In each month's Trendletter, Trendlines' chairmen and directors D. Todd Dollinger,
Steve Rhodes, and Tina Ornstein share their opinions and observations on business — and beyond. This short column appears at the "top" of the Trendletter, hence its name "From the Top."
August 2008 5 "Lessons" about Raising Money
I've been traveling lately -- including London and New York over these last weeks. I have been meeting with private equity groups, major corporations, venture funds, individual investors, and investment bankers. My goal: Building The Trendlines Group's network around the world for our portfolio companies and our clients. As it happens in the course of such meetings, conversation turns to challenges -- especially challenges for early-stage companies.
I've had a chance to think about the challenges and can
characterize them as follows:
Navigating through a "difficult" environment
and season. The current environment for raising money is
often characterized as "difficult," and this difficulty
is exacerbated by the time of year -- it's August (vacation
season) and the Jewish holidays loom -- this year in October
-- only some six weeks away.
Dealing with the market uncertainties. One friend refers to the public capital markets as "sloppy," and no one truly knows what the near term holds for the world's stock exchanges. The IPO market is generally considered to be "closed."
Allocating the right amount of time. Raising
money is hard work. Lots of meetings. Lots of miles. Lots
of time. It turns out that one truth about raising money
is true: Raising money is a full-time job.
For early-stage companies, we have an additional challenge: a "funding gap" -- raises in the low millions often require more effort than larger raises.
Accepting the responsibility. Raises are
the responsibility of CEOs and
their boards. CEOs
must know that raising money is "job 1." Boards
must provide leadership and support. Every
company that succeeds raises money numerous times; learning
how to do this well is critical for CEOs. Money
can be found for most businesses most of the time. It
takes intensive efforts from CEOs and their boards.
Networking and telling the right stories
to the right people. Know this: Like us,
money needs to "work"; money that is not "at work" cannot
grow. Investors continue to look for the right opportunities;
sophisticated investors allocate assets for speculative
and foreign investment.
It's certainly not an easy environment for raising money; add having patience to the list of characteristics and tasks necessary for success.
MarketReach America, which we produce with the Maryland/Israel Development Center, is a great example of a program that creates relationships and helps companies raise money.
My congratulations to the companies selected to participate in next month's program in Baltimore.
D. Todd Dollinger, CEO
The Trendlines Group
July 2008
Courage, Dignity, and Perseverance
This is a very personal note, so I apologize in advance to those who prefer the From The Top column to be more busienss-oriented.
Just over two years ago, the families of Ehud Goldwasser and Eldad Regev were ordinary people going about their business much like the rest of us. The kidnapping of their loved ones thrust them onto center stage as they fought to bring them home -- a struggle that made them unwilling "celebrities" in their so-human quest. Their dignity, courage, and perseverance throughout their ordeal won the hearts of all Israelis and of people of good faith around the world.
An entire nation held its breath last week as the Second Lebanon War finally came to an end. Despite the "certainty" that Ehud and Eldad could not have survived, the entire country was heartbroken when the two stark black coffins quashed that last tiny sliver of hope-upon-hope. And as the Goldwasser Regev families came to grips with their own personal grief, their dignity, courage and eloquence throughout the rest of the day and at the funerals continued to inspire us with awe.
We paid a terrible price for achieving this personal and national closure. Our hearts also go out to the families of the victims of the murderers who were set free. But in our heart of hearts we know that it was the right thing to do -- and now maybe the families, and the nation that is so proud of them, can begin to heal, even as we pray for the day that the third kidnapped soldier, Gilad Shalit, will be embraced by his family.
Tina Ornstein
Managing Director, Trendlines International
June 2008
From Strength to Strength
By all accounts, Biomed 2008 was a huge
success: record attendance, top-notch program, contingents
from around the globe. This annual showcase of the Israel
life science industry has clearly come into its own
as a major international event.
As befits one of the
largest life science clusters in the United States,
the State of Maryland has been a participant in Biomed
since its inception.
This year, in honor of Israel's 60th anniversary, Maryland
Governor Martin O'Malley led a highly successful trade
mission of more than 30 leading business people, government
officials and academics, all of whom returned to Maryland
profoundly impressed with the creativity, sophistication,
and dynamism of the Israel life science industry. See
our Biomed photo gallery.
As the proud representatives
of the State of Maryland in Israel for the last decade,
Trendlines International staffs the Maryland booth at
Biomed each year, introducing Israeli life science companies
to the unique assets of Maryland as a gateway to the
U.S. market.
One of these unique assets is the MarketReach
America program.This special business development program gives
selected Israeli businesses an opportunity to accelerate
their entry into the U.S. market.
Tina Ornstein
Managing Director, Trendlines International
April 2008
Todd's Seven Dirty Words
In the early '70s, U.S. comedian George
Carlin shocked audiences (and the U.S. Federal Communications
Commission) with his "Seven Dirty Words" monologue.
In fact, he started a chain of events that led all the
way to the U.S. Supreme Court.
