Monday, March 01, 2004
Panelists at Las Vegas Venture Capital Forum Say Many Startups Lack Foundation
Looking for venture capital for a startup technology company? Then develop a business plan and stick to it.
That's what local technology and venture capital executives told an audience of entrepreneurs and investors during a recent Tech Tuesday forum at the Stirling Club.
Bob Anderson, a local mergers-and-acquisitions attorney and a member of local venture capital group Vegas Valley Angels, said startup companies looking for venture capital need to get back to basics and have a detailed plan before they look for outside financing.
The Vegas Valley Angels, along with the Technology Business Alliance of Nevada, sponsored the event.
"What I see with business founders that come to us is that they are not prepared," Anderson said. "You need to have a good business model and good management."
Anderson also suggested hiring a business attorney and an accountant while the business is in its infancy.
Steve Singer, chief financial officer for SmartConnect.net, a digital surveillance company on West Sahara Avenue, said he wants to encourage people to think about their business model and the product or service a business is trying to sell. His company just received money from the Vegas Valley Angels, but he would not say how much.
"Think about what you want to do with your business," Singer said. "When you're sitting across the table from an investor in trying to raise money, the investor wants a return on his investment. You have to create a business concept that he will be attracted to."
Joe Milanowski, an investor with USA Capital, said business founders must ask themselves whether their product or service will sell and examine the marketplace to see whether it can.
"The important thing is to get back to basics. Can it sell? People build a nice platform, but they go out in the marketplace and the product could not be sold and the business fails," Milanowski said.
Entrepreneurs also need to grow their business incrementally and keep their costs under control, Milanowski added.
Looking for venture capital for a startup technology company? Then develop a business plan and stick to it.
That's what local technology and venture capital executives told an audience of entrepreneurs and investors during a recent Tech Tuesday forum at the Stirling Club.
Bob Anderson, a local mergers-and-acquisitions attorney and a member of local venture capital group Vegas Valley Angels, said startup companies looking for venture capital need to get back to basics and have a detailed plan before they look for outside financing.
The Vegas Valley Angels, along with the Technology Business Alliance of Nevada, sponsored the event.
"What I see with business founders that come to us is that they are not prepared," Anderson said. "You need to have a good business model and good management."
Anderson also suggested hiring a business attorney and an accountant while the business is in its infancy.
Steve Singer, chief financial officer for SmartConnect.net, a digital surveillance company on West Sahara Avenue, said he wants to encourage people to think about their business model and the product or service a business is trying to sell. His company just received money from the Vegas Valley Angels, but he would not say how much.
"Think about what you want to do with your business," Singer said. "When you're sitting across the table from an investor in trying to raise money, the investor wants a return on his investment. You have to create a business concept that he will be attracted to."
Joe Milanowski, an investor with USA Capital, said business founders must ask themselves whether their product or service will sell and examine the marketplace to see whether it can.
"The important thing is to get back to basics. Can it sell? People build a nice platform, but they go out in the marketplace and the product could not be sold and the business fails," Milanowski said.
Entrepreneurs also need to grow their business incrementally and keep their costs under control, Milanowski added.
