What distinguishes Starlight Capital’s introductions of entrepreneurs to investors?

Entrepreneurs have access to a number of companies that offer introductions to investors, from investment banking firms to angel investor groups to individuals who sell leads. What distinguishes Starlight Capital?

Experience and various levels of service:

- 22 years of investor: entrepreneur conferences, in-person (in several cities) and on-line

- The organizer, President Bryan Emerson, has

o 22 years of investment business experience as a FINRA licensed investment banker.

o 22 years of angel investing

o an MBA and

o Entrepreneurial experience: started and sold several businesses in various industries

Focus, Frequency, and Duration of Starlight Capital’s On-line Entrepreneur: Investor Conferences

- Expansion stage companies that have raised some money and/or have some revenues. Not raw start-ups.

- Real estate and prop tech companies 5 times per year

- Technology of all types, 5 times per year

- Investor oriented: no judging or ranking, no sponsor speeches

- 90 minutes on Zoom

Attendance:

- 75 – 130 at each event

Registrants and Investor database:

- Starlight Capital maintains an active database of 30,000 investors. Many are colleagues and co-investors over 2 decades. Most are finance professionals who own, manage, or work for investment firms (private equity, family offices, venture capital, investment banks, commercial banks). They participate in Starlight’s network as angel investors, but also with an eye for future interest by their firms.

- For each event, 500 – 1000 people register. Presenters who commit in a timely manner are introduced in the subsequent email outreach to all investors, so those who attend are primed and interested in those company presentations. Afterwards, the presenters receive the contact information for ALL of them. The presenters follow up to schedule one on one discussions.

Number of presenters selected/considered:

- 5 or 6 out of about 100 considered for each event

Agenda:

- Presenters pay to provide a 5 or 10 minute video presentation followed by 5 or 10 minutes of live Q and A. The audience enters questions and their contact information in the chat box. All can save the chat box of questions and contact information. Open microphone after the presentations for the audience members to describe their businesses.

Services available to presenters:

- Pre-conference preparation package

- Post-conference spreadsheet of all registrants for follow up

- Optional appointment setting for the presenters with the investors

- Optional help with presentation materials

- Free referrals to potential board members and vetted business professional services (such as pre-money valuation services)

As entrepreneurs embark on the quest for capital, we encourage you to compare what distinguishes Bryan Emerson and Starlight Capital from other sources and opportunities to meet investors.

Questions to Ask People who Offer to Introduce You to Investors

If you seek debt or equity investment in your expansion stage business but lack access to investors in your sector, you are probably exploring businesses that (a) invest on their own and/or (b) offer introductions to investors: angels, family offices, private equity, or venture capital.

To assess whether individuals and businesses that promise to introduce you to investors have the right contacts for you, you might want to ask the following questions.

QUESTIONS:

· How long have you been in this business?

· Do you specialize in a particular industry sector, stage of company development or geographic region? (For example, an angel network in New Jersey specializes in healthcare businesses. A conference in Alabama invites SaaS entrepreneurs, but is educational rather than investment oriented. It features industry speakers, sponsors, and panel discussions.)

- How many entrepreneurial clients have you had? Any repeats?

· How many investors are in your contact database? Did you buy the list or did it grow organically through your business?

· At your price of $x (per month or once only), how many investors will I meet, and how (in person in a group or individual meetings, on Zoom in a group meeting or individually, or by email? ( Now you can calculate the cost per introduction and how “warm” it is. Is the fee $5000 or $500 or $50 or $5 per investor contact?) Will you provide me with contact information for all/some/none of the attending investors?

· What percentage of the introductions you will make are to people you know personally?

· At your price of $x, what do you do and what do I do to engage with those investors?

- (For example, one company charges $80,000 for entrepreneurs and brokers to mingle with family office professionals over the course of a weekend. Introductions are up to you.

- Another charges $25,000 for a high-end weekend where aspirational individuals can rub shoulders with politicians and wealthy individuals. Introductions are up to you to attract their investment.

- A company in India charges $1500/mo to send about 6 email introductions per month on behalf of the entrepreneur to investors from a list that it bought or sourced through the Internet).

- Angel networks may charge nothing to the entrepreneurs they accept, but only those who meet their criteria to present to their roster of investors.

