work in my industry, but I’ve compiled a rather nice list of potential candidates.  Should I be worried that these firms have worked or continue to work with my competition on adjacent patents??

Guest Bio:
Joel Lanik, Principal, Frontier Capital

Joel is a Principal at Frontier where he is responsible for developing, analyzing, and executing investment opportunities, and is instrumental in leading the firm’s day to day operational processes. He was recently the Vice President of Finance & Strategy at LURHQ, a leading provider of managed IT security services, where he was responsible for all financial, strategic planning, legal and HR operations. Prior to this operating role, Joel was with Frontier Capital where he was instrumental in the successful deployment of Frontier Fund I. In addition, he was a Senior Financial Analyst with investment bank Lloyd & Company. Joel holds a BA in Economics from Duke University and an MBA from the Darden School of Business at the University of Virginia. Joel is also a CFA charterholder.

Comedy Break Lyrics:

Featuring “Hooked up with a Bigfoot”, by Robert Lund, sung to the tune of Billy Joel’s Big Shot.  Even though they didn’t find Bigfoot in the North Georgia Mountains, we’re still holding out hope.  Enjoy!

Well -
You left Georgia riding in your Cherokee
Into Blue Ridge National Park
You stopped for drinks with the bulky brunette
That you met in the dark
Ooh -
But when you wake up in the morning with your hair on fire
And you’re tied face-down from a tree
You know it’s no urban legend
The same thing happened to me

‘Cause she turned out to be a Bigfoot creature
You should have known from how she growled
She’s definitely a Bigfoot creature
‘Cause your limbs are all yanked out
You had to stay till last call last night
That will teach you to get plowed
You thought you’d met a tall babe – not quite
You hooked up with a Bigfoot last night
Oh no!

So -
You went chasing tail on the Blue Ridge Trail
‘Cause the women seemed aggressively game
Like the Chattahoochee mama with fangs
Who just grunted her name
Ooh -
But now you just don’t remember all the things she did
And you ask why it hurts when you cough
I’ll give you one hint, buddy
Your Jeep ain’t all she ripped off

No no no no no no you didn’t believe in Bigfoot, didja?
She seemed abominably endowed
Undoubtedly a Bigfoot creature
Her perfume was Rainbow Trout
You almost had your last rites last night
Got Sasquashed into the ground
You’re covered with a rug burn – shag type
You hooked up with a Bigfoot last night
Oh no!

So, baby, have you ever considered laser hair removal?
Or there’s always waxing.
Or you know, you could always just borrow my razor….

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.  You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Underground by Roadside Attraction
• Hooked up With a Bigfoot by Robert Lund
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Joel for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

The bus is back and ready to rumble with Mike at the wheel – this time, he plows headfirst into entrepreneurs who seem to think that circumventing AngelLounge and trying to get us to champion their deal is a good idea.  FAIL!  Mike also segues into a nice monologue on the angel perspective of the current economic downtrend.  Some great listener emails, a musical tribute to the $700B government bailout, and a sprinkling of StartupLounge humor round out another great show. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us your elevator pitch for Tech Operators
• Tell us about your recent closing of a new fund
• Was it hard to raise this fund, given the economic climate?
• You’ve raised a virgin fund, which is very hard to do.  Why do you think you were so successful where many others have failed?
• What is the story you tell potential limited partners that excites them about investing in Georgia and the Southeastern US?
• Do you anticipate a great deal of competition for deal flow?
• When will the fund begin investing operations?
• You have four people on your founding team.  Have you identified particular strengths and roles?
• A lot of people have a view that Atlanta VCs, don’t have much of an interest in seeing true early-stage companies.  Their perception is that most regional VCs have moved upstream to more emerging growth type deals.  Are you observing something similar?
• When you receive an opportunity and you’re inclined to pursue it, what is your process for examining that opportunity?
• There seems to be a lot of venture fund raising activity here in Atlanta – some existing venture players that have been dormant for a while are raising new funds (e.g. Kinetic, Noro-Moseley), and several new funds are in the works.  From your perspective, is this a positive thing for Atlanta or a negative thing for TechOperators?
• Recently, there was some commotion around the notion that some regional/local VCs are “spreadsheet jockeys”, meaning they tend to invest based on analytics and business models rather than a simple opportunity to create value in the marketplace without necessarily having an easily illustrated business model firmly in place. What is your take on this?
• On average, how long does it take to get you from that starting point to an agreement on an investment?
• What is the best way to get an opportunity in front of you?
• How many opportunities do you expect to look at each year and how many investments do you expect to make in a given year?
• When dealing with you guys, what’s one thing that’s an absolute no-no?
• How involved do you plan to be day to day with your portfolio companies?
• If you were to “sell” yourself to an entrepreneur to take you on as an investor, what do you think is your biggest selling point?
• What is a piece of advice you would give to new early-stage investors?
• If you could change something in the environment or ecosystem to make your job easier, what would that be?
• What’s your overall assessment of the Atlanta early stage market? Is it improving, and if so, how do you see that?
• If you were to give one piece of advice to entrepreneurs that might want to approach you for capital, what would that be?

