Category Archives: pitch

THE BIG LITTLE TRAP

by Scott M. Anderson

An investor, Sally, recently heard two pitches. The first was from A-Dot-Co, which will produce polka-dot jellybeans using a new patented process. The second was from BetterBean, will produce purple jellybeans using a trade secret method which improves existing manufacturing processes.

Having spent several years owning a candy company, Sally was interested in both opportunities.

Jellybean T

Sally knows that the jellybean market is large and well established. With a few regional exceptions, she knows the annual market growth has been 3% for many years.

sales projection MS Office

Accordingly, she was a bit surprised to see strong growth projections in the presentations from both A-Dot-Co and BetterBean. More diligence would be required.

Sally asked both companies to submit detailed materials in support of the projections they presented. She was particularly focused on the factors responsible for revenue growth. Since the market is large and established, Sally knew that growth for a new entrant must come from either expansion of the overall market or from switching behavior (customers switching from established providers to new providers). She was hopeful that the detailed support material for each revenue projection, would reflect management’s understanding of these market dynamics.

 

A-Dot-Co

A-Dot-Co

Sally received the following support detail from A-Dot-Co:

A-Dot-Co Revenue

She knew from prior experience that the total candy market was very large and she was glad to see the jelly bean sub-market in excess of $2 billion. There would be plenty of upside for A-Dot-Co. She was also glad to see that in year 5, the founder did not expect to exceed 1.0% of the market. Any larger share percentage would require major resources and additional funding rounds.

However, before investing, Sally still needed more information on the detail behind the market share projections. She scheduled a follow-up call.

On the call, A-Dot-Co was very enthusiastic. It went like this:

Sally: “Thank you for your revenue detail. I have some follow up questions. How do you expect to land nearly $2 million in revenue in the first 2 years?”

Founder: “A-Dot-Co is well positioned to achieve our revenue goals. We have a seasoned team who formed many candy company startups in the past.”

Sally: “That’s great. But how do you intend to land $600K of sales in year 1?”

Founder: “My team has deep knowledge about the jelly bean market. We only need a mere 0.03% of the market to land the projected $600K! Surely there are enough polka-dot jelly bean eaters out there to achieve this projection!”

A-Dot-Co’s founder fell into The Big Little Trap.

trap MS Office

 

The Trap

The Big Little Trap occurs when a founder believes his future projections are achievable because the market is so big and the market share percentage is so little. Specifically, that the sales goal will be very easy to accomplish because the market goal is such a small percentage, such as 0.03% with A-Dot-Co. (“It’s so small that anyone can reach it…as easy as falling off a log!”) In fact, the Trap victim might further say that the percentage is so tiny, that it may take only a few customers to reach it, and “…clearly the market has more than just a few customers!”

The response to an enthusiastic Trap victim: “I’m glad you’re excited. Name the customers!”

 

BetterBean

BetterBean

BetterBean submitted the following detail to Sally:

BetterBean Revenue

 

As before, Sally was glad to see confirmation of the jelly bean market. (They must have used the same market study). But she was even happier to see customer detail behind the revenue projection.

target market MS Office

The detail reveals several important items:

  1. BetterBean knows his target customers and may already have relationships established with them.
  2. Knowing BetterBean’s target customers should lead to a more efficient operation by helping the company prioritize the company’s limited time with its important customers over less strategic prospects.
  3. BetterBean has applied the 80/20 rule—at least 80% of the revenue is derived from specific, identified customers. The remaining revenue will come from other customers, currently unknown. Forecasting is an inexact science and to communicate over-precision in the detail implies the founder may be taking his projections too seriously. BetterBean has not been overly precise.
  4. When—not if—BetterBean misses its projections, the detail will provide insight as to why the projections were missed. The “why” is more important for fixing future revenue projections.
  5. BetterBean is more transparent than A-Dot-Co. Specifically, BetterBean’s founder has shared his target customer list, perhaps with the hope that Sally may have contacts to be leveraged at those customer accounts. Conversely, A-Dot-Co has shared no customer detail, suggesting that its founder may not know who his customers will be. This is concerning if true.

