Volume 1, Issue 1
	As part of our mission of helping emerging companies create sustainable value, Antiphony is launching a new monthly online publication, Antiphony Insights. The goal of this publication is to provide thoughtful commentary and practical, real-world advice regarding some of the key business issues that emerging companies are facing today. We hope you find this information valuable. If you have any thoughts or suggestions, please let us hear from you at insights@antiphony.com.
	Raising Money in the Venture Capital Nuclear Winter Fred Beste has more than 30 years experience as a venture capitalist and is the CEO of the general partners of Mid-Atlantic Venture Funds (www.mavf.com), a leading venture capital firm with approximately $200 million under management. With venture capital investments down 75% over the course of the past year, it's a given that it's tough to raise money these days. However, there are companies that are raising money despite the tough venture capital climate. And, there is a silver lining for companies that do secure funding because unlike previous years, there aren't going to be hundreds of competitors funded for every good idea. So, for emerging companies looking for funding, here are the ten things I would recommend for maximizing their chances of raising money and succeeding in 2002. Face up to it - things have never been worse. To deny this reality is to make your task impossible. Research who is currently making investments and don't waste your time trying to convince a firm which hade made one new investment in the past twelve months that you merit being the second. Get yourself well introduced. This is always important, but more so today than ever before. Develop relationships with venture capitalists before you need the money. Get your first round investors to commit to doing your second round. It is a smart request that is quite likely to be honored, but be prepared to meet specific milestones to trigger that second round. Take a harder look at strategic investors versus corporate investors. Play the industry leader (who's afraid of getting caught by the industry up-and-comer) off the up-and-comer (who's trying to catch the industry leader). Line up interested customer prospects as deep as you can. From a start-up investor's standpoint, there is simply nothing more comforting than looking at a long list of sophisticated prospects that are excited about what you are doing. Be flexible on valuation, but don't give away the farm. Rely on your professional advisors to help you tell the difference between the two. Succeed the old-fashioned way - starve yourself to success. Conserve every penny, cut your salary, offer equity instead of six figure salaries, buy used furniture, pay no bonuses until you reach profitability, bring your lunch from home, etc. Adopt the mantra...This is war. Beat the plan. No second chances. No excuses. In summary, work hard, work long, work smart, and be prepared to make short-term sacrifices in the hopes of long-term gains - because there is money out there for those companies which have the right ingredients for success.		The Next Version of Your Company Jeffrey Babin, Antiphony jbabin@antiphony.com Investors value a company based on the current state of the venture and the management team's success to date. However, the investment opportunity lies in the team's ability to achieve milestones that increase the value of the company and ultimately, to realize a return via a harvest transaction. A growth company's lifecycle is a series of Relaunches each of which is similar to a new release or version of a software application. A Relaunch combines variations of the business model, management, products, and strategies designed to capitalize on market opportunities and adapt to changes in the environment. ACTION: Maximize the value of your company by proactively planning and pursuing each Relaunch. Define a set of aggressive, but achievable, Value-Enhancing Milestones that when achieved dramatically increase the value of the company and provide the foundation for the next Relaunch. Venture Capital: The Definitive Guide for Entrepreneurs, Investors, and Practitioners Joel Cardis, Sam Kirschner, Stan Richelson, Jason Kirschner and Hildy Richelson (ISBN: 0-471-39813-6) This practical book provides a wealth of useful insights and helpful tips for navigating the venture capital process.
	If at any time, you have trouble receiving our newsletters, you are always welcome to read them online at www.antiphony.com If you wish to be removed from this mailing, click here to send us an unsubscribe request. If this issue was forwarded to you and you would like to begin receiving a copy of your own, click here to send us a subscription request. Copyright 2002 Antiphony Partners, LLC. All Rights Reserved. AntiphonyTM is a trademark and AntiphonySM is a service mark of Antiphony, Inc.