Operating a venture capital firms is like sailing a small boat in a big ocean: the majority of firms sink due to flaws in their nature or just pure bad luck. However, a few of them survive and grow into companies like Facebook or Paypal. Held annually, Grow Conference is a platform for venture capital firms to connect, exchange ideas, and even seek potential funding for their companies. It completely blew my mind as I have only been to “traditional” networking events within accounting and finance industries.
Presentations by various firms were some of the most dynamic and creative ones I have ever listened to. Not only did they provide unique business ideas, but they proved how small ideas can change the world. For example, the principal of Indiegogo, Adam Chapnick, brought financing for companies and individuals to a whole new level. Indiegogo is a site where groups and individuals can “crowdfund”– essentially, “people funding for people”. As a result, with the greater amount of updates and feedback from the public, as well as the funded group, people are more inclined to contribute. Indiegogo has changed the traditional views of funding for both groups and individuals, and it has also brought people together to help each other out.
I also had the opportunity to learn about angel investors. Dave McClure is an entrepreneur and a “super angel investor” – he has helped many startup companies raise initial capital and grow. Because resources are scarce and there are just too many passionate individuals with great ideas, angel investors are usually very realistic and straight to the point. For instance, the final “smackdown” of the conference was a very interesting activity: several individuals with their own start-up companies went up on stage and described their business ideas and their milestones. After the two-minute description, a couple of angel investors rated their ideas and commented on whether or not they would invest in it. It was an intense and interesting process because on the stage, presenters tried their best to attract the attention of angel investors. On the other side, angel investors gave the most brutal and realistic comments regarding their business plans. At this moment, I realized that entrepreneurs could only survive if their ideas “work” and that nobody will sugar coat their feedback because it is such a fast-pace and competitive environment. This can also be very different from the accounting and finance settings I’m used to, where people generally do not criticize each other that harshly or speak their minds so bluntly. I think the core reasoning is that there is a high failure rate and expensive initial investment for venture capital firms; thus, stopping someone with a bad idea is more helpful than seeing them fail badly in the end.
This Grow Conference has opened my eyes and made me think. It is certainly a unique and interesting experience that I have gained so much from.