While Carlin's words related to what couldn't be
said on television, my list of "dirty words" relate
to words you should eliminate from your presentations
(written and oral). They are listed here in alphabetical
order.
"Already": Nearly always unnecessary. (See
also "It goes without saying" and "Listen.")
"Also": In most cases, this is a connector
you can do without. Try going “also-less.” Take
out the "also" and look at the sentence
again – it’s that simple.
"And/or": Nearly 100% of the time, what
you really mean is “and.” So, just write "and."
"But": An excellent word to use when you
want to make excuses -- obvious excuses. Take a look
at the sentence next time you write the word. You’ve
heard the expression “no ifs, ands, or buts"?
Well, you can use “ifs” and “ands;” but
drop the buts. (Well, sometimes it's useful.)
"Honestly" (variation: "To tell you
the truth”): When you say this, do you mean
that everything you said before was not true? Even
worse, in my opinion, is saying "I'm trying to
be as honest as I can ..."
"It goes without saying" (variation: "Everyone
knows"): If it "goes without saying" or "everyone
knows," then you don't need to say it.
"You need to understand": When you say
this, it suggests that your audience is incapable
of understanding anything. You can say, however, "we
need to understand ..."
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
March 2008
Skills for Building World-Class Managers
When talking about the Israel high-tech scene, one often
hears the comment that we here in Israel are very strong
on innovation and entrepreneurship, but fall short
when it comes to the management skills required to
build companies for the long haul -- companies that
can become major players in the global arena.
Mounting awareness of and sensitivity to this issue is leading
to initiatives and programs designed to identify and strengthen
the entrepreneurs who have the "right stuff" to join Israel's
growing cadre of professional, world-class managers.
Earlier this month I had the pleasure of participating in
the conference "Management Challenges in the Life Sciences
Industry" organized by the Life Sciences division of the
Israel International Cooperation & Export Institute. I wanted
to share some of the thoughts that arose during the panel
discussion on "Management Skills," with Dr. Shimon Eckhouse,
serial entrepreneur, investor, currently chairman of Syneron
Medical; Dr. Yael Margolin, CEO of Gamida Cell; Dr. Noga
Kap, general partner at Walden Israel Venture Capital; and
Dr. Boaz Shalit, senior organizational psychologist.
Early
in the discussion, Dr. Shalit introduced the metaphor of
a company's management team being a
group of people sharing a journey together on a bus. The bus driver needs to be
smart enough to know who are the right people to let on
the bus -- people who will contribute to the success of
the journey -- and who are the people who need to be let
off because, for one reason or another, they are no longer
contributing to, and may even be obstructing, the group's
mission.
The first question that arises from this metaphor: How
does a company hire the best person to drive the bus? In other
words, what qualities should the CEO have?
Here are some of the winning qualities the panel members
touched on:
Intellectual honesty: A good CEO must be capable
of understanding and responding to reality as it is, and
not as they would like it to be.
Decisiveness: A good CEO
must be capable of listening to others and getting a variety
of points of view on an issue. Ultimately, however, he or
she must be able to come to and implement a decision.
Team-builder:A good CEO must not be afraid to let smart, ambitious people
board the bus. Once surrounded by all these smart people,
however, the CEO has to be prepared to invest the time and
skill necessary to overcome the natural tensions that will
arise within such a high-achieving group and foster the
cooperation necessary for effective teamwork.
Vision: One
of the most effective ways for a CEO to strengthen teamwork
is to ensure that the team shares a common vision for the
company. The CEO must be capable of articulating that vision
clearly, and of getting the team to buy into it. It was
also fascinating to hear the panel members' thoughts on
issues such as how to manage the hiring (and firing) process,
and how to deal with entrepreneurs in a way that harnesses
their drive while letting more professional managers take
over the company.
But I guess I had better stop here before I'm fired for
obstructing the publication of this month's Trendletter!
Tina Ornstein
Managing Director, Trendlines International
February 2008
The Adventure Begins with You
In
my meetings with entrepreneurs and investors,
I see a lot of presentations. As I recently said
to one entrepreneur, "the adventure begins
with you." When your presentation is focused
and your vision is clear, I am much more likely
to join you in your "adventure."
I tell
entrepreneurs and business managers of start-ups
and businesses to consider the following when
preparing their presentations.
Length: Shoot for about 20 minutes. Speak at
a reasonable, conversational pace -- not at
lightning speed. Speak slowly enough that your
listeners are comfortable interrupting you with
a question or two. In terms of the number of
slides for an introductory presentation: 12-15
maximum, including the title and closing slide.
Focus: Address a single specific market opportunity.
Prove your "large unmet market need" and
explain why it's clear that everyone in the
value chain needs and will purchase or otherwise
embrace your product or technology.
Vision: With your singular focus, in a very
clear, direct -- and very brief way -- describe
where the company will go (the enormous opportunity
ahead) as the world begins to accept your product.
Risk: All businesses have risks - they are found
in the technology and in the market. Address
the main risks -- and your contingencies for
handling them -- before you are asked about
them. This shows that you have thoughts about
risks and how to address them.
