WRITTEN BY JOE VIVIANO, AN OVERLAND PARK SENIOR IN ACCOUNTING AND FINANCE
What does it take to sell an idea to an investor? Students in Professor George Bittlingmayer’s Entrepreneurial Finance class at KU’s Edwards Campus recently found out. The founders of three of Kansas City’s most innovative startups demonstrated their “pitches,” fielded questions, and explained the appeal of entrepreneurship in early October.
What does it take to sell an idea to an investor? Students in Professor George Bittlingmayer’s Entrepreneurial Finance class at KU’s Edwards Campus recently found out. The founders of three of Kansas City’s most innovative startups demonstrated their “pitches,” fielded questions, and explained the appeal of entrepreneurship in early October.
Left to right: KU students
Robert Van Trump and Hong Bing Zhou;
Pipeline Innovators Kyle Johnson, Xandra
Sifuentes and Jeff
Blackwood, and KU students Sarah Schmidt, and Darren
Campbell
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The
three entrepreneurs, Jeff Blackwood, Kyle Johnson and Xandra Sifuentes, all
have the distinction of having been chosen for the elite Pipeline program. Founded
in 2006, Pipeline is a selective startup accelerator that connects the
Midwest’s most promising entrepreneurs with a network of supporters, peers, and
advisers. Each year approximately 10-12
new members are invited to join and participate in a rigorous, yearlong
business leadership development program.
Mr. Blackwood and Mr. Johnson were members of the 2011 PIPELINE class
and Ms. Sifuentes was invited to join in 2012.
An
entrepreneur’s pitch to potential investors states the problem, outlines the
entrepreneurs solution and marketing strategy, and offers estimates of the
potential market size and company projections. The best pitches are polished, focused
and attract financing from angel investors and venture capitalists.
Xandra
Sifuentes is currently the President of Metactive Medical, LLC, a subsidiary of
medical device company Novita Therapeutics.
Prior to her position at Metactive Medical, she earned her MBA from the
University of Missouri-Columbia and co-founded two medical device start-up
companies. Leveraging an experienced
team of professionals, Metactive plans to introduce a ball stent that will
repair cerebral aneurysms by 2016. “We
are looking to have half the cost of our competitors. Our product only requires one ball stent and
comes in variable sizes,” Ms. Sifuentes explained. Metactive plans to enter
European markets before launching the product in the US due to a more predictable regulatory environment and a quicker adoption rate of medical technology.
Jeff
Blackwood is the CEO and President of AB Pathfinder, a start-up company that
develops technology tools to aid children with autism, Asperger’s, and other
brain development disorders. The company has partnered with Microsoft to
develop a web-based application that fosters communication between therapists
and educators, allowing them to focus more on the children than on
administrative tasks. “We didn’t build this software in a vacuum. We had a
solid team of business and scientific advisors behind us including medical
researchers at University of Kansas,” Mr. Blackwood said.
KU
graduate Kyle Johnson is the CEO and founder of music streaming service
AudioAnywhere, and won the January 2012 pitch contest for his 2012 Pipeline
cohort. Before establishing AudioAnywhere, Johnson worked for more than six years
in management consulting. His vision is to enhance the business model of online
music streaming services by more closely tailoring advertising with consumer
preferences and thus improving advertising revenue per song played. “We can make more money than Pandora on a
per-user basis,” Mr. Johnson predicted.
Perhaps
the most memorable takeaway of the evening was the relentless drive and
ambition that characterizes the most successful entrepreneurs. “The presenters really believed in their
product…and really made you believe their product and ideas were going to be
successful,” said Darren Campbell, an engineer and current MBA student.
Jared
Sinclair, also in the MBA program and in health care, came away with an
appreciation of the work and effort that goes into raising money. Despite
differences in style, “each one knows how to get people interested in what they
had to say.”
In
response to questions about the lessons of entrepreneurship, Kyle Johnson
summed up his experience. “You live and learn.
Raising money is the hardest thing.
Knowing how not to waste it is the second hardest thing.”
Xandra
Sifuentes acknowledged the risks of the entrepreneurial path, but said she
finds value and fulfillment in her work.
“I love the creative process in bringing an idea to life that will help
save lives.”