tag:blogger.com,1999:blog-38649460586333995082011-11-27T19:00:42.543-05:00The VC WhispererMild-mannered venture capitalist by day, superhero entrepreneur by night...Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.comBlogger271100tag:blogger.com,1999:blog-3864946058633399508.post-82661404483136959532011-11-15T11:12:00.000-05:002011-11-15T11:12:00.667-05:00State of The Gaming Industry And Why VCs/Entrepreneurs Should CarePeople often ask me:
"VC Whisperer, what is the state of the gaming industry and what are your thoughts?"
I was fortunate enough to spend the first few days of the month at the 2011 Montreal International Game Summit (http://sijm.ca/2011/). It was a tremendously enlightening conference, with thousands in attendance. And it was a clear sign of the vibrant state of the gaming industry, not only inPaul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-48586463362373674372011-11-01T11:31:00.000-04:002011-11-01T11:31:38.303-04:002011 Montreal International Game Summit - The VC Whisperer Will Be TherePeople often ask me:
"VC Whisperer, what do you think of the gaming space?"
Gaming is a very hot space right now in the startup world. And the space is increasingly coming under VC scrutiny because of the move away from console and PC gaming, to trends like social gaming, casual gaming, and mobile gaming (on tablets and smartphones).
For this reason, the VC Whisperer will be at the 2011 Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-41648535119306922532011-10-28T09:42:00.000-04:002011-10-28T09:42:00.571-04:00Amazon Is The New Apple - The Experience and Ecosystem MatterPeople often ask me:
"VC Whisperer, what do you think of the new Amazon tablets and e-readers (and the tablet market in general)?"
Amazon's announcement is now a few weeks old. The tablets are interesting but not ground-breaking. The Kindle Touch is a nice evolution of the Kindle readers that we've all come to know and love. The Kindle Fire looks like a very solid Android-based tablet, with Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-73654844851836034322011-09-26T08:36:00.000-04:002011-09-26T08:36:00.791-04:00Startups Fueling Corporate Growth - IBM Banks On Small Start-Ups For Big GrowthPeople often ask me:
"VC Whisperer, what can big companies do to grow sales? Where can they find growth?"
I saw this article on the Wall Street Journal a few weeks ago. It discusses how IBM was looking to startups to fuel sales growth:
IBM Banks On Small Start-Ups For Big Growth
The reality is that this is IBM paying lip service to the startup community, and getting some good press. There is Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-22386827515278491602011-09-14T09:04:00.000-04:002011-09-14T09:04:00.460-04:00Too Many Old People Running Companies - Canadian Businesses Slow To Act On Social, Study Finds
People often ask me:
"VC Whisperer, why don't big (Canadian) companies understand social media?"
The following study is worrisome. And the problem is likely not uniquely Canadian (but definitely worse in Canada).
Canadian businesses slow to act on social, study finds
The problem is two-fold.
Most companies just aren't acting or taking advantage of social media.
And the ones that are, just Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-10230894819473462102011-09-13T08:42:00.000-04:002011-09-14T01:39:45.729-04:00The 5 Steps to Making Successful Comebacks - Listen Up RIMPeople often ask me:
"VC Whisperer, are comebacks possible?"
The short answer is yes, but not without quite a bit of effort. That question and the following article on Engadget got me thinking about comebacks:
Shareholder calls for RIM to sell itself or its patents, in critical open letter -- Engadget
RIM shareholders are furious, and demanding change. They want to believe in comeback Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-53892378646598861022011-09-12T08:45:00.000-04:002011-09-12T08:45:01.330-04:00He's BAaaacck... - The Return of the VC WhispererPeople often ask me:
"Paul, what happened to the VC Whisperer?"
The reality of startup life is that it can be all-consuming. And for that reason, my alter-ego, the VC Whisperer, was put on the backburner for the last couple of years.
In that time, I jumped in as the CEO of one of my portfolio companies, and successfully refocused it and turned it around. I also did some consulting to a very Paul Dawalibihttp://www.blogger.com/profile/18169919072327094646noreply@blogger.com1tag:blogger.com,1999:blog-3864946058633399508.post-5352326129835065592009-02-18T11:00:00.001-05:002009-02-18T11:00:01.244-05:00Startup Sales School - Important Lessons to Close Sales and Survive in a Difficult Economic EnvironmentPeople often ask me:
"Paul, are there things I can do or techniques I can apply to sell my company's products and services more effectively?"Selling for a startup is not easy. That's because you're not only selling a product, you have to be "selling" someone on your company at the same time. Doing all of that in the context of today's difficult economic environment only increases the pain Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com1tag:blogger.com,1999:blog-3864946058633399508.post-36580227081245830012008-11-01T12:45:00.001-04:002008-11-01T13:24:25.255-04:00Canadian Entrepreneurs Need to Toughen Up or Face Extinction - It's Not Personal, It's Just BusinessPeople often ask me:
"Paul, why do VCs seem so scary?"I gave a speech in Ottawa a few weeks ago, focused on the 7 things that entrepreneurs needed to understand about VCs and the startup business. It was direct and honest. And while I spend most of my time talking to entrepreneurs, it was the first time I had structured my thoughts in that way, and it was the first time I would be delivering it Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com4tag:blogger.com,1999:blog-3864946058633399508.post-70975159185944532902008-10-29T13:40:00.011-04:002008-10-29T15:11:18.688-04:00Patience is a Virtue - Long Wait Means Lots of New VC Whisperer FeaturesPeople often ask me:
"Paul, what happened to you in the last couple of months? We're dying for some news from the VC Whisperer!"
