Earlier this year, EquityNet was announced the Microsoft BizSpark startup of the day. Microsoft recently sat down with EquityNet’s President and CEO, Judd Hollas. Below is a recap of that interview:
Tell us who you are and your role in the company:
I am the founder and serve as President and CEO of EquityNet. I am also the chief architect of EquityNet and continue to lead the Company’s efforts to create and introduce innovative new software solutions.
Originally Published: January 31, 2011 by Bob Rice
The rise of private market networks is changing the capital markets and opening up new opportunities for business leaders and innovators.
In that ancient, un-networked world where public stock markets evolved, such markets were the only way that nascent companies could reach huge numbers of potential investors and that investors could trade with one another. Investment bankers and their well-established interrelationships provided the only practical path for finding merger or buyout candidates. And the key technologies for marketing your new hedge fund or selling your limited partnership interests were the (land line) telephone and your broker’s Rolodex.
Traditional business plans have little value as a fundraising tool according to new research from the University of Maryland. The study finds that, although the planning process is important to business success, the business plan itself is an inefficient means of communication between an entrepreneur and an investor. By their nature, business plans are highly non-standard and are therefore laborious to review and compare to other non-standard plans. After studying the business plans of more than 700 companies, the Maryland researchers found that time constraints prevent venture investors from studying each plan in detail – and that investors make initial screening decisions based on sparse information… not on a formal business plan.
MoneyTree offers a quarterly study of venture capital investment activity in the United States. This industry-endorsed research is a definitive source of information on emerging companies that receive financing and the venture capital firms that provide it.
The University of New Hampshire Center for Venture Research is a multidisciplinary research unit with principal expertise in the study of early stage equity financing for high growth ventures. The Center undertakes and publishes numerous studies in the area of early-stage equity financing of entrepreneurial ventures.
For the last seven years, EquityNet has conducted an extensive body research in the areas of Entrepreneurship, Private Equity, e-Marketplaces, Private Enterprise Survival Risk, and more. We are often asked what caused us to begin doing what we’re doing. There was no eureka moment in the shower. Much of the idea that evolved started with these studies:
- At the Individual Level – Outlining Angel Investing in the U.S. (Robert Wiltbank, 2005)
- How Venture Boards Influence The Success or Failure of Technology Companies (Dennis Jaffe, et al, 2003)
- Research of Venture Capitalists’ Decision Making (Dean Shepherd, 1997)