 

Decision Time

Sally rejected the opportunity with A-Dot-Co. It fell into The Big Little Trap—and didn’t even realize it. The lack of transparency did not generate confidence in the company’s management team.

Sally proceeded with further diligence on BetterBean.

The Big Little Trap grabs victims all the time. Like Sally, an investor should consider the market size, but only in the context of the startup’s upside potential. As she observed, there’s, “…plenty of upside for A-Dot-Co.” However, market share is not the justification of year-to-year or month-to-month revenue goals. Market share is best seen as a byproduct of sales efforts.

The jellybean example is fictitious, but the Trap is very real. Watch for The Big Little Trap at your next pitch session. See if the founder falls into it!

 

About the Author

Scott M. Anderson is a principal at Anderson Financial Services, LLC and has been performing cash projections for decades as an investment banker, a workout specialist, and recently, as an advisor to investors and startups. He can be reached at scott@andersonfsllc.com

Graphics from MS Office

 

This article appeared in NEWS FROM HEARTLAND

NEWS FROM HEARTLAND – The Journal of the Heartland Angels is published tri-annually for its members. We encourage reproduction and quotation of articles, if done with with attribution. Copyright © 2017 Heartland Angels. John Jonelis, Editor – John@HeartlandAngels.com

FOR MEMBERSHIP IN THE HEARTLAND ANGELS, contact Ron Kirschner Ron@HeartlandAngels.com

FOR FUNDING, apply online. Go to www.HeartlandAngels.com

NEWSLETTER SITE – View past and present editions at News.HeartlandAngels.com

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
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ENGINEERING YOUR PITCH

jockey-and-horse-t-ms-officeInsights from the Cornerstone Angel Meeting

by Stephanie Wiegel

Angel investment deals aren’t made on the spot as the TV show Shark Tank suggests. Instead, entrepreneurs are excused from the meeting after delivering their pitches. If you’re vying for early investment money, what’s said behind these closed doors can make or break a deal. Continue reading

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INVESTING: IT’S ALL ABOUT THE CASH

by Scott M. Anderson

Angel investing is influenced by many factors affecting the startup including: technology, unmet demand, scalability and, most important, the founding team. These and many other factors will have a critical impact on the success or failure of the investment. However, there is one common factor to them all: Cash. cash An investor and founder are in the elevator together. The investor says “Nice idea, how much capital do you need?” The founder says “$750K”. Investor says “Why $750K?” Founder says “We believe it’s the right amount based on other startups I’ve heard about.” Or she might say “It seems like the right amount based on the size of other angel investments.” Or she might say “It just seems like the right amount.”

Those responses are all wrong!!

A more appropriate response would be: “We’ll need $450K to fund losses the first two years, $250K to buy tooling and another $50K for inventory and other working capital needs.” After hearing this better response, the investor thinks: “As with most founders, I’m certain her numbers are worthless. However, this founder seems to have specific numbers which suggests she’s analyzed them and may be a good overseer of my invested money. I’m interested in her assumptions. I’d like to meet with her again.”

At a minimum, any founder must have a high level understanding of how much capital is needed and the reasons why. She must be prepared to communicate these reasons as part of her elevator speech. Similarly, each investor should ask for and expect an immediate response from the founder, which reflects her understanding of why the investment is needed.

How does the founder determine what she needs? And how does the investor determine if the investment amount is right? A cash projection will meet the needs of both parties. An analysis of the startup’s cash inflows and outflows will confirm the company’s investment needs. At a high level, the cash projection is easily calculated as net profits + capital expenditures + required working capital (such as inventory stocking required to achieve sales). More complex business models would require a more in‐depth treatment.

