Capital Access for Startups in New Orleans

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!

TribeCon – connect with your community

tribcon-tempI’m excited to share more details about TribeCon, a conference about communities – both online and offline.  Tiffany Starnes and I have been working for the last six months to put it together along with a lot of help from our Tribal Council and a lot of friends from Net2NO.

We’re producing the conference in partnership with the Voodoo Experience.  TribeCon will be the official interactive component of the Voodoo Experience.  This is a tremendous opportunity for TribeCon. The Voodoo Experience has grown into a huge annual music festival, and together we can build TribeCon into a integral part of the experience and a major interactive conference.

So let’s get to the details:

  • What: TribeCon is a conference about building communities, online and offline.
  • When: October 29-30, 2009
  • Where: Voodoo Experience – City Park, New Orleans, LA
  • How much: $169 for TribeCon includes single day Voodoo Experience ticket. $269 for TribeCon includes three day Voodoo Experience Ticket.
  • Who: The speakers are all people passionate about building communities.
  • Why: Building a community around your brand, cause, or mission is the most powerful way to grow.  Today’s social networking tools make it possible to reach your audience in powerful new ways to build a movement.  At TribeCon you’ll learn how to build community online to effect action offline.

Why does TribeCon need New Orleans?

One of the things I’m most excited about is bringing the conversation about authentic online communities to New Orleans.  Having the Voodoo Experience has a partner enables us to make this truly a world-class conference.  TribeCon connects with New Orleans because we have such a deep sense of community here.  From the Mardi Gras indian tribes to front porch neighbors, New Orleans culture is rooted in community.  Andrew Larimer, Tim Soslow and Matt Tritico will be curating a special panel presentation that will be a celebration and exploration of community in New Orleans.

Inspired by SXSW, and now TribeCon is just six weeks away.

The idea for TribeCon was inspired on the Y@ Pack trip to SXSW organized by the Net2NO community.  We had such an amazing experience together, and it was truly amazing what a motivated community can accomplish.  On the bus ride back from SXSW in March, we hatched the idea for TribeCon.  We pitched it at the GNO Inc Digital Media Alliance meeting in May, and though I regrettably made a couple of miscues in my pitch (ugh), we started to line up support and Robbie Vitrano helped us line up meetings with Rehage Entertainment.

So after a long summer of laying the ground work, here we are, just six weeks away from the inaugural TribeCon, with a supportive partner in the Voodoo Experience and a tremendous slate of speakers. Tiffany and I are both getting much less sleep these days, but we’re doing it, and really excited about producing TribeCon.

TribeCon is important to the tech community, and important to New Orleans.

So, you’re interested in getting involved? :)

Fantastic.  We need your help to make this a success.

  • We’re bouncing a lot of ideas off our friends and supporters in the Tribal Council.  Everyone on it has been tremendously helpful and it has really shaped what this conference is, in addition to helping us make decisions on branding, marketing, content and more.  Membership is open to all, so join the Tribal Council.
  • We will be looking for volunteers to coordinate a number of things for TribeCon.  If you’re interested getting to TribeCon for free, please contact us.
  • We’re also looking for sponsors to support TribeCon and connect with an audience of community activist and online influencers.  We have a sponsorship package that we can send you, please let us know if your interested, or know someone for us to reach out to.
  • Stay updated with all of the latest, follow @tribecon on Twitter.
  • Ready to sign up? Great, head on over and buy a ticket to the conference.

Thanks to everyone for all your support.  We’re excited to present TribeCon and connect with the community.

Have more questions? Hit me up in the comments! Thanks.

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