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Geocoding Entrepreneurs and VC/PE investors to Increase Deal Flow August 19, 2008

Posted by jgarciaalvarez in Access to Capital, Colombia, Entrepreneurship, Latin America, Private Equity, USA, Venture Capital.

What if…

A)…I could identify all the venture capital and private equity firms (fondos de capital semilla y fondos de capital de riesgo) investing in cleantech (tecnologías limpias), Colombia, and/or interested in connecting the U.S. Hispanic market and Latin America?

B) …I could identify all the entrepreneurs and small and medium enterprises (SMEs) with more than $2 MM USD in revenues , located in my zip code, “localidad”, state or “departamento”?

Let´s consider point A.

Most recently, Matt Winn, an associate at Chrysalis Ventures, launched the Venture Capital Database (VCDB). The mission is to be able to plot every venture capital firm in the U.S. on an interactive map that includes valuable information regarding general partners and investment criteria.

For instance, an entrepreneur new to the venture capital and private equity industry could play with the database and get a sense of what the industry looks like. He or she will see a significant number of dots around Boston´s route 128 or Silicon Valley. Over 41 venture firms with 836 professionals are located in the City of Boston and 227 investors with 3481 professionals are located in the State of California. An inner city entrepreneur will see few or no dots located in their zip code. Zero records were found in Harlem, NY and Excellent Packaging & Supply has no venture firms located in their 94806 zip code. Internationally, an entrepreneur in Latin America or Colombia will find no dots, yet. I hope the database will be expanded. In the meantime, feel free to contact me at the “subscription & contact” tab above.

Let´s consider point B.

As part of my former job as Manager at ICIC, I coordinated effective outreach campaigns to identify fast-growing and equity-ready companies located in urban areas with high unemployment and poverty rates and low income levels of the United States. Since 2005 and up until November 2007, 225 investment-ready companies from 18 different States, diverse industries, and with annual average revenues of $7.5 MM, had applied to the Inner City Capital Connections (ICCC) program. For more information on ICCC New York 2008, click here!

The reason to connect point A and point B.

Proximity to venture capital and private equity firms impacts access to equity capital financing. Growth-oriented businesses will increasingly find access to investors, regardless of their different social networks or college alma matter.

Knowledge and information is critical to access sophisticated methods of financing. Venture capital and private equity firms will progressively find a marketplace better informed on what equity capital is, how companies are valued, and what an investment process is like.

Tracing the line between point A and point B, and mapping the geographic location of entrepreneurs and investors, will empower a more welcoming and friendly entrepreneurial growth culture. Most importantly, geocoding entrepreneurs and venture capital and private equity investors has the potential to increase deal flow.



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