Evan Vitale

Accounting Professional

Evan Vitale – The Latest In VC News!

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By Evan Vitale

What new in venture capital news?

According to the Wall Street Journal, Justworks – a benefits and payroll company – has secured $33 million in Series C funding, which brings the total amount the company has raised to $53 million. Redpoint Ventures led the round and had participation from existing investors Bain Capital Ventures, Thrive Capital and Index Ventures.

You can read the full story here: on.wsj.com/1TOM8Xu

Who is the biggest venture capital firm in the world? China.

Fortune is reporting that China has funneled $338 billion into startup investment funds.

In bid to ease the slowing Chinese economy into a consumer-based rather than heavy industry-focused one, the country reportedly raised about 1.5 trillion yuan, or $231 billion, in state-backed venture funds through 2015, according to Zero2IPO.

That tripled its assets under management to $338 billion. The money, which is almost five times the amount raised by any other venture firm in the world in 2015, comes mostly from tax revenues or state backed loans, and is funneled into some 780 funds across the country.

The full report is here: for.tn/1p9jFht

Bustle, a New York City-based news site aimed at millennial women, has raised $11.5 million in new funding led by Saban Capital, with participation from GGV Capital and existing investors General Catalyst Partners, Time Warner Investments, and Social Capital. Richard Yen of Saban Capital will join the company’s board.

The media company, founded in 2013, has amassed an audience of 32 million, most of which are young women between the ages of 18 and 34, according to comScore. The site’s advertisers, including Campbells and Adidas, purchase packages that include a mix of native advertising, traditional display ads, and video. Last year, Bustle hit its revenue goal of $10 million. The company expects to “substantially outperform” its goal of $20 million for 2016, according to CEO and founder Bryan Goldberg.

The story is here: for.tn/1UlvBsp

Evan Vitale – What’s Next If Your Crowdfunding Plan Fails?

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By Evan Vitale

You’ve researched, planned and prepared an awesome presentation for your crowdfunding campaign and then it bombs. Now what?

Get up. Brush the dirt off your pants and try again. Right?

Before you take the same plan and presentation and create a new campaign at a different crowdfunding site (which might also cause yet another failure), you should first step back a little and review the following:

  • Is your idea a great one? Everyone “thinks” they have an awesome idea, but is it really that great? If so, then why didn’t you reach your campaign goal? Was it something in the presentation or did others feel like perhaps your idea isn’t as hot as you think it is?
  • Review your plan. What’s missing in your project or idea plan? Did you offer enough details to your investors? Check and see if there were any unanswered questions during your campaign. Remember, as you create your plan and presentation think of all the questions someone might ask if you were making the presentation face-to-face. Then, make sure all of those questions are answered in your campaign presentation.
  • Review your financial goals. Are you dead-on with your requests or are you asking for too much money?
  • Review your presentation. Did it fail to wow your crowd? What’s missing? What can you do to make it better; keep people’s interest and make them become part of your financial crowd?
  • It could be that perhaps you presented your plan on the wrong crowdfunding website. They are all different and, perhaps, a change might be the key to reaching your campaign goal.

Once you have answered those questions and made the necessary edits, changes and updates, then it’s time to start your crowdfunding campaign again. A first-time failure doesn’t mean you’re finished. It means you’re gaining experience!

 

Evan Vitale – Crowdfunding Your Startup

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By Evan Vitale

In our previous blog posts, we introduced crowdfunding and how it works for businesses, charities, individuals and more. Now, let’s take a look at how you might consider using crowdfunding for your startup business.

Capital, financing, money, etc. (whatever you want to call it) remains the No. 1 challenge for any startup in order to launch your dream; get things off the ground and have remaining fundings to maintain growth.

Simple, right?

If you don’t have cash on hand, you might first turn to a bank for financing. However, a financial institution will need collateral such as a home in order to secure the business loan.

Your next chance might be with family or friends. Maybe you’ll look for an angel or a venture capital firm, etc.

Or, perhaps, you’ll skip all the aforementioned red tape and go directly into seeking funds from crowdfunding opportunities (i.e., Kickstarter, Indiegogo, etc.). Will it work?

