Entrepreneur: Rick Webb
Businesses founded: The Barbarian Group, Secret Clubhouse
Investor and writer Rick Webb is currently working on marketing and revenue at Tumblr. He is also the CEO of Secret Clubhouse, a coworking space in Brooklyn, cofounder of The Barbarian Group, and owner of the record label, Archenemy Record Company. He spoke to our entrepreneurship class about investing, business plans and organizing a pitch.
Think big: Venture capitalists want to make money — that’s their main concern.The goal is to show that in 3 to 5 years you’re business will make them a ton of money. They need to see it as a plausible idea. Show them how big it can be.
Build a team. You need to show what you have planned in marketing, sales, product, and tech. It really helps to have a particular team assignments and a plan in place.
Where is the money going: Explain exactly how you’re going to use the money — your goals and your method.
Know who you are pitching to: There are different investors at different stages. If you’re talking to a junior partner at the company, the most important thing is that the information your giving them is correct. But if you’re talking to the person who actually writes the check — you need to excite them and talk about the big picture.
Be honest: One of the first things I ask in a pitch is “Do you want to be rich, or do you want to have a job you like?” A lot of people aren’t able to be honest with themselves in the beginning and it’s important to realize what you want. It’s also important to be honest with your group. It’s OK if you want to be rich.