Altus client, Docusign, has been on a tear. The latest validation of their momentum was the investment reported by TechFlash that came from the VC arm of the National Association of Realtors. Docusign was one of Altus Alliance’s first Sales Process Optimization (SPO) clients a couple years ago. The results of that engagement have led to several other SPO engagements with their venture investors.
Archive for the ‘Venture Capital’ Category
Docusign garners National Association of Realtors investment
Friday, November 27th, 2009More Healtchare innovation in the Northwest
Friday, November 6th, 2009One of the reasons Tim Fitzpatrick recently joined Altus Alliance was that we have seen a wave of exciting new companies as well as new opportunities within established companies. In fact, we are seeing a big need from horizontal technology companies seeking to verticalize into healthcare.
That is what Tim did while for Citrix and what Dave Chase did when he started Microsoft’s healthcare business transforming it from the worst-performing vertical for the company to one of its strongest performers.
While most of the companies we are working with are in the Healthcare I.T. arena, innovations aren’t limited to the I.T. side of healthcare. Second Avenue Partners has backed Qliance which is disrupting the health insurance business. Chase profiled Qliance on the Seattle Startup Buzz blog. Given the track record of Nick Hanauer and Pete Higgins, it is a great endorsement of Qliance’s model.
Optimum Energy Secures $4.5 Million to Fuel Company Growth, Accelerate Sales of HVAC Energy Efficiency Software
Wednesday, June 17th, 2009Optimum Energy has been an Altus Alliance client for the last year or so. Bill Lawler has led a Sales Process Optimization (SPO) project adding HVAC sytems to the list of different markets sectors where SPO has worked. Other successes have ranged from SaaS, Online Advertising, Higher Ed lead generation, enterprise software and more. The press release detailing the funding round for Optimum is appended below. Congratulations to Nathan, Gary, Jim and Ben.
SEATTLE, Wash. — June 17, 2009 — Optimum Energy, LLC, provider of Ultra High Performance HVAC software solutions that set a new standard in energy efficiency, today announced it has secured a commitment of up to $4.5 million in equity financing led by investor, LLC. Leveraging the success of OptimumHVACTM, third-generation heating, ventilating and air conditioning (HVAC) energy efficiency software introduced in October 2008, this financing will be used to respond to broad scale demand from the market. Based on current operating plans, Optimum Energy does not anticipate future funding rounds.
“Columbia Pacific invests in and operates a diversified set of businesses,” said Stan Baty, managing member, Columbia Pacific Advisors. “Optimum Energy is at the top of our portfolio on three important criteria: customer value proposition, financial model, and alignment with market trends. It offers building owners proven economic payback along with environmental credentials. Optimum Energy has succeeded in building its business efficiently and now is poised for profitable revenue growth as it rides the wave of demand-generating legislation and investment.”
Optimum Energy’s solution is based on Hartman technologies that have achieved or exceeded projected reductions in energy use in more than 60 installations across the U.S. Optimum Energy’s active pipeline of sales opportunities is currently more than $25 million, consisting of approximately 180 projects in a wide range of facilities, including: commercial high rise office towers, schools and universities, data centers, federal and state government facilities, hotels, casinos, airports and shopping centers.
“Since the company was founded in 2005, we’ve been focused on a capital efficient validation of market size and the performance of our technology,” said Nathan Rothman, CEO and founder of Optimum Energy. “Now that we’ve demonstrated the scalability and persistent results our software solution provides, we’re expanding our sales and engineering teams to respond more quickly to increasing market demand. This round of funding positions us well to serve this growing market and realize our revenue goals.”
Management Team
Today Optimum Energy announced the naming of Bert Hogue to chief financial officer, and Gary Gigot, Microsoft and Visio alumnus, to chief marketing officer. Optimum Energy’s management team also includes Nathan Rothman, B.E.P., CSDP, CEO and founder; Jim Hanna, vice president and founder; and Ben Erpelding, P.E., C.E.M., director of engineering. The company is currently recruiting a vice president of sales.
Optimum Energy is headquartered in Seattle, Washington, with satellite offices in California, Texas and New York.