The investor met with the founder again and received the following projected Income Statement (in $000s). table-1 Let’s examine these numbers to see if they confirm the founder’s response in the elevator:

  1. First 2 years of losses of $450K. The loss in year 1 is $242K and the loss in year 2 is $208K. These sum to total losses of $450K. RESPONSE IS CONFIRMED.
  2. Tooling cost of $250K. The Capital Expenditures (CAPX) in year 1 is $250K and $0 thereafter. RESPONSE IS CONFIRMED.
  3. Working Capital needs of $50K. The working capital is required to be $20K and $30K for years 1 & 2, respectively, totaling $50K. RESPONSE IS CONFIRMED.

The founder has provided numbers at the meeting which agree with those she cited. That’s good. The founder would lose all credibility if they did not support her elevator speech. But, has the startup asked for enough at $750K? Let’s examine a projection of the cash in the startup’s bank account. With an investment of $750K in year 1, the following is a projection of the startup’s cash in the bank: table-2 The cash bank balance is projected not to be negative at the end of any year over the projection period and the total financing received exceeds the total cash out, so an investment of $750K would be adequate based on the earnings performance projected by the Income Statement. However, the large cash balance of $238K at the end of year 1 suggests that the timing needs of the startup may not match the investment. In fact, the investor would rather invest the excess cash of $238K in year 1 for a different investment which would pay off within 12 months. Such an alternative investment would enable the investor to realize a financial return on the excess cash while still fulfilling his total commitment of $750K to the startup. Following this thinking, if the investment were made in two installments versus one, the following projected cash balance results: table-3 A two installment investment better matches the startup’s need since no excess cash exists at any time during the financing period. The investor would suggest to the founder that the $750K investment should be made in two installments: $512K in year 1 and $238K in year 2. An investor’s diligence process should be stepwise: a layer of information is requested, and provided by the company. Additional information is requested and provided, until the investor is completely clear about the startup’s execution strategy.

From the founder’s perspective during the diligence process, it’s critical that each diligence level be consistent with all prior levels. In our example, the founder responded in the elevator with a high level description of why she needed $750K. That was diligence level one. The projected Income Statement, CAPX and working capital projection provided by the startup was diligence level two. Fortunately for the investor and the founder, the level two diligence substantiated the information established in the elevator.

My recommendation to the investor for this startup is that the next diligence layer should focus on the detail behind the rows on the Income Statement. Examples include: with sales, which customer(s) will account for 80% of the sales in the projected years? For cost of sales, what are its major components? What explains the increase in gross margin percentage from year 1 to year 3? For the expense row, what are the major expenses and what explains the increase in year 2?

Responses to each of these inquiries will have a direct impact on the cash projection. A complete diligence discussion is beyond the scope of this article. However, the diligence process would continue until the investor is satisfied with the strategy and underlying assumptions. Throughout the process, focus must be maintained on the cash projection to understand how the diligence analysis will impact the amount and timing of the anticipated investment.

Scott M. Anderson is a principal at Anderson Financial Services, LLC and has been performing cash projections for decades as an investment banker, a workout specialist and, recently, as an advisor to investors and startups. He can be reached at scott@andersonfsllc.com.

Image from MS Office

This article appeared in NEWS FROM HEARTLAND

 

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2016 John Jonelis – All Rights Reserved

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LIAR

Liar THow Far Will You Go to be Loved?

by Howard Tullman

You’re ambitious, motivated, and totally committed to your company. But are you strong enough to always tell the truth?
I’m afraid we’re developing another generation gap, and this one isn’t merely cosmetic – “Can’t stand those tattoos!” – or aural –

“Can’t stand that music!” – or even economic – “Why ‘own’ anything?”

dragon tatoo

No, this one is far more critical. I can deal with the questionable choices that many young people make today because I’m relatively sure we all made similar – or much worse, but probably less permanent – choices in our youth. Yet, amazingly, we’re still here, standing tall and offering the benefit of our wisdom, such as it is.

The gap I’m talking about threatens to undermine something so basic to the conduct of business, and especially to early-stage angel investing, that until recently there was no gap at all. Until now, everyone accepted that trust and sincerity are absolutely fundamental to success.

