Evaluating the Success of the Investment Forum
Recently, more than 50 people came together for the LaunchMemphis Early Stage Investment Forum. As with any event, it’s important to define the metrics for success and evaluate how the event compared to those metrics. Here are some metrics and results:
1. Community Involvement - with more than 50 people present, this was clearly met. Out of 34 applications, 20 were accepted,,so this number was intentionally limited. Of the 50 people, roughly half were investors (including institutional investors and individual investors). Almost all of the institutional investors in Memphis were there, although a few couldn’t make it at the last minute. And, of course, a summary of the event would not be complete without mentioning the involvement of the FedEx Institute of Technology, where the event was held. Lastly, the Commercial Appeal covered the event, with a reporter spending nearly an entire day at the Institute.
2. Connections - While some people clearly knew each other, most did not. Using the formula (N^2 - N) / 2, there was a potential for 1,225 connections to be made. Since many of the investors already knew each other, the actual number is probably closer to 750. A large number of these connections were more than fleeting moments, but more on that in a moment.
3. Awareness of Entrepreneurial Environment - As we spoke with investors at the forum, and as we reviewed the surveys they completed, the opinion was almost universal that they were impressed with at least some of the ideas at the forum. Many investors commented that they felt the overall quality of the entrepreneurs was superb and surpassed their expectations. The awareness that Memphis has so many people working on ideas was, and is, critical to the success of LaunchMemphis, not to mention the Memphis community at large.
4. Relationships - While some connections were fleeting ‘nice to meet you’ moments, many have become deeper connections. We are aware of at least 20 follow-on meetings that have occurred as a result of entrepreneurs and investors meeting each other at the forum (if you were there and have had follow-on meetings, please let us know!). We can’t know what these will lead to, but we do know that this was one of our most critical success factors, and we are thrilled with this result.
5. Feedback - All of the entrepreneurs received invaluable feedback from the investors. Each entrepreneur received a report of how they were rated by the investors in six categories and received a list of investors that wanted to have follow-up conversations. Metric met.
6. Plan for Moving Forward - One of the key aspects of the forum was providing a platform for everyone involved (investors, entrepreneurs, and LaunchMemphis organizers) to discuss how to improve the current environment. We held an open meeting/roundtable discussion on what investors were looking for, what entrepreneurs needed, and how to engage individual, “Angel,” investors. We believe that this engaging conversation needs to continue, but we were thrilled to have so many people engaged in the conversation, and getting everyone talking was the first step.
7. Direct Investment - For investment forums with a long history, this is the success metric that matters most. However, as organizers, we said from the beginning that it was not our metric of choice for the first year. It is too early to determine whether the connections made will lead to investment. We do know that dialog is underway that could lead to eventual investment and that at least is very positive (again, if you are one of the people who was there, please keep us posted). In speaking with some people who were less familiar with the process of investing in startups, we found a potential misconception around the notion that an entrepreneur might walk away with a check. This was never expected and almost never happens at any investment forum. What does happen is that a conversation follows that can lead to such a transaction. Don’t get us wrong–we do hope that someone gets funded, and that is a goal. However, not having a company funded does not mean the event was not a success.
We want to thank everyone that attended, and to especially thank our sponsors, the Tennessee Technology Development Council, Innova, and FedEx Institute of Technology.
We are still hearing about meetings that are going on and many entrepreneurs are hard at work to get their ideas further along. We firmly believe that great things will come from this event, and, as we plan for more in the future, we look forward to providing a solid foundation for entrepreneurs and investors to connect.
Spinning a Startup
Walk by a table and see brains churning as they practically bubble over with ideas to lend to the brainstorming session. Sit at that table and listen to the group, whether it is PR/Marketing or User Experience, and see lightbulbs actually going off over thier heads. Ok, maybe they are no lightbulbs shining over heads, but there might as well be.
The 100 or so great minds gathered together at LaunchMemphis‘ StartUp Weekend are excited (and busy!) developing a business plan for a grassroots campaign to generate interest in a new social network presence. This network is unique and “organized” around the idea of unorganization. Interested yet?
While names, logos, business models and developments are still being worked out at the time of this writing, the overall concept is set: A community, utilizing Facebook, uniting pickup-game players and facilitating game assembly and peer ratings of one’s related skills.
