« How did Digg get to be Such a Success? | Home | Second Life and Business »
Six Degrees of Separation, Networking, and Getting Funded
By Drew Meyers | October 16, 2006
So, how do you get on the radar of VC’s (and get funded)?? That’s the question many entrepreneurs are dying to find out…and, in my opinion, it all comes down to networking. The best and most proven way is to get introduced to a venture capitalist. Knowing connected people can open doors you never thought possible. All the brains in the world can’t help you if you can’t even get in front of a VC to make your pitch. Enough said.
My answer to this question of “how to get funded?” came from a journey through blogs- following the links! The journey- Opening my RSS reader, reading an interesting post on TechCrunch, engaging in the conversation, finding a couple of relevant links in the comments section, and then exploring even further. What did this journey make me realize? It really dawned on me that business is all about who you know- which isn’t such an earth-shattering realization. While PopSugar, the blog network that just raised $5 million, may be a great blog with lots of potential advertising revenue- it would have been very difficult to get funding without great connections. You’ve undoubtedly heard of “Six degrees of separation“- use the concept and tap into your network. Use LinkedIn or Myspace or Facebook (or one of the other hundred or so social networking platforms that have popped up recently) to find out who you are connected to. Good friends will gladly help you meet the right people.
Judy Gibbons of Accel says the following:
The best way is to find someone to make an introduction, as this inherently qualifies the company; it’s not that hard – six degrees of separation and all that. They can look at the existing portfolio for example.
Failing that, a direct approach to the right VC with the right pitch. Preparation helps; the entrepreneur needs to know enough about how venture works to know it’s right for them and their business, know which VC at which firm is likely to be most interested (read bios on web sites) and be able to explain the business well.
Hope you enjoyed my journey…I know I did.
Last 5 posts in Web 2.0
- Is a Community Manager Necessary for a Startup? - July 15th, 2008
- Seriously, Does Anyone Still Use the Traditional Phonebook? - July 7th, 2008
- Two Related Must-Reads - June 24th, 2008
- Glassdoor Launches (and it's really cool) - June 11th, 2008
- The New York Times To Launch an API - May 26th, 2008
Topics: Web 2.0, Social Networking, MySpace, Facebook, Blogging, Business, Technology, Entrepreneurship, Innovation |
Enjoy this post? Subscribe to my feed or get updates via e-mail
October 25th, 2006 at 10:20 pm
Sure, market analysis is the first step of any potential venture. And part of that analysis should be finding core constituents. If your venture happens to be a startup, look for investors interested in that market.
But all the connections in the world can’t help if you don’t have the brains to execute.
October 26th, 2006 at 1:41 pm
I agree with you on your last point. I think what I am saying is that even if you are a genius, it doesn’t do a lot of good if you don’t know or get recognized by the right people.
November 2nd, 2006 at 7:48 am
[…] Silicon Valley Startup Spotlight: Kongregate By Silicon Valley Blogger This is a highly incestuous place. It doesn’t take long before someone you know either socially or professionally will eventually percolate into the consciousness of high-techdom and when that happens, it is always quite exciting. […]
September 20th, 2007 at 11:38 am
This theory is VERY interesting and I want to invite you to be one of the first members to a new site based on this theory.
It is an invitation only website and I think you will really like it. www.GoogolMeHere.com . Kind of like a “MySpace” for grownups. It is based on the 6 degrees of Separation theory. I want to see how far my 6 degrees of separation can reach. It is really pretty interesting. And there is nothing else like it on the internet.
I have been looking for a friend for 21 years and still can not find her. I was on MySpace but it was impossible to find my own daughter there. Anyway, check it out and I hope to see you there. You never know who you will end up reconnecting with. Just put in this email address (GoogolBug@aol.com) in the Invitation section on the homepage and you can get in. Once you register, you can invite as many people as you want to. Make sure you read the “About Us” section to understand the concept. By the way, the Basic site is FREE!
I hope to see you on the site and keep in touch,
Lisa