Forum Focuses On Financing Dreams Panelists Discuss Importance Of Venture Capital To Building Business
High-tech entrepreneurs know the meaning of “give and take.”
They give away a partial ownership stake in their company to an investor - or venture capitalist. And then they take the investor’s money to finance a dream and hope they make millions.
This critical, yet often brutal, law of the business jungle was showcased Thursday night at the Bayou Brewing Co. in Spokane during a forum called “The ABCs of Venture Capital.”
About 175 people attended the event, which was organized by a group affiliated with the Greater Spokane Area Symposium Series.
In part, Thursday’s forum underscored efforts some business people are making to try to shore up deficiencies that have soured entrepreneurs on the area - such as a lack of investment cash.
“I think having local venture capital is extremely important,” said Jill Smith, founder of Buckeye Beans and one of those in attendance. “It’s been something Spokane has needed for a while.”
The event attracted many of the top high-tech players in the area.
Sitting in the back of the banquet room was Brian MacLeod, the former business development manager of Packet Engines.
His new start-up company, Project 101, is looking for funding; venture capital is one possible route. He came to the forum to get a better feel for the area’s financiers.
A five-member panel, made up of regional investors, a businessman and a securities lawyer, provided a crash course on what entrepreneurs should think about when hunting for dollars.
“If you can learn to sell your company, be prepared with a good presentation and never stop looking for capital, I think those are things that will help you,” said Ron Johnson, a principal in Spokane-based Allison Johnson Venture Partners.
Pardner Wynn, a panelist, talked about his problems landing venture capital two years ago because he wanted to keep the company in Spokane.
“I failed in what I tried to do,” he said.
Wynn is a board member of Docent, the business he co-founded, which moved to Mountain View, Calif. The company makes Internet-education programs and recently secured $17 million from venture capitalists. Docent has raised about $30 million total.
Wynn’s presentation also laid out a road map showing how large technology investments feed on themselves, enriching an area’s economy.
About 85 percent of the investments fail, he said. But the ones that succeed bring lofty returns to employees as well as financiers who then replace the money in other start-ups.
John Stone, one of the organizers of the Greater Spokane Area Symposium Series, said events like the venture capital forum will continue to benefit the region with new ideas.