Focusing on underground sports lacking standard rules, leagues or organizations (starting with ultimate frisbee), this social community will provide a platform for players to connect with others who are on the same level as them, as well as find ways to improve their own games. StartUp Weekend is in full swing in Memphis, and there’s still a full day left! Keep checking back to see how the concept progresses–just watch out for random lightbulbs overhead.
View recent photos on Flickr and get updates via Twitter.
(- Emily)
Calling All Angels *
When we began forming LaunchMemphis, one of the things that we discussed quite a bit was what the demand for events really was. We felt there was a ground swell desire to enliven and engage the Memphis entrepreneurial community, but were pleasantly surprised with the flurry of activity around the LaunchMemphis events. Now that we have received more than 34 applications for the investment forum, we are certain that we were right in believing that there was (and is) a need for what we are doing. There has also been incredible support from the institutional investors in the area; many of these firms have agreed to make time for the investment forum and listen to the companies we have managed to pull together. And, of course, we greatly appreciate all those that have applied to the investment forums.
All of these things have exceeded our expectations, and we are incredibly thrilled.! But the one thing that has been noticeably absent is the involvement of “Angel” investors. Angels are those individuals and groups that have the resources to invest in small companies. They are the critical cog in the machine that is necessary to allow companies that start in Memphis to stay in Memphis. When you look at Silicon Valley, Washington, DC, Austin, TX, and other places with strong startup environments, it is the angels that enable many companies to get over the chasm**.
So, to all the angel investors and potential angel investors in Memphis, please contact us (forum@launchmemphis.com). Hopefully, we’ve reached you through other channels, but if not please join us. We are seeing amazing things here in Memphis through the networking events and the investment forum, and we want to make sure that the wonderful entrepreneurs that we have met have a chance to show you the ideas that they believe in and are working so hard to make a reality. We also want to engage in a discussion around how best to leverage the resources of the many wealthy individuals in the area to create an investment opportunity that is more accessible. So, let’s talk.
* Apologies to Train for borrowing the title of their song of the same name, copyright 2003.
** Moore, Geoffrey A. Crossing the Chasm. Harper Business. 1991.
Developing the Launch Ramp to the Future
As we have talked with entrepreneurs and investors over the past couple of months, one theme comes up quite often. It’s often subtle, but the essence is “This isn’t Silicon Valley. What do you hope to achieve?” The answers, respectively, are “nope–it’s not” and “a lot.”
What we are striving to achieve through the networking events, speaker series, Startup Weekend, and (most directly) the investment forums is a ramp. A ramp that will allow a person with an idea and talent to launch a business. For this ramp to work, we have to make sure that those with capital can connect to those with the ideas. This includes the whole range of investment, from small loans and financing to Angel investors to institutional investors. This ramp needs to allow institutional investors be on the front row as companies develop from ideas to outstanding investment opportunities. The ramp needs to include resources for young companies, such as those provided by EmergeMemphis and BioWorks. When this ramp is in place, talent will remain in Memphis, and the investment rewards will also reside in Memphis, providing a powerful multi-faceted attack on some of the issues we have in the city.
Optimistic? Sure. A big goal? Yep. Going to happen tomorrow? Nope. But, we believe it can. It requires the work of multiple organizations–we applaud the activities of BioWorks and Memphis Fast Forward, and we know that what we are doing is only a part of the overall puzzle. It’s going to take work. And it’s going to be worth it.
Hopefully you are wondering what you can do to be a part of making this happen, so here are some thoughts:
Entrepreneurs (a.k.a., anyone with an idea they believe in): Participate in the various LaunchMemphis events and talk to us about participating in the Investment Forum. Get to know others involved in LaunchMemphis and maybe find a partner or an investor who can help you turn your dream into reality.
Angel Investors (a.k.a., those with money to invest): Let us know you are interested in attending the Investment Forum and/or the types of companies you would be interested in investing in. We’ve heard some very interesting ideas and concepts recently, and we want you to have a chance to hear them and help make them a reality.
Businesses (a.k.a., those with resources and an interest in the health of Memphis): Help us by sponsoring some events. Help spread the word to employees and contacts to participate. We had a lot of very talented people come together at Tech Fuel.
Institutional Investors (a.k.a., smart people with resources to help companies): Participate in the Investment Forum. Talk to us about what you think we could do to make sure you can find great ideas in your own back yard now or in the future. Let us know of interesting concepts, trends, and companies in the area that we may not have heard of.
Finally, a big thank-you to all those who attended the networking event last week. It was great to see that there are so many people who want to see great things happen and who are willing to be part of the effort to make it happen.
