The month of April’s Bag Lunch and Big Ideas Session wasn’t just a success…it was a grand slam! Many interesting discussions took place thanks to special guest speaker Marlon Nichols from Intel Capital who talked about the seed/early stage investing and start up collaboration happening at Intel as well as in Folsom, CA.
Marlon started out at Intel Capital working in the Enterprise Software industry. For the last 3 years he has shifted to the Venture Capital investment side.
Their priorities include investments in products that give users a perceptual computing experience, (wearables, tablet, etc). This year, roughly four million dollars will be directly invested in ten to twenty early seed companies. They are passionate about allowing start-up entrepreneurs to live out their dreams, and adding value beyond capital.
Intel offers support to their potential future investment companies by putting together “Intel Technology Days.” These consist of Intel portfolio companies gathering with start-up entrepreneurs in the spirit of business development support and to talk about challenges that are being faced.
As an entrepreneur, how exactly do you get noticed by an organization like Intel Capital? Everyone agreed this is no easy task. At what point should an entrepreneur just give up? The Jack Crawford answer is: Never! Not until they get a “no.” Marlon was able to use his knowledge and expertise to offer valuable suggestions, which applied to entrepreneurs in all stages.
It is important for Entrepreneurs to be persistent and familiar with the pipeline process. An individual with money to invest in a start up goes through hundreds of companies to narrow down a select few they feel are worth investing in. If you are an entrepreneur, here are a few things to consider…
Cold call vs. networking- A popular term in the investment industry is “killing the deal,” or passing up pipeline opportunities. When investment companies are narrowing down their list, they aren’t necessarily ruling out various organizations because they are “no good,” but rather, they do not know enough about them. As an entrepreneur, make yourself more relevant to an investor by getting to know their network of people. Marlon shared that when he hears of a company through a trusted friend or organization he is familiar with, he is 100% more likely to put time in to going through their executive summary…which leads to the next point.
A well thought out, detailed Executive summary is CRITICAL. When you are putting together your executive summary, the first few lines should be something captivating and intriguing to someone reading it for the first time. Don’t make it anything like what you would expect a competitor to present.
Know your industry sector competitors. You should know your industry better than the investor. Do not waste their time with something that they have already heard of or an idea that they have already invested in. Although it may be a lot of work to dig in to this information, do your best.
Finally, the barriers government and entrepreneurs face were discussed. Entrepreneurs expressed that they often feel a push back because government is afraid of how fast entrepreneurs move vs. how slow government moves. It is apparent that there needs to be an easier method of collaboration. Jack was excited to share how he spoke on behalf of a bill passed just this week, and it could solve some of the problems. The Entrepreneurs-in-Residence Act, AB 1675 passed with flying colors: a 6-0 vote. The purpose of this bill is to create programs to help entrepreneurs and California State Government to be better connected, and for government to adopt new innovative technologies in an easier way.
If you want to share an idea you have with an eager audience, listen to what is going on in your neighborhood, or hear about the latest and greatest start-up businesses on the rise, don’t miss out! Come be an active participant. Bring a lunch and hit the next Bag Lunch and Big Ideas session on May 27, 2014 from 11:30-1:00.