Differentiation: You want to ensure that no
one walks away from your presentation asking: "That's
interesting, but is it really special?" "Is
it really different from what's on the market
or what might easily come to market?"
Status: Explain where you are with the development
and when you anticipate sales.
Call to action: Tell me that you are raising "X" or
need "Y" from me. And ask: Should
I follow up with you on Tuesday, or would Thursday
be better?"
One last thing: Make sure you know to whom you
are presenting and adapt your presentation to
address their concerns and interests. Generally,
investor presentations should be heavily market
focused. Strategic partner presentations, however,
tend to focus more on product and technology.
It is likely that the strategic partner knows
more about the market than you do.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
January 2008
Turning Opportunities into Relationships
One of the things that I like best about my job is that I get to meet interesting people and discuss interesting opportunities all the time.
By opportunities, in this context, I'm referring to collaborations and cooperation that will bring mutual benefit to both the other party and Trendlines (referrals, joint projects, and more). During the course of a year, I might have a couple of dozen conversations of this nature. Admittedly, most of those pleasant and stimulating conversations do not have far-reaching repercussions. However, there are times when just
another routine interaction develops into a long-standing, fruitful relationship that opens up new opportunities for growth, which is the oxygen every business needs in order to thrive.
I sometimes try to analyze what the factors are that enhance the chances of transforming potential opportunities into active business relationships, so that I can increase my "success rate."
Here are some of my thoughts so far:
(1) Synergy: Our respective strengths truly complement each other, with little or no overlap.
(2) Chemistry: Doing business involves more emotion than we would all like to admit. One of the intangibles that is necessary for a relationship to develop is a sense of trust that we both have constructive and positive intentions.
(3) "Immediacy": If we can quickly identify a task or project that we can work on together, it provides a basis to start building relationship.
(4) Points of contact: The more reasons we can find to reach out to each other to continue the dialog, the more chance we will eventually find the traction necessary to build a relationship.
If you have other insights you can share with me, I'd love to hear from you. In the meantime, let me wish you all many interesting interactions that, serendipitously, turn into real business opportunities.
Tina Ornstein
Managing Director, Trendlines International
December 2007
Make It Easy
I get lots
of e-mails. Actually, I get too many. As some of it is simply my fault.
I am working to reform my e-mail behavior. I am responding more by
phone. And I am originating fewer e-mail threads. Phone calls are far more
likely to resolve matters rather than seemingly endless e-mail
loops.
If you want me to call you, make it easy for me. Put your phone
numbers in your e-mail signature -- and put that signature on every e-mail --
even your replies. It doesn't cost you anything, it doesn't take any
time -- and it saves me time. While you're at it, make
your company's phone number very easy to find on your website. Why
not have it at the bottom of every page?
When you do send me an e-mail, summarize the critical information in the
body of the e-mail rather than have me open and read an attached file.
If you need to
send me a file, send me the summary and outline the action item(s)
in the e-mail.
Want to communicate? Be easy.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
November 2007
Laundry Service?
You know the laundry bag in your hotel room that has “Laundry
Service” written on it? Well, sometimes you get “service” and
sometimes you don’t. On a recent trip to the States, the lack of laundry
service in a Marriott hotel in Boston turned into a very successful lesson
in customer service.
I gave my laundry to the front desk in the morning with the expectation that
it would be returned the same evening. After a full day of meetings, I returned
to my room. Guess what? No laundry.
I called the front desk to inquire about my laundry. The woman I spoke with assured
me she would investigate and call me back. I am not particularly patient. After
five minutes, I headed to the front desk.
There, I was greeted not with laundry service but with true
customer service. I was so impressed with the customer service that
I wrote the followin to Mui Hang, the woman who helped me.
Thank you for following through with me as you promised.
While I was very disappointed by this problem, I was impressed by your thorough
response and your follow up.
You achieved something rare:
You did not say you had “done all that could be done.” Instead, you
told me exactly what steps you had taken. Through this, I understood you had
done all that you could do. Then, you told me what you would do next — and
you did it.
What you did, and the professional and friendly manner in which you did it, for
an aggravated customer is a compliment to you and to Marriott.
I would appreciate it if you would share my note with your supervisor.
My thanks for your attention and your efforts.
My laundry did not arrive by the time I checked out of the hotel. Mui Hang assured
me they would FedEx the laundry to me. And they did! The laundry arrived in Israel
one day after I did.
Mistakes happen. How you deal with them is the
measure of ... you.
By the way, Mui Hang is the assistant general manager at this Marriott. She started
in that position the day before my laundry incident.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
October 2007
Continuing a Tradition
In many different countries and cultures, this time of year is marked by holidays
and traditions that encourage us to take a step back from our whirlwind schedules
and be grateful for all the good things in our lives -- family, friends, accomplishments,
aspirations. These acts of thanksgiving sensitize us to the fact that there
are so many around us who struggle to live good lives with far fewer resources
than we have been blessed with.
