Raising Money is Easy... provided you throw out Logic and Reason

Raising Money is easy. It's just like playing the stock market. Valuation is based on non-math that is impossible to understand or accurately model. Terms are based on past fears and future unrealities. As long as you are willing to ignore science, math, history, and logic, you can raise money with ease! Here are the Top 8 ways to raise money for your new venture:

• 0. Build incredible Buzz and Hype. (this can have a big effect on Valuation)
• 1. Build gigantic hockey-stick financial models (or you won't even get a meeting).
• 2. Use Harlan's un-patented, "laser-beam" shotgun approach... e.g. reach out to every investor you can find that "might" do an investment in your company. (e.g. has a history of investing of companies like yours).
• 3. Spend lots of money and time on your presentation... make it 10 slides they will never forget.
• 4. Have something built... even if it barely works.
• 5. Have at least 1 customer... the more the better.
• 6. Ignore the rules of Math and Logic... and accept the valuation proposed! (it's probably higher than you deserve)
• 7. Ignore Logic and Reason... and accept the terms proposed. (even if they make the valuation irrelevant)

If you can stomach 6 & 7, you will raise money!

If you are like me, and engineer, you will fight and fight, and end up with slightly lower "valuation" (probably valuation based more on reason), and slightly better terms (based on trust and logic)... but it will take longer and be much harder to raise money. Do the easier thing, give up on your principles! /sarcasm/

Why some engineers, should stay engineers.

You should stay an engineer, and not get into "business" if:

1. You are a recluse.
2. You don't like cold-calls.
3. Money doesn't motivate you.
4. Solving challenging Technical problems makes you happy.
5. "Closing" a big deal happen doesn't get you high.
6. You prefer a low stress environment.
7. You don't like taking risks.
8. You hate traveling.
9. You enjoy dressing like that guy.

The ironic part is, I ignore this, and do it anyway... some days (like today) I miss being an engineer.

#2, #3, #4, #6, #8, and #9 all appeal to me... yet I've been "doing business" now for 6 years.

Who am I kidding?

I do love #5 though!

photo credits

http://www.flickr.com/photos/dizfunk/ / CC BY 2.0

Doing trade shows.

Most of the engineers I know love to go to trade shows. It means a chance to slack off, drink beers and generally have fun. Once you move from engineering to business however, the game changes. Bigrtime business deals take place here, and here are a few tips for dealing with the transition... How to DO trade shows once you are in business.

1) don't drink AT all
2) don't gamble (in Vegas). I struggle with this one.
3) set up meetings beforehand!
4) prepare hard for the meetings and bring demos
5) go to as many parties as you can, but see 1 above

that's it, follow my microblog for live updates from CES 2010!

Headed to CES 2010 in Las Vegas!!!

As I write this I am making final preparations to attend CES 2010 Jan 6-10! If I've not already scheduled a meeting with you, shoot me an email: beverly@ieee.org I have lots to talk about including Karmaback (my new social networking rewards company), Psyko Audio Labs (whom I'm helping to build a solid sales channel and many parterships), and Axelo (whom I'm also helping with their sales channel development).

Here is the top 8 things I love about CES in Las Vegas:
0.) It is in Las Vegas (need I say more?)
1.) Everyone who is anyone is there (at least for 1 day).
2.) Gear, gadgets, and stuff you only dream about.
3.) The Keynotes, are usually spectacular and spectacularly well done!
4.) It overlaps another major convention (not saying which!)
5.) The PARTIES!!! GO TigerDirect build a PC charity party!
6.) The Business! This is usually my most productive week of business. Lots of hard work and planning pay off for a chance to meet F2F!
7.) The Friends! I love catching up with old friends and making new ones.

If you are wondering where is #8, you are probably not an engineer-type. :)