Growing Beyond Series A Funding: CxO Best Practices

Yesterday’s CxO Best Practice Program was focused on what next steps a company takes after closing their round of Series A funding.

For most their company has entered the growth stage and is facing the challenges of building a business, developing a market presence, expanding technology, and hoping that one day they will become profitable. All of this, while expenses continue to skyrocket. This is a critical tipping point. Unless executives can effectively manage their business and utilize the proper structure, strategy and tools, they'll most likely fall victim to negative cash flows and their growth will not only be halted but stopped altogether. Unless they can secure patent, copyright, and/or trademark protection as the business grows, their technology may be at risk. Luckily, there are a slough of financial, legal and strategic experts who can help. The panelist focused on a number of general points around IP, office space, Headhunters, Board Management and Series-B funding.

1. How can a company protect its IP when pitching their product to a major corporation? First, identify the value of the patent and do not lose sight of the overall business model when trying to file. This process sometimes takes over 2 years and a great deal of money; when many times, it’s not necessary. If your IP represents a unique idea, then it’s worth either “keeping it a secret” or place confidentially provisions on all documentation. Most investors are not focused on how many patents a company has, they’re more interested in the execution, management and business model. Be explicit, document everything and be completely honest with your board: but that was our lawyer speaking.

2. How do you go about selecting an office space when you’re very small and not sure how big you’ll be in 1-2 years? Focus on getting a good tenant rep first and then consider subletting so you’re not stuck in a lease. Also, be prudent and do not buy what you cannot afford; especially in your first 1-2 years out of the gate.

3. Is it worth hiring a headhunter? If you are being hurt by revenue or growth opportunities by not filling this position---hire someone. Also, check with your board and talk with VC’s before hiring a headhunter.

4. Where can the board help you? They are there to help you accomplish your goals: be open and honest with them about them. Do not sell in the first board meeting, focus on being in business mode and set a tone for realistic and pragmatic goals.

5. When do you focus on Series-B Funding? Start thinking about series B immediately after closing Series A. You need to position your company to track to a successful Series B by executing your plan but also by thinking about what the options are for follow on funding (strategic investor, debt financing, new lead for equity round, some combination of the above).

If you have additional questions about today’s program please visit www.austintechnologycouncil.org

Speakers:
Corey Blahuta, Managing Director-Austin, vcfo
Michael Barrett, Fulbright & Jaworski LLP
Jeff Sunshine, The Bank Street Group LLC
Moderator: Michael Cation, Founder, NovusEdge

Sales & Marketing Strategy Session: Trade Show 101

Yesterday’s Sales and Marketing Strategy Session (SMSS) focused on the dos and don’ts of trade show marketing. We are entering the season of Austin trade-shows and it’s astounding how many companies prepare the night before the conference the marketing materials, brand image or goals on attending. With the opportunity to meet hundreds of motivated potential customers, tradeshows are one of the most cost-effective "face-to-face" marketing methods available today. Done correctly, business from a tradeshow can repay the investment 10x over. Done incorrectly and you've wasted not only financial and human resources, but missed the opportunity to create brand awareness and build a potential client base.

The panel was a strong compilation of CEO’s, executives and directors who have been in the industry for a combined century of experience.

Speakers:
* Steve Golab, CEO & President, FG SQUARED
* Christopher Justice, CEO, Sparksight
* Danny Kent, Sr. Account Manager, Xtreme Xhibits by Skyline
* Jamie Klemcke, Director of Marketing, QuantumDigital
* David Smith, Founder, Envision Creative Group
Moderator: George Stevens, CEO, Guidelight Business Solutions

Christopher Justice, CEO of Sparksite made the suggestion that you should attend with TWO of the following hats on:
Attendee: Uses personal interaction and contacts to build new opportunities.
Speaker: Showcases a vendor’s expertise through a specific employee.
Partner: Demonstrates alignment with an industry event of significance.
Conference Sponsor: Proves that you have money and you want to be seen.
Exhibitor: Let’s everyone know that you want more customers.

