CED is launching an "Ask the Expert" series for readers to interact with local experts who write guest columns for CED. In CED's bi-weekly e-newsletter, we are asking readers to email questions on the topics covered in that week’s guest column to "expert@cednc.org." Select answers will then be featured in our blog.
The featured expert this week is Chris Matton, partner with Kilpatrick Stockton LLP and co-chair of CED's Tech 2006. Here are three select questions, with Matton's answers:
QUESTION: What’s the best way to find angel investors in and outside of the Triangle region?
ANSWER: The best way to find angel investors is through your existing contacts. Your attorneys, accountants, advisors, Board members and others should be able to introduce you to prospective angel investors. There also are several active angel groups, including the Piedmont Angel Network and the Wilmington Investor Network, that solicit investment opportunities. While no attorney, accountant, advisor or Board member should promise that they can deliver financing, they should be able to deliver introductions.
QUESTION: What gives one company an edge over another in securing venture capital?
ANSWER: The team involved. I remain a very strong believer that venture capital funds will finance a very strong team with some questions about the business plan before they will finance a very strong business plan with some questions about the team. Venture capital funds bet on the jockeys, not on the horses.
QUESTION: What do you think about the CEO for hire trend? Does it help or hurt companies more in the end?
ANSWER: The simple answer is that it depends. What are the alternatives for the company? What is the CEO for hire's track record? What are the milestones to be achieved by the CEO for hire? What are the succession plans? Unfortunately these are not easy questions to answer in all circumstances, but CEOs for hire are worth considering under the right circumstances.