Hey Wilmington entrepreneurs, there is NOT a problem with a lack of capital for local startups. There is a PROBLEM with YOUR lack of PREPARATION to attract capital and we are here to help.

Hey Wilmington entrepreneurs, it might be time to pour some End of Days bourbon into the leftover holiday Egg Nog before you read this tough love newsletter. (Add some nutmeg.) We offer carrots of help in a wide variety of startup topics and categories at the bottom of this newsletter.

I heard from another local investor on why he is not investing locally. That you, the local startup entrepreneurs, are not fully prepared as a well rounded executive or leader, probably need a co-founder with either tech or sales experience and some local entrepreneurs are not thorough on follow through when additional information is requested by the investors in a timely manner. (Also known as Due Diligence.) You can meet potential co-founders at our events. Most of our events are about SALES, Marketing and investor capital.

( A list of startup investor deals in December in North Carolina and what to expect in 2023.) The work we have done in Wilmington is now adding to the Raleigh / Durham data to make North Carolina the best state to start a business.

The Wilmington startup ecosystem now has plenty of local programming to help you prepare to be a better entrepreneur. But you are not participating. We were VERY happy with the participation in the Startup EQ program last year and yes we opened more doors for the entrepreneurs who participated. Just ask Active Defender and F3TCH App.

There is a ton of info below on where to find assistance but it requires effort. No one can do the work for you! The need to raise early stage capital may become more difficult if the US economy enters into a temporary decline in 2023. 

(To be clear, I am also working on my own weaknesses. I have recently signed up for the Masterclass video series for lessons on Leadership and recently attended educational classes through the Angel Capital Association.)

Yes, not EVERY startup wants or needs investors. Of course, SALES can help grow your company or help you attract investors.

Sure NEW has the highest MONTHLY attendance of all the startup events in North Carolina. But I am talking programming of regularly scheduled educational events that fill in the gaps in your knowledge on how to grow a scalable company. Entrepreneurs also need to understand Human Resources, Accounting, invoicing and payroll issues, not just social media marketing. Are you reading books on these subjects? We have a sponsor who can help you with HR and payroll. Marlana Bunn

But local entrepreneurs are blaming EVERYONE else in the ecosystem. I mostly question the "Fire in the Belly". Want to see an example of "Fire in the Belly." Just look at Jose Quiros of F3TCH App since he arrived in town. A new Wilmington entrepreneur gets selected for CED VentureConnect, DigSouth, VentureAtlanta, and receives an investment from WALE, participated in Startup EQ, finishes an accelerator program, participates in Bunker Labs and was chosen for the Wilmington 100. How was your 2022?

Yes, the conservative investors in the southeast LOVE to invest in experienced serial entrepreneurs and not first time founders. It is rare that investors want to be first in line to take all of the risk. Here is a recent article on this topic. (WALE Angel Network is usually the first money in because other local and regional groups won't.)
https://jproco.medium.com/how-startups-find-seed-investors-fbaec59a62c9

Investors don’t love to put their money into startups where the entrepreneurs have not invested their own money in the company. No skin in the game. Yes, investors understand sweat equity. Unlike when the local ecosystem started in 2013, there are now plenty of companies who are hiring locally where you could save some money while working in the off hours on your side hustle startup until it becomes your full time focus. Just don't expect investors outside of friends, family and fools to invest until you are full time.

But Wilmington has mostly first time founders as a young ecosystem. And NEW is set up to help inexperienced entrepreneurs. Wilmington is on the rise as the myth of Silicon Valley is collapsing.

And yes, we have helped Black entrepreneurs, female entrepreneurs, military veteran entrepreneurs and Latino entrepreneurs find investors.

We have helped Lapetus Solutions, NALA Membranes (RTP based company working on filters for water quality) and F3TCH App founders get funded through investor introductions and events. Half of our WALE Angel Network portfolio of companies is made up of veteran entrepreneurs.

We have helped Tech entrepreneurs and Life Sciences entrepreneurs meet investors.
(you can find even more information on our Facebook page )

Our job as part of the Wilmington ecosystem orgs is to help you with the preparation to present to investors and some introductions. But make no mistake, in no way can we force private investors to write the check. YOU have to convince private investors about your value proposition and personal commitment to success and returning a profit on their investment.

Investors don’t just raise their hand or advertise that they have a high tolerance for investing their money in high risk startups. But if you consider there are months where more than 25 houses are sold that cost more than $1 million at the coast, there is available money in Wilmington. No, not every rich person has the risk tolerance to become an angel investor.

Again, we were scheduled to have 1/2 BILLION ($500,000,000) on our stage in the last three events of 2022. The last event had a $250 MILLION fund on stage. We have had 95 investors on our stage and yes some have actually invested in Wilmington.

