Copacetic

Chinese electronic equipment manufacturer Huawei has taken 3COM private.

Who are Huawei? Well anybody using mobile broadband in Ireland is using a Huawei connector.

I attended a seminar on how to raise venture capital yesterday. It was pretty useful because we had four real VCs in the room giving presentations, Brian Caulfield from TVC, John O’Sullivan from ACT, Shay Garvey from Delta and Micheal Donnelly from Growcorp.

My notes are below. Some of the key points that stayed with me were,

• Irish VCs are all locked into the same ten year cycle so they all raise and run out of cash at the same time. They were all cashed out last year so it was a really bad year to try and raise VC in ireland.
• VC’s regularily break their own investment rules, so its always worth meeting them even if your idea is not something that looks like it fits their current portfolio
• There is no point in emailing or colding calling, an introduction via a third party is much more likely to engage them
• Focus on building a great powerpoint presentation rather than a great business plan
• Irish VC’s will sign NDAs especially if you use the standard IVCA one.

The subheadding of the whole talk was "How to make your story investor intelligent".

Regina Breheny: DG IVCA

Venture Capital funds have a ten year life.

IRR is the key measure. Internal Rate of Return.

Only 16m in funds raised in 2006. How much in 2007?

Aldiscon spawned at least 14 startups (How many has Iona spawned?)

IVCA NDA is available on IVCA web site. Recognised by Law Society.

Irish VCs tend to be locked together in a similar ten year cycle.

EI 175m stalled investment in 2006.

Joe Tynan – Price Waterhouse Coopers

1 in 6,000,000 high-tech business ideas end up in an IPO

Less than 1% of business plans recieved by VC’s get funded

Founder CEO’s of high-tech companies typically own less than 4% of their companies after an IPO

60% of VC funded high-tech companies go bust

Most high tech companies that succeed in having a IPO take 5-7 years to do so

What point are you at in the VC’s ten cycle.

Plan to buy in management expertise.

BC : 1 minute pitch, value proposition and market opportunity

Shay: Proposition, Complication, Solution

John O’Sullivan – ACT Venture capital

VC’s continuously demonstrate exceptions

VC’s is not the only answer

VC’s are curious, positive and entrepreneurial

VC partners invest their own money in the deals

VC money is somebody’s pension fund

Risk: VC is here to reduce risk

Capital efficiency (How much will it take to exit?)

VC’s have to convince their colleagues

What do really want when you ask "What is your added value?"

What are you like to work with?

VC’s are always concerned when companies start taking their advice pre-investment

Financial’s –

• Focus on cash
• Gross margins after startup phase

When did you last meet the competition?

Competition : Anything that is an alternative for your customers.

One alternative is "do nothing"

Is the maximum valuation the optimum deal?

Asset strategy is the focus of many companies. They also need a liability strategy.

Michael Donnelly – Growcorp

Michael Donnelly – Growcorp

Deal Timings – 1m – 12 months, typically 3-6m

Does your investment preferences match the stage of the business

What is the sector track record

Is the fund compatible with your business

Does the investor have conflicts of interest

"Freedom to Operate" – Limits liability in the case of patent contention

JOS: Outside life-sciences patents rarely impact valuations at exit

Make sure you look for enough money to accommodate delays and problems

Offer letter is usually bound by exclusivity (for some period of time)

No skeletons in the cupboard, they will come out and warrants will hold you liable in the worst case

You should have invested if you expect a VC to invest, team investment should be "material"

"Material" is subjective

Due Diligence is need to support or contradict initial business plan impression

Is the venture dependent on IP for its success

Syndication limits control from any one investor

Costs grow by themselves, sales do not

Shay Garvey: Term Sheets

Irish VC’s front load the due diligence so that term sheets are close to complete

Unlikely to get two term sheets that are directly comparable

The term sheet gives clues as to what the investor wants to achieve

• Valuation
• People
• Timing
• Risk Management

How will you manage a sale and continue to run your business?

Brian Caulfield – Trinity Venture capital

Companies being acquired are much more mature

Companies going IPO are much more mature

Not looking for the perfect team, but need market opportunity

Avoid being a feature company (rating companies, OS feature companies e.g. DoubleSpace)

Price your technology sale on future potential sales if haggling over current sales is happening

Companies are bought not sold

Engage early with advisors so they are prepared for an out of the blue M&A request

Are there multiple potential acquirers?

Is there a deal on the table? If so negotiate for a % of the amount over the desired valuation

M&A advisor fees 2 to 5% of the transaction value

(see slide for other stats)

For stock deals, how long will it take to sell the stock, i.e. what is the amount of trading each day? 1m shares but 20,000 sold a day.

Tactics : We are note for sale

Deadlines drive the process

Colm Rafferty: Legal and Administration Process

Put a health warning in your business plan. Nothing contained is warranted.

