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December 5, 2004
NW tech transfer slow, but growing
The Seattle Times reported this week on tech transfer at the Northwest's research institutions. The conclusion, not to anyone's supries in the venture business, is that the tech transfer process up hear is behind other areas of the country. No Google's created up here from U of W inventions (thanks Stanford).
Why are start-ups slow to come out of NW research institutes? I believe it is more about process and people than a lack of ideas. Here at Ignition we have done one such deal in Terranode (the founders of which are the poster photos for the ST article). The process was frought with way more paperwork than necessary. But Joe Duncan, the CEO is ex-Oracle and a serious software guy. He had the tenacity to see the process through and attract a world class team. Recently, Accelerator Corp. was started with alot of NW partners to, you guessed it, accelerate the process of getting life science inventions from research to market. They will initially be focused on life sciences physical technologies (drugs, treatments, devices), so I would doubt we will see alot of software inventions initially, but we are at the head end of this process.
I predict the NW catches up in the area of research to start-ups over the next 10 years.
Posted by Martin at 12:56 PM | Comments (0) | TrackBack
December 2, 2004
VC Board members and Articles of Incorporation
Yesterday in a board meeting we reviewed revised articles of incorporation and they included the following added clause/resolution from THEIR lawyer. A clause that he said was the result of recent updates in Delaware law and designed to best protect the interest of venture investor board members, prevent conflicts and reduce disincentives to invest. The language follows below. May be worth considering as a best practice:
"In the event that a director of the Corporation who is also a partner or employee of an entity that is a holder of Preferred Stock and that is in the business of investing and reinvesting in other entities, or an employee of an entity that manages such an entity (each, a “Fund”), acquires knowledge of a potential transaction or matter in such person’s capacity as a partner or employee of the Fund or the manager or general partner of the Fund and that may be a corporate opportunity for both the Corporation and such Fund (a “Corporate Opportunity”), then (i) such Corporate Opportunity shall belong to such Fund, (ii) such director shall, to the extent permitted by law, have fully satisfied and fulfilled his fiduciary duty to the Corporation and its stockholders with respect to such Corporate Opportunity, and (iii) the Corporation, to the extent permitted by law, waives any claim that such Corporate Opportunity constituted a corporate opportunity that should have been presented to the Corporation or any of its affiliates; provided, however, that such director acts in good faith and such opportunity was not offered to such person in his or her capacity as a director of the Corporation."
Posted by at 6:23 AM | Comments (0) | TrackBack
The value of plans you can actually make
Was recently in a meeting with a terrific company when Gerry Langeler of OVP offered some seemingly obvious, but very sage advice.
He has seen a number of companies that had great sales growth year over year, for several years but for each of those years they were also consistently under plan. Great companies, but unhealthy planning practice. Stretch goals may be great to have, and it is really hard to plan accurately in early companies with little history, but not meeting plan poses all kinds of problems.
In contrast, stressed Gerry, setting revenue plans you can actually make may not seem quite as exciting but has lots of benefits:
* Benefit one - motivation of sales people. People like to make or even break plan by at least a little. If they don't they can't plan. They get bummed. They quit.
* Benefit two - board confidence. Happy boards don’t like sandbagging but they also like real visibility. Getting close to plan or beating it increases their confidence in you.
* Benefit three - team and other constituents, feel forward progress more than if you grow but "not quite enough"
* Benefit four - expenses, they seem somehow to magically stay more in line if you do not over plan for revenue. Appetites stay in check.
Anyway, may all be obvious but worth remembering as you start pulling together next year's plan. Underpromise, overdeliver.
Posted by at 6:10 AM | Comments (0) | TrackBack
Funding releases
You got the money, when and how should you let everyone know? This entry from marketingplaybook has some thoughts on the topic.
Posted by at 6:06 AM | Comments (0) | TrackBack