OptimumHVAC Solutions
Optimum Energy’s standard software solution is targeted at facilities equipped with centrifugal chiller plants and/or variable air volume HVAC systems.
For each project, Optimum Energy’s Engineering Services group provides a scope of work, projects savings and calculates return on investment, including applicable utility incentives. Payback typically falls into the 18 to 36 month range. Optimum Energy then delivers those projected savings with OptimumHVAC software, resulting in increased operating efficiency that lasts the life of the plant. OptimumHVAC also gives facility managers the ability to measure and validate HVAC performance anytime, anywhere, via a secure Web site.
About Optimum Energy, LLC
Based in Seattle, Washington, Optimum Energy’s reliable, demand-based Ultra High Performance HVAC optimization software applications are proven to reduce commercial building HVAC energy consumption and operating costs up to 60 percent. More information is available at www.optimumenergyHVAC.com.
Demo tips from a seasoned pro
Friday, September 5th, 2008
Demos are vital for any startup whether you are trying to raise money or close a sale. Collected below are the insights of a veteran of demos — Jason Calacanis.
For the past 10 days I’ve sat through 200 company demos for the TechCrunch50 conference. These demos are mostly done over the phone for 10 minutes using the phone and web conferencing software like WebEx or Adobe’s wonderful new “Connect” service.
After doing 2,500 minutes of demos (40 hours) this year and many more last year for the conference, I’ve learned a lot about what makes for a great demo and what makes for a horrible demo. Since demoing your idea is a key to your success as an entrepreneur, I thought I would share everything I know in a few simple bullet points.
These tips are applicable to presenting in front of an investor, a partner as well as a demo style conference. Of course, every situation is different so consider these loose guidelines.
Background: The TechCrunch50 conference is taking places on September 8-10th in San Francisco and you can find more information here: www.techcrunch50.com
. Mike Arrington of TechCrunch.com and I started the event last year as a place where fifty startup companies could launch their products without having to pay a fee (i.e. the incumbent conference called DEMO charges $18,500 to launch a startup company–that’s really low/abusive in my book). Google, Microsoft, Yahoo, Sequoia Capital and a bunch of other fine partners have joined us in hosting the event.
I have listed his tips below. If you want the full commentary, go to the article on Techcrunch where he expands on each tip.
1. Show your product within the first 60 seconds
2. The best products take less than five minutes to demo
3. Leave people wanting more.
4. Talk about what you’ve done, not what you’re going to do.
5. Understand your competitive landscape–current and historical.
6. Short answers are best.
7. PowerPoint bullet slides are death
8. How to use this new device called the phone.
9. How to handle questions you don’t know the answer to
10. Always confirm the time of your meeting/call, and always be 15 minutes early.
Jason went on with some more tips in Part Two. He set up Part Two before going into his additional tips.
Last week, I camped out at Sequoia Capital on Sand Hill Road and did rehearsals with most of the 50 companies that are presenting–in fact, launching–new products at the TechCrunch50 event next week. These 50 represent the top 5% of the companies that applied to our demo-style event. Truth be told, the top 150 companies were all qualified to be on stage–if only we could have a five day event with two tracks.
These are the best of the best, and most of them came into “first rehearsal” with a demo that I would rate a seven out of ten. (Yes, I’ve come up with a rating system for these presentations, but that’s another email).
Actor Ashton Kutcher did his rehearsal last week, and I have to say it was kind of ironic to be sitting there giving presenting advice to someone who’s been in, and created, a large number of movies and TV shows. As an actor, Ashton obviously has the ability to draw you in, but presenting a product in this format is a very, very specific skill. He picked it up quickly.
After coaching hundreds of folks over the past two years, I’ve developed 18 solid rules. You can see the first 10 rules over at TechCrunch, which reprinted the previous email with permission here. These extra eight are very detailed and speak to some deeper techniques for capturing people’s attention and transferring your enthusiasm for your product to them.
These eighteen rules are just a framework, and are based on demoing at a conference. However, the rules can apply, to various degrees, to presenting your product to investors, partners and potential employees.