Use the standard IVCA NDA/Confidentiality agreement

Take your legal advice at Term sheet stage

Test their eagerness for the deal by seeing what you can challenge/change in the term sheet

Ask for a set of warranties when presented with a due diligence questionnaire

Distinguish between what actions are controlled by VC vs what is controlled by the Board

I tried to use Webex recently. Turns out they debit your credit card each month without warning (38 euros a month) once the free trial expires. No bills, no invoices, just  38 euro clipped of your credit card each month.

Attached is my conversation with support.

Please wait while we find an agent to assist you…

You have been connected to Kirk Bridges.

Kirk Bridges: Hello Joe

Kirk Bridges: Sounds like you may have signed up for our free trail and did not cancel prior to the expiration of the trial

Kirk Bridges: You will need to contact the billing for that service @ 866-929-5483

Joe Drumgoole: Ok, but I can’t find the invoices anywhere on the website and I haven’t recieved any email advice regadding thse debits

Kirk Bridges: Did you sign up for Meet Me Now or Pc Now?

Joe Drumgoole: I have no idea. I tried using it once, but your servers in ireland are pretty awful

Joe Drumgoole: That was months ago.

Kirk Bridges: Did you use it for online meetings or to remotely access one of your computers?

Joe Drumgoole: Online meeting

Kirk Bridges: OK that was for Meet Me Now

Kirk Bridges: In order to get your invoices you will need to know your log in informaiton…do you remember it?

Joe Drumgoole: So regardless of whether I use the service or not you take 38 euros of my cerid card

Joe Drumgoole: and you never email me and invoice?

Kirk Bridges: Only if you do not cancel prior to the end of the free trial

Joe Drumgoole: Yes I have my login information

Joe Drumgoole: I’m logged in now

Kirk Bridges: Ok when you log in there is an area where you can look up your usage

Kirk Bridges: and invoices

Joe Drumgoole: Ok no meetings listed under reports? Where are the invoices?

Kirk Bridges: Your best solution would be to call the number and speak to a representative

Kirk Bridges: I don’t have access to pull up your account

Kirk Bridges: I am in the Sales Department

Joe Drumgoole: So there are no invoices? I have access to my account in front of me just direct me to them

Kirk Bridges: I can’t pull up your account to get you to the invoices

Joe Drumgoole: There are tabs on the
left My Meetings, One click setup, schedule a meeting, my contacts, my
profile, my reports, training support

Joe Drumgoole: Nothing about invoices

Kirk Bridges: Should be under either my profile or my reports

Kirk Bridges: Again… you should call the billinng department at the number I provided

Kirk Bridges: They would be better able to assist you

Joe Drumgoole: Ok, now I have to pay a international phone call to cancel a service I didn’t want int the first place?

Kirk Bridges: Ok I have a UK number

Kirk Bridges: 44-0-161-2500706

Joe Drumgoole: No joy, office closed.

Joe Drumgoole: So let me see if I have this correct. I signed up for a free trial that didn’t work via the web

Kirk Bridges: Check under subscriptions in your account for your invoices

Joe Drumgoole: You took my credit card

Joe Drumgoole: continued to debit it

Joe Drumgoole: Didn’t advise me of the fact

Joe Drumgoole: and now I can’t cancel the service on the web?

Kirk Bridges: I can transfer you to customer service now if you like?

Joe Drumgoole: Unless they can show me how to cancel on the web is there any point?

Kirk Bridges: They can show you how to cancel

Kirk Bridges: One moment

Mya James has entered the session.

Mya James: Hello Joe, I understand you want to cancel your MeetMeNow service.

Mya James: Is that correct?

Joe Drumgoole: Yes

Mya James: Please follow these steps to cancel your service

Mya James: You may cancel your MeetMeNow subscription by doing the following:

Log into your account.
Navigate to the Account tab once logged in.
Choose Subscriptions on the left navigation bar.
Click
Cancel on the Subscription of your choice (Both PCNow and MeetMeNow
subscriptions will be displayed even if you only signed up for one
service).

Joe Drumgoole: I also want a refund for the past few months when you have been debitting myaccount without advising me of the same

Joe Drumgoole: I’m logged in but there is no subscriptions tab on the left bar?

Mya James: What URL are you using to log in?

Joe Drumgoole: https://meetings.webex.com/mw0304l/mywebex/default.do?siteurl=meetings

Mya James: Can you try this site:

https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true

Mya James: I will push the page to you

The agent is sending you to https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true.

The agent is sending you to https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true.

Mya James: Let me know is that works

Joe Drumgoole: logging in

Mya James: Ok.

Joe Drumgoole: I’m in

Mya James: Do you see the subscriptions tab now?

Joe Drumgoole: I see the subscriptions. I’m also a bit speechless that you don’t email a warning when the trail is cming to an end

Joe Drumgoole: trail->trial

Mya James: We do e-mail a warning about the trial coming to an end. However it could have gotten caught by a spam filter.

