With a competitive marketplace, new technology companies may find that they need more capital to accelerate their company’s growth. The question becomes how to effectively approach investors outside the company’s geographical market. At FoleyTECH Chicago 2016, Liam Donohue, co‑founder and managing partner of Boston-based .406 Ventures; Ned Schwartz, partner of Ohio‑based Drive Capital; Tasha Seitz, the chief investment officer of Impact Engine, a Chicago venture capital firm; and Joshua Siegel, the general partner of Rubicon Venture Capital, a firm with ties to both the East Coast and the West Coast, discussed the finer points of fundraising from coast to coast on a panel moderated by Foley’s Lisa Conmy. Below are a few of their tips.
As tech founders and executives contemplate the possibility of exiting their companies, there are multiple factors they must consider. On May 3rd at FoleyTECH Chicago 2016, four seasoned entrepreneurs came together to discuss their different reasons for, approaches to and ideas about selling a company.
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The SEC’s equity crowdfunding rules finally go into effect this month almost four years after Congress passed the JOBS Act, requiring the relaxing of certain rules on raising funds. So what does equity crowdfunding actually look like? Here is a primer:
The startup founder/investor relationship is a marriage of sorts. Like any long-term union, there are ups and downs, and it requires effort and commitment to maintain a strong and lasting relationship.
When the connection between the founding team and investors is weak and faltering, it can be a source of anxiety for everyone involved, and ultimately can hurt the company’s chances for growth and success. By contrast, a strong relationship built on mutual trust and communication can be a boon for the company and investors.
Three experienced startup founders shared their advice on how to cultivate a strong and lasting relationship with investors. Canh Tran is cofounder and CEO of Rippleshot, a fraud analytics firm using predictive technology to provide a cutting-edge breach detection solution. Jeffrey Eschbach is cofounder and CEO of Page Vault, a web archiving platform for legal professionals to easily capture and print webpage content. Aksh Gupta is cofounder and CEO of Occasion, an online scheduling and booking ecommerce platform for service-based businesses.
Here are the five tips the founders believe are key to a strong and lasting investor relationship:
Building a startup in Chicago differs from building one in Silicon Valley. Chicago investors, both individuals and committed venture funds, tend to be more reserved and practical, whereas coastal venture investors are more likely to bet on the next big idea. Not surprisingly, many of the city’s successful startups take on those same practical Midwest attributes.
Whether you’re currently building a business or plotting your path to a launch, here are three lessons you can learn from startups that made it in the city, and from the investors you’ll need to get off the ground.