Based on the first phrase in the title of this post ("patience is a virtue"), many of you are probably expecting a post commenting on the recent economic downturn. It's true. Companies need to be more patient now, and plan for patience. But more on that in a future postPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-25110549410049611832008-07-01T11:48:00.000-04:002008-07-01T11:49:49.417-04:00I Almost Died - The Importance of Key Man InsurancePeople often ask me:
"Paul, why do VCs seem to make such a fuss about key-man insurance?"
I've said it before and I will say it again. People matter most.
Thus, VCs often insist on key man insurance, because they fund people, not ideas. They simply want to protect their investment. VCs who insist on key man insurance feel that you, as the entrepreneur, are critical to the success of your companyPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-71950103706373364002008-06-17T19:50:00.000-04:002008-06-17T19:59:15.687-04:00Don't Lose VC Money - Get to Cruising AltitudePeople often ask me:"Paul, when does an early stage VC start to feel comfortable with an investment?"Early stage VCs regularly evaluate the companies in their portfolio. They do this to decide if they should continue pouring time and money into a particular company, or if they should shut it down and swallow a loss.This type of evaluation often starts with a rough measurement of the risk involvedPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-88082784692986477472008-06-16T13:17:00.001-04:002008-06-16T13:18:24.544-04:00Cash Is More Important Than Your Mother - Mo' Money, Mo' Problems?People often ask me:"Paul, how much money should I take from VCs?"This is a difficult question, but a good problem to have. If you're at the stage where VCs are offering to fund your company, that's a very good sign. At that point, you have to figure out how much money you actually want to raise. To understand this problem better, I will paint the scenario from each side of the table. First, fromPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com2tag:blogger.com,1999:blog-3864946058633399508.post-3122977334416160742008-06-13T09:55:00.001-04:002008-06-13T09:59:50.716-04:00Your Payday Is Closer Than You Think - The 3 S's of ExitsPeople often ask me:"Paul, how do companies and VCs manufacture exits?"The life of a venture backed startup is centered around 3 major events:The FoundingThe FundingThe ExitThe key for entrepreneurs and VCs is to get from funding to exit. The exit can be an acquisition or an IPO, and at that point, everyone involved generally makes a lot of money. However, significant value needs to be created toPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-37569163959359555162008-06-10T22:08:00.000-04:002008-06-10T22:10:23.468-04:00Is Your Company Right For Venture Money? 4 Questions VCs Ask ThemselvesPeople often ask me:"Paul, what type of projects are suited to venture capital funding? For example, is venture capital a viable source of funding for film and other entertainment projects?"To answer this, let's put business issues aside for the moment. When I say business issues, I mean things like management, business model, customers, etc... Attracting venture capital depends partly on the Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-12273816256478904592008-06-07T10:51:00.000-04:002008-06-07T11:07:10.740-04:00Pucker Up And Kiss Some Ass - Flattery Will Get You EverywherePeople often ask me:"Paul, do I need to do a lot of VC ass kissing to get their attention?"Yes. You will need to kiss a lot of VC ass to get your company funded, and to get the attention that you deserve.If you thought you were becoming an entrepreneur so that you would never have to kiss ass again, then you were doing it for the wrong reason. Everyone has a boss, no matter what you're doing, andPaul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-48846521443849399942008-06-06T10:56:00.000-04:002008-06-06T14:01:22.065-04:00Always Be Looking Over Your Shoulder Or Your Startup Will Get MuggedPeople often ask me:"Paul, why don't VCs seem to understand that I have no competition?"VCs hear this from entrepreneurs on a very regular basis. Claiming that your company has absolutely no competition is another sure way of shooting yourself in the foot when you talk to VCs. They don't understand it because they know it to be untrue, no matter how convinced you may be. Even if you don't have Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-88528625755200571572008-06-04T15:01:00.000-04:002008-06-04T15:09:11.186-04:00Romance Isn't Dead - The Passion of The EntrepreneurPeople often ask me:"Paul, what is the first thing a VC like you looks for in an entrepreneur?"So much can go wrong in a startup - problems with technology, customer, market, execution etc... And in adherence with Murphy's Law, if something can go wrong, it will go wrong. Successful entrepreneurs are able to navigate those issues, often with different backgrounds and skillsets. The common thread Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-30421895856384131972008-06-02T11:01:00.000-04:002008-06-02T11:03:59.732-04:00No One