Leveraged Environment
"We are completely at a disadvantage when presenting to
investors. It's their turf. Their rules. We need a way to
professionally assess them as well, so we create a win-win for all
of our shareholders. This is difficult because we have no
leverage."
CEO Problem
Ability to assess fit from a position of neutrality, an improvement
from the typical unleveraged position. CEOs are clearly unleveraged
when meeting investors on "their turf" so they tend not to
ask all the appropriate questions that assess the proper fit for the
benefit of both parties. CEO's need a leveraged environment to test
their messages to investors, and vice versa.
Program Features
VenLogic's neutral, trusted environment allows for performance
testing key messages that benefit both parties in making critical
long term decisions regarding the deal, as well as the key
milestones and solutions post-funding. Investors are viewed as
"Solution Partners" with the added benefit that they bring
capital. Therefore, like solution partners, they are invited to
present their "capital marketing" messages and solution
demonstrations for discussion. b
Program Benefits
Like having a board with a common language and focusing system that
allows rational discourse on the issues. The absolute opposite of a
"rubber stamp" board.
For investors who participate, this has the effect of creating a
lasting positive impression on faculty partners within their
referral network. The partner faculty benefit when recalling the
venture fund's value proposition when sending over future referrals.
Recommendations The ecosystem
runs by the natural laws of Equity Marketing. Investors need to seek
out opportunities to establish their "Capital Brand" in
the mind of the market, just as entrepreneurs and professionals must
do so as well.
VenLogic makes it easier for investors to reach their target market
with a partner who is keen to listen, and assist them in clarifying
their unique value proposition to the customers of cash. The goal is
to enable investors a rapid means of verifying the value of their
"Capital Brand" in mind of the market. Ideally, the
Capital Brand can be reduced to owning one positive, value-added
word in the customer's mind that means something besides
"cash." Like Perrier, the opportunity is to differentiate
money based on tangible and intangible factors.
Failure to establish a "reason why" means investors must
wade through unsolicited proposals as the customer soliciting
equity. Venture firms that practice "Capital Marketing"
establish positive positions in mind of the ecosystem and their
referral network. Their Capital Brand stands for something
meaningful and memorable, driving business success for everyone.
For the first time, CEOs can enter a market-neutral environment
designed to articulate the market rules, enabling everyone to
establish a memorable brand impression based on the value they
bring. A more level playing field is the most powerful advantage we
bring that can enable CEOs to be more successful.
