There is an abundance of great ideas.
But the difference between the success and failure of a great idea is execution. Many great ideas do not even get to go off the ground.
And many times the problem is money.
If he can, the idea-owner funds himself, or borrows from family, or a relative, or the bank. Those are the usual, if not easy, avenues.
I attended the recent Entrep Summit of the Manila Jaycees and found out an additional avenue where the idea-owner cum businessman-wannabe can get funding for his ideas.
From venture capitalists.
Enter the mental picture of the shrewd investor: eyebrows lifted, having the singeing look as the hapless businessman explains why he needs money and why he does not have any and why in the world he has not gone far with his ideas.
Through the Entrep Summit, this face changed.
Enter Paco Sandejas, a University of the Philippines graduate (B.S. Applied Physics) who completed his Ph.D. and M.S. in Electrical Engineering from Stanford University. He is the man behind Narra Venture Capital and BGN Ventures.
And Martin Lichauco, an Economics major from the Ateneo with an MBA degree from the Arthur D. Little School of Management and head honcho of Global Gateway Venture Capital.
They did not have singeing looks. As a matter of fact, they looked like they were approachable, reasonable, intelligent men.
First things first. What is a venture capitalist?
A venture capitalist is a fund manager who pools the resources of several corporations to invest in early-stage, high potential tech companies that have limited operating histories and/or are too much of a risky investment for banks and financial institutions. The venture capitalist provides seed money to the start-up and the usual exchange is equity (ownership of shares) in the start-up and significant control over company decisions.
Gibberish? The key words are these: small business, high technology (i.e., internet-based, electronic, medical or data processing), high potential, a need for funding.
And speaking of funding, I learned the process of how I can be funded by a venture capitalist through the Entrep Summit.
A caveat: it is not simple. After all, a lot of money is at stake. And venture capitalism is not charity – the venture capitalists are also in the business of making money.
Next, the hoops you will be going through to get funding from a venture capitalist.
P.S. A special thanks to Anton Diaz of MavenSecrets.com for the free Entrep Summit tickets.