January 2010 Archives

It's a toss-up between caffeine and networking as to which is the primary energy source for entrepreneurs.  But the genome of every entrepreneur includes a networking gene - check out the research - QED.

We all know and appreciate the importance of entrepreneurial ecosystems.  We stress this to our students from the first day they arrive on campus.  It is remarkably easy to network in our business community, and is a critically important part of the experience of our students as they get their educational experience.

But, surprisingly, it's not intuitive.  To some it is an intimidating thing.  To others it is too indefinite; they don't always appreciate that 2nd and 3rd degrees of separation are not an impediment, but rather a pathway to use an initial connection to lead to a second and a third before the synapses fire.

I had an experience just before the holiday that demonstrates, however, just how easy networking can be--sometimes by accident.

I was rushing late one afternoon to attend a pre-holiday reception for an organization in Boulder.  I knew roughly where it was taking place, but the names of the bars and restaurants in the area had gone through recent changes and I wasn't clear about the specific location. I reached the general area, parked, and with collar up and hat pulled down against the cold and windy weather I headed across the street, looked for a lively venue - and spotting one - entered without further thought.

Upon entering I observed that it was indeed a lively group. There were several familiar faces, and again without further thought, I accepted a drink and went looking for my first conversation.  I was almost immediately engaged in animated conversation with a number of people including students, business colleagues and familiar faculty members, but it began to slowly dawn on me that it was not the group with whom I had intended to meet. Instead I had accidentally crashed the holiday gathering of the staff, faculty, students and supporters of the Environmental Studies department--ENVS.  ENVS is one of our truly outstanding departments at CU Boulder, and our dual degree program - MBA/MS in Environmental Studies is one of our most excellent and competitive from an admissions perspective.  So I was not among strangers - but the enthusiasm with which this gate crasher was included in the celebration was in the best spirit of the networker's credo.

By the end of the evening I'd had several terrific conversations during which I'd received and offered referrals to several other folks, and enjoyed hearing and suggesting great ways in which our two schools could work even more collaboratively in addressing the world's really big challenges with sustainability. 

Happy Networking in 2010!  I can only wonder what might have happened had I arrived at the event for which I'd set out.

The following is a guest post by Mark Wiranowski, CU law student and member of the CUNVC executive committee:

Jason Mendelson, Co-Founder and Managing Director of Foundry Group, a Boulder venture capital firm, kicked off the New Venture Challenge Crash Course series to a packed house last night.  His wealth of experience - software engineer, then deal attorney, then venture capitalist - came through in lively style.  He's not afraid to call a spade a spade, either.  Take his advice on very early stage financing:

"Do you really need financing yet?  Early stage financing is very risky, and therefore, expensive.  I'm going to act more like a loan shark than a VC.  An angel investor will give you a better deal.  Create value and the money will follow."

This was the first in an every-Wednesday "Crash Course" series put on by the New Venture Challenge.  Each workshop is presented by a seasoned entrepreneur or business leaders.  Mendelson's talk, titled "How to Build a Company," dished out advice and highlighted common mistakes:

"You need a partner who complements your skills.  The biggest red flag for me as a VC is someone starting a company solo."

"Most people fall down on estimating the competition.  Lots of entrepreneurs say, "We are different."  Are you really?  Take social networking sites; your competition might just be your customers' time."

"Marketing and advertising will not save you: Every marketing guy knows that half of his budget is wasted; he just doesn't know which half."

Mendelson also praised Boulder as a place to build a company.  Successful entrepreneurs are happy to mentor those starting out, and the city is one of the most socially-networked that he's worked in.  Mendelson illustrated with a parting shot.

"What should you say to a Sand Hill Road venture capitalist?  Compliment him on his Ferrari."

Below are the slides from Jason's presentation.  Thanks Jason!  Here is the video of the crash course.

Great news for all entrepreneurs to kick off 2010:  We now have it on good authority that caffeinated coffee is the ultimate new health food--no joke.  If coffee has been the fuel of choice for the 24/7 entrepreneurial lifestyle, according to WebMD, it's now OK!
What's more, my own anecdotal evidence suggests that knowing about the health benefits of coffee may be one of the most effective sales tools available.  I'm continuously meeting with people to tell them about the Deming Center for Entrepreneurship, about the extraordinary talent pool of our students, and to convince folks of the excitement and value of our work here and at the Leeds School of Business.

Typically I've relied on eloquence and compelling reasoning (feedback invited), and most of my meetings take place over coffee; all too often the person with whom I am meeting orders de-caf, or tragically passes on coffee altogether.  When I ask why, I find that mostly misimpressions of the effects of coffee on health are to blame. When I then share the good news, enabling them to shed those negative feelings of guilt and concern, the years of self-sacrifice, I'm almost always successful in closing the deal--and almost always over a pot of freshly brewed. Conversion!

Try it out--and best wishes for your entrepreneurial adventures in 2010.

DISCLAIMER:  The WebMD article speaks for itself.  The writer disavows any claims or representations of offering healthcare advice.  All you have to do is take a look at him, a long-term 4 to 6 cup a day caffeinated coffee drinker, and draw your own conclusions.  Just don't hurt his feelings.