Trust

I recently heard Alan Matthew, a long-time successful options and commodities trader, express it forcefully in a talk he gave to several hundred entrepreneurs. He said that in every deal he does, and in every transaction, “My word is my bond.” And it’s just that simple, especially in the trading pits in Chicago, where the entire ecosystem depends on trust and the ability of everyone to rely on the commitments and honesty of the other players.

But too many of today’s young entrepreneurs live in a different conceptual world, one driven by situational ethics. And it sucks.

Telling people half the story, or telling them what they want to hear instead of what they need to hear, isn’t a funding solution—it’s an invitation to a coming slaughter. And it’s usually the entrepreneur and the management team who will ultimately get killed. So it makes sense to share all the news all the time, if for no other reason than to save a lot of grief down the line.

Half Truth

The truth never hurts unless it ought to, and sometimes it’s a powerful wake-up call for all concerned. There’s never a really good or special time to decide to tell the truth. The time is all the time.

But, if you haven’t been in the position of having to make the right choice regardless of how hard or discouraging it may be, or how it may impact your financing or prospects, and if there’s no one more experienced around to guide you because you’re running full-speed ahead and you’re making it up as you go, it’s far too easy to take a quick slide down that slippery ethical slope. But once you lose someone’s confidence—once they come to believe that you don’t share and abide by their fundamental values—you will never fully regain their trust and support.

An old friend of mine used to say, by way of excusing virtually anything disgusting he managed to do, that exceptional people deserve special concessions. I’m afraid his disease may be spreading. We have an entire generation of kids who were force-fed (at least since second grade) on the notion that they’re amazing, exceptional, and unique. So it’s just a short step for them to conclude that the ordinary rules don’t apply to them, that morals are just for the little people and they’re way above that mundane conformity—and far too smart for it as well.

You're a Star

As I often kiddingly say when I’m talking about building your company’s culture and instilling critical values in your people and your business: “These are my principles. If you don’t like them, I have others.” But that’s always intended as a joke, because in the real world we don’t get to pick and choose when to honor our promises and commitments. We say what we’ll do and then we do what we said we’d do. It couldn’t be more straightforward. You don’t get to be truthful some of the time or at some later time when it’s better or more convenient. The truth doesn’t vary based on circumstances.

We aren’t always talking about intentional dishonesty or immorality; in some cases, I think it’s just a lack of experience and education combined with way too much enthusiasm. Entrepreneurs can talk themselves into anything. (I call this this syndrome: “That hooker really liked me!”) And, once they do, they want to sell it to the world. But whenever you find you’re shading the truth or forgetting some ugly facts in order to talk your team or an investor (or maybe even yourself) into something, you probably need to back off.

Liar

It’s great to be highly motivated, but it’s not even a little cool if no one trusts your motives. It takes time and hard work to build any kind of relationship, but just an instant and a hint of suspicion to destroy it. I know how hard it is to say things that no one wants to hear, but that’s part of the leader’s job. It’s not delegable and it’s not optional.

It takes a great deal of experience and a whole bunch of broken dreams and busted relationships to appreciate that to be trusted is a much greater compliment than to be loved. Entrepreneurs, without a doubt, need and want to be loved more than anything. It’s part of the sickness that drives us. But, at the end of the day, trust is the only thing that you can really take to the bank.

Howard Tullman Double Gulp T

Howard Tullman is the father of Chicago’s 1871 incubator.

Read his bio on Wikipedia: https://en.wikipedia.org/wiki/Howard_A._Tullman

Check out his websites at http://tullman.com/

and http://tullman.blogspot.com/

Write him at 1871@Tullman

Or just type his name into your favorite search engine.

This article appeared in INC.

http://www.inc.com/author/howard-tullman

Image credits – MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2016 John Jonelis – All Rights Reserved

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RAW TALENT

Sharks Tby John Jonelis

Ever want to be a Shark on the popular reality TV show? Wish you controlled a billion dollar investment account? Wonder what it’s like? I’m here at Chicago’s 1871 incubator doing it. Emotions run high. Hey, mine are running away with me. That guy on the end keeps grabbing all the deals!

