Chris Myers, CEO of Denver's
BodeTree, blogged about his capital-raising advice strategy for the
Wall Street Journal.
Excerpt:
Despite all the talk about excess capital in the tech investment sector, many young but growing companies find themselves in a no-man's land. I spoke to dozens of investment firms during our last capital raise and the story was almost always the same -- they've been following our business and love what we're doing, but their "minimum check size" is about $5 million. These firms can't (or won't) invest any amount below their minimum. When I explain that we're not seeking that much capital at the moment, the conversation defaults back to the standard "let's keep in touch" response. The truth is that more and more venture-capital firms are acting like private-equity businesses, seeking to back established concepts that already have significant revenue. This is a totally understandable strategy, but it isn't all that helpful for businesses at our stage of growth.
Read the rest
here.
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