Portfolio company, Terzo Power, Inc, a Northern California-based start-up company focused on its’ innovative HydraPulse integrated hydraulic power control solution for industrial and agricultural applications, has been awarded two separate, non-dilutive grants from the California Energy Commission. The grants, totaling nearly $4 million, are designed to recognize and facilitate the research, development and market deployment of clean energy technologies. The HydraPulse integrated hydraulic power unit and programmable control software, fully compatible with current equipment, will assist industrial and agricultural manufacturing companies nationwide in meeting federal Tier 4 compliance while providing exceptional multi-faceted cost and maintenance efficiencies.
Inc. Magazine published some interesting data summarized as:
1. Companies started by entrepreneurs in their 20s are more likely to close.
2. Companies founded by Asian leaders have a significantly higher rate of survival
3. The amount of startup capital doesn’t signiicantly alter a company’s chance of survival.
4. Patents or Copyrights have little impact on startup survival or closure rates.
Note that the data didn’t define what a ‘survival’ outcome meant, only that a company was merged/acquired or still ongoing.
We first invested in iSnap in 2012. The company has just announced the closing of its Series A round and the hiring of Bob Whitson as CEO. Bob is well known locally as a seasoned industry executive who has held senior management roles with both Fortune 500 and start-up technology companies. Prior to joining iSnap, Whitson was a co-founder and CEO of Sierra Logic, where he led the company through its formation and growth stage, and then managed its profitable acquisition by Emulex.
Early this year, Glue Networks raised a new round of funding. The $12.4 million raised is from private investors to boost its product portfolio and marketing as the company steps up its ability to go after the SDN wide area networking (WAN) market.
The new round of financing is in addition to a $4.5 million angel financing round (including the Sacramento Angels) the company announced in December 2010, bringing its total funding up to $16.9 million. According to Glue Networks, the financing is being used to “address growing user interest in bringing agility, speed and price performance” to the branch WAN.
We like to keep track of the entrepreneurial endeavors at UC Davis (see the Angels on Campus program we started) and recently saw this about a new bicycle accessory company. Adam Pettler switched gears (no pun intended) to be become an entrepreneur after getting his MBA at UCD.
He started Revolights with co-founder Kent Frankovich to revolutionize bicycle safety. Adam has been contributing the business skills he learned at UCD to be the guy behind much of the promotion the company has done since founding. Here is a list of accompaniments so far:
While recently reading a great piece that every entrepreneur needs to read, I thought about what else should an entrepreneur know before presenting to angel investors? The key element is that investors will focus on the business; not the technology, not the product, not the recent fad or hype.
That is: What problem is your business solving? Why will customers be willing to switch to your business and spend freely? How will your business continue to differentiate from your competition? Why the executive team will be able to execute the plan? And how happy will the investors be when there is an exit?
While most startups do the mandatory business and financial plans, they seldom put much effort in a financing plan. How will the company be funded, what are the milestones for each funding round, how will the capitalization table look after each funding round, and who makes what at the exit? The financing plan is a key part of the whole plan and provides the guiding light as to where the entrepreneur should focus his or her efforts in raising money — a task that takes enough time and that time should not be wasted chasing inappropriate investors for the stage of the company.