GrowSouthwest is excited to sponsor the Phoenix FundingPost Investor Roundtable on Sept. 4, held at ASU SkySong in Scottsdale. With 30 startups pitching this event, we know there will be great pitches, great advice and lots of deals made!
The first wave of speakers has recently confirmed for the event. Our writers have set up interviews with each panelist to learn more about their background as investors and find out what advice they have for the startups pitching that night.
First, we spoke with David Koehn, angel investor for Sand Hill Angels. Sand Hill Angels are one of the top angel groups with regard to number of deals made and size of each investment.
“We make decisions about deals we want to invest in individually, whether there’s two of us or 60 of us investing – our group has flexibility in power. We participate in $50K deals as well as those that reach $1 million,” said Koehn.
GrowSW: Have you been a FundingPost speaker before?
David: Yes, and I’ve spoken at other FundingPost events, including FundingPost Silicon Valley VC and Angel Conference 2012 and 2014. I also speak at other leading technology events, such as NestGSV Launch Event and VC Taskforce: The Angel Elevator Pitch.
GrowSW: Which do you identify with more- the startup side or the investor side?
David: As a kid, I had an eco tour organization, called Extreme Tours that took people out onto the Arctic Slope of Alaska. In the Bay Area, I started a mobile company called TailWind, funded by Nokia – and we had customers such as Pfizer and the Navy. So, I identify with entrepreneurs but think like an investor — typically I try and educate the startup guys on how to make sense to their investors.
GrowSW: What advice can you offer companies pitching the FundingPost event? They only have 60 seconds.
David: Very quickly present the problem and solution. It’s incredibly important to show evidence of traction, though traction can come in many forms. Present details of the product, market, team – and state the asking amount and how you intend to use the funds. Don’t deviate from a few sentences on each of those. Be crisp, be clear.
GrowSW: What is the most important part of the pitch — background on business, answering the right questions, proof they did their homework on competitors, confidence?
David: What’s most important is to show evidence of business traction. In the pitch, make it evident that you understand how to measure success and failure for your business.
GrowSW: So you want to be able to show your company’s sales?
David: It may not be sales initially; it could be users or a number of other measures: web traffic, downloads, utilization, etc. Anything that is creating value in your startup… measure that, show you understand that value and have a plan to continue the upward growth of your business.
GrowSW: What makes a good pitch?
David: The ability to tell your story. You have to explain to the investor why it’s meaningful and why it’s an investable business. You need to understand how to create value and how your business will continue to grow in the future. After that, I can tell if it’s a good business that I want to invest in or not –but you have to get through to me.
GrowSW: What types of startups are you interested in?
David: B2B companies that are solving problems at scale — in other words show me a provable solution to a huge problem that is currently being solved inefficiently (or not solved yet). Paint the picture of the supply and demand side in this inefficient market. I like to see the solution in the middle — where buyers and sellers can connect in a way that solves a key problem in the world.
I’m also attracted to object-to-consumer or medical technology companies. Primarily, when a startup has done such a good job that they are solving a problem in such a unique and efficient way that I’d be silly not to invest and be a part of it.
Here’s a few companies that got my attention.
NoWait provided a solution to the wait list buzzer that people are given when waiting for a table at a restaurant. This restricting and uncomfortable practice forced you to stay in the restaurant’s crowded lobby and hold the buzzer waiting for it to go off. NoWait came up with a wait list management service that uses the customer’s cell phone to alert them that their table is ready. This eliminated having to stay in the restaurant in range of the buzzer’s reach. This allows patrons to take a walk around the mall, run to the ATM or anything else they want to do while waiting for a table. Genius!
Download the NoWait App here.
Another B2B company I love is Perkville — a cloud-based loyalty program integrated with point of sales systems. In particular, they are integrated with the dominant point-of-sale in the wellness space. In wellness, these guys are a household name as a loyalty provider. Elegant product design aligned with a defined need in a growing and lucrative market, that’s what catches my attention.
Does your startup want to get involved?
Interested in meeting early-stage accredited investors in Phoenix? Then register for the FundingPost Investor RoundTable on Thursday, Sept. 4, 2014. FundingPost has hosted 270+ sold-out venture events in 23 cities over the past 13 years.
At our next Phoenix Conference, the panels of local and out-of-town investors will focus on pitching to early-stage investors, and what it really takes to get them to write you a check! We will be discussing the things that are most important to them when they are considering an Investment, the best and worst things an entrepreneur can do to get their attention during a pitch, and, of course, the best ways to reach these and other Investors. There will be plenty of time for networking with the Investor panelists during the breaks and networking party!
Click for more event information: http://www.fundingpost.com/breakfast/reg1.asp?event=300