Listener Emails Read and Answered on the Show:

jswanson: Hey guys, love the show.  I have a quick question for you this morning.  I am contemplating raising a small round of angel financing for a new software startup.  I am concerned about the current market conditions and I’m wondering what you’re seeing out in the angel sector.  What can I expect to see in terms of angel interest, activity, and ultimately valuation?

Patesh: I have a strange cap table problem that I’m hoping Mike can help me with.  I am losing a co-founder due to his personal medical situation.  Currently, he owns 30% of the company.  I need to find a replacement for him, and will need to give the new guy an equity stake.  The guy I’m losing knows that I’m going to want to reduce his equity stake to some extent, as its only fair. Any suggestions on how best to tackle this?  Do I just suggest a number and work it out with him, or is there a better way?

Sam: Greetings guys.  I am very interested in starting up a new video game studio here in Atlanta, primarily because I’m from here, but secondarily because I’d like to take advantage of the generous tax credit incentive from the state.  Even though we have a nice incentive here to build this type of company in Georgia, we don’t seem to have a lot of investors in that sector.  Any tips?  Can I convince an outside investor to invest in this deal, and allow me to stay in Georgia?

Carmine: Scott and Mike, I love the show, it has been a huge help to me.  I visit the StartupLounge site daily to see if there are new episodes posted.  Please keep it up!  I am curious about one thing, though. How do you guys find the time to do these podcasts, blog posts, speak at various events, and hold really cool events like PitchCamp and CapitalLounge?  From what I gather from your bios, you both have day jobs.  How can this be?  Have you secretly invented a cloning machine?  If so, tell me where I can get one!

Guest Bio:

Glenn McGonnigle

Glenn McGonnigle is a founding partner of Tech Operators, a new venture capital firm in Atlanta focused on early-stage technology ventures. McGonnigle was most recently Chairman and CEO of Atlanta-based VistaScape Security Systems, a leading provider of enterprise intelligent video surveillance software. McGonnigle was recruited by the company’s board to raise capital and grow the business. He subsequently oversaw the successful sale of the company to Siemens Building Technologies. An authority on IT and physical security convergence and a frequent contributor and expert speaker for numerous industry publications and events, McGonnigle helped shape President Bush’s 2005 National Strategy for Maritime Security.

Previously, McGonnigle was a co-founder and top executive of Atlanta-based Internet Security Systems (ISS) where he helped raise initial venture capital and launch the business. For 7 years, he led the business development team in developing sales channels and entering the managed security services market. During his tenure, the company grew from startup to revenues of over $225 million and was recently acquired by IBM for $1.5 billion.

Prior to ISS, he was President and co-founder of Data Integrity Services Corporation, an early-stage provider of WAN-based data management services. Throughout his 24 year career, McGonnigle has remained focused on emerging technologies and has held a variety of sales and marketing executive positions during the high growth stages of EMC, Epoch Systems, Borland, and Wang Laboratories.

He is an active member of the Technology Association of Georgia (TAG) and sits on the advisory board of Georgia Tech’s Tennenbaum Institute. In addition, he has served as Entrepreneur in Residence and CapVenture coach supporting Georgia’s Advanced Technology Development Center (ATDC). McGonnigle holds a BS in mechanical engineering from the University of Virginia.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.  You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Neolith by Kevin MacLeod
• 700 Billion Dollars by Steve Goodie
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Glenn for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

Welcome to SL #30! Catalyst Magazine recently hosted a panel on “Raising Capital” at The Vinings Club here in Atlanta. The panel featured Greg Foster (Noro-Moseley Partners), Brian Patrick Cork (Brian Cork Human Capital), and Braxton Jarratt (CEO, ClearLeap). Catalyst asked StartupLounge to moderate the panel, which we were more than happy to do. We were angling for a “dual moderator” format, where Scott and Mike could take pot shots at each other all night, but sadly, with only a 45 minute session, we decided that one moderator would be a better format (in the interest of time). Sadly, the crowd got stuck with Scott moderating.

It’s the million-dollar question. Whether your company is encountering consistent annual revenue growth, or you’re just tired of bootstrapping your start-up, how does an entrepreneur find capital to grow a small business? On September 11th, Catalyst magazine is proud to present a featured panel of experts who will guide you on understanding how to find funds in this tough economic climate. Learn from local entrepreneurs who have raised millions of dollars in recent investment rounds. Find out from top local investors what they perceive as a bankable business.

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Sample Panel Questions:

