During the networking portion of the event, I met a passionate entrepreneur. I introduced myself, giving him insights into Thought Ensemble and how we differentiate ourselves from other consulting firms as well as telling him about Kinequity Group, the investment management firm that I am with. He then tells me about himself and how he’s developed a very interesting mobile application. Currently, he’s found himself in a difficult position that many who are trying to start a business find themselves in. Though the working application is nearly developed, he’s exhausted his resources, specifically available capital since he has been funding this venture with his own money.
After a few minutes of chatting, he asked, “Since you are in the investment community, how do you think I should approach a VC company?” Well, my response was that (1) I am not certain I know enough about the business to really give a fair response to that question, (2) I do not believe, based on his introduction of the company, that he is ready to approach a VC or even an Angel Investor group and (3) I honestly told him that based on our ten minutes together, I would recommend that he polish his business plan and understand the market who will use his mobile application. I do believe that his idea and efforts can impact mobile phone users in a positive way, and I wanted to ensure that he does not get ahead of himself by introducing this to the VC or Angel Investor world before it is ready.
We decided to meet this upcoming week to walk through his mobile application, business plan, market analysis, etc. in efforts to help him and bring more polish to his approach and messaging prior to moving forward. From here, I may introduce him to a few local angel investors to help with what we will call “seed” money for the sake of this discussion. After that, if it makes sense, the next step may be to present to some local VC’s but before I get too ahead of myself in next steps and what might happen, let me meet with him and see how it goes.