The Fundable Startup by Fred Haney

Author:Fred Haney
Language: eng
Format: epub
ISBN: 9781590794609
Publisher: SelectBooks, Inc.
Published: 2017-01-31T16:00:00+00:00

Networking to Assemble Resources

A startup leader must assemble the resources required to build her business. An experienced leader has an advantage, because she is more likely to have an extensive network of contacts. But, whether the leader is experienced or not, she will probably do a lot of networking in order to find resources. There is no shortage in the high-tech startup world of worthwhile networking opportunities.

The best networking opportunities help a leader find people who can help build his business. This includes people who might serve on her board of directors, or industry experts, or people who might become part of her management team. It would not include people seeking to be paid for helping to find resources. Leaders don’t need to pay for this kind of help, or pay people who claim they can help find capital.

Two of the best networking models I know are Connect, a San Diego networking group for entrepreneurs and investors, and Monday Club, an 850-member California mentoring network that I founded in 1984, with chapters in Orange County, Los Angeles South Bay (Torrance), and Santa Monica (Silicon Beach).

The original Connect model was simple and effective. It gave entrepreneurs an opportunity to mingle with other entrepreneurs, successful CEOs, business service providers, and investors, to meet people who could help build their businesses. The meetings were simple mixer meetings where individuals had substantial opportunity to get to know each other.

Monday Club meets monthly. At each meeting, two companies present their business plans to the three chapters. They also network extensively with the members. The advertised purpose of these meetings is not to raise capital. Rather, it is to give the presenters useful feedback on their investor presentations in order to improve their chances of raising capital. Another objective is to give the presenters an opportunity to meet people who can help with their businesses. Most presenters are in the early stages of the fundraising process.

Monday Club has provided useful feedback to hundreds of companies, many of which have found individuals who can help build their businesses—including both directors and advisers. One company created its entire board of directors by selecting members of Monday Club. Many presenters have also been successful in raising capital.

One reason Monday Club is effective is that the members are hand-picked for their ability to provide useful feedback to the presenters. The members ask good questions and provide feedback almost as informed and valuable as comments the presenter would receive from a venture capital firm. Presenters value the members’ feedback because they know that the members are experienced high-tech company builders.

One lesson learned from Monday Club is the extraordinary value of networking for startup companies. It is important for them to meet lots of people in hopes of finding qualified advisers.

Networking events that promise funding or strategic alliances for a startup company are rarely effective. Professional investors often attend these events only to network with each other. Venture capital firms are typically represented by associates, rather than by full partners. Corporations that attend are likely to be assessing competition, rather than planning to make a deal.

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