• Introduction by Drew Ermenc, Associate Publisher and Editor, Catalyst Magazine
• A lot has been written on the challenges of raising early-stage capital in the Atlanta market. Can you give us your view on where we were say 5 years ago, where we are today, and what the future holds here?
• What makes up the criteria for a good deal from the regional VC perspective?
• What are some of the biggest mistakes entrepreneurs make when looking for capital? Any particular big No-No’s?
• ClearLeap is a rising star in the Atlanta technology sector having just raised a $9M outside round of capital. Atlanta certainly has its challenges when it comes to early-stage capital. What were some of the biggest challenges you faced in raising capital for Clearleap?
• Many entrepreneurs are great at building innovation, but not great at building relationships. Could you speak on the importance of relationships and networking within the investment community and how it might benefit those looking for investors?
• Before you joined Noro-Moseley Partners you did “strategic venturing” at Turner Broadcasting. Is this a viable path for early-stage companies, and what does that process look like from the entrepreneur’s perspective?
• Braxton, your last round of funding was a $9M raise. You had a mix of investors in on the deal – the deal was co-led by Noro-Moseley Partners here in Atlanta, and Trinity Ventures on the West coast. You also had participation by Sig Mosley (Imlay Investments) and Jim Chiddix, the former CTO of Time Warner Cable. Was there a difference in the process, expectations, etc, between angels, the West Coast venture capital and the East Coast venture capital? How did you bring all of these folks together to do the deal?
• Mitch Free, founder of MFG.com and the Catalyst November speaker, recently told Drew (and StartupLounge.com podcast listeners) that his best advice would be to “keep your head down, build your business, grow your business and the money will come to you.” Would you agree or disagree to this?
• It is my view that a lot of deals that get passed on could be better deals with some tweaking on the part of the entrepreneur. What should entrepreneurs do to make their companies attractive to A) Angels and B) Venture capitalists? Are there some things they can do to make their deal a “cleaner” one for outside investors?
• Investors have the luxury of seeing lots of deals through the course of their work, and they are very selective in their investments. In your view, what made Clearleap stand above the rest of the pack?
• What parting wisdom do you have for entrepreneurs out there seeking to raise capital from investors in the Southeast?

Questions from the Audience:

Q1: How does social media play into raising capital?

Q2: I have a ten year old company. What is the opportunity for an established company to raise capital in Atlanta?

Q3: How do entrepreneurs get an opportunity at networking events to meet investors, and how much time should they expect to spend with such an investor?

Panelist Bios:

Brian Patrick Cork

Brian has been a highly successful executive and entrepreneur; is a popular public speaker; Professional Athlete; and, an accomplished Executive Recruiter and Business Coach.

Brian Cork has raised over $500 million dollars in private placement capital for a wide array of companies across every industry; recruited and counseled hundreds of executives and other decision-makers; and, has actively participated in building dozens of successful organizations.

As an Executive Recruiter, Business Coach, and “Trusted Adviser” Brian Cork is a vital resource for decision-makers in terms of making better decisions. On any given day, Brian Cork speaks with and shares ideas with influential people ranging from Politicians and Educators to Fortune 50 Executives and Entrepreneurs. His Executive and Business Coaching Clients include top executives in Fortune 50 companies to professionals in transition.

Brian Cork was named to London’s prestigious “Ol Man Society” for his contributions as a businessman and philanthropist – and, his well-balanced approach to life. In addition, Brian has been selected by Catalyst Magazine as a “Top 25 Entrepreneur”, and Great Britain’s G2 economics as a “Coalition Member of the Year”.

Greg Foster:

Greg joined Noro-Moseley Partners (NMP) in 2008 and has focused his investment activities in technology with an emphasis on digital media. Greg is active with several NMP portfolio companies and currently serves as a board observer for ClearLeap.

Prior to joining NMP, Greg served as Vice-President of Corporate Development for Turner Broadcasting, where he was responsible for Turner New Media Investments, the company’s early stage strategic investment arm, as well as M&A activities. Greg joined Turner after it acquired his company, Southern Direct, a business focused on building branded e-commerce extensions to linear cable channels. In addition to founding Southern Direct, Greg has been a member of the management team of two other successful start-ups, serving as SVP of Corporate Development at iXL Enterprises and VP of Business and Corporate Development at Silverpop Systems. He began his career as a consultant at Deloitte Consulting, where his efforts were focused on building internet strategies for clients including Prudential Insurance, Sonoco Products and the New York City Transit Authority.

Greg is the chairman-elect of NVCA’s Corporate Venture Group Advisory Board and is a member of the Board of Trustees for the Georgia Council on Economic Education. He holds a Bachelors Degree in Mechanical Engineering from Georgia Tech, where he was a President’s Scholar, and an MBA from Harvard Business School.

Braxton Jarratt

Braxton has driven innovation and growth in senior management roles with technology and media companies large and small, most recently as Senior Vice President of Marketing and Business Development at Tandberg Television (an Ericsson Company), the world’s largest supplier of digital television systems. At Tandberg, he led the rapid expansion of the company into the North American television market and video on demand (VOD) software business, building a world-class customer base of leading television operators and programmers. He launched and secured the initial key customers for Tandberg’s pioneering dynamic VOD advertising system and led the complete overhaul of Tandberg Television’s brand after completing three key acquisitions in less than a year. Braxton joined Tandberg through their $120 million acquisition of N2 Broadband, a venture-backed television software startup, where he was responsible for product management, marketing and business development. There, he helped win deployments of the company’s on-demand software products in more than 100 cities and in nearly every VOD site in North America.

Braxton previously worked at Cox Enterprises as director of product strategy for the cable division and GM in the interactive media division, where he launched the first broadband internet content service in partnership with @Home. Braxton’s first tech startup experience was as the head of commercial services with Primenet, an internet startup purchased by GlobalCenter.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player. You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Neolith by Kevin MacLeod

Thanks to Brian, Greg, and Braxton for adding enormous value as panelists – and thanks to Drew Ermenc and the gang at Catalyst Magazine for putting this event together.