It all depends on you. For example:

  • You might have a great idea, but you’ll need to package and present it in a way to attract potential crowdfunding investors. The first challenge to any crowdfunding project is to get donors interested in helping you. Your presentation will be like a sales pitch in that you need to get people excited.
  • Let’s say you want to raise $25,000 for your startup idea. Here, instead of giving every donor a percentage piece of ownership, they will receive a gift for their donation. This might be the product you hope to create and sale or something simple like a coffee mug.
  • Ask for exactly what you need. If your startup requires $25,000 then create a crowdfunding plan and presentation seeking $25,000. Don’t ask for more or less. Some plans have hit their target very quickly and some fall dreadfully short.

The best way to begin your crowdfunding plan is by doing research. This includes:

  • Talking to your accountant, your banker and your attorney.
  • Consult with your business coach, if you have one.
  • Visit and do deep research on crowdfunding sites. Know them inside and out. Investigate plans that succeeded and those that failed. What did they do right, or wrong?

If your first crowdfunding attempt fails, find out why. Did your potential investors not like your plan, idea or product? Or, did your presentation fail to “wow” them? Every idea isn’t going to be an instant winner and, yes, some great ideas never get off the ground because startup owners didn’t prepare a selling presentation to attract investors.

Evan Vitale – Latest Venture Capital News

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By Evan Vitale

Here are some of the latest headlines and news in the world of venture capital.

According to the Wall Street Journal, companies with technologies to reduce preterm births drew significant interest from venture capitalists in 2015 and helped drive investment in reproductive health to a record amount of $333.1 million for the year. Reproductive health is one of the smaller categories for venture investment among 17 areas of the human body surveyed by VentureWire and market tracker Dow Jones VentureSource. Health-care venture firms have focused mostly on disease therapies, and pregnancy hasn’t been seen as a medical condition that needs treatment. Last year’s investment total topped the previous high of $298.1 million reached in 2001. Read the rest of the story here: http://on.wsj.com/1pqoweA

Backstage Capital, the bootstrapped venture capital fund founded by Arlan Hamilton and focused on investing in “overachieving, underrepresented startup founders,” is launching their official website (www.BackstageCapital.com) and announcing the first six investments they’ve made. Hamilton is one of the first LGBT black women to start a venture capital fund and became the first black woman to lead an AngelList syndicate last Fall. Since November 2015, Backstage Capital has invested amounts ranging from $25,000 to $100,000 into companies with diverse founders like Kairos, Wedspire, TextEngine, and Nailsnaps. Currently, Backstage Capital’s roster of investors (LPs) includes individuals such as Marc Andreessen, Susan Kimberlin (formerly of Salesforce), Brad Feld, Leslie Miley (formerly of Twitter), and Lars Rasmussen (co-creator of Google Maps). The full press release is here: http://prn.to/21NrNTd

SportTechie is reporting Ted Leonsis, the business mogul that owns and operates Monumental Sports & Entertainment (MSE), has quietly announced his intentions for a $10 million venture capital fund for the purposes of investing in sports and entertainment tech startups.

MSE owns three Washington D.C. sports teams—the Mystics of the WNBA, the Capitals of NHL and the Wizards of the NBA. You can read the full story here: bit.ly/1QRMDch

Evan Vitale – Crowdfunding (Part II)

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By Evan Vitale

This is the second in a two-part series on crowdfunding.

The key – and most important – part of seeking funds for your project via crowdfunding is the pitch (or presentation).

Consider your crowdfunding to be like a marketing event or like the television series “Shark Tank.” You need to make a huge impression on your viewers in order to persuade them to whip out the credit card and contribute to your project.

Here are some tips on how to prepare your crowdfunding presentation:

Plan your idea and your project. This includes your design; your team (if any) and your strategy. All of these things need to be in place before your create your presentation.

Create and build your marketing strategy. Even before you release your crowdfunding presentation, you can begin teasing your audience and creating some social media buzz. You don’t need to give away your million-dollar idea here, but you can make strategic announcements about your project, how it’s going to help consumers or businesses solve a problem, take pictures, etc. Release a little bit at a time and consider a crowdfunding countdown to the release date.