To continue a tradition we started in 2002, this year Trendlines made donations
to two organizations serving those in need:
The Shabtai Levi Home in Haifa is a residential and emergency center for young
children and infants at risk. The staff and volunteers at the Home provide the
children with the love, nurturing and warmth that, unfortunately, their own families
cannot give them. We came to know about this special place through the involvement
there of Benjie Alper, a student at the University of Haifa
and son of our Assistant Managing Director Naomi Alper. If you
would like to find out more about how you can support the Shabtai
Levi Home, contact them at +972.4.837.4259.
"Tzalahat Chama" ("Hot Meal") is an organization in Karmiel
that serves hot meals and distributes donated food staples or produce. They operate
under the umbrella of "Latet," which has been providing humanitarian
aid to needy populations in Israel since 1996. You can contact Tzalahat Chama
at +972.4.958.2388.
May this year be successful, rewarding, prosperous, and most of all, peaceful
and healthy for you and all your loved ones.
Tina Ornstein
Managing Director, Trendlines International
September 2007
A New Year Brings New Ventures
With
the Jewish New Year just ahead, some thoughts
about the
activities – both past
and future – of The Trendlines Group come
to mind.
Three
years ago, The Trendlines Group’s Steve Rhodes
was named CEO of the Misgav
Venture Accelerator (then known as the Misgav
Technology Center). Shortly thereafter, we established
our first venture capital fund, the Trendlines Israel
Fund, to support the Misgav incubator and its portfolio
companies in the life sciences and security industries.
The Trendlines Israel
Fund and our partners have now made further investments. Our
newest "baby" is T.I.F.
Ventures, which
recently acquired two Israeli government-supported business
incubators: the Misgav Venture Accelerator and the Mofet
Venture Accelerator. Mofet, under the direction
of CEO Yossi Ron, focuses principally on
cleantech, aquaculture, and medical. The combined strength
of these two incubators holds tremendous new opportunities
for entrepreneurs and fledgling companies.
Our Trendlines
International business development professionals – in
addition to working with their clients
from all over the country – will
continue to work with our entrepreneurs
and the staff of our venture accelerators.
With the New
Year just ahead, we look forward to building
new businesses and developing more great
relationships.
We
thank our staff, investors, clients, service
providers, and the entrepreneurs with whom
we work so closely, for the trust that they
have placed in us.
From
all of us at Trendlines, we wish you a wonderful
and prosperous New Year.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
July 2007
Hard Work Pays Off at Trade Shows
From ancient Middle Eastern bazaars to medieval
European fairs, bringing together producers, sellers, and buyers in one
place at one time has driven commerce throughout history and around the
world.
In the 21st century, trade shows like MEDICA in Germany and the International
Home & Housewares Show in the U.S. still bring together entire industries
from around the globe. Not to be ignored, however, are the smaller, more focused
professional conferences which often have a robust commercial component in addition
to the learning sessions.
When should you consider going to a trade show
or a professional conference, whether as a visitor or an
exhibitor, as part of your business development activities? The
age-old answer, of course, is "It depends…"
It depends, for example, on your company's current needs and objectives. For
an early-stage company that still seeks market validation, needs
to recruit champions, and wants to position itself at the cutting edge in its
field, a well-chosen professional conference is a great venue for interviewing
practitioners, rubbing shoulders with opinion leaders, and presenting its technology.
For a company with a product to launch or sell, a commercial
trade show can be a cost-effective way to put itself on the map as well as to
meet distributors, strategic partners, and customers.
Once you have decided to attend or exhibit, you can maximize your business development
investment by prescheduling meetings, by making sure that your demo is
perfect, by having top-notch marketing materials to distribute, by getting as
much media exposure as possible, and by following up properly on all those precious
leads that you generate. Simple, right? Right! And a lot of hard work.
But, dollar for dollar, it can be one of the best business development investments
that you'll make.
Tina Ornstein
Managing Director, Trendlines International
Imagine
you are dining in a fine restaurant. Imagine that you only
need to pay if, in the years to come, your new business venture
turns out well.
A great board of directors is a lot like bringing great chefs
together – businesspeople
whose collective experience
includes choosing ingredients, designing menus, and, of course, making dessert. That
is to say those people who can choose the right staff, establish strategy, and,
of course, find the right exit.
Great boards ask questions, both simple and tough. They challenge you. They guide
you. They bring their experiences – the successes and the failures – to
work for you.
These business leaders often
join boards with no promise of compensation in the early years of your
business; later, typically, they get options. Of course, options are just empty
calories if you don't succeed. Maybe there's no such thing as
a free lunch, but there is lunch on a contingent basis.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
March 2007
Brand Presence
Paul Steiner, the CEO of Kapro, built the innovative
hand tool company from a small kibbutz operation to a major
global player. Even with factories in Israel and
China and sales and distribution centers in the United
States, Israel, and China, Kapro isn’t
the biggest company in its field. Kapro competes head-to-head
with multi-billion dollar corporations -- and wins. What has
this company in the Galilee learned about branding?