YOU HAVE ACCESS TO CAPITAL. THAT IS NOT THE PROBLEM. They are just choosing to invest in entrepreneurs elsewhere who are more prepared / professional or have more experience as serial entrepreneurs. We want to fix that with improved local offerings for local entrepreneurs but we need you to actively participate.

Where do you need help with your startup? Check the bolded topics below for different categories of help


What are the programs available to help Wilmington entrepreneurs?

Want help learning how to present / pitch to investors?
- NEW is known for our Tough Love event. We hold Tough Love event before pitch contests and investor conferences and road shows where entrepreneurs plan to travel the region looking for investors. We helped entrepreneurs before DigSouth.
- 1 Million Cups is held EVERY Wednesday at 9 AM. Have you applied to present? 

Want help learning the TERMS around talking to investors with a certain level of sophistication?
Venture South has an educational section called Venture Carolina
https://www.venturecarolina.org/

The WALE Angel Network is a member of the Angel Capital Association that has a section for education of entrepreneurs
https://www.angelcapitalassociation.org/entrepreneurs/
(You may remember we had the national leader of the Angel Capital Association speak at one of our events this year.)

Brad Feld of TechStars accelerator fame has a series of Books, I would suggest Venture Deals first
https://www.amazon.com/stores/Brad-Feld/author/B0043MYSL8?ref=ap_rdr&store_ref=ap_rdr&isDramIntegrated=true&shoppingPortalEnabled=true

Want to meet local investors?
- I run the WALE Angel Network so just attend the NEW monthly events and most of our investors attend.
- VentureSouth has pitch events at the Wilmington chapter but mostly OUT OF TOWN companies are presenting 
- We even had a member of the Wilmington Investor Network speak at our November event.
- Here is a video about the three local Angel investor groups.
https://www.youtube.com/watch?v=hWmHubO7ATA

Have you applied to an accelerator for the Funding for equity and programming ?
Yes , THREE of our WALE Angel Network clients are Techstars grads and we hosted Amos Schwarzfarb of the Austin Techstars office and held a Zoom call with the Atlanta Techstars leaders.
There are other national accelerators like Y Combinator and 500 Startups.
A few local startups have been through equity based accelerators like F3TCH app and their recent completion of the Founder's Institute.
(Yes, an accelerator requires sacrifice like time away from the beach or time away from family.)

Want to get some validation for your startup?
- NC IDEA has their upcoming $50,000 SEED and Micro grant cycle coming up. Jan 26th in Wilmington
https://www.simpletix.com/e/nc-idea-spring-2023-grants-information-ses-tickets-121321

Or if your startup is a real innovation solving a global problem, have you considered applying for an SBIR grant with help from First Flight Venture Center AND the SBTDC ?
https://www.ffvcnc.org/202223-fast-program
https://sbtdc.org/services/programs/tech/sbirsttr/
Learn more here in this video
https://www.youtube.com/watch?v=LkuS1RPhCfM&feature=youtu.be

WHY should you apply for SBIR grants?  OpiAid won a $276,000 that was matched with $75,000 from the state
https://wraltechwire.com/2020/09/17/wilmington-startup-opiaid-lands-big-grant-to-fight-substance-abuse/

Matching funds from the state for Phase I SBIR grants (not exactly dollar for dollar but still very positive)
https://www.commerce.nc.gov/news/press-releases/2022/10/31/new-grant-funding-available-tech-oriented-small-businesses

Want some help with your business plan ?
- NEW, UNCW CIE , UNC Pembroke and Genesis Block have a new PREcelerator program using the Lean Business Canvas. (Launching soon.) This will be a virtual program online and the first 12 people who complete will receive a stipend to hire a consultant to work on their weakest segment of the plan.

- SBTDC - Taking the Leap program starts on Feb 7th and is virtual
https://sbtdc.org/events/taking-the-leap-kickstart-your-business-in-4-weeks-3/
- RIOT - https://riot.org/startup-accelerator/
- CED GRO Incubator - https://cednc.org/get/gro/

Want some help from local experienced leaders in growing your company?
- UNCW CIE has a mentor program. Have you applied ?

Need some exposure to local and regional media to find new sales prospects?
NEW has proven we can help on a national level or regionally in Atlanta, Raleigh, Charleston, Nashville 
(Yes, we have our own Wilmington section of DigSouth.)

Want a chance to meet investors?
- CED applications are open for Venture Connect investor conference with 100 investors and 1,000 attendees in Raleigh region.
- DigSouth applications are open for the Summit and Wild Pitch event in Charleston
- NEW has hosted 95 investors at our events and yes several have actually invested.
- The WALE Angel Network that I manage is VERY active locally and regionally. We have a few new investors who have been very aggressive since joining.

Are you working with your professional service providers like lawyers to advocate for you with the investors they know?
Yes, GOOD lawyers want their invoices paid and know most startups are broke / cash poor. They do help their promising clients raise capital to build the relationship with good entrepreneurs who could become unicorn clients.

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