What can you tell us about the Rochester Angel (investors) Network and the types of funding they can provide? 
Angel investors in Rochester tend to invest in companies that most often are what is called pre-revenue or early stage. In other words, the potential angel investors have concluded that they like what they see and hear about the business plan. They have also concluded the entrepreneur has enough brains and passion to implement the plan successfully and generate the revenue and net income that is forecasted.

What types of startups are venture capitalists funding? Is there a common theme in the basic fundamental structure: management, sector, potential market?
Venture capital companies most often are willing to invest in companies that have matured to a level where they are generating some revenue but certainly have not reached profitability. Their due diligence prior to an investment follows the same pattern as mentioned previously for the angels. The business plan must be reasonable and perceived to be achievable. The entrepreneur must also show the absolute passion and intelligence to implement the strategies outlined in the business plan. Most VC investments in our area center around biotech and technology/software opportunities.
 
With all the intellectual property developed in our region, why are there so few sources of funding?  How can we attract more awareness investment in this region?
Five years ago, funding in our area was very sparse. That is not the case today. More and more potential investors are now looking to the greater Rochester area for opportunities to invest in a creditable business opportunity. Rochester has many great intellectual centers such as the University of Rochester Medical Center, RIT, etc. The job of our community leaders is to continue to market our potential to the investment community. I think we are doing much better at achieving this goal. More entrepreneurs are being funded today by a variety of investor types than were receiving support five years ago.

You own, operate, and participate in several successful businesses and have run companies for others. What do you like best about running your own company?
When you run a business with your partners, you are responsible for the success or failure of the company. It is a wonderful opportunity to succeed based on the business plan you developed. However if it fails, there is nowhere to hide. My experience, however, has been great, and with strong, compatible partners we have been successful.

The first thing a person must consider when thinking of starting a business is to weigh the risk associated with their own particular set of circumstances.

Start-up entrepreneurs face the decision on how to finance their business ideas and inventions.  Where can our readers learn about options available to them?
Many opportunities exist to explore and discuss funding opportunities. I would suggest, however, that potential entrepreneurs first discuss alternatives with their families and then their attorneys and financial advisors. These trusted resources can then suggest funding options of either debt or equity depending on each particular situation.

What advice would you give someone thinking about starting a new business?
The first thing a person must consider when thinking of starting a business is to weigh the risk associated with their own particular set of circumstances. Starting one's own business brings a certain level of stress and strained financial resources. The potential entrepreneur must test his business case assumptions with trusted advisors and if they support his plans, he must absolutely have a high degree of passion and commitment in the ability of the business plan to be successful. Finally it is hard work to make a business plan become a reality, but it is also very rewarding and should be a positive and fun experience.

BSM

 

 

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