Well, lots of things. Kapro talks not just about
brand, but also about “brand presence.” Brand
presence goes beyond brand awareness.Brand
presence is simply the coherent, powerful presentation
of a brand through its brand attributes and/or products. Brand
presence can overpower the best known brands. The secret
of brand presence is simple: it’s “being
there,” it’s about being a dominant presence
at the site of the sale -- whether that site is the
boardroom or the backroom.
Brand presence is established with coherent product
presentations of brand-consistent product design, packaging
and positioning. Kapro establishes brand presence
at trade shows, in sales presentations and in product displays.
Brand presence only occurs when you are brand-focused
and step beyond one-by-one individual product or service
sales. Sales presentations demonstrating brand presence
win in any sales environment from the corporate boardroom
to a retail store. And that’s how the smaller,
more creative, brand-focused guy slays the corporate giants.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
February 2007
What the Consultants Learned
The
entire Trendlines team participated in team-building activities this week.
In a series of structured "exercises" that
were mixed with a lot of fun, we were reminded of the importance of --
-- setting goals -- If you don't know what your
team's objective is, it's hard to plan the right path to success and, just as
important, you can't measure whether or not you succeeded in your task.
-- working together -- This
insight seems obvious, but sometimes getting even a good team to really work
together feels a lot like herding cats. You have to build norms and structures
and mechanisms that will facilitate coordinated efforts.
-- exchanging (and listening to) ideas-- If
everyone is throwing out ideas at the same time, then no one is listening. A
skilled leader who can help a team find the balance between open discussion of
alternatives and efficient decision-making is a great asset.
-- asking questions and not making assumptions -- It
was downright amusing how, from rather simple guidelines, we jumped to conclusions
about what was expected of us -- without questioning the facilitator and getting
clarifications. Boy, did we feel sheepish.
-- understanding there is more than one way to solve
a problem -- As one person, who shall remain nameless, said (only
half-jokingly), "Yes,
there is more than one way to solve a problem -- there's my way and there's the
wrong way." Hopefully you don't have too many people like that on your team.
Not too surprisingly, we realized that some of our "failures" came
about as a direct result of our not paying attention to one (or more) of the
above. But we sure had a good time in the process.
Tina Ornstein
Managing Director, Trendlines International
January 2007
Plan Ahead to Get Ahead
Chances are pretty good that at this time of year, you may be
looking ahead to formulating sales strategies, building forecasts, and making
projections. It brings to mind the old saying, "No one plans to fail,
but many fail to plan."
If we don't prepare for what's ahead, we will fail to find opportunities, to
meet decision-makers and industry leaders, and ultimately to make sales.
When you are making your plans for 2007, remember to look for opportunities at
shows, exhibits, and seminars. Talk to potential clients. Find out what exhibits
they'll be attending.
As your plans take shape, remember that your marketing and business materials
-- from your business cards to your business plan -- need to be up to date. Updating
materials requires planning of a different kind. While a telephone number on
a business card can be updated overnight (well, almost), market research or financials
related to a business plan require more time. This brings to mind another saying:
Plan ahead to get ahead.
Tina Ornstein
Managing Director, Trendlines International
December 2006
The House Test
Are
you taking the pulse of the person you are meeting with? Get in the
listening mood. You can if you are a good listener. Good listeners are the people we
all want to be. The best listeners
not only listen actively, they think about what's been said before
they share their thoughts.
Try the "house test" to figure out if you’re truly listening.
Not so long ago, I left a meeting with one of our consultants and asked, "What
do you think his house looks like?" She laughed and told me what she imagined:
a model of organization with every single thing
in its place, paintings rich with color and large windows, wide open. I've been
to his house -– she was right.
Listen well. You will gain
valuable insights. Building successful relationships isn't
about clever tricks, it's just about being really interested
in the other person.
After listening -- and letting the
other person know that you listened -- comes the thinking
part. After that, you’ll
talk, and you’ll be well listened to.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
November 2006
The Venture Conference Adventure
Steve Rhodes: There
was a time, not too long ago, when I did not "believe" in venture conferences.
But in the last three years, I have attended over half a dozen such conferences
and I must admit, I've changed my mind. They can be a great opportunity
to establish new relationships, to share information, to network, and sometimes
even to raise money.
Many people who are considering whether to attend a conference ask me: "What
are the chances of raising money?" I think this is really the wrong question.
If the typical conference has 25 presenters, and one or two deals come out of
it, that is a great result. Yet the "chances" of raising money in this scenario
would be under 10%.
So who should attend, and why? Venture
conferences, especially those that include industry investors
and angels, provide a great opportunity to —
• establish high level relationships that
can be valuable in the future;
• get great market feedback on your product,
your business plan,
and your presentation.
•share industry information with other companies
in your field; and
•identify new opportunities for partnering,
cooperation, and sales.