Enjoy!

Another group of pathetic entrepreneurs get tossed under the bus … firmly. Some great listener emails and a sprinkling of StartupLounge humor round out another great show. Enjoy!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors – without them, we simply couldn’t do all of the things we do.

Shownotes and Interview Questions:

As usual, we had lots of related follow-up questions and side discussions, but here is a good sampling of the questions we asked on the show:

• Give us your elevator pitch for Noro-Moseley Partners
• Tell us about your recent closing of a new fund
• Was it hard to raise this fund, given the economic climate?
• What is the story you tell potential limited partners that excites them about investing in Georgia and the Southeastern US?
• How would a legislative bill like SB-80 help a fund like Noro-Moseley?
• Do you have meaningful competition for deal flow?
• Could you highlight a success story of which you’re particularly proud?
• What’s your take on Appcelerator’s departure from Atlanta?
• A lot of people have a view that Atlanta VCs, like NMP, don’t have much of an interest in seeing true early-stage companies. Their perception is that most regional VCs have moved upstream to more emerging growth type deals. Can you clarify NMPs position in this area?
• Greg you recently made the move from working in corporate venture capital with Turner to a traditional venture capital firm. What challenges did you face in making that change, and how are you finding the transition?
• When you receive an opportunity and you’re inclined to pursue it, what is your process for examining that opportunity?
• There seems to be a lot of venture fund raising activity here in Atlanta – some existing venture players that have been dormant for a while are raising new funds (e.g. Kinetic), and several new funds are in the works. From Noro’s perspective, is this a positive thing for Atlanta or a negative thing for Noro?
• Recently, there was a big flap in the Atlanta blogging scene around the notion that some regional/local VCs are “spreadsheet jockeys”, meaning they tend to invest based on analytics and business models rather than a simple opportunity to create value in the marketplace without necessarily having an easily illustrated business model firmly in place. What is NMP’s view on this?
• On average, how long does it take to get you from that starting point to an agreement on an investment?
• What is the best way to get an opportunity in front of you?
• How many opportunities do you get exposed to a year and how many investments do you make?
• When dealing with you guys, what’s one thing that’s an absolute no-no?
• How involved are you day to day with your portfolio companies?
• If you were to “sell” yourself to an entrepreneur to take you on as an investor, what do you think is your biggest selling point?
• What is a piece of advice you would give to new early-stage investors?
• If you could change something in the environment or ecosystem to make your jobs easier, what would that be?
• What’s your overall assessment of the Atlanta early stage market? Is it improving, and if so, how do you see that?
• If you were to give one piece of advice to entrepreneurs that might want to approach you for capital, what would that be?

Listener Emails Read and Answered on the Show:

Myhsar: When attending an event with potential angels, which “30 second” pitch do you start? The first being the actual product or service that your company provides or second the potential investment numbers and potential roi? Also, should one have a tri-fold brochure or fact sheet that one leaves with the angel?

Ben: I recently launched an online community/social network that I thought was in a very niche field. After doing some research it appears that there are several other sites out there that cater to a similar audience. Any ideas on how to make an online community stand out from the competition? And second, any thoughts on some ways to monetize an online community?

Carolyn: I recently took the plunge and started my own venture. I have someone who might be willing to invest in my startup, but they want a seat on the board. What are the pros and cons of taking capital early on and giving up a seat on the board?

Fiberman: Great podcast guys! I really enjoy the content and the back and forth. Here is my question; I have what I think is a great idea for a tech startup. Unfortunately, all of my experience is in sales and marketing, and while I’m technically literate, I can’t do software development. How can one find programmers to work on a startup idea, who is willing to work for nothing in exchange for a piece of the action? Thanks in advance!

Guest Bios:

Alan Taetle:

Alan Taetle joined NMP in 1998 and has focused his investment activities on software and information technology companies. He currently represents NMP on the boards of Abaco Mobile, BroadSource, Clearleap, M1Global, SecureWorks and Vocalocity, and oversees one other investment, Damballa. Alan was previously a director or observer for several prior NMP investments, including Adjoined Consulting (sold to Capgemini), OpenSite Technologies (sold to Siebel Systems), CipherTrust, Inc. (sold to Secure Computing), and PRE Holdings (sold to First Data).

Prior to joining NMP, Alan was the Executive Vice President of Marketing and Business Development for MindSpring (which merged with EarthLink in 2000). Alan joined MindSpring as its 13th employee in 1995, and oversaw the company’s subscriber growth from 4,000 to over 325,000 in just three years. Prior to MindSpring, Alan served in various systems and product management roles with CogniTech Corporation, makers of contact management software; Itochu International, a Japanese trading company; and Electronic Data Systems, a systems integration consulting company. Alan is a previous board member of ChoicePoint, Inc., a NYSE company (sale pending to Reed Elsevier) focused on providing information that helps companies make educated, intelligent choices to reduce risk and fraud.

