Rob Smyth, the founder of Blue Reef, found it harder to raise the $500k to get him to the next stage of Blue Reefs development than it took him to raise $5m for a previous company in the heady Dot Com Days.
Matt Mcdonald, Director of ADI said that to raise capital, you need to pass the VC Gatekeeper as a first step, and with that you will need a business plan that will enable the “generalist” to understand the business opportunity and the ability for the business to scale. The message has to be simple, outline the competitive advantages of the technology and the team, the IP that is in place and the global growth potential. The financials must be sound and you must be aware of your competitiors says Mcdonald.
Smyth says you need to make a good impression, and emphasise the strength of the management team, and that your technology solution solves a “pain” of the customer rather than provide the customer with a Vitamin!!
The money raised from ADI and M Capital in September 2005 was to be used to fund an entry strategy into the USA market, with a view to then raise a series A to commercialise the technology in the USA. The pitch had credibility said Kaye, as the Cisco’s and HPs were identifying that the solution that Bluereef had was the sooftware and hardware solution for the future.
ROb Smyth took part in the USA Gateway Forium held in August 2006.