Angel Investing, Entrepreneurship & Learning

Brock Blake blogs…

Finally made it to the Fight Club Dinner

After many invites, I finally made it to the Fight Club Dinner. In it’s simplest form, the fight club dinner is essentially an entrepreneurial networking dinner here in Utah founded by Jeff Barson. It was good to see some other entrepreneurs that I haven’t seen for a while including:

There wasn’t any arm-wrestling or fight stories… just some great discussion about some of the up and coming start-ups. Money had a great suggestion for us at FundingUniverse: he suggested that we start to sponsor/organize more entrepreneurial events — and I think that he makes a great point. It doesn’t have to be anything big or formal, just an opportunity to have like-minded entrepreneurs get together.

A while back, we used to get together for a weekly entrepreneurial breakfast and I think that I’ll get that started again. Anyone interested? I’ll be talking to my partners and we’ll come up with a schedule. Again, nothing formal… just opportunity to get together.

Stay tuned…

#7 — Large & Growing Market

It’s been a while since I started the 10 Signs of an Angel-Fundable Company, so I figured that it would be good to finish the last couple of tips. Tip #7 will focus on the size of the market that you are trying to penetrate. While this topic is similar to the “idea that is scalable” entry that I posted, there is a difference.

An entrepreneur could possibly enter a very large market, yet be limited by a company that does not scale. Similarly, you could possibly have a scalable business but be limited by a small market.

Let me share an example of how a potentially small market can hurt your chances to raise angel or venture capital:

My oldest brother, Brett, has recently started an innovative online community called OnCampusSports.com. Over the past few weeks, he has had the opportunity to pitch to quite a few angels & VCs in Utah and in the Bay Area. During his first couple of pitches, the feedback that he received from the investors was that the market (college intramural participants) was too small. The company’s vision has always been to target a much larger participant sports community (recreation sports, high school sports, college intramural sports, etc.), but decided to initially penetrate the college intramural community because of the low-hanging fruit. Because the investors were having a hard time seeing beyond the college intramural community (mostly because the company’s name was OnCampusSports), Brett decided to change the name of the company to Rahster.com so that he could effectively communicate the larger vision and larger market opportunity.

As you can see, no matter how strong your concept may be, if you are limited by a small market opportunity you will have a very hard time raising angel or venture capital.

Great post on investing in People, not ideas

I just read a great post by Fred Wilson (Union Square Ventures) about what they look for in a Management Team or Founder.  I figured that I would pass it along.

Mitt Romney’s National Call Day

I have to tell you that I’m not that into politics. Should I be? Yes. Do I wish that I was? Yes. In fact, I’m going to have that be a small goal of mine this year — pay more attention to what’s happening with our local and national government officials.

I guess that this week will be a good first step. If you didn’t know, Mitt Romney announced on Monday the formation of the “Romney for President Exploratory Committee” (which basically means that he has officially filed his papers with the Federal Election Commission to run for the President of the United States). I received about 6 emails on Monday from various people asking for my support through a financial donation (each person can donate up to $2100 or $4200 per couple) — I even had an email (via a friend) come from Mitt’s son Craig.

Here is what the email from Criag Romney said:

As you may know, my dad filed papers to form an exploratory committee earlier today to test the waters to run for President in 2008.

One of the keys to be able to do this is to raise a significant amount of money over the next 12 months. Candidates will need to raise about $100 million over that period to be considered serious contenders for the Presidency. The first few weeks after announcing the formation of an exploratory committee are critical in that they demonstrate the candidates ability to raise this kind of money.

As a result, I am asking you to help me raise money for my dad’s exploratory committee. On January 8th, he will be hold a National Call Day in Boston during which time many of his supporters will gather to call friends and family to request them to make donations to the committee.

Please let me know if you have any questions and feel free to take a look at my dad’s positions at www.thecommonwealthpac.com.

From the sounds of it, it appears that Mitt is already well on his way to raising the $100 million necessary. Here is an excerpt from an email that I received Monday night:

As you may have heard through the many news reports, we had a very successful day today in Boston! Governor Romney and the national finance team conducted a National Call Day, raising in excess of $6.5 million towards the Romney for President Exploratory Committee. A record day which illustrates and validates the depth of the grass roots effort that has begun in support of Mitt and Ann Romney and their presidential aspirations. It was an amazing thing to witness the success of the day through so many contributions from so many people, especially recognizing that no one contribution could exceed $2,100. Never before has any presidential aspirant raised so much in so little time. Governor Romney has established his leadership through past successes, and further evidences his position as a top tier candidate for the Presidency of the United States by his positions on issues before us, his personal character and integrity, and in his capacity to garner substantial grass roots support.

I am intentionally excluding personal opinions regarding Mitt and the 2008 election until I have formalized a more concrete opinion. Early on, I do like Mitt and have been impressed with his successes as Governor of Massachusetts and President of the Salt Lake Olympic Committee.

Learning becomes Local

I’m totally stoked.  Trent got our company histories back up on our website and I’ve had a great time learning; I spent about 30 minutes reading the histories of Berkshire Hathaway and Big O Tires tonight.

While it was obviously edifying to read about Warren Buffet and his long career of successful investing, it was even more fun for me to read about a local businessman named Steve Cloward.  Steve spent most of his career as the President of Big O Tires.  Now, he is the Director of the Davis Business Alliance which includes the Grow Utah Venture’s sponsored Davis eStation.  Here is an excerpt from the Big O Tire Company history that talks about Steve:

By 1984 Big O recognized the need to change with the times and turned the company leadership position over to Steven P. Cloward, who had begun his career as a territorial sales representative for Michelin based in northern California. Big O had been one of his accounts and he soon became assistant to the Area Director of Big O Tires of Northern California. Cloward also accepted the position as president of William B. Thomas Enterprises, the largest of the area tire distributors, and shortly thereafter he orchestrated the merging of “his” two companies.

