The New York Venture Summit (mentioned in this column in an earlier edition) just completed a very successful 10th anniversary event yesterday, Thursday June 17.
The New York Venture Summit is one of the highest quality events put on in NYC for venture and entrepreneurs alike. Out of 400 applicant companies vying for an opportunity to present to “money” (including angels and VCs) 77 lucky companies were chosen. Each presenting company had the opportunity, and good fortune, to be coached on Wednesday afternoon, by the “money” and industry experts. Almost every company took the coaching to heart and returned on Thursday with a much improved and focused presentation.
There were three tracks: Life Sciences, Technology, and Clean-tech. Clean-tech had the most companies presenting with a wide variety of technology solutions, from cleaner and more efficient ways to mine copper, to sky-high wind farms, to a nano-tech carbon platform with multiple applications, to silicon carbide detectors.
The “money” ranged from small angel investors such as John Aison to VC’s such as David Wells, Partner at Kleiner Perkins Caufield Byers who invest in the multi-million dollar range.
John Aison, always offers very pointed and amusing illustrations of how he wants to invest. The combined age of the two principals should not be more than my age, was one of his illustrations when asked what he is looking for in a management team. Another, related to return on investment, is that the payout should not extend past his lifetime.
While amusing, these points hold a lot of truth for John’s point-of-view on investing.
David is at the other end of the spectrum. He, and Kleiner Perkins, seeks disruptive innovation or innovation that will provide the tipping point for disruptive technology – in other words, huge game changers that will affect the way we live. They will make small investments (in the half million dollar range) to very large investments ($12 million and up) for the right technology. When a startup is presenting to David, he said he wants to see 20 slides maximum and the business plan summary should be not more than 900 words. Other venture capitalists on the Clean-tech panel agree with him. If an entrepreneur can’t get their idea across in that amount of time, they are not going to have a lot of success in pitching.
In general, angel and first round investors usually take a 20% – 30% stake in the company, which allows for follow-on investments.
For more information about future high quality events sponsored by Young Startup Ventures, visit their website: http://www.youngstartups.com