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Entrepreneurs get expert advice – Venture capitalist offers 10 tips for getting money for startup tech companies

Attention, entrepreneurs.

Think of getting venture capital money as a reality game show.

The money is there just waiting for someone to win it. Your job is to earn it, and may the best entrepreneur win.

Julie Howard
The Idaho Statesman

http://www.idahostatesman.com/apps/pbcs.dll/article?AID=/20041007/NEWS02/410070338/1029/NEWS02

That’s how Carl Ledbetter, managing general partner of UV Partners venture capital firm in Salt Lake City, explains the process that moves private investment money into the hands of start-up technology firms.

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About the Intermountain Venture Forum

The sixth annual Intermountain Venture Forum drew more than 30 venture capital firms from around the country, representing more than $10 billion in venture funds.

While the focus of the forum was to listen to 15 startup companies present their business plans, speakers and panels provided information to an audience that included entrepreneurs and college students.

About 40 students from five Idaho colleges attended the event.
"This isn’t something they can get in a classroom; this is very real-life," said Kent Neupert, a professor of entrepreneurship at Boise State University who coordinated students coming from BYU-Idaho, Albertson College of Idaho, Idaho State University, Northwest Nazarene University and BSU.

Mark Solon, a partner in Highway 12 Ventures in Boise who headed the event this year, said the forum is important as a learning tool for those hoping to start the next Micron Technology in the region.

"We want to educate local entrepreneurs how to build a business, not just in Idaho, but globally," Solon said.
Venture capitalists, too, used the event as a learning tool.
"I’m just shopping," said Eric Mott, director of business development for Stellar Technologies in Meridian, which funds young companies. "As an investor, it just makes my job easier seeing companies that have already been prescreened and prepped to make a qualified presentation."

The venture forum continues from 8 to 11:30 a.m. today at the Boise Centre on The Grove. Cost is $25 to attend today’s events, which includes some company presentations and a panel discussion on venture capital available outside the Silicon Valley.

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Ledbetter, who has held senior executive positions with IBM, Sun Microsystems and AT&T, spoke Wednesday at the sixth Annual Intermountain Venture Forum in Boise. He offered these top 10 hints to entrepreneurs on how to succeed in getting venture capital funding:

1. Have a simple plan. "Tell us about the wonderful product you make, but be sure there is an operational plan you can get to that makes money. Soon. You need to have a short time to where you’ll be cash-positive and have an operating income."

2. Counting counts. "The most important questions you’ll get from VCs all start with ‘how many.’ How many orders will it take to get to cash flow positive? How big is the market?"

3. Time is money. "Almost all successful companies are successful almost immediately. The way to be sure you’re successful almost immediately is to make sure you have enough money to get going."

4. One thing. "One secret to success is a maniacal dedication to one thing. Some entrepreneurs think it’s important to do 19 things well. But you can’t have your second success until you’ve accomplished your first success."

5. Begin at the end. "Tell us what it is you do. If your idea is valuable enough, we’ll get to the rest of your story."

6. Be prepared. "The best way to sound like you know what you’re talking about is to know what you’re talking about. Grammar counts, So does punctuation and spelling. Pay attention to details. Why does this matter? If you want me to give you $5 million, you need to convince me you’ll know what to do with it and that you’ll handle it well."

7. Get to the point. "What does your company do? What do you make? What do you sell? Who will buy it? I’ve listened to an hour-long presentation and had to ask ‘What does your company do?’ "

8. You’re not Dr. Seuss. "Don’t read me your charts. Your charts are there for me to focus on something while you’re talking about something else. It’s a mistake to read them to me. I can read them faster than you can read them to me."

9. Omit needless words. "The biggest problem we see is entrepreneurs will put stuff in that they don’t need in their presentation. Explain things to me in language my mother can understand."

10. Keep it short. "It takes time to make things concise and succinct. President John F. Kennedy’s inaugural address was 1,397 words. President Lincoln’s Gettysburg address was 270 words. The Ten Commandments are 319 words. Bring me your brief business plans."

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