11. Show Don’t Tell
12. Use inclusive words, live in the present
13. One driver, one navigator
14. How to handle technical issues
15. The Setup
16. Horrible ways to start your presentation:
17. Describe your product five times
18. Change up your style (i.e. shift your tone)
Excellent deal terms series
Friday, November 30th, 2007
Brad Feld of Mobius Venture Capital has done a great job of raising issues and sharing experiences with various elements of a VC term sheet with a balanced perspective. So far, here’s what he has…
Brad claims the list is complete (one update below)…
- Conversion
- Liquidation Preference
- Price
- Redemption Rights
- Dividends
- Pay to Play
- Anti-dilution
- Protective Provisions
- Board of Directors
- Conditions Precedent to Financing
- Vesting
- Information and Registration Rights
- Right of First Refusal
- Voting Rights and Employee Pool
- Board compensation
- Update: Restriction on Sales, Proprietary Inventions, and Co-Sale Agreement
Underdelivered VC cliche: Roll up our sleeves
Wednesday, October 31st, 2007
Fred Wilson (a NY-based VC) highlights how most VCs talk a good game about rolling up their sleeves to help out their portfolio companies but few deliver. Fred makes a good case why he strives to be an exception. I’ve observed the exactly same thing. While I think most VCs have the best intentions, they simply don’t have (or make) the bandwidth to really roll up their sleeves (between wading through their deal flow, board meetings, etc. they run out of time). This leaves an opportunity open for venture consultants like Altus Alliance. We’ve consistently found that entrepreneurs are willing to have venture consultants earn sweat equity by rolling up their sleeves whether it’s to play an acting executive role such as a VP of Business Development/Sales or CFO. There’s often a point where the founders are overwhelmed yet the time isn’t right (or the funding isn’t there yet) to hire a full complement of staff. In addition, the talent that is willing to work at a company at that stage is usually less experienced than what a strong venture consulting firm can offer.
10 Commandments of Venture M&A
Friday, August 31st, 2007Bill Burnham has an excellent post on the Top Ten Commandments of Venture M&A. I’ve picked my top 5 below. Go to his post to read the details on these 5 and the rest of the “commandments”.
- Thou Shall Not Give a Strategic Investor a Right of First Refusal, Right of First Offer or a Protective Provision that Enables Them to Block a Sale.
- Thou Shall Write All Customer Contracts And Partnerships Such That They Can Be Transferred to An Acquirer And/Or That Such Contracts Can Be Terminated With Reasonable Notice.
- Thou Shall Not Enter A No-Shop Without Hammering Out All of the Key Terms and Conditions of a Sale First.
- Thou Shall Not Allow A Buyer to Interview Employees Until At Least An LOI is Signed.
- Thou Shall Discuss Exit Expectations With Management and Board Members Prior to Funding and At Least Twice a Year After That.
Entrepreneur’s view of VC investments
Saturday, June 30th, 2007Venture 2.0
Saturday, March 31st, 2007Peter Rip’s post on Venture 2.0 is worth reading. In the first part, he does a preamble on Venture 1.0 that’s worth a read to better understand the current landscape. Here’s his intro to the series… This the first in a series of posts on the idea of “Venture Capital 2.0.” I thought it was appropriate to first set the stage of Venture Capital 1.0 as the point of contrast. This first post is obvious stuff to those of us who have been in the business for a while, but less so for the casual observer. It will be interesting to see if he comments on the implications of fund sizes on the current landscape. In a nutshell, most Limited Partners (“LPs”) don’t want to invest less than $10M at a pop and don’t want to own more than 10% of any given fund. This makes the minimum fund size $100M. A fund can only manage so many deals at a time due to board commitments, etc. thus they typically need to invest $5-10M at a pop. That figure is no issue for some sectors but it is overkill or premature for others leading to unnecessary dilution for founders and current shareholders.
Most startups should avoid venture funding, not pursue it
Thursday, November 30th, 2006At least that’s what Greg Gianforte, CEO of RightNow Technologies, thinks. I don’t think it’s that black & white but the points he makes are good.
Here are some links to past posts about fundraising and venture capital that can shed additional light on the issue:
- The Cost of Fundraising
- VC & Angel relations
- Is Venture business a seller’s market
- Entrepreneur’s view of venture investment
- Fixing Venture Capital
If you do end up fundraising, check out this series on deal terms, etc.
