Money & Finance Archives

Web 2.0, Writers' Strike and Venture Capital - A Perfect Storm?

The Writers' Strike brought to mind a great conversation I had with Gene Gabbard over lunch at the end of summer. We talked about how the world had changed since we became friends 10+ years ago and in particular the refreshingly varied faces of entrepreneurship. Between "googlization" and globalization, the variety of viable business plans seemed infinite and it was clear to us that it was never going to be predictable again. Web 2.0 has amplified the internet's capacity to create business and sell products with the surprise twist of collaboration.

Friday Fun - Digital Domain's IPO - You've gotta love it!

For those of us who watch the IPO market with an eye toward what's in store for regional start-ups and tech clusters, you've got to cheer for Venice CA-based Digital Domain who filed for a $100M IPO on the NASDAQ on Thursday.

New, Online Business Models Impact Start-up Funding

An IT Business Edge post earlier this week offers insight into an investment evolution as an increasing number of early stage companies take advantage of expanding online business models.

Annual Compensation Survey Released

Raleigh-based Hutchison Law Group has released a summary of its Annual Compensation Survey, which measures salary, bonus and equity ownership levels among the top seven executive-level positions typically associated with information technology and life science companies.

A total of 23 companies participated in the survey. All participants are located within North Carolina and have received equity financing from an institutional investor or equity financing of at least $500,000 from angel investors.

Q&A with Monica Doss

In a recent interview with WRAL Local Tech Wire, CED President Monica Doss discussed how the culture of entrepreneurship has evolved in the Research Triangle.

QUESTION: Can you describe the entrepreneurial climate in the Triangle 20 years ago? What were some of the biggest challenges that entrepreneurs were facing when they were trying to start a business?

ANSWER: Back then the Triangle had a very successful economy, which made it more difficult to draw attention to entrepreneurs and the things that they need. The Research Triangle Park was filled with recruited research companies that created lots of jobs. So, people focused their attention on those large companies. As the economy continued to strengthen, the attitude held by many was “why bother with entrepreneurship”?

State of the Research Triangle Region

North Carolina's 13-county Research Triangle region added 86,000 new jobs in the past three years -- midway into a five-year effort to improve the region's competitive position and create 100,000 new jobs.

The news was announced to more than 800 people at RTRP's fourth annual State of the Research Triangle Region event on Thursday morning.

The slides from the event are available online in PDF format.

On the Menu Episode 2: Integrian's Pete Durand

CED has posted the latest interview in its Internet TV show, “On the Menu: Out to Lunch with Innovators and Entrepreneurs."

Watch the conversation with Pete Durand, CEO of Morrisville-based Integrian:

Where Are VCs Placing Their Next Big Bets?

A recent Knowledge@Wharton article summarized a discussion among venture capitalists at the 2007 Wharton Economic Summit.

According to a summary from the National Dialogue on Entrepreneurship (NDE) , the Wharton discussion topic focused on where VCs are planning to make their next big bets.

Venture 2007 Highlights

CED hosted its 24th annual Venture conference this week with 800+ people participating in total, including more than 250 investors from 20 states.

Over 60 high-growth companies from an eight-state region presented at the conference. Venture 2007 also offered a first-ever Start-up Speed Dating session on Tuesday afternoon, which gave pre-seed companies an opportunity to meet with investors in a fast-paced, rotating session.

Here are a few print, radio and online stories about Venture 2007:

Conversation with Angel Expert Jeffrey Sohl

Allan Maurer, a reporter with TechJournal South, has interviewed angel expert Jeffrey Sohl in advance of next week's Angel Investor Retreat at Venture 2007.

Sohl will deliver featured remarks during the retreat on April 24 at 8:30am.

Monica Doss Guest Column: Funding Fuels Growth

In advance of next week's Venture 2007 conference, Business Leader has featured a cover story on past Venture conference presenter Integrian.

In addition, the magazine included a guest column from CED President Monica Doss.

The article examines the results of CED's 2007 Entrepreneurial Satisfaction Survey, which found that access to capital remains a critical factor in starting and growing a company.

Angel Optimism

Angels are optimistic about the climate for investments in early-stage businesses in 2007, according to a report from the Angel Capital Association (ACA).

This news follows CED's recent announcement of nine presenting companies at its Angel Investor Retreat on April 24 in Durham.