Joe Drumgoole: So how do I get my refund for the bills you sent me without advice? ie. email

Mya James: To assist with your refund, please send an e-mail to our support team at support.webex.com

Mya James: They will respond within 24 hours.

Mya James: You may also call if that better suits you.

Joe Drumgoole: And to cancel the current service?

Mya James: To cancel the current services, select cancel under the subscriptions tab.

Joe Drumgoole: Done

Kirk Bridges has left the session.

Mya James: I’m sorry your expirence with WebEx was less than pleasant.

Joe Drumgoole: Will be blogging your appalling "Free Trial terms".

Mya James: know if there is anything else I can do.

Mya James: Please let me know if there is anything else I can do.

Joe Drumgoole: Every other company I use sends invoice advice for each bill. Its a requirement here in ireland

Mya James: We offer a 14 day trial that does not require a credit card.

Joe Drumgoole: e.g. you may be in breach of EU law for billing without advice. I’ll be checking with my solicitor

Mya James: Is there anything else I can help you with sir?

Joe Drumgoole: No. Thanks personally for your assistance. I appreciate the support online

Joe Drumgoole: Which was excellent

Mya James: You are welcome.

Joe Drumgoole: But overall I can’t say I leave webex as a satisified customer

Mya James: Thank you for the compliment.

Mya James: I understand.

Mya James: Thank you for contacting WebEx, and have a Great Day!

Thank you for using WebEx. You may now close this window.

Your session has ended. You may now close this window.

Please wait while we find an agent to assist you…

You have been connected to Kirk Bridges.

Kirk Bridges: Hello Joe

Kirk Bridges: Sounds like you may have signed up for our free trail and did not cancel prior to the expiration of the trial

Kirk Bridges: You will need to contact the billing for that service @ 866-929-5483

Joe Drumgoole: Ok, but I can’t find the invoices anywhere on the website and I haven’t recieved any email advice regadding thse debits

Kirk Bridges: Did you sign up for Meet Me Now or Pc Now?

Joe Drumgoole: I have no idea. I tried using it once, but your servers in ireland are pretty awful

Joe Drumgoole: That was months ago.

Kirk Bridges: Did you use it for online meetings or to remotely access one of your computers?

Joe Drumgoole: Online meeting

Kirk Bridges: OK that was for Meet Me Now

Kirk Bridges: In order to get your invoices you will need to know your log in informaiton…do you remember it?

Joe Drumgoole: So regardless of whether I use the service or not you take 38 euros of my cerid card

Joe Drumgoole: and you never email me and invoice?

Kirk Bridges: Only if you do not cancel prior to the end of the free trial

Joe Drumgoole: Yes I have my login information

Joe Drumgoole: I’m logged in now

Kirk Bridges: Ok when you log in there is an area where you can look up your usage

Kirk Bridges: and invoices

Joe Drumgoole: Ok no meetings listed under reports? Where are the invoices?

Kirk Bridges: Your best solution would be to call the number and speak to a representative

Kirk Bridges: I don’t have access to pull up your account

Kirk Bridges: I am in the Sales Department

Joe Drumgoole: So there are no invoices? I have access to my account in front of me jsut direct me to them

Kirk Bridges: I can’t pull up your account to get you to the invoices

Joe Drumgoole: There are tabs on the
left My Meetings, One click setp, schedule a meeting, mt contacnts, my
profile, mty reports training support

Joe Drumgoole: Nothing about invoices

Kirk Bridges: Should be under either my profile or my reports

Kirk Bridges: Again… you should call the billinng department at the number I provided

Kirk Bridges: They would be better able to assist you

Joe Drumgoole: Ok, now I have to pay a international phone call to cancel a service I didn’t want int eh first place?

Kirk Bridges: Ok I have a UK number

Kirk Bridges: 44-0-161-2500706

Joe Drumgoole: No joy, office closed.

Joe Drumgoole: So let me see if I have this correct. I signed up for a free trial that didn’t work via the web

Kirk Bridges: Check under subscriptions in your account for your invoices

Joe Drumgoole: You took my credit card

Joe Drumgoole: continueed to debit it

Joe Drumgoole: Didn’t advise me of the fact

Joe Drumgoole: and now I can’t cancel the service on the web?

Kirk Bridges: I can transfer you to customer service now if you like?

Joe Drumgoole: Unless they can show me how to cancel on the web is there any point?

Kirk Bridges: They can show you how to cancel

Kirk Bridges: One moment

Mya James has entered the session.

Mya James: Hello Joe, I understand you want to cancel your MeetMeNow service.

Mya James: Is that correct?

