« A Small World, Indeed | Entrepreneurship and Global Economic Development: The Missing Piece »
June 28, 2004
Even well connected start-up can find financing a challenge
This story in the Tennessean tells the tale of experienced entertainment industry executives trying to launch a start-up. As evident from this stroy, connections and name reconition alone are not enough to bring money to the table.
"(Carl) Kornmeyer, who was heavily involved with The Nashville Network and CMT during his Gaylord tenure, has decided to build a company from scratch in a big way, one seeking somewhere in the neighborhood of $100 million. The venture, called New Shoes Media, is exploring digital cable network and programming opportunities."
They are hoping to raise the money though local sources here in Nashville, but may end up chasing venture capital as well.
One piece of advice from this humble blogger: think about your "story". This is especially important as one moves away from the locals who know you. Why do I raise this issue with this start-up? Well, here is how they say they got the name for their new company:
"The company's name came before Kornmeyer, however. It reflects the gamble they are taking. 'Come on, baby needs a new pair of shoes.' And the dice go rolling across the table."
Not a part of the story that most experienced investors want to hear. Prudent risk taking is what they are seeking in deals. Rolling the dice is normally not the business they are in with their financing deals.
Posted June 28, 2004 07:02 AM
Comments
I would like to start a diversified multinational corporation. I am seeking something on the order of $3B USD to get started. You think you can help me?
Come on! 100 Million?
Posted by: Pete Caputa at June 28, 2004 03:26 PM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
