Though Wall Street may still be chilly, for many start-ups, spring means that the seeds of change are taking root. Seed funding - from friends, family or angel investors - can mean a warming economic climate capable of cultivating growth.
Video: Soliciting Feedback, Not Funding
Soujanya Bhumkar, Cooliris
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Josh Schwarzapel, Cooliris
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Austin Shoemaker, Cooliris
2 min.
52 sec.
After seeking interest in their product from industry players such as Technorati, KPCB, and Yahoo!, Josh Schwarzapel, Product Manager for Cooliris, and Soujanya Bhumkar, CEO for the company, recall how the founding team investigated how their technology could enhance the Internet landscape at large. Pitching Cooliris was not a one-time event, but a slow and steady process that picked up traction and slowly roused interest over time. Their case study proves the old adage that if you ask for advice, you get money, and if you ask for money, you get advice. Feedback, rather than funding, was the founders' initial pursuit. Ultimately, the start-up was able to garner both.
Video: Flying with Angel Investors
Ron Conway, Angel Investors LP
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Mike Maples Jr., Maples Investments
2 min.
1 sec.
Taking its name from the early investors of classic Hollywood, Ron Conway and Mike Maples define the angel investor. In addition, they explain the differences between angel investors and venture capitalists, and point out why an angel's smaller dollars might be a better choice, as they're often paired with a broader range of exit strategies and tools to keep start-ups in business.
Video: A Snapshot of Early Financing
Beth Seidenberg, Kleiner Perkins Caufield & Byers
2 min.
43 sec.
Demonstrating her lesson using a case study of a medical device company, KPCB partner Beth Seidenberg offers an illustrative example of what angel and first-round financing might look like for the upstart enterprise. Her advice includes tips on seeking seed money, and why a small company shouldn't go out for financing too soon. Incrementally building dollars around real milestones is critical for real investment and corporate success.