According to company records, Cloward reasoned that “The better job you do at conveying your genuine interest in a customer, the more customer inventory base you’re going to build, the more repeat business you’re going to get, the more positive word of mouth–the net result is a more successful business. The times may change, but the basic needs to satisfy customers will not.”

Steve attended our last SpeedPitching event here in Utah and enjoyed the experience.  He’s a great guy and someone that I respect.

If you haven’t had a chance to check out the 10,000 company histories, I recommend that you do.  Not only does it provide a great learning experience, you might read about someone you know!

LinkedIn: Is there value?

A few weeks ago, Chris Knudsen wrote a blog entry on the lack of value he has seen from his membership at LinkedIn. I guess he wasn’t really saying that there is not value, he was just commenting that he hasn’t seen much personal value.

I have always liked LinkedIn, but his post did make me think about the benefits that I have seen because of my membership. Though I haven’t used LinkedIn as much as I should, I really believe that it can be very beneficial to your business networking — you just need to take advantage.

To be honest, I don’t think that I’ve ever denied a LinkedIn introduction — I’ve always passed them on. I’m guessing that others would do the same if I were to ask for introductions or favors.

Guy Kawasaki wrote an entry this week on 10 Ways to use LinkedIn and I believe that it provides valuable tips. I love networking and believe that it is an important part of business. Hopefully, I can transfer the networking into an online environment to take advantage of LinkedIn and other technology advances.  Here are his 10 tips summarized:

  1. Increase your visibility
  2. Improve your connectability
  3. Improve your Google Page Rank
  4. Enhance your search engine results
  5. Perform blind, “reverse,” and company reference checks
  6. Increase the relevancy of your job search
  7. Make your interview go smoother
  8. Gauge the health of a company
  9. Gauge the health of an industry
  10. Track startups
  11. (Bonus)  Ask for advice

That being said… if you are a member of LinkedIn and we are not connected, feel free to send me the invite. (Don’t get me wrong…I’m not trying to be a LinkedIn spammer or enter into a LinkedIn popularity contest — I don’t think that it’s valuable to connect to strangers.) But if we have had some interaction, let’s get connected! If we haven’t had any interaction, I’d prefer to meet you or get to know you before connecting up.

Feel free to send me an email at bblake at fundinguniverse.com.

Blog Tag - 5 Things You Don’t Know About Me

Yes, I’ve been “tagged” by Michael Eager and Chris Sandberg to write the post 5 Things You Don’t Know About Me. To be honest with you, I don’t really like these pass along games. In fact, I can’t stand it when I get emails that try to make you feel guilty if you don’t pass them along. They’ll say something like “you better pass this email along or you will _______” or “if you pass this email along, you’ll earn $1M from Bill Gates” — I’m sure that you know what I’m talking about.

Anyway, for the sake of not being a poor sport, I will participate in the blog tag. That being said, I will not feel bad if the bloggers that I tag do not participate.

Here are the 5 things that you probably didn’t know about me:

  1. I ripped my front tooth out when I was eight years old: I was playing “dunk ball” on a lowered basketball hoopbrhead-small.jpg in my back yard and as I went up for a Michael-Jordan-like-dunk, my front tooth hooked the net and ripped out! (I can picture what you are doing right now… holding your mouth and saying aaaawwwwwoooooo!)
  2. I played Semi-Pro Soccer: The BYU Men’s Soccer team purchased a semi-pro franchise and is now competing in the Premier Development League. I started out my career as a forward and finished it off as a center-midfielder.
  3. I’m married with 1 boy and a little girl on the way: One of the most exciting news in 2006 — my wife and I are expecting #2!
  4. Lived 2 years in Uruguay: Served as a missionary for the Church of Jesus Christ of Latter-day Saints. It was 2 of the most amazing years of my life. I love the people and miss them dearly.
  5. Never Seen The Wizard of Oz: To me, that’s not really that big of deal; but to everyone else, it has been shocking. I never saw the movie and never really had the desire. I suppose that I will see it one day with my children, but if don’t, oh well.

Tag: Jeff, Trent, Alex.

You’ve got to be kidding me…

Did you see that game last night? Boise St. played Oklahoma in the Tostitos Fiesta Bowl and it was incredible! Boise St., a huge underdog & BCS buster, beat Oklahoma 43-42 in OT to win the game. BSU’s coach had a lot of guts to call some of the plays that he called.

Check out the highlights here (not great quality… but it does the job).

UPDATE:  After all of the buzz throughout the day today, I felt like I need to add a few more comments to this post.  One of my partners today mentioned that if last night’s game was put into a movie (kind of like Remember the Titans or Invincible), it would be one of those dumb unrealistic movies.  I mean…think about what happened:

  • Underdogs go up by a lot
  • “Bad guys” come back to tie after three tries to convert a 2-point conversion (only 1:30 to go in the game)
  • Next play, the underdog throws an interception and the “bad guys” run it back for a TD — it looks like there is no hope for the underdogs to win
  • Underdogs drive the length of field in :45 seconds by using the old-fashioned “hook-and-ladder” play (not to mention that it was run to perfection)
  • Game goes into OT
  • The stage is set again… “bad guys” score on the first play in OT when their star running back takes it in the end zone
  • Underdogs use every trick play in the book to convert on 4th down and score a TD
  • Coach decides to go for 2 to win the game
  • Last play of the game ends on a trick “Statue-of-liberty” play where the underdogs win the game
  • And finally… after the game, the star player for the underdogs proposes to the head cheerleader!

Too good to be true!