Tag Archives: Introduce

What are the Best Avenues for Raising Capital? Six Points

Situation: The technology sector is booming with AI and other exciting new technologies. Whether you want to fund a new company or a new effort within a smaller company, what are the best approaches? What are the best avenues for raising capital?

Advice:

  • Funding and credit markets are opening but still tight. The bar has been raised because too many people are chasing too few available dollars.
  • The venture capital (VC) sector has consolidated. The primary focus is on technology, software and medical. Much less goes to the consumer sector. It is important to target angels, VCs or investors who specialize in your technology, market and business model. Research current VC portfolios.
  • Angels now act more like VCs – particularly structured angel groups. Initial investments are typically under $1 million.
  • If you have a technology, investigate the grant world – e.g., NIH or DARPA. These organizations fund research, but not marketing, distribution or sales. Look for specific programs or RFPs that align with your technology. Target your grant request toward prototype development and studies. Search LinkedIn for military people who can introduce you to contacts within programs like DARPA.
  • Investigate SBA Grants, and foundations with an interest in your technology or application. Foundations sometimes will grant funds ($100k) to support the work of individual scientists and researchers. Call on friends and family who believe in you and your work.
  • Whoever you approach, these rules apply: (1) Do your homework. Choose sources that align with your project and profile. (2) Presentations must be crisp and easily understood. Investing in professional assistance is wise. (3) Be able to make your case in 15 minutes or less. The first minutes are most crucial, so have your ‘elevator’ pitch perfected. (4) Your model and financials must support a high multiple exit, 5-10x their investment in a reasonable period of time – about 5 years. (5) Team, Team, Team – credentials, experience, presentation – be a team with whom the investor can work.

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How Do you Position Yourself as the New Leader? Six Points

Situation: A new CEO has just taken over at a well-developed medium-sized company? He will be a first-time CEO. The principal concern is how to introduce himself to the staff and customers. He believes that first impressions are critical and wants to get off on the right foot. How so you position yourself as the new leader?

Advice from the CEOs:

  • Proactively engage both staff and customers in a dialogue about the direction and potential of the company. Focus comments on positive opportunities. Demonstrate a fresh sense of excitement and energy. Both staff and customers will be looking for a leader who shares their excitement. Demonstrate good listening skills.
  • There are a number of good books on leadership. Look for a title and theme that is appealing. An important point is the need to “market” yourself to both staff and customers.
    • Develop a list of hopes, desires and needs for the company. Add to this list based on what is heard from staff and customers.
    • Look for synergies between your and their hopes and desires. Create a “launch campaign” around these synergies.
    • This will position you as both an essential member of their team, and as a leader that others will want to follow.
  • Find a mentor. One who has deep experience with the role of “new Leader”. Seek their advice and counsel. Use them as a sounding board while developing a campaign for “Operation New Leader”.
  • Remember that both the company and the new vision are just plans and may require flexibility.
  • Ask others – particularly mentor and staff:
    • What is the model that they see? What are the key objectives that the company should accomplish during the first year?
    • What niche do they see the company aspiring to fill? From this may come insights into underdeveloped opportunities that the predecessor failed to leverage. Also, an opportunity to gain key allies within the company.
    • Focus discussions on what will bring increased value to the company.
  • While speaking to others, listen for their questions about the role of the Leader. This will present an opportunity to define the Leader role by addressing their needs as you transition into the new position.

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How Do You Introduce a New Solution Without Asking for a Change in Behavior? An Approach

Interview with Kiran Kundargi, CEO, Apsora

Situation: A company seeks the best way to introduce a novel health monitoring solution. The challenge is that people don’t want to change their routines. If you can creatively fit into existing routines with minimal behavior change this facilitates adoption. How have you introduced a new solution without asking for a change in behavior?

Advice from Kiran Kundargi:

  • As the population ages health care costs rise. A solution that can reduce healthcare costs while allowing more seniors to remain in their homes this can significantly reduce health care costs. The sticky part is making this solution a part of the elder’s and their family-caregiver’s daily routine.
  • Our solution is to seek the low hanging fruit – post-hospital discharge recovery at home. Seniors who have been discharged from the hospital following treatment or surgery often receive strict instructions to take their medication, adjust their diets and engage in regular exercise. This requires changes in the senior’s routine, and non-compliance is a leading cause of readmission.
    • Effective October 2012, Medicare will stop paying hospitals for readmissions that it deems avoidable. This forces hospitals to take a more active role in follow-up care following discharge. Our online health monitoring service, Nclaves, provides a low cost solution.
    • Nclaves facilitates communication between the elder and his or her children and grandchildren using Internet and hand-held technology. This enables family to help their senior comply with post-hospital instructions.
  • We approach this opportunity in four phases.
    • We start by using the Internet. We have made our solution easy for physicians and hospitals to find. Internet activity is supplemented with presentations to monthly meetings in hospitals. By acting as an information resource on the change in Medicare regulations, we can introduce our solution to those who will suggest it to patients. Early adopters will enable us to build case studies demonstrating both technical viability of our solution, benefit provided to patients, and impact on readmission rates and cost of care.
    • Next, we will approach large employers. Employers understand that increases in hospital costs will adversely affect the cost of insurance benefits for their employees. We want them to include Nclaves as part of their employee health and wellness programs.
    • The third step is insurance companies. These companies have the leverage to specify and suggest options to both patients and providers.
    • Our final step is broad market acceptance. Once both payers and providers are on-board, we will be ready to work through alliances, the Internet and broader public relations and advertising campaigns to build market acceptance.

You can contact Kiran Kundargi at kkundargi@nclaves.net

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