Attend the conference believing in yourself and in your ability to be the one
or two that "succeed." Be prepared to "profit" in other, less tangible
or immediate ways. And if the conference is overseas (like the Trendlines/WolfBlock
conference in Philadelphia next month), look for other meetings to schedule before
and after the event to take maximum advantage of your trip.
D. Todd Dollinger: Are
you raising money? If the answer is yes, it means you're selling something.
And what you're selling is very complex. But that complex sales transaction
starts with one thing: You.
When raising money, you need to know what you want
now, and you need to explain it through where you’re
going in the years to come. This means knowing how
much you want to raise and what your vision is. And
you need to be very, very good at telling that story.
Selling is a process. Yes, you know where you are going, but you need to think
in terms of the milestones you must achieve on your journey. Your first milestone
-- relationship building. You need to make that great first
impression. To make that great first impression starts with meeting the
right people. One of the ways to meet the right people can be at venture
conferences that are appropriate for you and your company.
A venture conference that is right for you means that its --
•investors invest in your current -- or future
-- geographic area;
•focus is stage appropriate ("first rounds," angel);
and
•industry orientation fits you (life sciences,
IT, security, consumer products).
October 2006
Quiet Please
Twenty-some years ago Eliezer Lerner, a retired senior officer
at Bank Leumi, gave me some simple advice that I have always remembered.
I was young, and moving from the Bank's branch in Chicago to the head office
in Tel Aviv. Lerner said to me: "When you get to Tel Aviv, you will
find that there are many things there that you do not like or that could
be improved. But, for your first 30 days on the job,
keep your mouth closed and listen."
Over the years, the wisdom of this comment has never faded. On the contrary,
I see it demonstrated (in the negative) frequently. How many times do we see
bright, enthusiastic new employees telling us what we are doing wrong -- on their
first day on the job? And how do we feel about their comments?
Of course, this advice does not just apply to new employment situations, it
really applies to any new situation that we are thrown into.
Why is it so important to "just listen" during
those first days? As bright as we might be, we
never know as much about the situation -- including facts,
background, internal politics -- as those who have been
involved a long time.
During those first days, we don't really know or understand the interpersonal
dynamics, so don't know whose toes we are stepping on. We don't necessarily even
understand the roles of all those listening to our wise suggestions.
It is unlikely that our audience will give our comments much credence in those
first days; we first need to build up some credibility and develop the relationships
that will cause people to want to listen to us.
So whether in a new job, a new project team, a job interview, or a sales call,
and as tempting as it is in those first meetings/days/encounters to demonstrate
our wisdom and ability to solve all the problems on the first day, my advice
is "keep your mouth closed and listen."
Steve Rhodes
CEO, Misgav Venture Accelerator
Chairman, The Trendlines Group
September 2006
Looking Back at the Year Ahead
The New Year is fast approaching and, with
it, the opportunity to take a step back and contemplate the
life we are leading -- sort of an inward, intimate performance
review. Although this review will naturally include how we
have stacked up as family members, as friends, as community
members, and (for the believers among us) as God's children,
we cannot exclude our working lives from the scrutiny. After
all, most of us spend at least one quarter of our waking
hours at work.
So here are the questions that I find myself asking around this time of year:
-- Have I helped to maintain an environment in which the Trendlines team can
look forward to coming into work each day?
-- Have I let each one of them know how much I appreciate their hard work, loyalty,
and professionalism?
-- Have I been careful about giving credit to others for their contributions
to the successes of the last year?
-- Have I succeeded in conveying to our clients and business associates how much
they matter, how appreciative we are of the confidence they place in us?
-- Have I been honest and upright in my dealings with others?
Inevitably, I find myself squirming uncomfortably under the hot spotlights of
such difficult questions. I assuage my conscience with thoughts like "Come on,
no-one's perfect." But mainly I take a deep breath and say "Where there's life,
there's hope -- next year I'll try to do better."
On behalf of the entire Trendlines team, I would like to take this opportunity to wish you all a happy, healthy, and prosperous new year -- and a little bit of peace wouldn't hurt either.
Tina Ornstein
Managing Director, Trendlines International
August 2006
Business as Usual?
I was in
the States when the "war in the North" started
on July 12. I came home for the duration, continuing
my "tradition" of being here in troubled
times that started more than 30 years ago. I first
came to Israel as a volunteer during the Yom Kippur
war in October 1973. I moved to Israel with my
family in August 1990, about two weeks after Saddam
Hussein "moved" into Kuwait.
The fact is, it's better to be back home in Israel's North, hearing the booms
and feeling the concussions, than it is to be away.
Steve and I attended a board meeting in Haifa for one of our portfolio companies
a few days ago. The entire board was present, including an orthopedic surgeon
who works at Haifa's Rambam Hospital. He was a few minutes late. Another
of our fellow board members even took a picture so he could prove to his wife
that he wasn't the only one who went to the meeting (and braved the threat of
Katyushas).
We're working. It's business, but it's business not as
usual. Productivity is down. Pride is up. We know why we're here. We're
staying.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
July 2006
It's All about Relationships
As Tom Reilly writes in Value-Added Selling, "Building
this personal and professional relationship ... on a foundation of trust
is a prerequisite for ... success. If two people trust each other and feel
a loyalty to each other and want to seal their business future because
of this friendship, they will work out the details."
