On this 5th anniversary of Katrina, there has been much reflection about New Orleans.  We have made many strides as a city, yet there remains much work to be done.  The city is broad and diverse and I wouldn’t for a minute pretend to know the challenges that so many have faced over the last five years.

One bright spot has been the emergent entrepreneurial community in New Orleans.   I been a New Orleanian equal parts pre & post storm now, and it amazes me how different the business climate is today.  There is a collaborative, bootstrapping, can-do spirit driving us and the last few years have been the most inspirational of my business career.  There is something truly special going on in New Orleans right now, and I am humbled that the people of Launch Pad, our community, is playing such an vital role in this resurgence.

There has been plenty of coverage this week about what is going on in New Orleans, and I wanted to share some of it with you here.  Thanks to everyone in New Orleans for being here and to everyone else for your love and support!

• The Daily Beast
• NBC Nightly News
• NPR – All Things Considered
• CNN

This post has been coming together for a while, and I’m excited that I am finally getting a chance to share the coming capital options for startups in NOLA.  My feeling for a while has been that the seed capital gap and lack of VC in general in Louisiana has been one of the biggest challenges facing startups.  The Receivables Exchange had to go raise its capital outside of Louisiana.

As far as local angel funding, here’s what I wrote to Ben Rosen after his visit to New Orleans last week during Launch Fest:

The next step is to develop a strong, active, angel community to fund these companies, and keep them in New Orleans, rather than needing to go to Austin, NY, Boulder or the Valley for capital & talent.

A big part of our mission at Launch Pad is getting the investment community familiar and comfortable with these types of investments, which may be non-traditional for the region where wealth has traditionally been generated through oil and gas and the port.

It appears that we are on the verge of a tidal shift in the availability of capital for startups locally (fingers crossed).  Here are some of the things that are happening now and on the horizon.

• Idea Village – open – an eight year old non-profit that provides grant funding & educational curriculum. The 2010 class has just completed, and the application process for 2011 will be open towards the end of this summer.
• Leap Frog Ventures – projected launch Q3 2010 – a non-profit evergreen fund that Leslie Jacobs, Rick Rees, and Ben Allen are putting together in conjunction with GNO Inc.  The fund is based on the JumpStart program in Cleveland OH. Projected to raise $5-8 million from public and private sources and make seed investments of $250,000 – $500,000.
• GNO, Inc Opportunity Fund – projected launch Q3 2010 – this is a fund that will package CDFI funds from local banks into an evergreen investment fund that will make low interest convertible debt loans to local startups.  I am unsure of projected raise, the average size of loans is likely to be around $250,000.
• South Coast Angels – open, currently accepting pitches – this is a local angel fund managed by Clayton White and Choose Taurman.  This is a member managed angel fund, so it is different than an angel network like the events we do at Launch Pad.  My understanding is that they have $2-3 million committed and they are currently seeking investment opportunities of $250,000 to $500,000. They are using AngelSoft software to manage the application process and you can find out about it here.
• National VC Activity – starting – one of the best opportunities I see is to build strong ties to the national VC community, particularly NY, Boston & Austin.  The Kraft Group investment in NakedPizza led to Steve Schlafman’s participation in Launch Fest.  In addition, David Safaii of Windspeed Ventures came to Launch Fest and is getting connected with the local community.  Nurturing and strengthening these ties is critical.
• Barrett Vernon Montgomery LLC – open - Disclosure: Investor in Launch Pad.  Currently managing two funds.  Funds under management: $30 million. General size of investments are seed investments of $100,000 to $300,000 with follow on capital of up to $3 million.
• Long Branch Ventures – open – Michelle Oaks has been an active angel investor in the New Orleans community over the last two years.  Long Branch invests in early stage companies with an investment criteria that includes the company be based in Orleans Parish.
• Trumpet Ventures – open – Spun off from Trumpet Group in 2009, Trumpet Ventures invests financially and also by providing services in exchange for equity.
• Launch Pad Angel Network – open – We host quarterly angel pitch events at Launch Pad at the IP.  We hosted the last one during Launch Fest where we had ten 5 minute pitches by entrepreneurs.  70% of the startups were invited to contact an investor following the pitches.  Range of capital has been early stage prototype to seed capital.
• Voodoo Ventures – open – Voodoo recently made an investment in Jackson Square Group.  I am open to other strategic investment opportunities.

