Monday, January 3, 2011
Insights and Opinions: The Ten Commandments of Fundraising
For today's Insights and Opinions section, where we share the thoughts of the local technology industry, we have a piece from Gray DeFevere, of the DeFevere Advisory Group. DeFevere is active in serving the local technology community, is an angel investor, and also helps run one of the longest running private technology networking groups in the Los Angeles area for venture capitalists, entrepreneurs, and service providers. DeFevere gives his Ten Commandments of Fundraising.
1. Thou shalt focus, focus, focus thy plan. Make sure that our strategy is a rifle shot, not a shotgun blast. And always keep in mind the problem that you're trying to solve. Proprietary, protectable, and sustainable technology is a necessity, but it's not a sufficient condition for success. Identify the collective IP to commercialize. Carve up target markets finely and restrict yourself to two or three well-defined segments.
2. Thou shalt weave a story. Remember, all potential investors are looking for a reason to believe. Create excitement around our plan and show energy, enthusiasm, and Commitment when we present it. We detail both the mystic and the mundane. Cover our long-term vision, and then spell out short-term practicalities of its implementation.
3. Thou shalt understand thy audience. Research and understand our target audience -- both for our plan and our pitch. (More...)
Read the rest of Gray's Ten Commandments of Fundraising.