With the latest round of funding, Livebooking will look to expand and strengthen its position as the industry leader in Europe.

“Livebookings has grown aggressively since day one and we’re now at a point where we see a fantastic opportunity for further managed but rapid growth supported with further investment,” said Niklas Eklund, Livebookings’ CEO. “Despite the recession, recent figures show the number of new restaurants now using online reservations to fill their tables has risen by 91% this summer compared to last. However we estimate only 7% of restaurants currently use online reservations, showing us the enormous growth potential in our chosen market.”

Livebookings has already been ranked as one of Europe’s fastest growing companies in digital media and of the top tech companies in the UK. By using their service, customers can make restaurant reservations online.

(Image: Flickr)

Post from: EveryJoe

Livebookings Gets $16 Million in Fundin

Mark Heesen, the president of the National Venture Capital Association, pointed out the good and the bad.

Said Heesen: “Halfway through 2009 we are seeing more positive signs than at the beginning of the year, including an overall increase in investment levels and an ongoing interest in seed and early stage funding. However, until we see notable upticks in venture fundraising and exit activity – which drive investment levels – we won’t expect considerable increases in the number of deals completed each quarter.”

Heesen also said that Life Sciences companies were having the best luck in terms of raising venture capital. The clean technology industry also saw a healthy growth in funding.

To find a place in time that saw this amount of venture capital investments, you’d have to go back about a dozen years.

“Based upon the current pace of investing during the first two quarters,” said Heesen, “it’s likely we’ll exceed $15 billion in investments for the full year, a total close to what we saw in 1997 before the Internet bubble.”

Grabbing Venture Capital can be Difficult (Image: Flickr)

Post from: EveryJoe

Startup Investments Rise in Second Quarter

But there are a few things that will definitely be in the future:

1) It’s going to be harder than ever to raise capital for businesses. Loans will be few and far between. Most VCs are losing money too, so they will be conservative in their giving. Plus, I am quite sure the terms of loans and VC agreements will be tougher.

2) Potential customers will take longer to pull the trigger. People are going to be careful in their spending, since every penny is going ot count.

3) Customers are going to expect more… more services, more payment options, more bonuses to keep them happy.

What do you think? How is the financial market upheavals going to effect you?

Post from: EveryJoe

Tough times for entrepreneurs and startups?

Since venture capitalist need to focus on putting money back in their portfolios, they have less to invest.  The result: less IPOs and other startups.

According to the article, there have been just four venture-backed IPOs nationwide in 2008, much less than expected.

So what does this mean to you?  Will you be affected by a lack of VC?

(Photo courtesy of Shannon Cherry of Be Heard Solutions.com)

Post from: EveryJoe

Slowdown slowing new startups

These are things she learned after attending Elite Retreat in San Francisco, California, where a bunch of top-notch bloggers and business folk get into a room with 20 or so people and spend 2 days breaking their knee caps.

Actually, it looks more like your brain explodes after folks like Guy Kawasaki, Kris Jones, Lee Dodd, Aaron Wall, Darren Rowse spend some time telling you what they’ve learned about making money online.

Having participated in a Guy Kawasaki event some time ago I can say that it’s definitely eye-opening, entertaining and worthwhile. Even if you’re not looking for VC money at the moment, learning just a little bit about how that world works is going to help you sell your company and yourself better.

Looks like Wendy had a blast, and the lessons she’s taken home with her are going to valuable for all of us. She’s blogged about each speaker at Elite Retreat on her site eMomsAtHome.

Post from: EveryJoe

Learn How To Get Guy Kawasaki’s Attention

“The mobile industry will be worth $50 billion in 5 years!”

“Advertising online is going to be worth $100 trillion by 2010!”

You can get this sort of data all over the place. Analysts put out reports all the time expounding the growing size of various markets.

The result is that many startups take this approach:

“If we only get 1% of that market, our company will be doing $5 million in sales, easily. And we’re being conservative. Just 1%.

I used to think that way. Part of me still does because it sounds so damn tempting and easy. But it’s the wrong way to think, and it’s the wrong approach for your business plan and pitch.

Let’s debunk the 1% Market Share Myth:

1. Market numbers are nonsense. At the rate things change in so many industries (and particularly technology) it’s almost impossible to really get a handle on the size and growth possibilities of various markets. Plus, when analysts talk about markets it’s often in vague terms, bunching things together that don’t necessarily belong, or certainly including companies and product offerings that wouldn’t compete against what you’re doing. “The online collaboration market is growing at 1000% per year!” Um…what the heck is the “online collaboration market” and what does it include?
2. You’re selling yourself short. Sure, 1% of a huge market could be a lot, but 1% is a piddly number. There’s a difference between being conservative (which is smart) and lowering expectations. Promoting the concept of 1% is lowering expectations and setting the bar way, way down.
3. VCs hate hearing this. If you’re going after funding, you’ll need a business plan. At minimum you’ll need a pitch. And that pitch is going to include sales estimates, market sizes, etc. Basically, you’ll throw a bunch of numbers into your pitch that will show VCs how much money you’re going to make for them. Truth is, they know the numbers are BS, but they have to be there anyway. What VCs hate is the “1% of market” argument. So if you’re looking for funding, don’t pitch it that way.
4. Getting 1% of any market is damn hard. The big fallacy about nabbing 1% of a market is that startup companies think it’s easy. “How hard can it be to grab 1% of a market? Plus, when we show that 1% of a market is worth so much money, it’s a no-brainer!” Grabbing any amount of a market is hard. Closing a single deal is hard. If it was really easy everyone would be doing it, and there goes your competitive advantage!

