Friday, June 11, 2010
Insights and Opinions: How To Network In 10 Easy Steps
For our Insights and Opinions section this Friday morning, we have How to Network in 10 Easy Steps, from angel investor Frank Peters, of the Frank Peters Show. Frank, who podcasts every week on topics of interest to entrepreneurs, angel investors, and venture capitalists, talks about mixer events, such the Open Angel Forums from Jason Calacanis, and similar entrepreneur mixers from the Tech Coast Angels--and how to best take advantage of them.
Earlier this week, there was a meetup nearby in Aliso Viejo; Jason Calacanis was the host and he encouraged entrepreneurs to gather in 169 cities around the world, simultaneously. That's right, he does a lot of things in a big way! Coincidentally, the Tech Coast Angels have been doing these meet-and-mingle events in Aliso Viejo, too; their next one: June 15th. (If you know Aliso Viejo then you know that this is their single claim to fame.)
Why should you care? People are getting funded from these events. But like everything else in life, there's a right way and a wrong way... let's consider ways to increase your odds of getting funded:
3. Don't waste your time. In spite of what you see on Shark Tank, your food business isn't gonna get serious interest from a group of high tech investors. Cookies and ice cream, apparently they do get funded on TV. Personal services, too, are treated like a skunk at a lawn party, no pizza parlors or beauty parlors either. One exception, we do like alcoholic beverage deals, and not just for the free samples you'll have to pass around; we'd all like to be part of the next Grey Goose deal.
4. Know what's tired. Another social networking platform may be keeping you awake half the night, but it'll likely put us to sleep. Venture capital told us they didn't want to see any more of these deals 3 years ago. We have to listen because angels are just part of the early-stage funding food chain. If we fund you today and you need more money later, guess where that will come from? Likewise, clean, green, energy and water deals... Wow! Doesn't every investor want to cash in on the exciting opportunities in these areas? No. We know better. These deals need massive amounts of capital to affect change and create markets. Early-stage investors would get crushed (i.e. terribly diluted) with the enormous capital required to float these boats; go straight to venture capital instead. (Continued...)
Read Frank's whole article on How to Network in 10 Easy Steps.