Understands What You're Saying - Keep It Simple StupidPeople often ask me:"Paul, why don't VCs or customers understand my pitch?"I will let you in on a little secret. VCs see lots of entrepreneurs, with lots of complex ideas. The way to stand out from the crowd, is to keep things simple - simple to communicate, and simple to understand. In other words, get...to...the...point.I can't emphasize the "keep it simple stupid" (KISS) mantra enough. Too Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-989663266239114232008-05-31T14:46:00.000-04:002008-05-31T15:15:58.322-04:00VCs Need to Eat The Dog Food - Quoted in The Montreal GazettePeople often ask me:"Paul, is it true that the VC Whisperer was quoted in Friday's Montreal Gazette, speaking out about the state of the venture capital industry in Canada? Is there anything that can be done to solve all of the problems the industry is facing?"I have been attending the annual CVCA (Canadian Venture Capital Association) conference over the last couple of days. A great reporter Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-73365193606897386342008-05-29T14:10:00.000-04:002008-05-29T14:14:56.619-04:00You're Not Perfect - Surround Yourself With Greatness And Own Up To What You Suck AtPeople often ask me:"Why are VCs always on my case to hire more people? I'm doing all of the jobs they're hiring for just fine."The unfortunate reality is that startups are complex. To be successful, they require a variety of backgrounds, skillsets, and expertise. Previously, I blogged about walking the factory floor. It was one of the things a founder could do to try to keep the CEO job after Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-59182149230709361652008-05-28T10:57:00.000-04:002008-05-28T10:57:02.257-04:00Your Startup's Revenue Projections Are WrongPeople often ask me:"Paul, what should our revenue projections look like to attract venture capital?"I believe there is no good answer to that question. There’s no “right” projected number that makes us all want to throw money at a startup. Most VCs are savvy enough to ignore the number itself because frankly, most of the time, it's wrong. Not through any fault of the entrepreneur, but simply Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com2tag:blogger.com,1999:blog-3864946058633399508.post-89464665917815030422008-05-27T15:25:00.000-04:002008-05-27T15:36:47.087-04:00Walk The Factory Floor And You Might Not Get FiredPeople often ask me:"Paul, what is one thing I can do to avoid getting fired as CEO after I get funded?"Most VCs know that the entrepreneur who walks in the door will likely not stay on as CEO forever. Most first-time entrepreneurs have deep domain knowledge, but lack the leadership qualities that are necessary at that stage. However, this doesn't mean that an entrepreneur shouldn't work to Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-9411231315010407922008-05-26T09:53:00.000-04:002008-05-26T10:43:45.801-04:00Hand Over Your Company and No One Gets HurtPeople often ask me:Paul, is it true that venture capitalists are out to seize control of my company?This is in fact not the primary goal for an early stage venture capitalist. While most will take significant positions to account for the significant risk involved, VCs do not want to take away the financial incentive for founding management teams to succeed.For a venture capitalist, there is a Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-6200842147637081982008-05-24T22:19:00.000-04:002008-05-24T22:22:07.703-04:00Your Product Doesn't Sell ItselfPeople often ask me:Paul, why don't VCs seem to understand that my product virtually sells itself?I sat through a pitch the other day, and the entrepreneur said one of the many phrases that makes me cringe: "my product sells itself". Never say this. It's suicide.VCs don't understand it because we know it to be completely untrue. We would all be printing money if we just invested in products that Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-56662808148851769662008-05-24T17:31:00.000-04:002008-05-24T21:03:44.128-04:00VCs Won't Sign Your NDAPeople often ask me: Paul, will you sign an NDA before I send you my business plan?As a VC, I am often asked by entrepreneurs to sign an NDA before they send me their business plans. I think entrepreneurs should understand that this is an unreasonable request. We see dozens of opportunities each week, and there's no way we could sign an NDA before looking at each one.The reality is that Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0tag:blogger.com,1999:blog-3864946058633399508.post-27158057622590719352008-05-24T17:30:00.001-04:002008-05-24T19:17:05.674-04:00Welcome to The VC Whisperer!People often ask me: Paul, who is the VC Whisperer?I am the VC Whisperer - your front row seat to the world of venture capital. I will show you not only how to talk to VCs, but how to understand them. And most importantly, I will listen. Every post on The VC Whisperer, including this one, will be a direct response to a question brought forward by you, the reader. The VC Whisperer is also much Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.com0