Networking Essentials for Entrepreneurs MBC, January, 2009

Facilitating technology transfer from the Commonwealth’s research institutions to its companies.

Problem You have developed a new way to implement the economic stimulus package that will reduce toxic debt, increase employment and bring peace to the Middle East You need to get this information to President Obama as soon as possible so that he can use your ideas – how do you do this?

Solutions 1.Send letter to President Obama, White House, Washington DC 2. 3.Call White House 4.Call your Congressman or Senator and ask them to pass on the message

Solutions 5.Ask the attorney you met last week at a party who was in Obama’s class at Harvard Law School to pitch it for you 6.Find someone who knew Larry Summers at Harvard that will help you pitch it to Larry 7.Find someone who knows your Congressman/Governor/Senator who can set- up a meeting for you both to pitch it to them and get them to do the second pitch to President Obama

Lessons Solutions 1-4 “Over the transom” Approach –You are an unknown –You get lost in the traffic Solutions 5-7 Using someone who is known –You get the audience –You gain credibility –You get screened out before you do/say something stupid and burn up a connection you might want to use later You don’t have to go directly to the top – telling Larry may be more effective than telling the President Caution you need to know your network well and not abuse your connections

Why you need a network Gives you access you can ’ t get Gives you credibility Gives you feedback on your ideas Gives you references on people Helps you find new customers

When do you need a network 1.When you are looking for a new job 2.When you are looking for funding 3.When you are looking for a new attorney 4.When you are looking for a new CFO 5.When you want an internship for you daughter All of the above and all the time!

What are the six degrees of separation? And what is wrong with this theory? Strong Links vs Weak Links (or how Hybritech was funded by the college friend of the founder ’ s wife)

How you build a network Events Committees Boards – Company, professional organization and non- profits Introductions Volunteer and other public service On-line – Facebook, LinkedIn, YouNoodle People you sit next to on airplanes …. Alumni and Diaspora groups (TIE, OPEN, BioBrits)

Why developing your pitch is important for your Networking The Elevator speech Questions you are likely to be asked at a cocktail party –Crisp, concise answers – no powerpoint crutch

Networking with Venture Capitalists VC ’ s almost never fund companies that come in “ Over the Transom ” Use your board, professional service providers etc. to introduce you Present at Financing Conferences Go to current events at which VC ’ s speak to hear their current thoughts and trends Make sure that a VC who is interested in your space is kept informed of your progress – don ’ t overwhelm them with information – but try to make sure they know about major achievements (we reached sales of $1 million, we completed our animal data … )

Networking with Government Agencies Important to know the rules and when they can talk to you and when they can ’ t Go to conferences at which they are speaking Watch Agency websites and contact program managers in areas you are working in – they will get back to you

MALSI Mass Life Sciences Start-up Initiative An informal group for people who support, service or want to be actively involved in the Life Sciences Start-up community in Massachusetts LinkedIn Network Occasional Meetings

MTTC Services Support the commercilaization of technologies developed within Massachusetts for the benefit of Massachusetts Educate and support first time entrepreneurs in all technology areas Help them network with people who can fund, manage and support their new companies

The Platform Focused meeting at which one start-up entrepreneur presents their 10 minute financing pitch Audience of 6-12 “experts” Feedback on strategy High-level networking Opportunity to get input before broad exposure of deal Opportunity to learn what sorts of questions investors will ask