Here are my tips on how to build successful relationships.
1. Make a great first impression.
2. Tell a compelling story.
3. Prepare and prepare some more. Know your stuff.
4. Do your homework about the person/company you are meeting.
If it's a potential investor, know something about their investments and their
successes.
5. Demonstrate vision, be passionate.
6. Listen. Discuss. Don't argue.
If you don't prepare for a relationship, you won't create one.
D. Todd Dollinger
CEO, T.I.F. Ventures
Chairman, The Trendlines Group
June 2006
Lessons from MarketReach America
D.
Todd Dollinger, Chairman: "Sometimes
years of experience can be brought to bear in the most extraordinary of ways.
Such is the case with the Maryland/Israel Development Center-Trendlines Group
partnership called MarketReach America. Trendlines and the MIDC have worked
together for more than a decade fomenting Israeli/American partnerships through
identifying, qualifying, and introducing Israeli companies to strategic partners
and financial investors. MarketReach America Life Sciences & Medical
Devices 2006 is our fourth MarketReach program; it's now officially a success-filled
tradition."
Naomi
Alper, Chief Consulting Officer: "One of the program's
unique benefits is the involvement of the influential Baltimore Jewish
community. Under the auspices of the Maryland/Israel Development Center,
members of the community are eager to assist in finding ways to guide Israeli
companies. The Jewish community includes all types of entrepreneurs who
share their experiences of getting businesses up and running in the U.S.;
business owners and employees of large corporations who can give guidance
about strategic partnering; and academics in Maryland's prestigious universities,
medical schools, and research institutions, who provide cooperation in
a variety of ways."
Mark
Dollinger, President, Trendlines America: "One of the highlights
of each MarketReach America program is the "Wow!" moment experienced
by the participating Israeli company. This may occur in response to a session
about understanding the way that Americans communicate during negotiations
and or during a small-group discussion of supply chain or regulatory issues.
Whenever it occurs, the Wow! moment almost invariably happens. It's a pleasure
to observe. And it's what sets the MarketReach America program apart from
other standard business development seminars."
May 2006
The Essence of Time
In our hectic, multitasking lives, time has
become a precious resource. There is a great deal of interesting literature
out there on time management, with some of the "gurus" in the field being Alec Mackenzie,
Alan Lakein, Julie Morgenstern and, of course, Stephen Covey. Although I
make no pretensions to having achieved anything even close to effective time
management, when I find myself getting overwhelmed by "too much to do
and not enough time to do it," I try to get myself back on track by
reminding myself of the following truths that I have gleaned over the years.
Have clear goals that are specific, measurable,
realistic, and achievable. Goals give direction and help
you decide what's important.
Take time to think and plan. It is time
well-spent. Start the week with a plan and end the week
by reviewing what was accomplished, why some things were
not accomplished, and how you can improve for the coming
week.
Prioritize. If your goals are clear, it
is easier to understand what high-priority tasks should
be given more of your precious time, and what are lower
priority tasks. The famous Pareto law is that 80% of the
reward comes from 20% of the effort. Identify what that
20% should be for you, in light of your goals, and then
prioritize to concentrate on that.
Have a prioritized to-do list. It doesn't
matter whether it's daily or weekly, but it should be detailed
and should include recurring tasks. Keep it updated.
Don't procrastinate. If it's important, take care of it, even if it's one of
those unpleasant tasks that you love to avoid.
Be flexible. Plan only 50% of your time,
allowing time for interruptions and distractions. But if
you're interrupted, be sure to get yourself back on schedule.
Delegate: Dwight D. Eisenhower (U.S. president from 1953 to 1961) made it clear
to his staff that nothing should be brought to him unless it was both urgent
and important. If it wasn't urgent, it could wait; if it wasn't important, someone
else could handle it.
Learn to say "no." Learn how
to "neglect" tasks that are not high in your
own priorities. Beware of others' urgencies becoming your
own and eating into your precious time.
Tina Ornstein
Managing
Director, Trendlines International
April 2006
Say Less
Imagine
that every note you write is a branding event or brand-building exercise.
Everything that you commit to paper — from an e-mail to a potential partner
to your business plan — is
about your company's brand and brand "You."
Everything that you write and say is of consequence. I propose saying less. Less
words. More facts. More action items. More bullet points. We listen
intently to those who speak less and speak directly, to the point, and to the
issue.
Saying less means that important points stand out because they stand alone. Say less. It's the right thing to do.
D. Todd Dollinger CEO,
T.I.F. Ventures
Chairman, The Trendlines Group
March 2006
Jumping through Hoops
At The Trendlines Group we are always lecturing ourselves
and others about the importance of listening to feedback
from the market, so what I am about to say may seem, at
first, to be flying in the face of this important advice: Over
the years I have come to believe that you cannot let investors
make you or your company jump through too many hoops. What do
I mean?
