Recently, more than 50 people came together for the LaunchMemphis Early Stage Investment Forum. As with any event, it’s important to define the metrics for success and evaluate how the event compared to those metrics. Here are some metrics and results:
1. Community Involvement – with more than 50 people present, this was clearly met. Out of 34 applications, 20 were accepted,,so this number was intentionally limited. Of the 50 people, roughly half were investors (including institutional investors and individual investors). Almost all of the institutional investors in Memphis were there, although a few couldn’t make it at the last minute. And, of course, a summary of the event would not be complete without mentioning the involvement of the FedEx Institute of Technology, where the event was held. Lastly, the Commercial Appeal covered the event, with a reporter spending nearly an entire day at the Institute.
2. Connections – While some people clearly knew each other, most did not. Using the formula (N^2 – N) / 2, there was a potential for 1,225 connections to be made. Since many of the investors already knew each other, the actual number is probably closer to 750. A large number of these connections were more than fleeting moments, but more on that in a moment.
3. Awareness of Entrepreneurial Environment – As we spoke with investors at the forum, and as we reviewed the surveys they completed, the opinion was almost universal that they were impressed with at least some of the ideas at the forum. Many investors commented that they felt the overall quality of the entrepreneurs was superb and surpassed their expectations. The awareness that Memphis has so many people working on ideas was, and is, critical to the success of LaunchMemphis, not to mention the Memphis community at large.
4. Relationships – While some connections were fleeting ‘nice to meet you’ moments, many have become deeper connections. We are aware of at least 20 follow-on meetings that have occurred as a result of entrepreneurs and investors meeting each other at the forum (if you were there and have had follow-on meetings, please let us know!). We can’t know what these will lead to, but we do know that this was one of our most critical success factors, and we are thrilled with this result.
5. Feedback – All of the entrepreneurs received invaluable feedback from the investors. Each entrepreneur received a report of how they were rated by the investors in six categories and received a list of investors that wanted to have follow-up conversations. Metric met.
6. Plan for Moving Forward – One of the key aspects of the forum was providing a platform for everyone involved (investors, entrepreneurs, and LaunchMemphis organizers) to discuss how to improve the current environment. We held an open meeting/roundtable discussion on what investors were looking for, what entrepreneurs needed, and how to engage individual, “Angel,” investors. We believe that this engaging conversation needs to continue, but we were thrilled to have so many people engaged in the conversation, and getting everyone talking was the first step.
7. Direct Investment – For investment forums with a long history, this is the success metric that matters most. However, as organizers, we said from the beginning that it was not our metric of choice for the first year. It is too early to determine whether the connections made will lead to investment. We do know that dialog is underway that could lead to eventual investment and that at least is very positive (again, if you are one of the people who was there, please keep us posted). In speaking with some people who were less familiar with the process of investing in startups, we found a potential misconception around the notion that an entrepreneur might walk away with a check. This was never expected and almost never happens at any investment forum. What does happen is that a conversation follows that can lead to such a transaction. Don’t get us wrong–we do hope that someone gets funded, and that is a goal. However, not having a company funded does not mean the event was not a success.
We want to thank everyone that attended, and to especially thank our sponsors, the Tennessee Technology Development Council, Innova, and FedEx Institute of Technology.
We are still hearing about meetings that are going on and many entrepreneurs are hard at work to get their ideas further along. We firmly believe that great things will come from this event, and, as we plan for more in the future, we look forward to providing a solid foundation for entrepreneurs and investors to connect.