This year we are using WizeHive to provide a collaboration space for all of the DreamIt teams to share ideas, questions, best practices, etc. There was a recent entry made by one of our 2009 DreamIt companies about their level of preparation prior to meeting in the last few days with a local VC.
It made me remember one of my favorite personal stories; that of the $2M dog biscuit.
In the early 1990’s I had a company called PTS Learning Systems, which at that time was a provider of classroom based technology training (we later morphed multiple times before we sold the company in 1999). PTS was doing well. We were growing rapidly and profitable and were cash flow positive. I wasn’t looking for funding but after studying information on direct marketing we began an aggressive promotional strategy which included sending out materials about every 6 weeks to a locally grown database of customers, key contacts, and local funding (VC) sources. We sent out our schedule, press releases, customer success stories, etc. on a rotating basis.
It helped grow our business but interestingly about 4 or 5 months into the program, the day after a flyer was sent, I received a call from someone with Safeguard Scientifics. At the time they were THE hub of high tech activity in the Philadelphia area. They were very bright and very progressive and their leader, Pete Musser, was a huge pillar behind the technology community in Philadelphia. They asked if we were looking for funding. We talked for a while, I said we didn’t need funding, and that was that.
Six weeks later our next mailing went out. Once again, the phone rings a few days later. Same person. Are you sure you are not interested in talking about funding? Having done a little homework in between I said…”well I don’t have a business plan pulled together but if you can arrange a meeting with Pete Musser I’d be happy to come in and talk about whether it makes sense for us to create one and go down the funding path.”
Within a few days we had a lunch scheduled at their offices. In between I put in a considerable amount of time learning as much as I could about Safeguard and Pete and one thing that stuck out was that wherever Pete went…so did Sam, his golden retriever. So much so that at one point Sam was part of a statue they had when you walked into Safeguard. I guessed that Sam would be at the office the day of our meeting.
So the big day arrives and I meet Pete for the first time (who was/is a great guy) and we sit down in his conference room for lunch along with one of the firm associates . I grab my turkey sandwich and they grab theirs…. and then Sam meanders into the room. As Sam walks by, I reach into my suit pocket and pull out the biggest dog biscuit I could find the night before at the pet store. I ask permission to give Sam his lunch and then hand the biscuit to Sam.
About four months later I had a $2M investment from Safeguard and one of their funds (and I’m happy to share that when I sold my company about 7 years later I was able to return about $10M.)
I never actually asked Pete whether the biscuit influenced his decision but I know we had a great meeting that day; they even offered to coach us through the process of building the business plan! Sure we had a good company- and a good story – but I’m convinced that taking the time to study and prepare made a huge difference in that meeting.
Of course today it’s even easier to do research before meeting someone for the first time. If they are a VC, find out what sort of businesses they invest in, what niches, what are their hot buttons, what sort of personal interests they have, etc. I know that when I am interviewing someone for a job or interviewing companies for an investment their willigness to take the time to do their homework, think through some questions, and otherwise be prepared has at least a subtle influance on my opinion.
And of course, don’t forget to bring the $2M dog biscuit!
Great story! With many high profile VCs blogging these days, it is indeed quite easy to figure out what kinds of interests they have and what they’ve been thinking about in recent weeks/months. The $2M dog biscuit story is a great example of really seeking to differentiate yourself – not just in your business model, but in how you conduct every other kind of business.!
Раньше я думал иначе, спасибо за помощь в этом вопросе….
This year we are using WizeHive to provide a collaboration space for all of the DreamIt teams to share ideas, questions, best practices, etc…..