SEED Challenge Pitch Competition a Success!

Posted by on 1:39 am in Angel Funding, Blog | Comments Off on SEED Challenge Pitch Competition a Success!

Congratulations to the WNC SEED Challenge Pitch Competition Winners!

Hi, Steve of 1×1 Media here. Stepping away from funding topics for this post, I wanted to share the results of a recent program that I had the pleasure of working with here in the Asheville area—the WNC SEED Challenge Pitch Competition.

The multi-week program consisted of two training sessions covering topics such as startup fundamentals, customer discovery and development, and making your startup investor ready. Following the structured training, startup founders prepared their investor pitches and participated in several practice sessions designed to help them hone their presentations. The program culminated in an afternoon pitch competition, with six startups competing for a total $3000 in prize money. Three judges provided feedback and peppered the founders with hard questions about their ventures. Not quite Shark Tank, but close.

SEED Winners

The $1,500 first prize went to Adam Masters, founder of Bellyak ( The company designs, manufactures, and distributes a line of innovative lay-on-top kayaks, or Bellyaks. The easy-to-use watercraft can be mastered quickly with little or no training or extra gear. Watersports enthusiasts enjoy the Bellyak on all types of water, from exploring calm lakes and gentle rivers to surfing beachfronts and navigating whitewater rapids.

Second prize ($1,000) went to Clark Harris, founder of LoLo ( Short for Locally owned, Locally operated, LoLo provides a seamless loyalty and rewards program that connects your existing credit cards to local merchant purchases, rewarding your shopping loyalty with immediate discounts and additional rewards. Unlike other loyalty programs, LoLo users do not need to carry a separate card to swipe, or remind the merchant to process the discount.

The $500 third prize was captured by Mary Tantillo, founder of Dolci Di Maria ( This specialty food company excels at delivering great tasting Italian-inspired gluten-free, dairy-free desserts and bake mixes. Now available in many food retailers in the Southeast, Dolchi Di Maria is becoming a highly sought after brand for customer seeking gluten-free options, as well as those of us who simply love the taste of the desserts.

Congratulations to all the participated in the program, and kudos to the winners for their excellent pitches. Thanks to Technology 2020 of Oak Ridge, TN (, Advantage West Economic Development Group  (, A-B Tech Community College (, and the Citi Foundation for making the program possible.


To learn more about startup investor pitches, the following excerpt from Startup Crash Course: Angel Funding provides a brief overview of the makeup of a well-formed investor pitch:

Preparing Your Pitch. Investor-ready founders have prepared (and practiced) a great 10 to 15 minute pitch funding pitch that describes their startup and hopefully gets investors and supporters excited about your startup. Remember, the purpose of the pitch is to interest investors enough that they want to know more—you don’t need to tell them everything in your pitch.

There are many approaches to an investor pitch, with the traditional outline pitch and the more Hollywood styled “story pitch” flavors being the most used by founders.

The Traditional Pitch. Many investors expect this tried and true approach. If you can deliver the pitch with passion and clarity, you will do well selling your startup to investors. A traditional pitch is presented in the following flow:

The Problem. What is the problem you solve?

Your Solution. What is your solution to the problem, and why is it special?

Customers. Who do you solve a problem for, and why do they care?

Market Size. How big is the market, how many ideal customers are in it?

Business Model. How do you interact with customers, and how do you make money?

Your Team. Why are you the right team to carry out your execution roadmap?

Technology. Do you have a secret sauce, innovative technology, or unique approach to interacting with your customers?

Intellectual Property. Have you protected your technology with patents, trademarks, or secured appropriate domain names, social media account names, and so on.

Competition. Who are your competitors, what are your advantages? Have you identified a competitive factor that his hard to duplicate or circumvent.

Financial Projections. What are your projected revenues, costs, and expenses? Do you have a clear understanding of important financial plateaus such as our burn rate, break-even level of sales, and capacity and capital investment thresholds?

Funding Needs and Uses. How much are you raising in this round, and what milestones will it help you reach? What are your guesses about future funding needs?