- Other service providers charge a nominal sum, like $50 or $100 for entrepreneurs to compete in front of a panel of judges or to learn from a panel of industry insiders, but few investors. )

- Incubators charge a fee for a "boot camp" sort of training or charge by getting a certain percentage of your company. At the end of boot camp, they may introduce you to investors or invest themselves. (For example, one incubator charges $7000. Another charges 10% of the start up company).

·

· What is your background in investment or entrepreneurship? What are your relevant educational credentials? Where are you located?

· Do you invest yourself? With what criteria?

· Have you earned securities licenses? (If so, look up the person’s record on Broker Check at www.finra.org, which is the licensing entity for investment banking firms and individuals in the USA. A surprising number of people who are NOT licensed and NOT registered with FINRA or the SEC call their firms investment banks, or call themselves investment bankers. Beware). If not registered, these individuals and firms cannot legally earn a commission on funds raised. Those who promise this may be preying on uninformed clients.

Companies that offer to introduce entrepreneurs to investors vary greatly in their contacts, methods of engagement, and target client. Scrutinize their websites, ask good questions, and look for referrals and testimonials.

Government R&D Funding Opportunity For Early-Stage Technology Companies, Peter Gladis – President

Register for the next event:- https://www.starlightcapital.co/event-info/private-equity-forums-technology-april-6-2023 Recently, Bryan Emerson published an excellent article, “Why Is Early-Stage Equity Funding So Difficult?” In it, he accurately outlines the funding challenges faced by investors and early-stage companies: High Risk; Competition for Funding; Lack of Market Credibility; Difficulty in Establishing Valuation; and Lack of Liquidity.

As an independent consultant, I have worked with many of these small companies. I have seen how difficult it is for them to attract private funding. I have also spoken with many investment firms about supporting these pioneering technology companies. Although appreciating and recognizing their potential, investors often, and understandably, conclude it is too early and too risky at this point.

The result is that too many innovative technologies never get developed or launched. Too often, the companies enter the dangerous “Valley of Death” – running out of R&D funds and finding themselves too early for private equity investors – often going out of business.

This is why I believe U.S. Government programs like the “Small Business Innovation & Research” (SBIR/STTR Program: SBIR.gov) can be so important to BOTH the investment community AND small technology startups. This Program was established by a Law of Congress 40 years ago. Its stated purpose is to increase the private sector’s commercialization of new technologies; stimulate technological innovation; encourage participation in entrepreneurship – especially by women and disadvantaged entrepreneurs; and foster technology transfer between small businesses and research institutions (STTR). By supporting these small businesses, high-tech innovation will be stimulated, and the United States will gain new entrepreneurs and successful businesses.

Over 20 U.S. Agencies support this Program. Although the grant/contract sizes vary somewhat by Agency, in general, this multi-phase Program can offer up to $2 million in non-diluting government funding. And the small business retains 100% of its IT. I have been associated with The National Science Foundation’s SBIR/STTR Program for over 12 years (America’s Seed Fund – NSF SBIR/STTR | NSF SBIR), and it is my belief that the SBIR/STTR Program complements the important efforts of investment firms like Starlight Capital by de-risking young companies. Obtaining public funds like SBIR/STTR prior to asking private investors to participate can offer an important “safety net” for investor organizations. In addition, getting an Award from a prestigious U.S. Agency like the NSF, NIH, NASA, DHS, and others, provides strong market validation for the small company and its technology, and offers a level of ‘esteem” that few startups ever can demonstrate.

This article represents Mr. Gladis’ personal thoughts and observations as a private businessman. He does not officially represent the SBIR/STTR Program, nor the National Science Foundation, where he has been an SBIR/STTR Grant Proposal Reviewer for over 12 years. Peter is the President of Peter Gladis Consulting, LLC (PeterGladisConsulting.com). He is also the Director of Market strategies for STAR Associates, Inc. (STAR Associates, Inc) providing corporate, technology, and product development, IP analysis, market landscape assessment, competitive strategies, and financial transaction advisory services to public and private companies in emerging technologies. He can be reached at pgladis@petergladisconsulting.com and 860-518-5515. Written By:- Peter Gladis – President, Peter Gladis Consulting, LLC