Yesterday I was reading an article from CNN online entitled “Shouting into the unfunded abyss.” Author Chadwick Matlin synthesized the writings of entrepreneur Adam Neary concerning startup funding. In his original Blog posting, Neary described several realities of entrepreneurs seeking funding:
- A lot of entrepreneurs out there are struggling to get funding.
- Random luck seems to have a lot to do with finding money
- Perhaps forming a community is part of the answer
I would be interested in hearing from you: do you think it would be a good idea to form a community of Entrepreneurs seeking funding?
By coincidence, I made a presentation on behalf of a client at the Funding Feeding Frenzy event in Chicago last week. Modeled after Shark Tank, more than 30 entrepreneurs pitched to investors in front of an audience and received advice and opinions on their fundability.
What I took away from the event is that there are many entrepreneurs seeking funding here in Chicago and according to the panels some are more fundable than others. It was really good to spend the day rubbing elbows with other entrepreneurs who are seeking funding and coping with the myriad of realities of being a startup entrepreneur. Neary originally said in his article that he felt really isolated, and I can imagine that many of the entrepreneurs that I met that day felt the same.
Neary recounted that he solved the problem of isolation by moving into a communal workspace where he worked side by side with entrepreneurs. He also profited by their contacts, because when a venture capitalist visited with a neighbor of his in the workspace, they visited him as well. Eventually, he did find financing for his startup. The article inferred but did not say right out that it was as a result of locating his company in the communal workspace.
I think that there may be something of value in the idea of a community for entrepreneurs that are unfunded. Apart from there being a lot of unfunded entrepreneurs out there, it could be a way to begin helping each other through the difficulties of finding funding for their new enterprise.