If you’re starting a new business don’t think about 1% of the market. It’s bad business in so many ways.

Post from: EveryJoe

The 1% Market Share Myth Debunked

Today on TechCrunch I read about another way of getting some initial seed financing — a startup called TechStars.

TechStars is running a contest right now and accepting online applications. They’re looking for people who have an idea but zero money. 30 of the winning entrepreneurs will be sent to Boulder, Colorado for the summer to work on their ideas. Each of them will get $15,000 for 5% of their business.

It sounds like a small deal – $15,000 – but the model is proving to work with Y Combinator doing something similar. They were initial investors in reddit which was recently sold to Conde Nast.

The model is an interesting one, and it just might be what a young startup company needs. You’ve got a killer idea but no money and very little if any experience. TechStartups (and Y Combinator) are backed by veteran guys who will provide a bit of money but also provide a lot of leadership and talent to see which startups make it.

For the money guys it’s a no-brainer. TechStartups will put in $450,000 into 30 ideas. If even one of those ideas hits the market and gets sold (like reddit) they’ll be getting a huge return on their investment.

Post from: EveryJoe

TechStars – Another Way to Get Financing

It’s a contest where you submit a video elevator pitch, which a panel of judges reviews.

For people looking to raise over $1,000,000 you could win a chance to pitch a bunch of investors at the 2007 Canadian Venture Forum. If you’re looking for under $1,000,000, you could win a chance to pitch the Dragons on the CBC television show, The Dragons’ Den.

The contest is only available to Canadian residents (excluding people from Quebec), so the audience is a bit limited, but it could be a very entertaining and interesting way of getting in front of some VCs and worthwhile advisors. The contest ends February 15th, so you still have a couple weeks to submit your entry.

So if you’re a startup, in Canada (not Quebec) and looking to get some attention, buzz and perhaps some money, give it a try.

For the rest of us, the site could be quite entertaining, since we’ll get to see the videos, and vote on them, once the contest submission deadline has passed.

Go check out Pitch 4 Profit.

Post from: EveryJoe

Submit a Video Elevator Pitch to the Pitch 4 Profit Contest

I’m declaring 2007 the Year of the Entrepreneur.

Here’s why:

• It’s becoming less and less expensive to start a viable businesses (primarily in the technology/Web world mind you.)
• We’re not in a bubble just yet. 2007 could be a boom year.
• Entrepreneurs are becoming more socially conscious than ever.
• Many of us learned valuable lessons through the Web 1.0 bubble bursting.
• Entrepreneurs (and small business owners) continue to drive the economy.

There are plenty of people raising flags about Web 2.0 and the bubble bursting again. And without a doubt there are many plain old stupid businesses out there. And I’m not taking away from the people who are concerned with Web 2.0 going poof.

But there’s much more value being created today than in the past.

Not in terms of absurd valuations, or money invested to make people into paper millionaires … but real value.

So good luck in 2007. May it be your best year ever. And the Year of the Entrepreneur.

Post from: EveryJoe

2007 Will Be the Year of the Entrepreneur

I decided it would be interesting to learn a little bit about what Sean does and get some insight into the venture capital world. Lots of startups go out looking for money. And although we always hear about those deals that netted owners millions and millions in cash, there’s a thousand more people still pitching their wares, hoping for a break. Getting money isn’t easy (at least most of the time). There are challenges, risks, pros and cons.

Quick disclosure: Sean Wise was involved with b5media’s recent capital raise as an advisor. I still asked tough/important questions (I hope!) but I did stay away from any discussions relating to b5 specifically.

Interview Highlights

• Check out the link to Sean’s demonstration of an elevator pitch. It’s hysterical (but informative too!)
• Sean lists three areas of particular interest for him as someone involved with a lot of technology related investments. I think people could debate this one point endlessly and generate a ton of interesting discussion.

The Interview with Sean Wise

1. I read in your bio that both of your parents were highschool dropouts, but because successful entrepreneurs. You then go on to say that your education was paramount in their minds and yours. If they were successful without significant education, why was it so important for you and your parents? And what role do you see formal education (from highschool up) playing in an entrepreneur’s success?

I think times change. When my parents left school, lack of post secondary education was not a hindrance to success. But those times are long gone. Now even a BA isn’t enough. I spent 8 years in school (including law school and getting my MBA) and I learned a ton. Could have I been as successful without the education? Maybe, but as my dad says “you can either go to school, or learn from the school of hard knocks.”