As your company moves forward, every
potential investor you meet wants to prove that he or
she is smarter than you, both to lower your valuation and
just for fun. How do they do this? By telling you what
is wrong with your business plan, your product, your business
model, and your work plan. The problem is that every investor you meet
with will identify different problems.
While it
is certainly important to listen to feedback from every source and to check
yourself, your data, and your assumptions, all this advice needs to be
taken collectively so that you can reach your own conclusions to determine
the course of action.
Do not run and change your business plan
after every presentation.
Do question your assumptions and
conclusions at every opportunity. Use the investor
feedback as an opportunity to re-evaluate your business
plan and to improve your presentation.
Steve Rhodes
CEO,
Misgav Venture Accelerator
Chairman, The Trendlines Group
February 2006 Speaking the Same Language
One
of our biggest concerns as consultants is "vocabulary."
We must share a common vocabulary. This isn't about a right or wrong
definition -- it's about establishing a shared vocabulary with your
associates, partners, and players in your industry. You can learn and adopt
their vocabulary, or you can teach them yours.
Consider this: You have just arrived in a foreign country. While the words
sound familiar, some words clearly mean different things from what you expected.
To linguists, it's the "vernacular" -- the local language.
Markets, like countries, have a vernacular. You need to
learn the "terms of art," as the patent attorneys call it. These
terms of art differ by industry. For example, a broker in one industry is
a very different animal in another.
At the most basic level, we need to know the industry,
so we can know the territory. That's why we begin by establishing a common vocabulary.
With a common vocabulary, we can learn, cooperate, and work together.
D. Todd Dollinger CEO,
T.I.F. Ventures
Chairman, The Trendlines Group
January 2006
It's About the Network
Trendlines' Chairman Steve Rhodes wrote this after
the very successful venture conference in
Philadelphia (December 8, 2005).
Today's world is too complex for any one individual or even
for a small group working together to make major breakthroughs. Today, innovation
is collaborative effort that involves many people creating, sharing knowledge,
and building off of the accomplishments of their predecessors. So, too, in
building businesses, creating and expanding networks and developing means
for maintaining and leveraging those contacts is networks is of critical
importance.
We first met David Gitlin of WolfBlock just over two years ago when
he was introduced to us as someone who could do U.S. legal work for
us. Since that simple beginning at a single "meeting" point, our
shared belief in the value of collaborative work has resulted in two homeland
security conferences in Israel, two incredible venture conferences in Philadelphia,
and innumerable mutual introductions to potential clients, partners, and
investors.
All of this was accomplished without any formal contract and without
any payments (other than for the legal fees) ever having passed hands in
either direction. Simply stated: together we are stronger; a true "win-win" partnership.
While it is often true that partnerships require formal agreements and clear
understandings, it is also important to understand the importance in business
of the informal partnership and the value of nurturing those relationships.
So thank you, David; thank you to the 25 Israeli companies who presented
at the conference; and thank you to the 90 investors who attended.
Steve
Rhodes
CEO, Misgav Venture Accelerator
Chairman, The Trendlines Group
In each month's Trendletter, Trendlines' chairmen and directors D. Todd Dollinger,
Steve Rhodes, and Tina Ornstein share their opinions and observations on business — and beyond. This short column appears at the "top" of the Trendletter, hence its name "From the Top."
I've been traveling lately -- including London and New York over these last weeks. I have been meeting with private equity groups, major corporations, venture funds, individual investors, and investment bankers. My goal: Building The Trendlines Group's network around the world for our portfolio companies and our clients. As it happens in the course of such meetings, conversation turns to challenges -- especially challenges for early-stage companies.
This is a very personal note, so I apologize in advance to those who prefer the From The Top column to be more busienss-oriented.
Steve Rhodes: There
was a time, not too long ago, when I did not "believe" in venture conferences.
But in the last three years, I have attended over half a dozen such conferences
and I must admit, I've changed my mind. They can be a great opportunity
to establish new relationships, to share information, to network, and sometimes
even to raise money.
Naomi
Alper, Chief Consulting Officer: "One of the program's
unique benefits is the involvement of the influential Baltimore Jewish
community. Under the auspices of the Maryland/Israel Development Center,
members of the community are eager to assist in finding ways to guide Israeli
companies. The Jewish community includes all types of entrepreneurs who
share their experiences of getting businesses up and running in the U.S.;
business owners and employees of large corporations who can give guidance
about strategic partnering; and academics in Maryland's prestigious universities,
medical schools, and research institutions, who provide cooperation in
a variety of ways."
Mark
Dollinger, President, Trendlines America: "One of the highlights
of each MarketReach America program is the "Wow!" moment experienced
by the participating Israeli company. This may occur in response to a session
about understanding the way that Americans communicate during negotiations
and or during a small-group discussion of supply chain or regulatory issues.
Whenever it occurs, the Wow! moment almost invariably happens. It's a pleasure
to observe. And it's what sets the MarketReach America program apart from
other standard business development seminars."
