Scott Burkett has a great write-up with ideas for entrepreneurs seeking early stage funding. He writes with a geographic focus on Atlanta, but much of what he writes applies regardless of where one is located. Raising money is rarely easy.

I think once some of these newer funds begin bubbling up (and they will be soon, I think), we’ll start to see some more activity.

I know of at least two regional VCs that are looking at putting a presence in Atlanta as well – evidence, to me at least, that there is innovation happening here.

Cheers.
Scott

One of the problems with creating a robust technology community is the need for volume. Silicon Valley doesn’t work because all the smart people are there. It works because of the vast number of startups that take a shot (most of which fail). No one can predict the winners and losers at the outset – it is folly to try. But if 100 companies led by bright aggressive entrepreneurs with sufficient funding can make it out of the starting gate, a few are likely to be huge successes. Which ones? You cannot possibly know, that’s why you have to start 100. If Imlay and ATA fund 5 companies total and ATDC lets in maybe 10 a year, the chance of any one of them being the next eBay or Paypal is small indeed. It is a numbers game. Would you ever buy a mutual fund that only invested in 5 companies? I’d like to know how many companies Knox Massey or Sig Moseley see in a year? 100? 200? And they invest in 2? I don’t fault them. But if those are the two primary sources of seed funding, that it is no where near enough if the Atlanta tech community is to every escape its backwater status.

Knox – thanks for stopping by and posting the additional info and insights on the ATA. Your #3 I think is an important data point (and one that I didn’t know.)

I’m all about helping you guys with #4. Let’s make sure we add this to our agenda when we meet next.

Cheers.
Scott

High net worth individuals are best accessed either through their trusted advisors, close professional contacts, or through their non professional activities.

Trusted advisors included wealth managers, accountants and attorneys.

Professional contacts would be businesses in which the particular high net worth individual has invested, or business partners.

Non professional activities might include recreational activities (golf is the most obvious example) or charity-related events.

When you do meet such individuals, don’t hit them up for money right away. You then become indistinguishable from a panhandler. Get to know them. See how you might help them. Seek resources that don’t require a check (advice, contacts, information). At some point the conversation will turn to how they might help you…

1.) We generally only have time at the monthly meeting to review two investment opportunities. However, we talk to companies on a continual basis-and have funded companies without a formal meeting.

2.) It is always helpful to remember that ATA is comprised of Atlanta-based individuals who are investing their own private capital—not OPM (other people’s money) in, specifically, Atlanta based technology companies.

3.) Generally, we fund companies “before” they are accepted into ATDC–not after-(Oversight, Vocalocity, Zeewise, etc).
VentureLab is a different story. The technology developed at GATech generally needs to go through a specific “channel”. We track that “channel” and get involved when appropriate.

4.) One of the missions of ATA is to fund and build Georgia companies to help attract outside institutional capital (since there is, unfortunately, not much in GA). We have helped attract approximately 15X the capital ATA has invested since 1999 ($250M-$300M). ATA companies have helped bring approximately 20 VC’s from 10 states to invest in GA-based companies. ATA is strongly geared towards investing in and promoting Georgia as an innovative market.

Cheers.