Most of these teams are looking for $100K or so for maybe 15% of the company, but the Sharks seem to want more control than that. Offers meet counter-offers. Investors make hardnosed bids—they team up—steal deals—the usual shenanigans seen on TV.

Negotiations get heated and sometimes abstract. Lance Pressl works a convoluted deal structure in the next room.  No problem—both sides seem on track with it.  But I’m out.  In the long run, any of these companies might produce hockey stick growth or go belly-up.

20150723_131230

Dangerous Waters

Now I’m hearing a pitch from a company called Water Power. I want this one in the worst way. I know the industry. It’s a hugely exciting company with a highly attractive energy product, easily scalable, and a terrific business model.

They’re asking $200K for 20% of the company—a $1M valuation. It’s low. Way low. I tell them they’re undercapitalized and immediately boost the offer for a controlling stake. They counter. Another shark joins me. Meanwhile, that guy on the end is dickering with a completely different set of parameters that sound pretty good.

Ah, but I notice these teams value a strategic investor, so I mention my experience in the industry and that seals the deal. Satisfaction! Victory! Hooray!

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Merchandise Mart

Who Gets to Play

Did I mention these are Junior High Students? Not just any young punks—these are highly gifted, highly precocious, and highly competitive young people. Their pitches rival those seen on TV. Some of these kids are hopefuls for enrollment at the prestigious Illinois State High School for the gifted, the Illinois Math and Science Academy—IMSA.

This entire program is put on by IMSA TALENT. It pits the best and the brightest junior high school students against experienced investors and CEOs at an event that reproduces the popular reality TV show, Shark Tank. Hey, this is a blast!

20150723-IMG_2958

Pitch

How it Works

  • IMSA TALENT puts these kids through a fast-paced deep-immersion experience. The school maintains space at 1871, the enormous incubator in Chicago’s Merchandise Mart, so the teams rub shoulders with lots of real startups. That’s huge.
  • Every decision, every action, gets entered into a computer simulation that spits out consequences and makes the process as close to the real thing as you can get.
  • Each team creates an actual product, design, prototype, business model canvas, go-to-market strategy, financials, their pitch—the works.
  • Sharks come armed with unlimited investment capital in the form of Monopoly™ Money and strike cutthroat last-minute negotiations. Think that’s not realistic? Once those dollars get plugged into the simulation, they’re real enough to make or break a company.

20150723-IMG_2955

Negotiation

Once again, IMSA proves that, given the opportunity and the right coaching, brilliant children can outperform ordinary adults. Hats off to Carl Heine and Jim Gerry.

Last year I got caught-up in the spirit of the thing, which is dangerously easy to do. One kid was so professional, I forgot myself. I lost my head and asked the team to present before the Heartland Angels. Lesson learned—School first, then business. This year, I keep that straight.

20150723-IMG_2959

Deal

Sharks

Lance Pressl, John Detjen, Brian Brandenburg, Jeff Prussack, Joe Guarascio, John Jonelis

20150723-IMG_2956

Team

Team Members

Alexandria Cannon, Alp Demirtas, Aman Shah, Ammar Ladhani, Arjun Vyas, Arshia Ajmera, Chandra Gangavarapu, Daniel DeBoer, Dev Singh, Dhruv Nambisan, Ellis Irwin, Erol Ikiz, Ethan Tse, Jacob Conroy, James Raflores, Joseph Tennyson, Joshua Tennyson, Katreena Subramanian, Madeline Drafall, Marc Peczka, Ohm Vyas, Parth Bhatt, Prarthana Prashanth, Shreya Maganti, Shreya Pattisapu, Shreyas Manikonda, Simone Seno, Sydney Elvart, Vismay Vyas, Yuhan Lin.

