By Allan Maurer
ATLANTA—While the $100,000 top prize in the Georgia Business Launch competition lures participants, even those who neither win nor make the final cut benefit from the process, says Sid Elliott of the Georgia Research Alliance (GRA).
For our story on this year’s event, including the winning company, see:
http://techjournalsouth.com/news/article.html?item_id=5626
The GRA and the Technology Association of Georgia (TAG) co-sponsor the annual event.
Elliott notes that while $100,000 can be helpful to a startup, it isn’t serious funding. “It’s a magnet that draws a lot of people (75 companies in this year’s competition). But what we really want to happen is for people to come in and move their idea forward.”
Winners and losers alike tell TechJournal South the event’s mentoring process, in which companies are helped in refining their business plans and the quick sell called the “elevator pitch” necessary to arouse investor interest.
Companies go through two rounds of judging before panels of experienced entrepreneurs and investors. They get 20 minutes to make their pitch and 20 minutes to answer questions and then the judges confer to choose finalists.
The companies answer questions about who’s on their management team, what their pricing strategy is, what types of markets they’re looking at, and how capital intensive their business might be. “It gets them thinking about those things and gives them a reality check,” says Elliott.
“Aside from whether they make the cut,” says Elliot, “all get a summary of their feedback from the judges and have had the help of a mentor to get to that point.”
One company that didn’t end up winning told Elliot that while the $100,000 prize got its attention, once they entered the event, they realized it had a lot of benefits beyond winning.
One new idea introduced this year at the urging of Chris Klaus, founder and CEO of Kaneva, was online 60 second video pitches on the TAG Web site. The top two vote-getters moved ahead in the contest.
Klaus pointed out that if an entrepreneur wanted to have a successful business, he needs an elevator pitch and if he doesn’t have one, needs to get one. He said not to worry about ballot box stuffing because a successful entrepreneur needs to learn how to promote his idea to family and friends.
About 25 of 40 companies that went into the contests second phase made the videos, which drew about 7,000 visitors and 5,000 votes. Proper Notice, one of two winning companies, went on to the finals, although ATM Direct won.
Tino Mantella, president of TAG, says he’s seeing “a lot more systematic entrepreneurial activity now” than ever before in the four years he has been involved with TAG.
“If an entrepreneur goes to California,” he notes, “They’ll find funding, networking, everything they need if they have the talent and ideas. In Georgia and a lot of other states, it’s more catch as catch can. The elements may be there, but they don’t necessarily come together.”
Events such as the business launch competition, TAG’s monthly programs that draw an average of 50 people each, and the new non-profit Capital Venture conference planned for October, events such as Startup Riot and Startup Lounge are examples of it all coming together in Atlanta.
He notes that due to recent merger and acquisition activity, entrepreneurs who built and sold companies are moving now into the venture investment world, and want to be part of operations, not just investors.
He points out that more venture firms from outside the region are coming in for events such as the Business Launch Competition now as well.
Monday: TechJournal South profiles ATM Direct, winner of this year’s contest.
On the Web: www.gra.org; www.tag.org
Southeast Venture Conference, February 29 – March 1, 2012 at the Ritz Carlton in Tysons Corner, VA – Where Smart Money Meets Smart People.
www.seventure.org
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