Joe Drumgoole: Yes

Mya James: Please follow these steps to cancel your service

Mya James: You may cancel your MeetMeNow subscription by doing the following:

Log into your account.
Navigate to the Account tab once logged in.
Choose Subscriptions on the left navigation bar.
Click
Cancel on the Subscription of your choice (Both PCNow and MeetMeNow
subscriptions will be displayed even if you only signed up for one
service).

Joe Drumgoole: I also want a refund for the past few months when you have been debitting myaccount without advising me of the same

Joe Drumgoole: I’m logged in but there is no subscriptions tab on the left bar?

Mya James: What URL are you using to log in?

Joe Drumgoole: https://meetings.webex.com/mw0304l/mywebex/default.do?siteurl=meetings

Mya James: Can you try this site:

https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true

Mya James: I will push the page to you

The agent is sending you to https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true.

The agent is sending you to https://meetmenow.webex.com/MyWebExWeb/MyWebexPortal.portal?_nfpb=true&_pageLabel=MyWebexPortal_page_portalLogin&LOGOHEADER=true.

Mya James: Let me know is that works

Joe Drumgoole: logging in

Mya James: Ok.

Joe Drumgoole: I’m in

Mya James: Do you see the subscriptions tab now?

Joe Drumgoole: I see the subscriptions. I’m also a bit speechless that you don’t email a warning when the trail is cming to an end

Joe Drumgoole: trail->trial

Mya James: We do e-mail a warning about the trial coming to an end. However it could have gotten caught by a spam filter.

Joe Drumgoole: So how do I get my refund for the bills you sent me without advice? ie. email

Mya James: To assist with your refund, please send an e-mail to our support team at support.webex.com

Mya James: They will respond within 24 hours.

Mya James: You may also call if that better suits you.

Joe Drumgoole: And to cancel the current service?

Mya James: To cancel the current services, select cancel under the subscriptions tab.

Joe Drumgoole: Done

Kirk Bridges has left the session.

Mya James: I’m sorry your expirence with WebEx was less than pleasant.

Joe Drumgoole: Will be blogging your appalling "Free Trial terms".

Mya James: know if there is anything else I can do.

Mya James: Please let me know if there is anything else I can do.

Joe Drumgoole: Every other company I use sends invoice advice for each bill. Its a requirement here in ireland

Mya James: We offer a 14 day trial that does not require a credit card.

I checked my  email later, webex is not blocked so they plain don’t tell you you are getting screwed each month unless you check your credit card bill, which I do.

They weird thing is the support was good, its just the service overall sucks.

Darren asked people to write about their most serious injury as one of his 55 posts I hope you write" , so here you go Darren, be careful what you wish for.

I jumped through a plate glass window when I was younger, severing my femoral artery and puncturing my lower bowel with several pieces of glass. I was operated on that night ( a full midline laparotomy for those of you who are medically inclined), I was in intensive care for 5 days and spent 6 weeks in hospital after that. I lost a shed load of blood (I got 12 pints via transfusion) and had a catheter stiched onto my prick while I was sleeping, and when I woke up I had about 30 tension sutures stretched across my belly, which trust me, you don’t want to wake up to. I was also attached to the machine that goes bing.

The whole thing hurt like hell ( I now have a good idea what it feels like to be bayoneted), and pretty much had nothing to redeem it. I now have a killer scar running from just above my pubic bone to below my sternum and a nice ice breaker at dinner parties.

So this neatly segues into no. 55 on Darren’s list The only thing I can teach you is, don’t jump through a plate glass window, ever.

I’m trying out Xinha as a replacement for the excreable WordPress visual mode. You can do nice stuff like small fonts and BIGFONTSwith out having to remember all the HTML.

It also supports tables,

From InfoWorld, “SCO seeks bankrupty protection“, Sweet!

I never knew the Game of Life was Turing Complete.

According to the latest COMREG report there are 1.1m 697,700 broadband users in Ireland (pg 20) out of a total irish population of 4m.

Tried to buy an Alienware PC for one of our developers last week. Got this via email today,

We would like to confirm the receipt of the above order. As soon as your Credit Card is billed successfully the order will commence production. We would like to inform you that in order to bill your credit card we would need

• A copy of your credit card statement or an official letter from the bank (you can block out all transactions on the statement) where the registered address and the credit card number are visible (you can of course block out all but the last 4 digits), including your signature on this document  

The reason we need this document is to perform an AVS check (a name and address check on the card) which is necessary to ensure that the card holder is aware of the transaction and that their card is not being used fraudulently. By checking the address this enables us to ensure the purchase is being shipped to the address the credit card is registered to.

How to say “I don’t want your business” in a very long winded way. Why bother   accepting credit cards?

Fantastically entertaining punch up about broadband take up, cost etc. over on Karlin’s blog. You need to delve into the comments. All the great and good of the Irish blogging scene are represented and many others besides.

Pull up a chair and watch the sparks fly!

More good juice over on Damien’s blog as well.