Steve Golab, CEO FG SQUARED’s advice for pre and post exhibit preparation:
Pre-show
* Plan ahead to make sure important details are not sacrificed or missed.
* Develop event campaign within context of big picture, goals, etc.
* Schedule booth operations, client meetings, and dinner plans in advance.
* Testing, testing, and more testing of AV and booth technology.

Post-show
* Ensure timely documentation and follow-up on leads. Track results.
* Apply continuous improvement process including post-show assessment.

Overall the message was be prepared, be efficient and understand your goals before entering the trade show arena. Let us know if you have additional questions about the program, or exhibiting at your next trade show!

2009 Planning

The dog days of summer are still upon us and already the buzz around the community is starting to pick back up again. Fall has arrived, school is in session and 2009 planning has begun. Shame it’s still 100+ degrees outside and the thought of hitting yet another networking event seems about as appealing as actually starting 2009 planning.

Recently I was talking with colleague who also hosts a number of events during the year and he made a very poignant point: attendance to your event is actually a self-actualizing success metric for YOU, not the attendees. An interesting way to flip the coin, I had never considered that in truth our main measurement of a program was how many, who and what the feedback was from those in attendance; not the intangible follow-up summary, dialogue or content shared among our community receiving the information from their wireless device or colleagues.

Of course, though wise in my years (ah-hem) I cannot claim to be the first to have this ah-ha moment. The flurry of LinkedIn, twitter, blogs and other online communities are creating such strong value in our daily communication. Question I am left pondering is does ATC focus our attention to the online-network or do we continue holding events in our coming year? Surely there is a balance and opportunity to take the unpaved road…but really, it’s just yet another reason why I’m left procrastinating on that pesky 2009 planning.

TECHNA: Chicago, IL (8/6-8/8)

This past week I went up to Chicago and attended my first TECHNA conference, for those of you unfamiliar this organization it is the association of tech associations. Upon arrival I found a room full of peers, similar in enthusiasm and shared interests…that is, after I found the correct room full of peers. Leave it to me to hop in a cab with total strangers headed to the same restaurant for a similar conference. Eventually I found my way.

I opened my notebook, sharpened my pencils, and ordered a double venti was prepped and ready to go. The first session was a program on what cities need to ensure success; as in the Richard Florida school of thought on being unique to your region. In many ways, Austin is the epitome of being successful in this space with a university, strong community connections, innovation, creative clusters, understood differences and strong core city vitality. Check---we were on our way!

Digging further into association programming and overall mission, the discussion was around peer groups and the value of clusters, special interest and professional groups. This was the real meat on where each organization had a different goal, benchmarks and overall value. ATC offers Cluster groups (Wireless, Life Sciences, Clean Energy) Interest Groups (Java, Dot Net, PMO and Sales programming) while the Professional groups (CEO, CIO Roundtables) are effective shared resources. Again---check. But PLENTY of room to grow!

The networking between programming truly offered the most value. Utah, Pittsburg, Vermont, Ottawa, Louisiana, all represented along with 30 other councils looking for the same shared knowledge. It was invigorating and the outlet I was looking for; a complete breath of fresh air and new ideas.

The afternoon sessions delved into board management, community partnerships, policy efforts, program ideas, membership value. The second day focused on web presence, development, branding, event promotion, surveys, operations, interns, communication and role in the community. Not a small spread of topics to cover in one day. I left with pages and pages of notes and new ideas and ways to truly improve the overall value of ATC.

I trekked back to Austin late Friday night and didn’t open my notebook all weekend; rather, I let it marinate until Monday. I walked into my office yesterday and BAM! We have a new blog, Face book page, Linkedin groups, iPhone logos, Wikipedia page (in the making) and a our team has a new invigorated spirit to improve the overall value of ATC.

This all came about because I was inspired by a conversation with a colleague a few months back when he said, it was essential for ATC to represent a successful organization as it is a direct reflection of our overall Central Texas economy. A daunting truth, but one where we are able to challenge the boundaries and continue to grow.