By doing this, you’ll immediately gain some social media fans and followers and that’s exactly what you want as these are the same people who are going to be funding your project.

Create a business plan. Yes, you need to do this. Your project should be treated like a business. What is the point of your project or idea? What will it do? Is it going to solve a problem, make money, etc.? How much money do you need to raise? What is the deadline for your financial goal?

As you are creating your presentation, think of all the questions that could (and probably will) be asked after your initial pitch. Then, be sure you answer all of those questions in your presentation pitch.

Remember, one of the best ways to generate presentation ideas is to review other presentations in crowdfunding websites. Review what projects reached their financial goals.

Evan Vitale – Crowdfunding (Part I)

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By Evan Vitale

You’ve probably heard the term “crowdfunding” many times, but now you’re thinking it might be a way for you to raise money for your business, startup idea, non-profit, special project, etc.

In a nutshell, crowdfunding is exactly what its name implies: the ability to raise money and finance a project by pooling together donations from many individuals.

Here’s how it works:

You create a free account on a crowdfunding website (Kickstarter for example) and post a video in which you explain your project, business, invention, idea, etc. It’s a pitch. You need to be interesting and your idea needs to capture as many pairs of eyeballs as possible.

Based on the amount of the donation, you are willing to give them something. It can be a gift, a product you’re creating or even a part of the business. Some music artists, for example, give a copy of their latest CD for a small donation or a t-shirt for a little bit larger donation. What are you willing to give as a gift for someone’s donation?

As your crowdfunding project starts, donors can see your profile, pitch, etc., as well as how close you are to your overall financial goal.

If you reach your donation goal, the crowdfunding website earns a royalty fee (usually around 5% or so) plus credit card processing fees. However, if you don’t reach your financial goal, no money is collected and the project ends. Be aware that some crowdfunding websites collect a small fee for failed projects as well.

If you’re considering a crowdfunding project, a good place to start is by visiting several crowdfunding websites, reading many project profiles and collect ideas. Make sure you’re aware of the site’s fees and how the website is structured before you submit your crowdfunding project.

I’ll have more crowdfunding ideas in the second part of this blog series.

Evan Vitale – The Latest in Venture Capital News

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By Evan Vitale

Here’s the latest in a variety of venture capital news.

According to “The Daily Startup” (via WSJ.com), the former security leads at Etsy have planned to publicly launch a new security product for teams that are quickly creating and shipping new software. Signal Sciences wants to provide a next-generation Web application firewall to developers who are creating and modifying applications multiple times a day. The Venice Beach, Calif., company grabbed a $9.7 million Series A funding round led by Index Ventures. Chief Executive Andrew Peterson, a former Etsy product manager, and Chief Security Officer Zane Lackey, Etsy’s former security lead, said they saw firsthand in their former roles that security information needs to be brought closer to the developers. “What was out there didn’t solve our problems,” Mr. Lackey said. “We have a deep empathy with our customers, we’ve lived the life that they live.”

Catch the rest of the story and others on WSJ here: on.wsj.com/1RqhQWX

Meanwhile, Reuters is reporting that venture capital groups invested $1.8 billion in commercial space startups in 2015, more than in the last 15 years combined, according to a report by aerospace consultants the Tauri Group. The full report is here: reut.rs/21Bh3qT

Cnet.com has reported that the US Labor Department concludes that Fenox Venture Capital illegally labeled 56 employees as interns. Now, the firm must pay them for three years of unpaid work. According to US law, specifically the Fair Labor Standards Act, companies are required to pay interns if they’re performing work that the company would hire someone to do, among other criteria. The full report is here: cnet.co/1TEeFy6

Venture capitalists are investing $75 million to launch Forty Seven Inc., a startup out of Stanford University, that has joined a race to defeat cancer by engaging the immune system in the fight against tumors. The full story is here: on.wsj.com/1S332zI

 

Evan Vitale – Latest Venture Capital News

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By Evan Vitale

Here’s the latest news in venture capital and VC deals:

The Wall Street Journal is reporting the Chicago start Opternative Inc. has raised $6 million in Series A venture funding for an app that lets people take an eye exam using their smartphones and a personal computer at home.

