Posts Tagged ‘entrepreneurs’

The InsurTech Deficit

Tuesday, October 3rd, 2017

Who has done anywhere in the world what you would ideally like to accomplish? Who can help you translate that knowledge into wise decision-making consistent with your own strategic direction and goals? Who can help you acquire the skills, behaviours and expertise to institutionalise that learning?

We have reached a point in certain areas of tech, not least insurtech, where the numbers of entrepreneurs and advisers entering the arena weekly are greater than the number of entrepreneurs and businesses globally progressing from Seed stage to Series C stage. This week in Las Vegas and London, predictably, there will be thousands of promises made. The reality is that there are very few qualified advisers or investors. Certainly those that pass the above “litmus test”. Be careful, very careful.

© James Berkeley 2017. All Rights Reserved.

Stanford for Start-Ups

Tuesday, November 8th, 2016

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“There is nothing special about Stanford, everyone around the Bay Area tech scene has been there”.

Those were the throwaway words from a West Coast adviser, when I first mentioned that I had been asked to speak to this year’s class in Stanford’s Continuing Education program. Of course, those comments were directed to the university students, not the global audience of largely mature students and entrepreneurs enthusiastically engaged in a discussion about capital raising. Here is my findings from a really informative session:

  1. The dynamics of raising money at any stage are largely similar but the consequences vary immensely. When less than 25% of seed-funded startups fail to get to the third funding round (they have died, been acquired or are self-sustaining), many entrepreneurs overlook the importance of building and nurturing really strong personal support systems. Family, friends and wise counsellors, who have your best interests at heart, are willing to provide frank solicited advice and a supportive shoulder, when it doesn’t work out.
  2. The in vogue buzzwords are “agile money”. I prefer to talk about “resilient money.” Finding investors sufficiently agile to adapt to your changing needs is helpful but finding those that are sufficiently resilient in the tough and the good times, is really the gold standard.
  3. More than 80% of the class are positive about tech investment in the next 12 months and don’t believe we are in a tech bubble.
  4. Students often ask tougher questions of themselves than serial entrepreneurs. “How do I give myself the best shot at being a successful entrepreneur?” Perhaps it is the desire not to repeat others mistakes or the willingness to readily invest in improving their own skills, behavioural traits and expertise. Too often the mindset flips for the entrepreneur in the real world, “let’s save every cent”, when investing in their own personal needs (mentor, coach, advisor) is critical to their success.
  5. More than 60% are intrigued by corporate venture capital but certainly not beholden to its’ charms. Great question, “Why are corporate businesses suddenly experts in startup investing?” Many believe that CVCs remain highly susceptible to short-term changes in executive decision-making.
  6. Entrepreneurs learn best when they are willing to be vulnerable. In our case, to jump into the role play seat with little preparation and test their abilities to direct the conversation with an investor towards their desired goal.
  7. Understanding the distinctions between public and private investors such as a traditional VC Fund, a Family Office and a Corporate Venture Capital fund requires thinking about the future, not just the present or the past. What are their highest potential future needs? How are you uniquely qualified to address those needs?
  8. We over estimate geographical differences. A multi-lingual global audience of 75 entrepreneurs drawn from 5 continents, brought together by a singular objective, to learn the shortest quickest route to their desired objectives.
  9. Technology won’t replace “in the classroom” learning but tools such as Zoom, enable an increasingly intimate learning experience that certainly narrows the gap, at a a fraction of the cost for the host, guest lecturer and students.
  10. There is something special about Stanford – its’ global brand power. The ability to charge a premium price for global learning, to attract globally re-known lecturers and a culturally diverse group of students. I learn more than the students at these events and I can highly recommend it to others.

© James Berkeley 2016. All Rights Reserved.

James Berkeley to Speak to Stanford Continuing Studies Start-Up Class On Uncommon Early-Stage Capital Raising Approaches

Wednesday, October 19th, 2016

 

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Berkeley to Discuss Strategy and Tactics for Global Entrepreneurs  

London, England— 19th October, 2016

James Berkeley, Managing Director of ELLICE CONSULTING LIMITED will be speaking to  the Fall 2016 class, “How to Build Successful Startups,” about how to get investors eager to meet you, the behaviours that turn them off and why “CASH”, a concept developed by Berkeley, is the quickest route to obtaining committed capital. The online Zoom session is scheduled for Thursday, 20th October, 2016 and is being co-hosted by Continuing Studies Program instructor John Kelley.

“I am constantly amazed by what I didn’t know two months ago. In bringing hundreds of investors and entrepreneurs together from around the world to address complex and ambiguous growth investments, continuing education is arguably the most under-valued aspect of the entrepreneurial journey. We invest blood sweat and tears in our business ideas and ask investors to validate their judgement by deploying scarce capital, yet as entrepreneurs we are often remiss in investing appropriately in our own skills, expertise and behavioural traits”, notes Berkeley, an expert in sourcing and deploying capital in world-class businesses. “The future for entrepreneurs is about “CASH”. Compulsive content, abundant credibility, striking rapport with investors and huge cash-on-cash returns. The good news, it has never been easier for entrepreneurs to stand out from the crowd so long as they are willing to engage with investors beyond the obvious steps.” Berkeley will help participants to translate his success practices into practical action for immediate application in their own businesses.