Alan is a past Chairman of the Florida Venture Forum and serves on the board of both the Florida Venture Forum and the Atlanta CEO Council. Alan serves the co-chair of the Board of Trustees of the Cliff Valley School, a non-sectarian independent school in Atlanta. Alan received a BA from the University of Michigan and an MBA from Harvard Business School.

Greg Foster:

Greg joined NMP in 2008 and has focused his investment activities in technology with an emphasis on digital media. Greg is active with several NMP portfolio companies and currently serves as a board observer for Clearleap.

Prior to joining NMP, Greg served as Vice-President of Corporate Development for Turner Broadcasting, where he was responsible for Turner New Media Investments, the company’s early stage strategic investment arm, as well as M&A activities. Greg joined Turner after it acquired his company, Southern Direct, a business focused on building branded e-commerce extensions to linear cable channels. In addition to founding Southern Direct, Greg has been a member of the management team of two other successful start-ups, serving as SVP of Corporate Development at iXL Enterprises and VP of Business and Corporate Development at Silverpop Systems. He began his career as a consultant at Deloitte Consulting, where his efforts were focused on building internet strategies for clients including Prudential Insurance, Sonoco Products and the New York City Transit Authority.

Greg is the chairman-elect of NVCA’s Corporate Venture Group Advisory Board and is a member of the Board of Trustees for the Georgia Council on Economic Education. He holds a Bachelors Degree in Mechanical Engineering from Georgia Tech, where he was a President’s Scholar, and an MBA from Harvard Business School.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.  You can also take advantage of our iTunes feed.

Podsafe music used within this episode:

• Neolith by Kevin MacLeod
• Old Keith Richards by Paul and Storm
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Alan and Greg for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

Of course, a good batch of your emails, a quick bus ride (powered by a steroid-laden Mike Blake rant), and a dash of humor round out another great show. Enjoy!


Sponsors for this episode:
Be sure to click the logos below and visit our sponsors!

Shownotes and Interview Questions:

As usual, we had lots of related followup questions, but here is a good sampling of the discussion:

• Give us the 30-second elevator pitch for the UPS Strategic Venture Fund
• Can you talk about how a corporate venturing fund differs from traditional private equity/venture funds?
• What makes the UPS Strategic Fund different from other corporate venturing funds?
• How does the fact you’re accountable to a larger corporate entity as opposed to limited partners shape your investing behavior?
• What kinds of opportunities get you the most excited?
• Is the current economic climate (high fuel prices, weakening consumer purchasing power) impacting your investing processes and strategies?
• Are there any important strategic or technological trends you are seeing in UPS’s business space?
• What is the most exciting technological advance you’ve observed in UPS’s space in the last 5 years?
• How many opportunities does your organization receive a month?
• How many investment professionals work at the UPS Strategic Enterprise Fund?
• At any given time, how many deals are you looking at seriously?
• Can you talk about your investment evaluation process?
• How do most investment opportunities find you?
• Who are some venture funds that invest in spaces that are relevant to what UPS is doing or trying to do?
• Your web site states that you prefer to co-invest with a venture capital fund and where the VC is the lead investor. Why is that?
• What role do you play with the company after the investment?
• Could you highlight a success story of which you’re particularly proud?
• What are some key mistakes for companies seeking capital from you to avoid?
• What’s your overall assessment of the Atlanta early stage market? Is it improving, and if so, how do you see that?
• What is the best way for a company seeking funding to approach you?

Guest Bio:

Alan Koenning (pronounced “kenning”) is the Fund Manager for the UPS Strategic Enterprise Fund. The UPS Strategic Enterprise Fund is the private equity strategic investment arm of UPS. The Fund is a corporate venture capital group which focuses on developing critical partnerships and acquiring knowledge returns from its investments in information technology companies and emerging market-spaces.

Alan’s responsibilities include working with various UPS departments and business units in identifying areas of strategic interest, researching potential investments, negotiating agreements and acting as a corporate liaison with Fund companies.

Alan has been with UPS for over 17 years including assignments in Corporate UPS, UPS e-Ventures, and UPS Supply Chain Solutions. He graduated from Duke University and has an MBA from the University of Georgia.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.

Links referenced within this episode:

• UPS Strategic Enterprise Fund

Podsafe music used within this episode:

• Neolith by Kevin MacLeod
• Atari by Odd Austin
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Alan Koenning for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

Enjoy!

• What the capital market is really like in Atlanta
• What the challenges exist
• How asset allocation works (great if you really want to know what you’re up against)
• How the real estate industry is affecting early stage capital here
• The funding gap
• Everything you could ever want to know about angel investors
• What sources exist?
• How to do due diligence on an angel investor
• What angels really want
• Handling rejection
• How to smoke out “fake” investors
• What “good” angel deals really look like
• Market validation
• How much funding to solicit
• Your pitch
• Deal killers
• Advisors
• Closing the deal
• Typical investment terms
• Capital-seeking “to-do” list
• Some case studies
• Facts of life in the Atlanta startup eco-system
• How we can repair it

If you weren’t able to attend, you won’t want to miss this. Much of his discussion will apply to other areas here in the Southeast as well …

Cheers.

The bus takes a break this time, and instead we throw some props to some Atlanta angels for being part of the solution. Of course, a nice batch of your emails rounds out a great show!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors!