IMSA Staff

Jim Gerry, PhD

Carl Heine, PhD, Director, IMSA TALENT and Cool Hub IMSA.

heine@imsa.edu Office 630-907-5921 Fax 630-907-5062

Read related article: WHIZ KIDS

Photo credits – Students: IMSA; Architecture: John Jonelis; Shark image: MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2015 John Jonelis – All Rights Reserved

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INJURIES TREATED BADLY

Team Interval 7

by John Jonelis

Kids are dropping dead on the athletic field. Dead!  These are our kids—those highly cherished and precocious little brats, grades K-12.  Just a few years back we suffered a miserable year—120 deaths according to the Youth Sports Safety Alliance.  Here’s a huge problem waiting to get fixed.

I recall Coach Bodle from my high school years. “Hey kid,” he’d say, “Scrape yerself off da ground. Yuh got yer bell rung is all.  Shake it off!  Da team needs yuh.  Get back out there and gimme a hunert ‘n’ twenty percent!”  An inspiring speech.  Always got results.  Players knew the alternative.  During my moments of serious academic pursuit, I’d draw Coach Bodle in the margins of my textbook. The result always came out looking like the Frankenstein Monster.  This was a guy whose claim to fame was an ejection due to unnecessary roughness in a semi-pro football game.  But I made allowances for his furious temper.  Had no alternative.  Anyway, I figured the guy got his bell run too many times.

That was a different era. Nowadays coaching is a profession.  They know better.  The liability is huge.  People can go to jail.  Eighty percent of athletic injuries happen at the high school level.  Same old/same old doesn’t cut it and the demand for change rings powerful and loud.

Tonight I get to see Tyrre Burks, founder of Team Interval tell us what he proposes to do about it.

BNC 500

The Field of Play

Last time I saw Burks, he was winning the pitch competition at FFF here in Chicago. He probably deserved that win.  When a social entrepreneur presents his company well, he’s gonna get the nod.

But now we’re in the friendly confines of BNC Venture CapitalTeam Interval 3I don’t know if you ever had the pleasure, but month after month, BNC—short for Business Network Chicago—puts on the best show in town.  That is if you like personal confrontation and plenty of drama like I do.  If you want a chance to rake a budding entrepreneur over the coals.   If you enjoy watching grown men turn beet red with anger in their eagerness to ask probing business questions.  Oh yes, there’s always some smart guy that says, “Wait a sec. Go back three slides.  Where’d you get that number?”

The beauty of the system at BNC is Len Bland’s five magic questions. Answer all five and you’ve probably got a sound business plan.  Dazzling the throngs with pizzazz doesn’t cut it here.  You must address the tough stuff.  That keeps everybody in the room at attention because the crowd gets grilled on some of this too.

FFF 9-17-14 JAJ-2169e200The Q&A can get a bit hot. But tonight, through it all, Tyrre Burks remains poised.  Informed.  Confident.  Pretty much indomitable.  He’s tall, fit, and stands proud.  Somehow, the guy manages to seem humble about it too.  I guess professional sums it up.

And why not? This is a man that knows his business.  Burks played Pro Football—a career plagued with injuries—so he understands this problem on the personal level.  He teaches High School, so he knows the weaknesses in the current system.  I see passion, and passion gets results.  The man is on a mission bigger than himself—Full reporting of childhood sports injuries.  And he seems to know precisely how to make it happen.  As he unpacks his plan, I find myself hoping he’s right.

Team Interval 2

Lousy Records

The way we record injuries just stinks. Most go unreported.  Records are sketchy.  Team Interval 4Many teams don’t even hire trainers. Ambulances get called too late.  Disaster strikes and parents bite their nails waiting for information.

Here we are in the mobile information age, surrounded by advanced medical technology. So what do we do?  That’s right—we drop the ball.  Only 18% of sports injuries get documented at all.  Eighteen percent!  There’s no meaningful data from ages 8-18!  I don’t know about you, but statistics like those get my attention.

Consider it from the coach’s perspective. I think we can agree that nobody wants players dropping dead on the field of play.  Don’t you think a coach wants to know if a kid had five concussions since his Pop Warner days?  Or a heart problem?  You better believe it!  What about college programs?  Do you suppose a recruiter would like to review the childhood injury records for prospective scholarship athletes?  Well, d’ya think?

