Innovation & Job News

Maryland entrepreneurs get a hookup at FundingUniverse event

Tuesday, June 22, 2010

What do you get when you take the setup for a television talent show, that includes a panel of judges and audience, but replace the singers, dancers and comedians, with entreprenuers? The result isFundingUniverse's CrowdPtich, which was hosted by Towson Global last Wednesday at Towson University.

Billed as the "American Idol for entrepreneurs," CrowdPitch offers selected technology-based entrepreneurs 4 minutes to pitch to both a panel of business experts and a live audience of 60 to 80 spectators. The winner is selected based on the number of votes received from the audience and the panel of judges that included, Dave Troy, Baltimore Angels; Rick Faint, Evergreen Capital; Laura Gamble, Skipjack Partners; and Adam Suri, Maryland State Department of Economic Development.

Some 55 companies applied to participate in the free event, but only 5 were selected, ArtiNNet Corp., MYiLIVE. Port Networks, Tots2Tweens, and WinTheTrophy. The winning company receives more than $8800 worth of services, including startup services and Amazon: web service from FundingUniverse and is also profiled in the company's newsletter that goes out to 120,000 subscribers.

FundingUniverse also offers the companies a pre-CrowdPitch coaching session, one of the most beneficial aspects of the experience for entrepreneurs, says Monica Beeman, regional director for FundingUniverse Maryland.

"ArtiNNet won CrowdPitch. The company, VoicePath, won with its voice-activated security software for cellphones. It has 99 percent accuracy rate, which is greater than AT&T, Verizon and the government have at this point. He won because he has a couple of contracts in the works with some big name companies, is working on Apple iPhone and Android apps, and is just going forward full strength. He's also incredibly personable." Beeman says.

On Thursday, FundingUniverse also held BankPitch. Much like CrowdPitch, it offers selected entrepreneurs interested in debt financing four minutes to present their company to area bank representatives. Then the banks have four minutes to explain their services to the entrepreneurs. Representatives from PNC Bank, M&T Bank, Columbia Bank, TD Bank, Citibank and Wachovia Bank participated in the event.

"It's beneficial for both sides because we prescreen the companies and only select companies that have FICO scores of 700 or greater, have been business for two years or more, and have revenues of $100,000 or more. For the banks it's beneficial because they're getting six companies in front of them that have been pre-screened and they can tell them what the bank is about in the hopes of building a relationship with the entrepreneur," Beeman explains.

"The entrepreneur is looking for debt financing and a bank to do business with. They want a banking relationship with someone who will go to bat for them," she continues.

The winner is chosen based on which company the bankers think is most fundable and the most lilely to get a loan or other type of deal.

"Port Networks won BankPitch and rightfully so, because they were much more a debt deal than equity. We were intrigued by their service and their business model. The provided a very accurate and thorough executive summary which made a huge difference when we were making our decision. They didn't need a huge amount of money, but they provide WiFi to residential and commerical locations at much cheaper rate than Comcast or Verizon. It's $30 a month with no contract," says Beeman.

The remaining companies don't leave empty handed, however. After the winner was selected several banks indicated their interest in forming a banking relationship with the remaining companies or indicated that they would refer them to other organizations that could help them find the funding they sought.

With the success of CrowdPitch and BankPitch, FundingUniverse will soon begin offering a new service in Maryland, FundingUniversity. The 8-week bootcamp teaches entrepreneurs everything they need to know to get their company started. The course will cost about $500.

"We teach them how to decide if they're company should be debt or equity financed, how to prepare a balance sheet and all the numbers they need to present to investors, how to pitch an investor and bank, and everything else they'll need to know," Beeman explains.

"We want to make Baltimore the startup capital of the East Coast. To make it a place where people can come to for the resources they need to start a business," Beeman says.

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Maryland entrepreneurs get a hookup at FundingUniverse event

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