Heidi Roizen, Threshold Ventures What Has Changed in Today’s Investment Culture? Previously, Roizen says it used to take three years for startups to reach liquidity; now the time frame is five to seven years. As a result, she recommends startups get to know the VC well and trust them because they will be working with the VC for many years. Now as an entrepreneur, she says, you have to work for a living!
Heidi Roizen, Threshold Ventures Working with Venture Capitalists Roizen talks about what she would look for in a VC. From her perspective, acquiring a VC is the only time you're getting someone to work for you and pay you at the same time. She recommends people populate their investor pool with VCs who will add value to their company.
Heidi Roizen, Threshold Ventures Investing Climate in 2002 In an interview with Forbes magazine, Roizen projects what will happen in 2002. Mobius Venture Capital is excited to move forward. Since the bubble of 2001, companies that should have died have died, and those that are struggling are beginning to gain some traction.
Heidi Roizen, Threshold Ventures Introduction: Mobius Venture Capital Heidi Roizen, managing director for Mobius Venture Capital, explains that Mobius Venture Capital has $1.5 B under management in current fund, $1 B in prior fund, and 100 active portfolio companies. There are ten VCs at Mobius who invest mostly in software, communication, wireless, next generation and web services, she says.
Heidi Roizen, Threshold Ventures Venture Capital vs. Corporate Funding VCs give entrepreneurs money and want to get a lot more of it back sometime in the future, Roizen says. Unlike VCs, corporate investors generally want an early view into the technology and sweet deals from a business development perspective. If you are taking money from corporate investors, Roizen cautions, make sure you know what they want and what you want.
Heidi Roizen, Threshold Ventures Timing is Everything Timing is everything when starting a company, Roizen says. Mobius raised their money in a good time and now have a lot of gas in the tank, she notes. Some companies needed money in June 2001 when people were not answering phone calls. She considers this an example of bad timing.
Heidi Roizen, Threshold Ventures Why Take Venture Capital? Roizen talks about her experience in taking venture capital. She learned that if one can use venture funds judiciously to raise the inflection point, then it makes sense to do it. For her, it was an economic decision. Other reasons to take VC money involve credibility issues. Customers want to see that you have partners and money in the bank to prove that you will be around, she says.
Heidi Roizen, Threshold Ventures Small and Large Funds Roizen talks about performance and limited partners in venture capital. Smaller funds on the most part are suffering. A large funds success depends on what a startup's past performance has been.
Heidi Roizen, Threshold Ventures An Attractive Team Has Youth AND Grey Hair It is important that the startup team have experience - a combination of grey hair and youth is good, says Roizen. VC's have learned that it is not wise to fund a team with only college students, but older people cannot get funding without youth. VC's are looking for a technology to exploit with a team of individuals comprised of young and experienced members.
Heidi Roizen, Stanford University Watching How People Handled the Downturn Roizen says VCs look at how companies behaved during the downturn. Mobius was upfront with their LPs about where they stood and this paid back. Entrepreneurs that were gracious and upfront will be backed again, she notes.
Frank Levinson, Finisar Corporation Envisioning The Future For Optics Levinson believes leadership skills are vital in maintaining a successful company. These skills include being able to see into the future, and predict where the company should go. He talks about the possible future of Finisar.
Frank Levinson, Finisar Corporation Creating Win-Win Relationships With Large Customers Levinson believes it is easy to feel like a little fish in a big pond when you're starting your company. He talks about leveraging what you have to make your company stand out from the rest, and it all comes back to customers.
Frank Levinson, Finisar Corporation Communicate with Customers Levinson offers the following bit of advice to brand new entrepreneurs: Talk to customers. Identify potential customers and pick their brains: What do they want? Would they buy what you're selling? And how much would they pay?"
Frank Levinson, Finisar Corporation Real Sales and Customers in Business Number 2 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Levinson talks about how a real business involves selling to customers and receiving money in return. He warns new businesses not to shy away from selling their products early on. He also gives advice on recognizing a real customer.
Frank Levinson, Finisar Corporation Invest in Great People and Great Equipment – Not Furniture! Number 10 in Frank Levinson's Top 10 Things You Must Have to Start a Business. The first thing you need is comfortable, cheap furniture. Spend everything you can on great people and great equipment, that's everything, Levinson says.
Frank Levinson, Finisar Corporation Operational Experience Before Starting a New Venture A familiar question among potential founders, says Levinson, is how much business and operational experience do I need to have before starting this business? He talks about the best experience a founder can have - the kind learned only by jumping in with both feet and learning as you go.
Frank Levinson, Finisar Corporation Why Go Public? A company's IPO is often a symbol of success, says Levinson, but with that success comes a great deal of stress and change. He talks about his company's decision to go public, and their reasoning behind the decision.
Frank Levinson, Finisar Corporation Develop a Culture Where New Ideas Are Expected Number 3 in Frank Levinson's Top 10 Things You Must Have to Start a Business. You and the members of your company must have the confidence that new ideas will always be present, says Levinson. He talks about creating a culture that encourages and expects new ideas, and learning to give those new ideas away.
Frank Levinson, Finisar Corporation Whatever it Takes to Stay in Business Number 6 in Frank Levinson's Top 10 Things You Must Have to Start a Business. In the spirit of doing anything to keep your business afloat, Levinson explains why it's important to be open to all opportunities.
Frank Levinson, Finisar Corporation Businesses Must Have Customers Number 7 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Levinson believes you should take stock of your company and determine what it is that you really need. He is an advocate of using common sense and realizing the main thing you need is customers.
Frank Levinson, Finisar Corporation You Need Little Capital Number 8 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Levinson believes you need "too little" money. He uses the famous coconuts from "Monty Python and the Holy Grail" as an example.
Frank Levinson, Finisar Corporation Naming Your Company: Put Up a Sign Number 9 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Let people know you're in business, says Levinson. Name your company and put a sign up as soon as possible. Your main motivator should be the customers, he adds.
Frank Levinson, Finisar Corporation Hiring Ethical People The personalities of team members and the culture of the company are vital to its success, says Levinson. An unethical member of the team can cause stress, tension, and ultimately division within the company.
Frank Levinson, Finisar Corporation Follow Standards Number 4 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Niche markets aren't always the way to go, says Levinson. He advises that your company should stay flexible and be willing to work with, and for, the masses.