By Christine Kern, contributing writer
ISV panelists provide advice from the trenches on how to fund your software business.
Nearly 150 channel executives gathered to address the topics of raising capital, partnering, and marketing at the inaugural ISV IQ Live! Conference held February 24 in Santa Ana, CA. One panel, An Insider’s Guide To Raising Capital” featured four financial industry experts who shared their insights on how to raise capital for software companies.
Participants including John Bodrozic of HomeZada; Tom Bronson of Granbury Solutions; Steve McKean of TableSafe; and Todd Sexton of Indentillect. The panel was moderated by Business Solutions Chief Editor Mike Monocello.
Bronson began the panel by cautioning, “You should always treat capital as if it’s precious and golden, because it is.” This is true whatever the source of your funds.
And when you are ready to approach investors, Sexton said, “What you have to really understand is, when you decide you need to raise capital, you really need to have a game plan, have a runway, and don’t push yourself up against a place that you need the capital tomorrow. If you do, you will take on a lot of onerous terms by your investors, and that makes things very challenging for you moving forward.”
Bronson seconded that advice, saying, “Deciding that you need capital starts with a good business plan, and knowing where you’re going to be in one, two, three years, five years down the road.”