JumpStart: IdeaExchange Blog

If you are an entrepreneur and are currently raising equity capital — check out the upcoming JumpStart Angel Fair. The fair will be held on Tuesday, October 26th from 11:30am to 4pm at the Wolstein Center in Cleveland. Over 100 angel investors are expected to attend, and all participants will be invited to attend JumpStart’s Annual Community Meeting taking place immediately following from 3:30pm to 6pm.

If you are interested, complete the online application form by 5pm on September 10th. A selection committee made up of investors and entrepreneurial support professionals from around the state will review the applications and select 12 companies to present. Companies will be notified the week of September 20th of their status.

As part of the day’s events, selected companies will take part in the Entrepreneur Showcase at JumpStart’s Annual Meeting to continue their conversations with investors, speak with other entrepreneurs, and share their company stories with other event attendees.

The last Angel Fair we hosted attracted over 100 angel investors and presenting companies went on to raise over $11 million in equity capital. We expect to have the same great turnout (if not better) at this year’s Fair and are excited about once again bringing our state’s most promising company opportunities and serious angel investors together in one room.

This is a great forum to showcase your company and pitch to an audience of qualified angel investors. Make sure to fill out your application today!

Kerri Breen is the Vice President of External Finance for JumpStart Ventures and works directly with our portfolio companies to secure additional growth capital. Kerri brings experience in capital markets, banking, public and private offerings of debt and equity securities, corporate mergers and acquisitions, and real estate asset dispositions. Kerri received her MBA with a focus on finance from the Weatherhead School of Management and her BA in marketing from Ohio State University.

It’s been exciting to see a groundswell of activity in Washington focused on encouraging entrepreneurship and innovation (such as the creation of the National Advisory Council on Innovation and Entrepreneurship, of which Ray is a member). 

The most recent example that I noticed was legislation introduced that would provide a 25% tax credit for angel investors who invest in small or early-stage businesses that have received SBIR (Small Business Innovation Research) grants. The investment, which would be limited to half the size of the SBIR grant, would require a holding period of at least three years. Even though a three year investment is typically within the exit expectations for any angel investor (on the early side, in many cases), it’s nice to see legislation structured that reflects an understanding of the need for long-term investment. I also like to see incentives in place to encourage private investment when federal dollars are already being invested.

Apparently this bill (called The Innovation Technologies Investment Incentive Act) was based on the best practice learning of a biotech tax credit available in Maryland which has helped small, young biotech companies raise $50 million in investment. I also noticed one of the legislators sponsoring the bill was new Congressman and successful entrepreneur Jared Polis, the founder of Proflowers.com and Bluemountain.com (both of which had multimillion dollar exits) and represent one of the country’s hottest new entrepreneurial hubs: Boulder, Colorado.  

Another piece of legislation based on best practices…the Business Incubation Promotion Act, introduced in September of 2009 with the intent of encouraging and funding the establishment of more business incubators. Now let’s get that out of committee!

Cathy Belk is the Chief Relationship Officer of JumpStart. She specializes in branding, marketing communications, and business and relationship management. She brings 16+ years of experience in a variety of marketing and business roles, but gets her energy from working daily with entrepreneurs and their growing companies.

PerfectPitch, the national competition in which entrepreneurs pitch their ideas via a video submission and can end up presenting to the country’s leading venture capitalists, debuted in 2009 with truly 2009 marketing techniques (including the opportunity for an entrepreneur to pitch based on who submitted the best Twitter pitch).

It’s now back again and as with last year, entrepreneurs who are able to react quickly have an advantage. (The deadline is August 26th, which is two weeks away). Here’s what you do:

• Submit your pitch ONLINE - a pitch may include a written description, photos, and video about your BUSINESS or IDEA
• Deadline for submissions is August 26th, 2010. Early applicants will receive helpful feedback and may make edits to improve their pitches
• Judges will review all pitches – Top 3 win prizes and an invitation to pitch LIVE to investors and the audience of the PerfectBusiness Summit 2010

You can find full details here on entering, including the list of investors representing over $10 billion in assets who will be judging. (Did I mention that JumpStart’s own Ray Leach is one of the judges, as is North Coast Angel’s Todd Federman and venture capitalists from leading investors such as DFJ and Google?)

Cathy Belk is the Chief Relationship Officer of JumpStart. She specializes in branding, marketing communications, and business and relationship management. She brings 16+ years of experience in a variety of marketing and business roles, but gets her energy from working daily with entrepreneurs and their growing companies.

Many entrepreneurs know firsthand what it takes to bootstrap - to work with limited resources (financial and human) and stretch them as far as possible without relying on external resources. But try as you might, it is unlikely that you can do it all alone. Eventually, you will need to bring in people with skills and knowledge that you don’t have.

You have three options:

1. Continue in bootstrapping mode. Find someone with the expertise you are looking for and convince them to provide their sweat equity on the if-come that the business will grow and succeed.
2. Delay growth until you have the ability to hire the A+ players you need.
3. Outsource. Lawyers, accountants, and marketing specialists are just a few of the highly trained service providers that are available on an outsourced basis when a hire isn’t possible. Reach out to service providers to focus on what is most important: generating revenue.

Unsure where to find the most reliable Service Providers? Here are some suggestions:

1. Ask for recommendations. You are not the first entrepreneur in need of a lawyer well-versed in patent protection. Other entrepreneurs will gladly provide referrals. Once you find a service provider you trust, it can also be helpful to ask who they partner with. Attorneys usually have an accountant they can recommend, and vice versa.
2. Poll a general audience using social networking tools. Online communities such as Twitter and LinkedIn are now vital tools for business discussion. With the number of professionals online rising daily, the internet is a great place to engage a wide variety of individuals. Post the criteria you are looking for on Twitter or in a LinkedIn group, and watch as the suggestions come in!
3. Check online directories. IdeaCrossing.org is a free online resource that has a searchable online database where entrepreneurs can find and connect with service providers. Users can search by keyword, zip code, and business category to find a list of providers that meet their criteria. The Better Business Bureau also has a searchable online database where you can find accredited service providers in your area. These businesses meet the necessary standards of trust and transparency.

Don’t try to handle all aspects of your business on your own. Know where your team’s weaknesses lie, and seek experts to fill those gaps. Find the right people for the job, and move forward with a better business. 

Tiffan is the Vice President of IdeaCrossing, a free online community created by JumpStart, which connects entrepreneurs with the national resources necessary to grow their businesses. Tiffan has worked at several venture-backed startup technology companies and strategic marketing agencies in both Boston and Cleveland. Through her work, she has facilitated the necessary growth of early-stage companies.