James Berkeley brings entrepreneurs and investors, who never imagined collaborating together to turn a business concept into an organisational reality. Today: an idea. Tomorrow: committed capital. He has worked extensively with North American, European, Middle Eastern and Asian venture capital funds, corporate venture capital, Family Offices and HNW entrepreneurs seeking proprietary deal flow and strategic deployment of capital into remarkable business ideas. He has helped over 120 investors and entrepreneurs in insurance, financial services, leisure, business services and technology source capital and accomplish record amounts of value creation in the past 5 years with impressive cash-on-cash returns.

Fishing For Investors

Monday, August 22nd, 2016

 

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In August the docksides and inlets in North Norfolk are lined with kids casting bait (bacon or salami are highly effective) on primitive fishing lines to catch the abundant crabs that lie close to the surface. Perhaps the crabs know the odds are stacked in their favour or they are so greedy but little boys and girls pluck them out at will before returning them to the sea.

What would entrepreneurs and executives give for a similar ease with the capital raising process? The reality today is that unless you are a well known “brand” with a powerful investor network, raising money is hard. Investors can be very choosy, they largely congregate in locations with big clusters of potential businesses to invest in and they are drawn to people, who have demonstrably made investors serious cash on cash on multiple occasions.

1. What are you doing to dramatise your value to your ideal investor(s) and the singularity of your investment proposition? (Use of powerful language, a peer of opinion makers, harnessing evangelists, creating excitement and so forth)
2. Why invest in you? (“Hot” proposition in the investor’s sweet spot)
3. Why invest now? (Brief window of opportunity)
4. Why invest in the manner you are proposing? (Special circumstances).

Time is the most precious commodity. You cannot rely on the kids fishing line, you must caste a fishing net to attract potential investors. You need to know where the high potentials reside. You need compelling “bait”. You need multiple conversations to be constantly moving in parallel, not sequential stages. You need to be constantly replenishing the investor pipeline with high quality leads. This is not a kids sport, this is your wealth at stake. Time to get serious.

© James Berkeley 2016. All Rights Reserved.

The Insurance Corporate Venturing Pulse

Monday, July 18th, 2016

When you introduce two good friends that you know from two completely different walks of life, there is that pregnant pause in which both seek to find a common connection and language to build a relationship. To the introducer, it seems perverse that there would be a delay, you know both people intimately and you have thought long and hard before introducing them. So I liken the insurtech corporate venturing world today.

Inherently it makes sense that entrepreneurial tech businesses have the capability to transform venerable insurance businesses. In most cases there are shared values and a receptiveness to make a relationship work. Yet there is an uncertainty born of speaking different “languages” and the reality that operates in their respective sectors (resisting and embracing change, regulation, corporate bureaucracy and inertia).

Having assisted a number of businesses on both sides of the table, here is my current take:

  1. The quantum of insurance tech money will double in the next 24 months. There will be a greater concentration of capital in the hands of a smaller number of powerful brands (VCs, CVCs and UHNWs), who are able to raise capital faster.
  2. You will rarely hear about the failed insurtech investments but be certain 80% of the so-called strategic investments will never be strategic, in that those technologies are successfully adopted into the insurance corporate venturing unit’s mothership.
  3. Only 50% of an insurance corporate venturing unit’s invested companies today will be their best corporate investments next year in view of internal and external changes.
  4.  A more formal insurtech investment ecosystem will arise with greater concentration in a smaller number of hubs (Silicon Valley, New York, London, Singapore) that foster innovative environments. If you are not “present” locally, as a service provider, you will not be in the game.
  5.  Speed will be as, if not more important a factor than the quality of the capital, for entrepreneurs in the best insurtech opportunities. Bad news, for insurance corporate venturing unitss with long decision-chains or timelines.
  6. Insurance corporate venturing units that create a powerful gravity to their brand will triumph over those who are largely reliant on opportunistic investment ideas landing in their “inbox”. Heightened importance of peer referrals, networking, publishing, speaking, writing and so forth.
  7. With increasing numbers of people in the insurtech ecosystem, there will be a filtering out of people (entrepreneurs, investors and others) who are truly centres of expertise and objects of interest. Having your CEO make blow-hard statements about his visit to Google, facilitating an insurance disruption event or thinking that merely pushing out generic position papers on your own or a third party’s platform will get you there, is a fool’s paradise.
  8. Tech entrepreneurs that live at 35,000 feet and are beholden to the future without regards to the health of today’s insurance industry, today’s realities of marketing an early stage business and today’s decision-making are living in cloud cuckoo land.

Copyright James Berkeley 2016. All Rights Reserved.