Shownotes and Interview Questions:

As usual, we had lots of related followup questions, but here is a good sampling of the discussion:

1. Give us your 30-second elevator pitch in SJF Ventures
2. Can you summarize your investment criteria?
3. What is the (your) definition of CleanTech/GreenTech? (Is there a difference between the two?)
4. CleanTech is generally most widely understood to mean renewable, clean energy sources. But doesn’t the term encompass other economic sectors?
5. Is nuclear energy CleanTech?
6. When did you personally gain an interest in CleanTech?
7. Talk about some of the most powerful trends you’re seeing in CleanTech?
8. Where do you see most of your investment opportunities coming from?
9. How many opportunities are you personally and as a company considering at any one time and what % get funded?
10. How long does it take you to evaluate an opportunity?
11. What are your key due diligence areas?
12. How do you exit from CleanTech deals?
13. What is the best way to contact you about an investment opportunity?
14. There seems to be a green gold rush now for CleanTech. Do you agree and are you worried about a bubble?
15. What sectors of CleanTech seem to you to be oversaturated or overworked?
16. Are there CleanTech sectors that you feel hold great promise but seem to be underdeveloped?
17. Can you name some other funds that have an emphasis on CleanTech?
18. What is the most exciting advance in CleanTech you’ve seen in the last 2 years?
19. What do you think will be the most exciting CleanTech breakthrough in the next 5 years?
20. What are some common mistakes you see in emerging CleanTech ventures?
21. How is Georgia as a source of CleanTech opportunities relative to other areas of the country?
22. The Bush Administration has been banking heavily (at least publicly) on the role of technology to solve issues relating to environmental damage and climate change. How is that affecting the sector?
23. Do you anticipate there might be a change in technology focus with a new President? Who is the Cleantech venture community’s candidate of choice?
24. How will the prospects of some sort of global environment agreement affect the Cleantech sector? Kyoto?
25. Where do you fall on the corn ethanol debate (as a realistic alternative fuel that can make a significant impact on greenhouse gasses)?
26. In 2020, most new automobiles in the United States will run on what fuel?
27. In 2020, most electricity in the United States will be produced with what fuel?

Tune in to find out!

Guest Bio:

David Kirkpatrick is Managing Director and co-founder of SJF Ventures, a venture capital fund with $45 million under management and offices in Durham, NC and New York. SJF focuses on rapidly expanding cleantech, tech-enhanced services and premium consumer products firms, has 20 portfolio companies, and is investing from its second fund. SJF assists and invests in enterprises with innovations that have a positive impact in the world and create strong competitive advantages in large markets.

David was named the national 2005 CDVC Practitioner of the Year by the Community Development Venture Capital Alliance. Previous to SJF, he founded and managed two other successful enterprises – KirkWorks, an environmental investment research firm, and SunShares, a solar energy and recycling company. David was named Recycler of the Year in 1996, the National Recycling Coalition’s award for leadership in the recycling industry.

David earned a BA in Physics and History from Duke University in 1982 and an MBA from UNC Business School in 1991. He is a graduate of the Venture Capital Institute’s VCI 1999 and VCI-Grad 2000 programs. He serves on the Boards of groSolar, B.B. Hobbs, Edmap, the NC Sustainable Energy Association, and the Duke-Durham Neighborhood Partnership. He is an avid gardener, fisherman and Dad.

Miscellany:

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.

Links referenced within this episode:

• SJF Ventures
• Suniva
• Intechra
• groSolar
• Adams Capital
• Appcelerator
• ATDC (Advanced Technology Development Center)
• Baker Donelson (Technology Intellectual Property)
• Chrysalis Ventures
• PeachPodStudios
• Southern Capitol Ventures
• VACO
• William Leonard and Company
  

Podsafe music used within this episode:

• Sundial by Bill Derome
• Changes by Robert Lund
• All the Money in the World by Hutch

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

A special thanks to Dave Kirkpatrick for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

And don’t forget – the StartupLounge.com message forums are a great resource for fast-growth entrepreneurs. If you need help with any aspect of your venture, we welcome you to jump in and get the help you need!

Enjoy!

As an added bonus, we provide a double dose of “Under the Bus”: Mike tosses some alcoholic StartupLounge haters under the bus, and Scott piles on and “gently nudges” some regional VCs into oncoming traffic. We also have a nice batch of your emails and a great Thanksgiving comedy bit to round out a lengthy, but great show!

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors!

Shownotes:

What types of deals do the Chrysalis partners look for? What are the key characteristics of their portfolio companies? What is the unique value proposition that Chrysalis brings to the table? What are some of the lessons that he’s learned as a VC? How does Chrysalis get most of their deal flow? Does emailing a business plan to a VC really work? How can entrepreneurs get their deal as “clean” as possible for a VC? How does the Chrysalis due diligence process work? Can military training prepare someone to be an entrepreneur or a VC? What is Chrysalis’ view of the Atlanta/Southeast market? Watch as we do a very admirable job of trying to bribe a VC on air. And so much more!

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.

