networking essentials for entrepreneurs mbc, january, 2009
TRANSCRIPT
Networking Essentials for Entrepreneurs
MBC, January, 2009
Facilitating technology transfer from the
Commonwealth’s research institutions to its
companies.
Problem
You have developed a new way to implement the economic stimulus package that will reduce toxic debt, increase employment and bring peace to the Middle East
You need to get this information to President Obama as soon as possible so that he can use your ideas – how do you do this?
Solutions
1. Send letter to President Obama, White House, Washington DC
2. E-mail [email protected]. Call White House4. Call your Congressman or Senator and
ask them to pass on the message
Solutions
5. Ask the attorney you met last week at a party who was in Obama’s class at Harvard Law School to pitch it for you
6. Find someone who knew Larry Summers at Harvard that will help you pitch it to Larry
7. Find someone who knows your Congressman/Governor/Senator who can set-up a meeting for you both to pitch it to them and get them to do the second pitch to President Obama
Lessons
Solutions 1-4 • “Over the transom” Approach
– You are an unknown– You get lost in the traffic
Solutions 5-7• Using someone who is known
– You get the audience– You gain credibility– You get screened out before you do/say something stupid and burn up
a connection you might want to use later
• You don’t have to go directly to the top – telling Larry may be more effective than telling the President
• Caution you need to know your network well and not abuse your connections
Why you need a network
• Gives you access you can’t get• Gives you credibility• Gives you feedback on your ideas• Gives you references on people• Helps you find new customers
When do you need a network
1. When you are looking for a new job2. When you are looking for funding3. When you are looking for a new attorney4. When you are looking for a new CFO5. When you want an internship for you
daughter
All of the above and all the time!
What are the six degrees of separation?
And what is wrong with this theory?
Strong Links vs Weak Links (or how Hybritech was funded by the college friend of the founder’s wife)
How you build a network
• Events• Committees• Boards – Company, professional organization and
non-profits• Introductions• Volunteer and other public service• On-line – Facebook, LinkedIn, YouNoodle• People you sit next to on airplanes….• Alumni and Diaspora groups (TIE, OPEN, BioBrits)
Why developing your pitch is important for your Networking
• The Elevator speech
• Questions you are likely to be asked at a cocktail party– Crisp, concise answers – no powerpoint crutch
Networking with Venture Capitalists
• VC’s almost never fund companies that come in “Over the Transom”
• Use your board, professional service providers etc. to introduce you
• Present at Financing Conferences• Go to current events at which VC’s speak to hear
their current thoughts and trends• Make sure that a VC who is interested in your
space is kept informed of your progress – don’t overwhelm them with information – but try to make sure they know about major achievements (we reached sales of $1 million, we completed our animal data…)
Networking with Government Agencies
• Important to know the rules and when they can talk to you and when they can’t
• Go to conferences at which they are speaking
• Watch Agency websites and contact program managers in areas you are working in – they will get back to you
MALSI
Mass Life Sciences Start-up Initiative
An informal group for people who support, service or want to be actively involved in the Life Sciences Start-up community in Massachusetts
LinkedIn Network Occasional Meetings
MTTC Services
• Support the commercilaization of technologies developed within Massachusetts for the benefit of Massachusetts
• Educate and support first time entrepreneurs in all technology areas
• Help them network with people who can fund, manage and support their new companies
The Platform
• Focused meeting at which one start-up entrepreneur presents their 10 minute financing pitch
• Audience of 6-12 “experts”• Feedback on strategy• High-level networking• Opportunity to get input before broad
exposure of deal• Opportunity to learn what sorts of
questions investors will ask