So how do we get that done?

Right here at BNC, Tyrre Burks is giving us his answer. Trainers will log the injuriesIf there’s no trainer on staff, then the coaches.  Trainers? Coaches?  That takes me by surprise and seems to raise the emotional level of the entire room.  Objections get raised right away.

FFF 9-17-14 JAJ-2168e500

How to Answer Stupid Questions

Bill Blaire once coached football and wrestling—till they politely asked him to leave. When he stands up to ask a question, his bulk blocks half the room.  His deep rumble rattles the light fixtures: “Dem coaches ain’t dumb,” he says with all sincerity.  “And reportin’ injuries is gonna turn out real dumb fer a coach.”   When asked to elaborate, he indicates in so many words that it opens a guy up to liability.

Team Interval 5Turns out, according to Tyrre Burks, the reality is just the opposite. Nobody wants to get sued.  That’s a huge incentive, especially for trainers and coaches today.  It occurs to me that reporting absolutely everything might just be the best CYA maneuver in the business.  And maybe Burks is right.  Given the tools to do it quickly and immediately, a coach will dutifully log every incident, if not for the player’s benefit, at least to protect the old career.

Sheldon Tommygun looks like he’s about to burst a blood vessel and he finally gets called to speak. “An athletic staff,” he says in his incongruously cultured voice, “isn’t qualified to make a medical diagnosis.”

Turns out, when you think about it, any trainer, any coach knows when a player gets his bell rung or hurts a knee. When follow-up is required, the doctor’s diagnosis will appear on the athlete’s and the school’s records. Mission accomplished.  Burks predicts that we’re moving to legislation to mandate this in 48 months.  If that happens, there’ll be a land grab for the data.  And don’t forget the goal—to save over a hundred lives a year.

Janet Case used to teach school and I’ve been after her to write for this journal. “Coaches are disinclined to fill out detailed injury reports,” she says with admirable precision.  “They are overworked and ill-equipped to carry out such a function.  How do you turn an onerous task into an immediate action?”  Yeah—that’s the question on everybody’s mind, but maybe not quite in those words.

Turns out it’s a simple pictorial interface. FFF 9-17-14 JAJ-2178e200All a coach or trainer needs to do is whip out his phone or tablet and highlight an area of the body where the injury occurred, and add a voice memo.  The system instantly alerts all the right people from parents to administrators to ambulance and doctors.  It’s tied to an electronic tracking system that organizes the records and documents.  This is the first universal health record system for athletic injuries.  Coaches can make informed decisions about the status of individual players and the injuries that accumulate in other sports.  Administrators get a birds-eye view of the health of all their athletes and can analyze trends and re-direct policy using the data driven dashboard.  For college programs, it’s like a CarMax report for players. “Later on,” says Burks, “Insurance companies will get involved.”

Loop Lonagan has the floor. “Yer gonna run into all kindsa privacy issues. This bird ain’t never gonna fly.”

But it turns out Burks system is up and running in 16 school systems.  FFF 9-17-14 JAJ-2177e200He’s deep in negotiation with more.  It’s already built with with role permissions that prevent privacy issues.  This thing is moving and moving fast.

Warren D. Mink calls out, “Go back three slides. What’s that number?”  A lot of time gets spent in a group effort at basic arithmetic.  When the argument finally winds down, I’m too confused to know if their sums are correct.

I walk to the front, congratulate Tyrre Burks, trade business cards, and then escape for my train. Later that week I learn Burks landed another huge contract.  Yes, this is moving very fast.