According to Opternative co-founder and Chief Executive Aaron Dallek, Opternative’s app captures data about a patient’s vision and sends it to a licensed, local opthamologist for evaluation. Within 24 hours, the eye doctor then writes a new prescription for glasses or contacts for the patient. The exam costs $40 for either a contacts or glasses prescription and $60 for both.

Read more about Opternative Inc. here: http://blogs.wsj.com/venturecapital/2016/02/18/opternative-raises-6-million-for-online-eye-exams/

A Forbes blog post suggests business owners should stop chasing venture capital funds and start bootstrapping in order to create a profitable business.

Here, writer Danile Buelhoff uses his own experience over a 10-year entrepreneurial lifespan to formulate his opinion and advice on bootstrapping vs. venture capital.

You can read more about Buelhoff’s opinion here: http://www.forbes.com/sites/theyec/2016/02/18/stop-chasing-venture-capital-and-start-bootstrapping-a-profitable-business/#186859ea5078

Business Insider has written a nice piece “Everything you’ve ever wanted to know about venture capital, but were too afraid to ask” at http://www.businessinsider.com/venture-capital-explained-2016-2

Food Navitagor-USA (http://foodnavigator-usa.com) is reporting that the Campbell Soup Co. is hopping on the venture bandwagon “to more fully participate in growth opportunities” that could give it a competitive edge meeting consumers’ fast-evolving demands for healthy and fresh foods.

You can read the rest of the story here: http://www.foodnavigator-usa.com/Manufacturers/Campbell-launches-venture-capital-fund-new-products

Crowdfund Insider reports that F50, a venture capital startup, has announced it has launched the beta version of its co-investment platform and has successfully begun syndication. The firm has reportedly secured commitments to invest over $1 million in Knightscope’s Series B round of funding, a company that has developed technology to predict and prevent crime utilizing autonomous robots.

The full article is here: http://www.crowdfundinsider.com/2016/02/81907-f50-venture-capital-firm-debuts-beta-version-of-its-new-co-investment-syndication-platform/

 

Evan Vitale – Dress Up or Dress Down?

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By Evan Vitale

Modern ideas about dress within the place of work constantly adapt. While “dress down days” have  grown to be commonplace in places of work, surveys seem to reveal that higher levels of dress  and mimicking the business style of the boss is much may get  you ahead and lend to building a far more productive work atmosphere.

But does that which you put on truly influence the ability to succeed at the office?

Dress Down Days

Trend spotters discovered the idea of “dress down” within the place of work in the eighties. At that point, what became fascinating about those dress down days was how different an awareness of “business casual” for males of various ethnicities gravitated towards.  Preppie guys still wore ties and collars but replaced a sports coat and pants (not matching) for his or her usual office attire.  Once the jackets came off for meetings, it was immediately difficult to differentiate between dress down Friday than any other day.

More progressive or European employees, both men and women tended to favor crisp khaki chinos and pin striped oxford shirts made to be worn with no tie, and normally speaking, looked stylish.  Americans really loosened up and looked as if they were going to a fitness center as opposed to the office, wearing tracksuits and Nikes. Did this make a more collaborative or friendly work environment?  Probably not.  But at least everyone seemed “comfy.”

Lately, with the death of the tie for basically all but formal or more traditional male employees or individuals employed in the financial or sales industry, dressing up or dressing down has become more subtle.  Company uniforms have become polo shirts and khakis for both sexes.  

Giving a Best Impression

It’s pretty true that people never obtain a second opportunity to create a first impression since most individuals have formed their opinion of our abilities within the first couple of seconds, right down to our physical features. Even without remembering any particularly distinguishing features (except for extremes of height, weight, disability, etc.) dress and grooming makes up a substantial portion of a first impression.

People have a tendency towards conformity, to feel quite confident with those who are essentially much like themselves. Thus, in our search for a Board member, we’ll most likely expect the individual – man or woman – to show up in a flattering business suit. If we’re searching for a partner for our rock-band, then jeans, t-shirts, tats, body piercings and purple hair most likely will not raise an eyebrow. But when an applicant appears in response to a want ad wearing completely opposite attire to our own, it will probably have negative hiring implications.

What’s appropriate?

