Blogmatic

This is my second post regarding lessons learned from the VC Roundtable hosted by Rick Segal back on April 16th. Somewhat belated due to a general lack of time for writing.

This is a very small item but one that I found incredibly interesting. The difference between founder and CEO of a start-up. I hope I have captured the sentiment accurately. Basically if someone from a start-up calls themselves the CEO versus founder it may be an indication of a certain amount of a certain mindset. This is an early warning signal for Rick when he is checking out companies for funding. This is consistent with my view of the start-up world if you are leading a team of <10 people or even up to 20ish, you are a founder not a CEO. Jack Welch is a CEO, Steve Jobs is a CEO, Steve Ballmer is a CEO, and if you are leading a small start-up team you are a founder.

The phrase that no start-up looking for funding wants to hear; “let’s continue the dialogue”. Argh, … the dreaded long maybe in action.

Perhaps the most important lesson for early stage businesses raising funds is how to protect Grandma and Uncle Joe from you friends and family round. A convertible debenture is the way to go. This avoids dilution for future investors and provides a return for you friends and family investors. This is a good way to get compensation for early and seed rounds.

Cheers,
Ian Graham

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DemoCampOttawa9 (Monday May 26th, has a home at 62 1/2 York Street in the Velvet Room.

Still one demo spot available.

The space is pretty funky and large enough to accomodate a bigger crowd than the ClockTower. Everyone is welcome. Spread the word.

cheers,

Ian Graham

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