By guest authors Irina Patterson and Candice Arnold Irina: On average, how many pitches do you receive per month? Dave: From 50 to 75. Irina: And out of those, how many deserve a closer look? Dave: Every year we typically make, per investing partner – there are two of us [another partner is Dafina Toncheva]
By guest authors Irina Patterson and Candice Arnold This is the thirty-second interview in our series on financing for entrepreneurs. I am talking to Dave Whorton, the founder of Tugboat Ventures, an organization of investors who see themselves as not “venture capitalists” but rather as “mentor capitalists,” closer in spirit to the approach pioneered by
By guest authors Irina Patterson and Candice Arnold Irina: What do you think angels could do to improve the entire entrepreneurial ecosystem? Dave: It seems the most important thing is providing small amounts of capital early on when companies are getting started and providing advice and support, either in business or product development or marketing.
By guest authors Irina Patterson and Candice Arnold Dave: When I receive a referral from someone, I always ask, “Are you investing?” If he’s not investing, I really want to understand why. Why does he think if he’s not going to invest that it’s a good opportunity for us to invest? I sort of hold
By guest authors Irina Patterson and Candice Arnold Irina: When you’re deciding whether to invest in a company, to what factors do you give the most weight? Dave: Usually, product is the most important to me. But I think a lot of people say team is most important. I do agree with that, but it’s
By guest authors Irina Patterson and Candice Arnold Irina: So, what’s your return target? Dave: I think 10x to 20x is the ideal target. Obviously, if we get more than that, that’s great. But that’s probably not the typical scenario. In most cases things don’t work and usually we get zero. I think we have
By guest authors Irina Patterson and Candice Arnold Irina: Do you hold any events for entrepreneurs? Dave: Actually, I put on a decent-sized 300- to 500-person conference on a quarterly basis. I also run a lot of user groups and events, meetings, and dinners. We’re running one called Warm Gun, a conference about design and
By guest authors Irina Patterson and Candice Arnold Dave: We are a little bit different from many other programs where the advisors are primarily coming from the investor category. In our world, those are mostly coming from the operational field category. Most of our mentors are coming from engineering, marketing, or design backgrounds, maybe product