2. You work extensively with venture capitalists, but you’re not a venture capitalist yourself?

Correct. I don’t manage a fund, and so I’m not a venture capitalist. I spend my time doing three things:

1. Educating entrepreneurs how to raise capital, through our bootcamp program, through Dragons’ Den, through my column in the Globe and Mail.
2. Raising capital. I have a limited market dealer’s license from the Ontario Securities Commission (something every Agent should have)
3. I sit on the boards of companies I have helped fund, to assist in their growth.

3. If someone gave you $10,000,000 right now to invest, where would you put the money?

I’d undertake seed investing and spread the money over 7-10 deals in three spaces:

1. Enterprise 2.0 (the next step in web 2.0) which brings the lessons of web 2.0 to the world of B2B
2. Mobile (which I believe will end up being web 3.0)
3. Social capitalism, I think those “who have”, have an obligation to invest in bettering the world. And yes, you can do so at a profit. Just look at the world of micro credit to see how it’s done.

4. How much of the venture capital world is real analysis, evaluation and due diligence versus luck versus guts/instinct?

I’m not sure I’ll win many friends with this answer, but I think it’s about 50/50. You have to spend a lot of time thinking about your investment mandate (what you are going to invest in), then a lot of time picking a winner, but in the end the reason you take a portfolio approach is because you never can be 100% sure which investments will end up Dogs and which will end up Stars.

5. If I wanted to go raise some money right now, what’s the first thing I should do?

Hire me? No, seriously.

1. Write the business plan, really understand the business, the highlights for investors, the market, the use of proceeds, etc.
2. Cull it down to several key messages, an elevator pitch so to speak.
3. Then target those investors with a history of doing deals with companies in your space, at your stage, and with an appetite to do more.

Or simply, read The Art of the Start by Guy Kawasaki.

6. You were involved with the CBC’s reality show Dragon’s Den, where entrepreneurs pitched a group of investors. It was by all accounts a success, although there’s been a fair bit of criticism (from intelligent / successful people). Can you tell us what you’re changing in Season 2? Are you going to address some of the concerns people have with the way deals are done?

Has there been? Having not heard it directly, I can’t comment that the criticism is coming from intelligent and successful people. Nor can I speak for the producers or the CBC, for that matter. But from my perspective, I’d like to see more deals done and more deals done at reasonable valuations. I’d also like to see some of the bashing by the investors/Dragons evolve into more constructive criticism. I can’t disagree with the calls the Dragons made, but I might have delivered the message differently. But then, maybe that’s why I’m not a dragon, only the Dragons’ Keeper.

7. How do you measure success?

It’s different for everyone, I guess. My personal scorecard revolves around the positive contribution that I can make into other people’s quality of life. I honestly believe that the greatest returns come when you selflessly serve others, although it doesn’t hurt to do so while making a buck.

8. You work constantly with entrepreneurs, but do you consider yourself one?

Absolutely, in fact I had my first venture at 14, and have had 5 since then. My roles, as columnist for the Globe, as Chair of the Canadian Venture Forum, even as Dragons’ Keeper all allow me to continue my entrepreneurial dream, of helping others succeed.

9. How can someone get to where you are in terms of the work you do?

Well assuming they would want to, which I’m not sure they would if they saw the hours I put in, I think it comes down to: approach, dedication and tenacity. Or as Kurt Angle (my favorite wrestler) puts it: Intelligence, Integrity and Intensity.

10. Do you think we’re in a bubble situation with Web 2.0? What similarities and differences do you see with the way things went in 2000-2001?

Is this a bubble? Only time will tell. Economics are always cyclical, so the key becomes knowing how to ride the wave. My biggest successes in 2006 were B2C, but in 2007, I’ll be focused more on B2B enterprise 2.0 plays (http://sloanreview.mit.edu/smr/issue/2006/spring/06/ and http://blogs.zdnet.com/Hinchcliffe/.) B2B infrastructure and platform plays are easier to fund in Canada than their B2C ad model cousins.

11. Can you name some companies, other than the ones you’re currently involved with, that really interest you? And tell us why…

Companies I’m watching in 2007: NowPublic, Cambrian House, DabbleDB, Zigtag and b5 Media.

12. When seeking money for your business, what’s the most important thing to remember?

It’s all about fit. You need to match the opportunity with the investor. But if you have the right pieces, then it is all about understanding how they fit (i.e. how to pitch ‘em and to whom to pitch ‘em to.) If you don’t have the right pieces, well, it ain’t going to happen no matter how hard you wish it, after all you can’t put lipstick on a pig.

Conclusion

Almost every startup company, particularly in the Web 2.0/technology world is going to look at the possibly of getting funding. Some dream of it. They see riches being thrown at them for their spunky little startup, and suddenly their big shots. It happens, but more often than not it takes a lot more than that. And even in those super successful cases, Sean’s advice still holds true.

It was fun speaking with Sean, I wish him the best and thank him for taking the time. You just might want to give Sean a call if you’re looking for cash (I hear he hands out $20 dollar bills if you tell him a great joke. Ok, I made that part up.)

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Post from: EveryJoe

A Dozen Doses of Startup Specialist Sean Wise