|
Burn rate is the speed at which a startup business consumes money. My rate would be $50,000 a month when my new media company started. So, I began looking around for individuals who would be my first investors. "Angel money" it was called. But when I reviewed my list of acquaintances to find those who might be able to help, I found the number got small. With no other choices, I began meeting with the venture-capital companies. But I was warned they took a huge share of your company for the money they put in. And if you struggled, they could drop you cold. As I was searching for "angel money", I started to bulid a team who trusted me even though I didn't have money for paychecks yet. Bill Becket was an expert in computer programming and image processing at a very famous Media Lab at M. I. T. With his arrival, my company suddenly had a major technology "guy" in house. Katherine Henderson, a filmmaker and a former real-estate dealer, joined us as our director of market research. Steve White came on as operating officer. He had worked for the developer of a home-finance software, Quicken. We grabbed him. We had some really good people, but we still didn't have enough money. One night, my neighbor, Louise Johnson, came for a visit. She and I were only nodding acquaintances, but her boys and ours were constant companions. She ran a very good business at the time. Louise was brilliant and missed nothing. She had been watching my progress closely. She knew I was dying for money and I had prospects but could offer no guarantees of success. She told me that her attorney had talked to mine and the terms had been agreed upon. She handed me an envelope. Inside was a check for $ 500,000. I almost fell down. I heard her voice as if from heaven. "I have confidence in your plan," she said. "You'll do well. You're going to work hard for it, but it's satisfying when you build your own company." Who would have thought I'd find an angel so close to home? There were no words sufficient for the moment. We just said good night. She left and I just stood there, completely humbled and completely committed. |