Links referenced within this episode:

• Chrysalis Ventures
• Adams Capital
• Chrysalis Ventures
• Angus Mcrae Insurance Brokerage Services
• Clements-Walker Intellectual Property Attorneys
• ATDC (Advanced Technology Development Center)
• PeachPodStudios
• Slingshot Product Development Group
• Southern Capitol Ventures
• Web.com

Podsafe music used within this episode:

• Sundial by Bill Derome
• I Heart Thanksgiving by Robert Lund
• By the Hammer of Thor, Ben Base
• All the Money in the World by Hutch

Tune in and find out!

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

Intro	00:00 to 02:00
Smalltalk and introductions:	02:00 to 07:24
Under the Bus:	08:35 to 25:35
Mailbag:	25:35 to 34:27
Capital Connections Update:	34:27 to 36:52
Commercial/Comedy Break:	36:52 to 40:49
Main Discussion Topic	40:49 to 1:34:36
Commercial/Comedy Break:	1:34:36 to 1:35:40
Analysis/Wrap-up:	1:35:40 to 1:41:15

A special thanks to Wright Steenrod for coming in and hanging out with us!

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

And don’t forget – the StartupLounge.com message forums are up and running. If you need help with any aspect of your venture, we welcome you to jump in and get the help you need!

Enjoy!



]]> http://www.startuplounge.com/sl-19-a-conversation-with-chrysalis-ventures/feed/ 3 101:15 Welcome to SL #19! In this show, we are pleased to be joined by Wright Steenrod of Chrysalis Ventures. We discuss a number of ... Welcome to SL #19! In this show, we are pleased to be joined by Wright Steenrod of Chrysalis Ventures. We discuss a number of topics, including their investment model, their view of the Southeast and Midwest markets, and things they look for as they filter deal flow. As an added bonus, we provide a double dose of "Under the Bus": Mike tosses some alcoholic StartupLounge haters under the bus, and Scott piles on and "gently nudges" some regional VCs into oncoming traffic. We also have a nice batch of your emails and a great Thanksgiving comedy bit to round out a lengthy, but great show! Sponsors for this episode: Be sure to click the logos below and visit our sponsors! Shownotes: What types of deals do the Chrysalis partners look for? What are the key characteristics of their portfolio companies? What is the unique value proposition that Chrysalis brings to the table? What are some of the lessons that he's learned as a VC? How does Chrysalis get most of their deal flow? Does emailing a business plan to a VC really work? How can entrepreneurs get their deal as "clean" as possible for a VC? How does the Chrysalis due diligence process work? Can military training prepare someone to be an entrepreneur or a VC? What is Chrysalis' view of the Atlanta/Southeast market? Watch as we do a very admirable job of trying to bribe a VC on air. And so much more! Enjoy! To play it, use the tools at the top of this post - you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player. Links referenced within this episode: Chrysalis Ventures Adams Capital Chrysalis Ventures Angus Mcrae Insurance Brokerage Services Clements-Walker Intellectual Property Attorneys ATDC (Advanced Technology Development Center) PeachPodStudios Slingshot Product Development Group Southern Capitol Ventures Web.com Podsafe music used within this episode: Sundial by Bill Derome I Heart Thanksgiving by Robert Lund By the Hammer of Thor, Ben Base All the Money in the World by Hutch Tune in and find out! Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true "show" rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) :) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well. Here is the breakdown for the show, in case you want to hop around. Intro 00:00 to 02:00 Smalltalk and introductions: 02:00 to 07:24 Under the Bus: 08:35 to 25:35 Mailbag: 25:35 to 34:27 Capital Connections Update: 34:27 to 36:52 Commercial/Comedy Break: 36:52 to 40:49 Main Discussion Topic 40:49 to 1:34:36 Commercial/Comedy Break: 1:34:36 to 1:35:40 Analysis/Wrap-up: 1:35:40 to 1:41:15 A special thanks to Wright Steenrod for coming in and hanging out with us! We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to "shove off", we invite you to contact us. And don't forget - the StartupLounge.com message forums are up and running. If you need help with any aspect of your venture, we welcome you to jump in and get the help you need! Enjoy! Podcasts StartupLounge.com no No http://www.startuplounge.com/sl-14-a-vc-that-is-part-of-the-solution/ http://www.startuplounge.com/sl-14-a-vc-that-is-part-of-the-solution/#comments Fri, 01 Jun 2007 04:06:10 +0000 Scott Burkett http://www.startuplounge.com/sl-14-a-vc-that-is-part-of-the-solution/ Welcome to SL #14! In keeping with the StartupLounge way of tearing down barriers and artificial walls, we were pleased to be joined by Jason Caplain, a co-founder and General Partner with Southern Capitol Ventures out of Raleigh, NC. Jason is a guy that breaks the stereotypical VC mold in a lot of ways (i.e. we think he’s a part of the solution, not the problem.)

In this show (recorded just hours before our first Capital Connections event), we chat with Jason about their fund strategy, some of the things that they are doing differently to engage entrepreneurs, as well as what he thinks about the Atlanta market. And a nice batch of your emails as well. Good stuff!

As an added bonus we have our first “Look who gets it!” segment.

Sponsors for this episode:
Be sure to click the logos below and visit our sponsors!

