Whew! This is the last session for the day and then we’re off to the MySpace after party. This entry is going to be short and sweet, folks! Be sure to check out the slides and the video.
The big takeaways were:
Saar Gur asks: When is the right time to talk to angel investors?
Peter Pham answers: Talk to VCs all the time and keep your relationship with them warm. Refer them to deal flow. Help them do due diligence on business plans. When the time comes and you are ready to raise money, it will be an easy phone call because they already know you. The people who you are taking money from are going to be your board members. If you didn’t get to know them before, you won’t know what kind of board member they will be.
Saar Gur adds: It is not the idea that VCs get excited about, but the idea AND the team. Establish early that you are not just an idea person but a person that can assemble a team and get things done.
Saar Gur asks: This conference spent a lot of time talking about metrics. What metrics are angels, investors, VCs looking for?
Peter Pham answers: The metrics are around how you make money. How need to tell the story and extrapolate it into something that is very interesting. In this current climate, it is very important to show how you will make money
Manish Chandra: In the early stages. you have to measure hundreds of little points since you don’t what is going to drive your growth. If you don’t measure, how will you improve your business?
Saar Gur adds: Investors are not interested in websites, but a great business. Young entrepreneurs don’t show how to connect a great product to a great business.
Saar Gur asks: We are facing a big economic downturn. Is it a good time to be an entrepreneur?
Garrett Camp: I founded Stumbleupon in 2001, right at the beginning of the tech meltdown.
Peter Pham: If you believe in the dream, just do it. Your competition won’t be able to make it. Build a company and last a couple of years.
Manish Chandra: It is always a good time to be an entrepreneur. Life doesn’t stop. People are going to be born, marry, and die. Think about revenue very carefully.