I am particularly excited about the new funding sources coming online listed above.  While I still believe that we’d benefit greatly from a seed accelerator program, and Launch Pad has some things underway to launch one, I think the capital is going to be flowing locally in the next 6 months to a year looking for deals.  If you have a startup idea, now is the time to get your business plan, or better yet, prototype together.

If I’ve made any mistakes above, feel free to contact me.  If you are a source of capital, and would like to be listed, please add a comment, and I’ll add you to the list.  Here’s to solving the seed capital gap in New Orleans!

Lots to report, I’m gonna do it Marcoullier-style and keep it as concise as possible:

SXSW

• Net2NO <3 SXSW road trip rocked. See pics and wrapup. Thanks to all sponsors. Video coming soon.
• Our Outsourcing 2.0 Panel went great. Not as many fireworks as we expected, but good discussion. Thanks to Sandeep, Andrea and Matt for all their hard work and to a great audience (200+) for turning out. Read more on Twitter.
• Loved getting the VC dialogue going with Taylor Davidson. He ran a great panel that I missed and is a thought leader on where funding is going. I’m paying attention.
• Had a blast getting the post-panel jitters out with Mike Bonifer. It was a game changer for my afternoon.
• Learned a ton about co-working and building earning whuffie. Connected w/ co-working space catalysts in Tony in NY, Chris in Phoenix, & Matt in Houston.
• Loved connecting with the LA & SF tech scenes at the LA BBQ and their panel. Thanks to Gerard, Sloane (welcome to NOLA), Andrew & Paige.
• The NOLA party @ Lucky Lounge was hot. DJ Othertempo and Austin Knights Brass band killed and Larimer ran a tight show.

IDEACorps

• Idea Village just hosted six teams of MBA students working with local entrepreneurs on spring break.
• I was honored to be invited as a panelist and sat alongside some very invigorating folks.
• Had a great conversation with Robbie Vitrano about the need for a mentorship-driven seed capital fund. More to come.
• Congrats to Feelgoodz, Project 30-90, and Naked Pizza on all they accomplished.

Upcoming – WordCamp NOLA

• John Ramirez has been working night & day to put this conference together. He’s had quite a vision and is pulling it off.
• 11 days left and only 34 seats left to go. Get tickets now!
• We’ve lined up some great presenters and panelists, check out the lineup.
• Ben Huh from FAILblog and LOLcats will be here. Nuf said.

More Upcoming

• Tritico is getting the steam behind an upcoming BarCamp. Let’s make this happen.
• We’re going to do a pre- French Quarter Fest bloody mary geek breakfast with Eric Marcoullier when he is in town April 18th. Stay tuned.
• Tiffany Starnes is getting Social Media Club New Orleans off the ground. Interested? Hit her up.
• Shameless Plug – Launch Pad will be opening in May. Sign up now for 50% off first month.

That’s it from Voodoo HQ. Lots brewing. Come back for a fresh cup soon.

I’m thrilled to announce that Benjamin Reece’s company, Deltree will be moving into the LaunchPad @ Voodoo starting tomorrow!

Ben and Tung Bach Ly were over here at the offices yesterday, and they are already designing the editing studio environment and making themselves comfortable. They are going to be a fantastic addition to the creative, collaborative workspace we are building.

Deltree is rapidly becoming one of the preeminent film and creative studios in New Orleans. The runaway viral hit, 50 People 1 Question has generated buzz all over the internet and led to immediate expansion opportunities for Deltree including work for 504ward, Canary, Trumpet, Crush & Lovely, and a music video for Lucky Dog Audio.

In addition to moving into the LaunchPad @ Voodoo, I’m pleased to announce that Deltree submitted the winnning logo to the Launch Pad logo design content. We’ll be showcasing the logo as well as updates on the progress of the Launch Pad in an upcoming post.

In the meantime, on behalf of Voodoo Ventures, Tanguis Development, Zydego… Welcome, Deltree!

We opened the contest today to design the logo for Launch Pad over at Crowdspring. If you’re interested, we’d love to see what you’ve got. Design the winning logo and win $250.

Check out the details for the project and requirements. We can’t wait to see what you’ve got.