Once within a consulting engagement, my client was searching for a brand new CEO.  After performing multiple rounds of screening, I gave the candidate list to their board. As this was round one, one candidate thought that since this organization was “unique”, that they might want to dress down for the final meeting.  However, he took it to the extreme wearing torn jeans and enormous gold jewelry.  He did not obtain the job primarily because he had no clue as to appropriate attire for a business meeting.

Dress for achievement

It’s been stated that you ought to dress not to do the job you are in but for the job that you aspire to have. So if you wish to be marketable, it’s generally easier to be outfitted too nicely rather than too informally.  Sometimes dressing above your pay grade may help people take a second look and assume you are already a manager when you might just be a junior accountant.  It will help groom them to accept you eventually in the role you aspire.

Stepping into “work mode”

Many people clearly think that the things they put on influences how they work. If they’re smartly outfitted, their thinking is more business ready. A friend who was laid off had me recalling how he always put on a suit and tie to walk to his home office to make phone calls in the back bedroom. He firmly believed that formal dress got him more ready for serious work.  In his mind, his sales work would not have been as strong had he stayed in his pajamas even if no one else could see him.

So even if you are working from home, you may want to reconsider at least putting on tailored pants and a clean sweater.  But no one on Skype can see you wearing a pair of slippers rather than high heels, so today you will be just fine for work….as long as a client isn’t dropping by.

Evan Vitale – Should You Ask For A Promotion?

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By Evan Vitale

In the event something unplanned happens in your personal life or within your personal finances, you may want to think twice about hitting up your manager for a promotion.   Your request for promotion should be a thoughtful event and not used for emergency cash management.

In pursuing your campaign for a promotion, and talking about your objectives together with your supervisor, such a conversation can easily work to your benefit when done correctly. Remember a pay upgrade can cause change and add additional responsibilities and work processes to perhaps an already hectic work day.  So be careful what you wish for so as to ensure your work life balance will remain positive.

Normally promotions happen as a result of a recent position opening. So, the very first thing you’ll need to do on regularly if you wish to be promoted would be to keep in good contact with the company’s employment board or the HR office. If a position opening is about to become open or has been open for a while, you’ll wish to make certain that your  interest in a position is known to your manager and any other political players that would  have an additional say in perhaps approving the transition.  Missing your opportunity because of a delay in communicating can sabotage your chances.

Getting a lead for an opening that would mean a promotion for you is the first step.  Once you have re-examined your desire for the position (make sure you really want the job), then contact the person responsible about the specifics and qualifications for the position.

Seniority may be a critical factor as to whether you will be a good fit for a promotion to the position.  Recent company hires should not pursue promotions too quickly unless they are absolutely excelling in their current work or were perhaps overqualified when they started.  Being a new hire doesn’t mean that you shouldn’t ask for a promotion.  It is good to get in the habit of asking (but not too frequently) if your personal goal is to indeed work your way up the company ladder.

Usually organizations prefer to promote internally from within the pool of candidates who have a good work record over a long period.  Your long range career goals you may have mentioned during initial hiring may also be considered as managers generally remember what you said you wanted to do at hire.  You can change your goals, but be genuine with your team what it is you want to do.  Obvious money grabs will be transparent to co-workers who see you day in and day out.

Meeting long term career goals will require that you pay your dues by putting in the time and gaining experience within a variety of projects.  It’s always best to try to get consistent experience within a current company than trying to job hop to a different company to gain experience with the hope of being rehired for a dream job back at the first company.  Too many job hops for gaining experience can sometimes make you appear unreliable.  As long as the company is a healthy one, try to work within a system you are in to demonstrate your agility, commitment and loyalty.  It will make you more valuable as an employee in the marketplace.

When you start looking at the position opening you wish to go for, make sure you evaluate the actual position.  Have you done your research?  Who was in the position before?  Why did they leave?  Can they still be contacted?  And if not, why not?  If at all possible, get as many details as you can.  Has the position had many different people in it making for a chaotic team?

Once you have done your due diligence, and if everything seems positive, then set up an appointment discuss the opportunity with your current boss or other managers.  When you talk about moving into the promotion, make sure you are confident in yourself, your ability to do the new position and that it is all in alignment with your long term career goals.