Just wrapped up a few days in San Fran at AdTech. Man, walking the floor at the Moscone Center was absolutely dizzying. How many freakin’ ad networks are out there? A ton, but imagine an exhibit hall where every niche dating site is exhibiting *whoa* now that would be a show!
While in San Fran/Palo Alto I also met with a few VCs, investment bankers and entrepreneurs.
I met with a few bankers that prepped me about the who’s who of VCs, market conditions, what they look for, etc. TheFunded.com, a community where CEO and Founders share notes about VCs was also helpful.
I went into my meetings with the VCs with an open mind for how a round of capital/contacts could help NicheClick Media and more importantly, I just wanted to learn more about the process of raising capital. The cool thing was that I met with VCs that initiated contact with me, so I did not feel any pressure to pitch and get them to bite.
I also met with my buddy Shervin, a serial entrepreneur and master deal maker, who runs SGN. Luckily, Haroon, co-founder of Webs.com was also in town so the three of us hooked up for lunch. Webs raised 11 million back in 2006 and getting Haroon and Shervin’s perspective on the value/process of raising capital was very helpful.
A few bullets to sum up some of what I took away from my trips:
-San Fran/Palo Alto is an amazing place to start a business. The energy and entrepreneurial spirit is inspiring and good for business
-People are very concerned about the economy. The situation is much more serious than many realize. The next 12-18 months will be challenging, especially for venture-funded businesses that have yet to reach profitability
-Raising money is great for start-ups and businesses that want to scale rapidly
-By raising money and diluting your shares, there is no guarantee that you will make more money if your business is acquired
-VCs are all about the finish line, not the journey
-Two VC camps: later stage VCs that fund established companies still value subscription based businesses but many investors are less excited about subscription based models as more services are being offered online for free. Most of the value is on the social networking side which keeps people online and allows ad revenue to grow
Final analysis: Nothing beats running a profitable business. You are your own boss and have less drama in your life (bureaucracy, boards, shareholders, salary committees, etc.) - plus, you can take a draw or vacation when you want =) Life is good!
(jk)