Team Interval 6

Contacts & Credits

TEAM INTERVAL – www.teaminterval.com

TYRRE BURKS – Tyrre@TeamInterval.com

BNC Venture Capital – www.bnchicago.org

FFF – fundingfeedingfrenzy.com

DATA – www.YouthSportsSafetyAlliance.org

PHOTOGRAPHY – John Jonelis, Team Interval

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2014 John Jonelis – All Rights Reserved

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Filed under angel, angel capital, angel investor, App, big money, Bill Blaire., BNC, BNC Venture Capital, Characters, chicago, Chicago Ventures, Data, Entrepreneur, Entrepreneurship, Events, FFF, Funding Feeding Frenzy, Impact Investing, Innovation, Innovation and Culture, Internet, investor, loop lonagan, Mobile, Mobile App, pitch, Social Entrepreneur, Software, vc, venture capital

THE GIRL WITH THE BLACK LEATHER PANTS

FFF 9-17-14 JAJ-2111-3001by John Jonelis

This is a winner. You wanna wow the judges?  Win the crowd?  Get your game face on, kiddo!  Hit ’em with real passion, overflowing personality and a canon shot of enthusiasm.   State what you want to do with bravado.  With humor.  With intelligence.  With dazzle and power.  While you’re at it, throw in a pair of fitted black leather pants so they’ll sit up and bark.  It never hurts to be feminine and smart.  By the way, she’s an award-winning mathematician from MIT.  Really!

This is Joy Tang and she’s pitching InstanTagThe Social Fashion Network at the Funding Feeding Frenzy in Chicago—a private equity arena with no speed limit in an industry dominated by sweaty men.  Men pack the judging panel.  Men pack the audience.  That doesn’t stop her.

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At FFF

Tang moves forward with authority, hitting every detail and point required of a superb private equity pitch. She plucks an orchestra of human emotions and plays each to her favor.  Curiosity, Compassion. Avarice. Anxiety. Hope—lots of Hope..

FFF 9-17-14 JAJ-2128-500

She isn’t tall, isn’t boardroom, and speaks in somewhat broken English.  You think that slows her down?  Guess again buddy!  Tang is stunning, smart, and rivets your attention.  We know nothing about her but make no mistake—she steals the show.  Everyone falls in love with her sizzling energy and she backs it up with a complete business story for as nice a package as I’ve seen in a long while.  She’s not asking for your money, Mr. Investor.  No—she’s demonstrating an opportunity, and she’s ready to sail.

FFF 9-17-14 JAJ-2127-500So I’m thinking, Another social media play?  But this is different—it’s all about fashion—and she’s holding the judges between two dainty fingers.  You think, just maybe she might pull this off?  Yup.  I’m betting Tang will turn a successful business no matter how many times she pivots in this or that ballroom.

FFF 9-17-14 JAJ-2132-300Between pitches, the leadership of three angel groups ask me what companies I like. I like Nano Gas Technologies.  I like Team Interval.  I like Geek Bar.  But most of all, I like InstanTag’s Joy Tang.  Turns out, she’s already at the top of those three lists.

FFF 9-17-14 JAJ-2157-500

At BNC

Two weeks later at Business Network Chicago, it’s a reunion of FFF FFF 9-17-14 JAJ-2136B-200speakers. And in a roomful of sweaty men, there’s Tang in her black leather pants, asking the tough business questions—pinning down the speaker and making him squirm—but with such consideration and aplomb!  As the lyrics to the song go, “Don’t change baby, please don’t change.”

And Mr. Investor—catch this boat before it sails. This is the time to bet on the captain, not the ship.

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Contact

InstanTag – The Social Fashion Network

Joy Tang, CEO & Co-Founder   jtang@instantag.com

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FFF 9-17-14 JAJ-2117-200Nano Gas Technologies

Team Interval

Geek Bar

Funding Feeding Frenzy

Business Network Chicago


Photography Copyright © 2014 John Jonelis

Lyrics from the song Bella Donna as performed by Grace Slick

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2014 John Jonelis – All Rights Reserved

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Filed under angel, angel capital, angel investor, Bella Donna, big money, BNC, Characters, chicago, Chicago Ventures, Entrepreneur, Entrepreneurship, Events, FFF, Heartland Angels, Marketing, new companies, pitch, Social Media, Software