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Robert
Buckley, coordinator of the SmartStart Venture Forum in Albany, NY,
said funding is out there for start ups that already have products and
a track record of customers. Although
the halcyon years of 1999-2001 have dried up, funding for new businesses
continues at a steady pace compared to four years ago. Prior to 1999,
VCs and angels invested about $2 billion in new companies. It has grown
to around $8 billion today which is a continual increase despite the
blip of $100,000 billion invested during the prior three years. To
get a slice of the capital equity pie, Buckley, who has a background
in marketing, recommends that start ups first look for conventional
types of financing:
“I
first tell everybody to look for conventional sources before they reach
for the fancy forms of funding,” Buckley said. “It’s a question of control.
Angels and VCs will want some control of company to recoup their investments.
Many entrepreneurs are in it for the long haul and want to grow their
companies.” But
for companies that only have a good idea, they will find it a tough
go to find capital equity. “Three years ago, if you had a real good
idea, investors threw money at you,” Buckley said. “That’s all changed.
Investors want to know if the product can sell.” Buckley
also suggests that start ups get good legal advice to avoid any issues
later; especially when they enter into serious financial negotiations
with investors. The Science and Technology Law Center at Albany Law School,
sponsor of the SmartStart Venture Forum, offers legal advice to fledgling
companies. But
for young companies with a solid marketing plan and clients, Buckley
recommends presenting at venture forums for maximum exposure to the
investment community. In only its second year, the SmartStart Venture
Forum has quickly evolved into one of the top investing forums in the
Northeast. This
year, the SmartStart Venture Forum takes place Oct. 2-3 at the Albany
Marriott. Buckley suggests that entrepreneurs apply early. Last year,
Smart Venture drew 102 applications which was screened down to 27 presenters.
Of those nine received funding following their presentations.
Buckley
receives applications from every state in the Northeast and as far away
as Pennsylvania. and Virginia. While the SmartStart Venture Forum features
several high-tech companies, it also accepts a wide variety of firms. The
SmartStart Venture Forum also makes it easier for VCs and angel investors
to network with well-screened, legitimate investment opportunities. “The
forum is a good thing for the Venture community; they can meet with
companies they might never see,” Buckley explained. “They can follow
up later if they’re interested.” For more information about The SmartStart Venture Forum, contact Buckley at 518-283-8890 or bob@smartstartvf.com
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