The Story Pitch. This style of pitch tells a great story for investors to follow. It is less rigid and business school like than the traditional pitch. If you are fortunate to have paying customers when you are pitching to investors, your story pitch tells how you got there, how you engaged early with customers and pivoted to a product that really matters to your customers, how much your customers now love your product, and how you are poised for tremendous growth (with the help of a little investor cash). If you are pre-customer, your story pitch is focused on selling the idea of you product, how potential customers will use it, and how you will use investment funds to get there. For either path, build a short story that you can tell with passion and that leaves investors wanting to know more.

“I know I should, but…”

Posted by on 9:04 pm in Blog, Friends and Family Funding, Uncategorized | Comments Off on “I know I should, but…”

More often than not, this is the answer I get when I ask an entrepreneur if he or she has documented a recent friends and family fundraising deal. Certainly some forms of startup funding require a good deal of paperwork and spending money on legal help—selling an equity stake, for example. Because it’s quick and easy to document simple loans and some other funding options, founders should fight the urge to procrastinate on this task.

Easy and quick. You can execute a business loan using a one or two page promissory note, after negotiating a few basic terms. Once you and your friends and family (F&F) supporter agree about the general deal points, finalizing the loan with a promissory note logs the details of the loan, including items such as:

  • Details about the lender and borrower
  • The loan amount
  • The interest rate
  • The repayment structure
  • The term of the loan

  • Additional clauses of a promissory note help define:

  • What happens if the borrower misses a payment
  • How to handle early payoff of the loan
  • How to modify the loan agreement if the parties agree

  • Do it yourself? Many founders opt to complete the loan paperwork without the assistance of a lawyer or CPA. There are many promissory note examples available on the Web, and with a little effort, you can save a chunk of money by preparing a draft of the promissory note yourself. Be sure to take the time to customize the wording to be specific to your business and the agreement you reach with your F&F lender. On the other hand, having a lawyer review your draft loan agreement can give you an added layer of confidence, and perhaps help you avoid common pitfalls. Use your best judgment based on your level of experience.

    Our next title, Startup Crash Course: Friends and Family Funding, includes a blow-by-blow promissory note example that details all legalese and meaning of each section.

    The First Rule of Friends and Family Funding

    Posted by on 1:15 pm in Blog, Featured, Friends and Family Funding | Comments Off on The First Rule of Friends and Family Funding

    Recently I let my group of close friends know that I had published my first eBook for entrepreneurs—Startup Crash Course: Angel Funding—and mentioned the next planned book about friends and family funding.

    One friend immediately sent me a message saying: “I wish your next book was done. I’m about to pull the trigger on investing in a friend’s startup and would love some advice.” We’re now working together to identify the best structure for everyone involved in the deal. Sorting through the various funding options for founders and investors alike can be especially tricky, because you’re putting both your dollars and your relationship on the line.

    CC FF Cover Dec 26 Sepia 256x320

    Aside from personal savings or income from the founders, friends and family (shortened to just F&F for this post) funding is one of the most common sources of early capital for a startup company. F&F folks often invest to place a vote of confidence in the entrepreneur, wanting to help in getting the entrepreneur’s new venture off the ground. Many startups need a relatively small amount of money to reach early, yet critical, milestones. The early investment need may range from a few thousand dollars to $20,000, or somewhat more. Scraping together these amounts from “well positioned” F&F is often the best and only financing option for entrepreneurs to fund initial tasks such as forming the business structure, developing the product, and landing some early customers. Only after those steps have been achieved do other funding options such as angel capital or low-interest economic development loans start to become viable.

    There are five common deal structures for F&F funding:

  • Simple loans
  • Profit sharing
  • Equity investments
  • Convertible debt
  • Gifts
  • Future blog posts will introduce you to each of those deal structures, but for now I need to get one thing out of the way up front. When you’re considering raising startup money from family and friends, always keep The First Rule of F&F Funding in mind:

     “Don’t take their money if they can’t afford to lose it”

    If you are not sure of your F&F investor’s financial status, move on and don’t take that person’s money. Better to look for other resources now and make sure everyone stays on good terms later.

    Be on the lookout for 1×1 Media’s next title, Startup Crash Course: Friends and Family Funding, as well as future blog posts about F&F funding and other topics.