This optimism comes at the same time when angel groups reported increases in investments in 2006 over 2005, with a 23 percent increase in average total investment dollars by group and 34 percent growth in the average number of deals the groups funded.

Venture Fundraising: River Cities Closes $75 Million for Fourth Fund

River Cities Capital Funds, which has offices in Cincinnati and Raleigh, has raised $75 million in a first close of its $150-200 million fourth fund, according to recent fundraising disclosures.

Rik Vandevenne, a principal in River Cities’ Raleigh office, said the firm is actively looking to invest in IT and healthcare expansion-stage companies in the Midwest and Southeast.

Local VC is "Calling All Entrepreneurs"

Jason Caplain of Raleigh-based Southern Capitol Ventures is opening his doors to entrepreneurs on April 20.

Jason talked about the idea on his SoutheastVC blog. Email him if you are interested.

Angel Investing Jumps in 2006

Angels invested $25.6 billion in entrepreneurial companies in 2006, a 10.8% increase over 2005, according to a newly released study (PDF) by the Center for Venture Research at the University of New Hampshire.

The center's director, Jeffrey Sohl, will elaborate on these findings during featured remarks at CED's Angel Investor Retreat on April 24 at Venture 2007.

Measuring Entrepreneurial Satisfaction

CED has released the results from its 2007 Entrepreneurial Satisfaction Survey Report (PDF), which asked Research Triangle region entrepreneurs about the critical factors for starting and growing an entrepreneurial business.

Among the survey's most significant findings:

Bootstrapping Techniques

Kauffman eVenturing has posted a great collection of articles on bootstrapping.

Some of the guest columns include:

CED Podcast: The State of Venture Capital

CED has posted an audio podcast (MP3 file) of NVCA President Mark Heesen's "State of Venture Capital" presentation. Heesen gave this talk on Feb. 1 at UNC-Chapel Hill's Carolina Club.

As Jason Caplain notes in this Southeast VC blog, Heesen's slides (PPT file) include a detailed breakdown of national and NC-specific venture data.

Q&A with NVCA's Mark Heesen

In advance of CED's "State of Venture Capital" program this afternoon at UNC-Chapel Hill, the Raleigh News & Observer has published a Q&A with NVCA President Mark Heesen.

Here are excerpts from N&O reporter Frank Norton's conversation with Heesen:

Addressing the Early-Stage Funding Gap

Many new technologies face obstacles when attempting to transfer out of universities and research institutions because of a funding gap between government and private equity support.

To address this need for seed-stage financing, NC IDEA has implemented a grants program to fund “proof-of-concept” business activities that validate potential markets, reduce business risks, and advance projects to the point at which they are suitable for private equity investment.

Applications are now being accepted for NC IDEA’s next funding cycle. The application deadline is February 16.

How to Fix Your Company's Pitch

Guy Kawasaki's partner at Garage Ventures, Bill Reichert, has some great tips on strengthening your company's pitch.

Reichert thinks that most companies fail to execute on a solid pitch because they focus on teaching rather than selling. When speaking with potential investors or strategic partners, "Your job is to excite, not to educate."

Survey of Emerging Life Science Companies

The availability of trained technical and scientific workers, pro-business government and low costs of doing business are among the most important factors affecting company operations, according to North Carolina life science executives participating in a survey of Emerging Companies conducted by NCBIO.

The report (PDF) shows that companies are very satisfied with the state’s technical and scientific labor pool, and generally satisfied with the state’s cost structure and government’s approach to business.

VC Predictions for 2007

Venture capitalists are predicting a strong and stable investment climate in 2007 with opportunities across a diverse group of industry sectors and global regions, according to a recent survey (PDF) from the National Venture Capital Association (NVCA).

NVCA, which is a supporting sponsor of CED's Venture 2007 conference, gathered comments from numerous venture capitalists about what to expect in the new year.

Making it on a Shoestring

A recent New York Times article explains that Internet start-ups are making it on a shoestring. Such a trend could give more bargaining power to entrepreneurs, changing the way they approach investors.

As the article notes, this "has been a challenge for venture capitalists, who have raised record amounts in recent years and need places to put that money to work."