Shownotes:

This was a very strong show with a compelling guest. What was it like trying to raise an inaugural venture fund? What are the things that they like to see from entrepreneurs? What are some good strategies for engaging investors? Should entrepreneurs bother to write business plans? What does the Atlanta market look like right now to a regional technology VC?

On the email front, we had one particular email that led to a great discussion on why investors don’t sign NDAs. Bonus time, baby!

Enjoy! To play it, use the tools at the top of this post – you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player.

Links/entities referenced within this episode:

• Southern Capitol Ventures
• SoutheastVC Blog (Jason’s personal blog)
• Motricity
• ChannelAdvisor
• NEA
• Adams Capital
• PeachPodStudios
• National Personnel Services
• SON Capital
• Technology Association of Georgia

Podsafe music used within this episode:

• Sundial by Bill Derome
• Dead Nintendo by Possible Oscar
• All the Money in the World by Hutch

Tune in and find out!

Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true “show” rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well.

Here is the breakdown for the show, in case you want to hop around.

Intro	00:00 to 01:36
Smalltalk and introductions:	01:36 to 05:54
Look Who Gets It!	05:54 to 08:29
Announcements/Mailbag:	08:29 to 17:58
Commercial/Comedy Break:	17:58 to 21:53
Main Discussion Topic	21:53 to 46:25

A special thanks to Jason for coming in and hanging out with us!

We’ve got a ton of great guests lined up for the show – we’re going to take a bit of a break, but we’ll be back soon with Andy Monin, the founder and CEO of Vendormate, a very hot ATDC-based startup and one of Scott’s sleeper picks.

We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to “shove off”, we invite you to contact us.

And don’t forget – the StartupLounge.com message forums are up and running. If you need help with any aspect of your venture, we welcome you to jump in and get the help you need!

Enjoy!



]]> http://www.startuplounge.com/sl-14-a-vc-that-is-part-of-the-solution/feed/ 1 46:38 Welcome to SL #14! In keeping with the StartupLounge way of tearing down barriers and artificial walls, we were pleased to be joined by Jason ... Welcome to SL #14! In keeping with the StartupLounge way of tearing down barriers and artificial walls, we were pleased to be joined by Jason Caplain, a co-founder and General Partner with Southern Capitol Ventures out of Raleigh, NC. Jason is a guy that breaks the stereotypical VC mold in a lot of ways (i.e. we think he's a part of the solution, not the problem.) In this show (recorded just hours before our first Capital Connections event), we chat with Jason about their fund strategy, some of the things that they are doing differently to engage entrepreneurs, as well as what he thinks about the Atlanta market. And a nice batch of your emails as well. Good stuff! As an added bonus we have our first "Look who gets it!" segment. Sponsors for this episode: Be sure to click the logos below and visit our sponsors! Shownotes: This was a very strong show with a compelling guest. What was it like trying to raise an inaugural venture fund? What are the things that they like to see from entrepreneurs? What are some good strategies for engaging investors? Should entrepreneurs bother to write business plans? What does the Atlanta market look like right now to a regional technology VC? On the email front, we had one particular email that led to a great discussion on why investors don't sign NDAs. Bonus time, baby! Enjoy! To play it, use the tools at the top of this post - you can play it via the embedded Flash player by pressing the big play button at the top, or download it to play on your computer or MP3 player. Links/entities referenced within this episode: Southern Capitol Ventures SoutheastVC Blog (Jason's personal blog) Motricity ChannelAdvisor NEA Adams Capital PeachPodStudios National Personnel Services SON Capital Technology Association of Georgia Podsafe music used within this episode: Sundial by Bill Derome Dead Nintendo by Possible Oscar All the Money in the World by Hutch Tune in and find out! Our format is a little out of the norm as far as podcasts go. We treat our efforts as a true "show" rather than a super-concise (limited) vehicle for delivery of information. Therefore, the podcasts can run a bit long (actually, it is largely driven by the guests and their responses.) While we try to have very substantive discussions, we also try to have a lot of fun along the way (and that tends to elongate the programming a wee bit.) :) Our theory is that if we are having fun during the show, hopefully, you will be having a little fun listening as well. Here is the breakdown for the show, in case you want to hop around. Intro 00:00 to 01:36 Smalltalk and introductions: 01:36 to 05:54 Look Who Gets It! 05:54 to 08:29 Announcements/Mailbag: 08:29 to 17:58 Commercial/Comedy Break: 17:58 to 21:53 Main Discussion Topic 21:53 to 46:25 A special thanks to Jason for coming in and hanging out with us! We've got a ton of great guests lined up for the show - we're going to take a bit of a break, but we'll be back soon with Andy Monin, the founder and CEO of Vendormate, a very hot ATDC-based startup and one of Scott's sleeper picks. We welcome your continued feedback as well! If you have an interest in appearing on the show, becoming a show sponsor (hint, hint), have some suggestions for topics, have feedback, or would just like to email us and tell us to "shove off", we invite you to contact us. And don't forget - the StartupLounge.com message forums are up and running. If you need help with any aspect of your venture, we welcome you to jump in and get the help you need! Enjoy! Podcasts StartupLounge.com no No