Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

I've recently been giving some thought to the on-line practice of building and selling databases of venture capital firms.  It seems like such a great idea to buy a directory, especially if you can get actual E-MAIL addresses.

I once had a client who had purchased a list of 2,000+ venture capitalist e-mails and was planning to casually send a blast e-mail to everyone on the list.

I almost killed myself trying to jump in front of that train. I've often said that there is no such animal as an angel investor--only friends and family who happen to know what they are doing.  That is an exaggeration, but the fact is that angel investors and venture capitalists don't like to invest in people that they don't know or can't vet with people they know well.

The process of raising capital can, therefore, take many months or even years as you build your network in the venture community.

Hiring an investment banking firm or other financial adviser with a venture capital network helps, but it doesn't eliminate the need to establish your bona fides in the venture community by getting to know influencers.

Involvement in trade organizations, alumni organizations and organized business networking groups pays dividends in the long run.

I like to brag about my involvement in all of the following organizations where I have met and come to know people in the investment community:

• Cornell University
• Johnson School High Tech Club
• University of Utah Business Alumni Association
• MountainWest Capital Network
• Utah Information Technology Association
• Association for Corporate Growth
• Wayne Brown Institute

It takes time and money to really get involved.  Just today, I started with a two hour Board meeting for the MountainWest Capital Network and ended the day with three hours of fund raising for the University of Utah David Eccles School of Business.  Great people--important people--were at both events.  Everyone wins!