Shaking the MoneyTree

PricewaterhouseCoopers hosted its quarterly "MoneyTree" breakfast this morning in Cary. This event gives the entrepreneurial communit a snap-shot of the national and state venture capital landscape.

SJF Ventures' David Kirkpatrick and Novak Biddle Partners' Janet Yang each provided comments during a panel discussion at the breakfast. Check out this article on Yang's interest in investing in the region.

Ask the Expert: Chris Matton

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:

M&A Optimism

M&A activity is on a record-breaking pace, and dealmakers are again expressing optimism with 90% saying the current M&A environment is good or excellent.

That's the latest findings from the ACG/Thomson DealMaker’s Survey (PDF), which recently polled 1,201 investment bankers, private equity professionals, corporate executives, as well as lawyers, accountants and other service providers involved in the deal economy.

WUNC Reports on NC's Venture Climate

Leoneda Inge, a reporter with North Carolina Public Radio - WUNC, has put together a story on North Carolina's venture capital community.

Inge spoke with Intersouth Partners' Garheng Kong, CED's Zack Mansfield and Motricity's Ryan Wuerch about the region's investing climate.

15 Tips to Raise Venture Capital

Veteran entrepreneur Vivek Wadhwa, who is now Executive-in-Residence/Adjunct Professor at Duke University, has some tips on raising venture capital.

In particular, he focuses on preparing for the rigorous due diligence that investors perform when considering a deal.

Angels on the Rise

The number of organized angel investor groups is on the rise, according to a new study by the Angel Capital Education Foundation (ACEF) and the Ewing Marion Kauffman Foundation.

The report found that the number of angel groups increased substantially in the past three years, from an estimated 150 in 2002 to 250 in 2005.

What Are Investors Looking For?

Kathryne Carr of Virginia-based Tall Oaks Capital Partners shares her thoughts on what investors are seeking when doing deals.

As a life science investor, Carr wants to see "technology that provides solutions to unmet needs in the marketplace or simplified solutions that enable resolution of complex problems."

Building a "Bulletproof" Startup

Business 2.0 magazine reports in its June 2006 issue that "there's never been a better time to start your own company."

While barriers to entry might be lower than before, the magazine warns that "succeeding is as difficult as ever." To help navigate the dangerous startup waters, Business 2.0 has developed a 16-step guide (PDF) to help entrepreneurs succeed.

Biotech 2006 Audio

Audio files from Biotech 2006 keynote speakers are now available online (in MP3 format).

SG Cowen's Stelios Papadopoulos and NPR's Ira Flatow each gave featured comments at CED's 15th annual Biotech conference on May 23 in Winston-Salem.

Engaging the Angel Community

PricewaterhouseCoopers hosted its quarterly "Shaking the MoneyTree" breakfast this morning in Cary, NC.

After going over the Q1 2006 venture numbers, PWC's Jeff Barber moderated a panel discussion with two active venture capitalists: The Aurora Funds' Jeff Clark and H.I.G. Ventures' David Sung.

One interesting discussion topic was the status of seed and early-stage investing.

Venture Capital Goes Global

SSTI, a national organization focused on technology-based economies, cites a report from Ernst & Young that predicts a new phase in the evolution of the global venture capital industry.

Ernst & Young's report, called "Transition," points to numerous factors that are driving the globalization of venture funds and their portfolio companies. The most significant factors include:

Is “Cleantech” the Next Big Thing?

What’s all the buzz about “cleantech”? Many top-tier VCs, such as Kleiner Perkins' John Doerr, are placing big bets on environmentally friendly startups.

Recent figures show that 2005 VC investments in cleantech totaled more than $1.6 billion, an increase of $423 million, or 34.9% over 2004. This total puts cleantech in fifth place (behind biotechnology, software, medical and telecommunications) among VC-backed sectors in the United States.

Which Does the Triangle Need More - Money or Management?

In our work with entrepreneurs and investors, we hear two complaints about the Triangle: 1) We need more seed capital here and 2) We need better management talent.

So, which does the Triangle need more - Money or Management?

Based on a recently completed survey by CED, the answer seems to be management. If you refer to the last three CED Entrepreneurial Satisfaction Survey Reports from 2006, 2004, and 2001, the "availability and retention of top technical and management talent" is the most significant concern for local high growth entrepreneurs.

What is the cause of this problem? Here are some common explanations we've heard:

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