Steve joined iMinds as a Venture Partner in the Spring of 2000. Since that time, he has provided invaluable assistance to a number of iMinds portfolio companies. Steve talks about his background and role at iMinds.
STEVE, TELL US ABOUT YOUR BACKGROUND
I formed Bodega Partners about 7 years ago to provide strategic management consulting services to high tech startups. I've worked with over 75 startups and mature technology companies in the last 7 years, serving in interim management positions, developing business and strategic plans, and building financial models to name just a few services. Formally, I have a finance background, spending my undergrad at Wharton and getting my MBA at UCLA’s Anderson School, as well as working with Arthur Andersen as a CPA.
DESCRIBE YOUR ROLE AS A VENTURE PARTNER
I work as an extension of the iMinds fund. I am actively looking for new concept and seed stage software opportunities. Also, where a company under evaluation for investment falls in a particular field of my focus, I will assist the iMinds team in evaluation. When iMinds does make an investment and needs to jump start a companies growth, I’ll step in, in an interim or advisory position.
WHAT IS AN EXAMPLE OF A RELATIONSHIP YOU'VE HAD WITH AN IMINDS PORTFOLIO COMPANY?
I’m currently working with DeltaClick in a ‘strategic CFO’ role, building a financial model and identifying the key metrics and risks in the business model. With the results the company has posted to date and with the strategy the team has taken, I've created an appropriate financial model. This will be helpful as they go on the road for their series B and can illustrate to investors a clear path to rapid growth and profitability. Internally, this work also serves as a tool for managing cash flow.
WHEN DOES A STARTUP NEED TO BRING ON A FULL TIME CFO?
A common mistake is to bring in a CFO too early in the game. You’ve got a lot of seed and early stage deals out there that are months from revenues but yet have a CFO on board. A company should be ramping up sales and at about 75-100 employees before this position becomes a necessity. This, of course, varies by type of business. A CFO should not be mistaken, however, with the duties of a controller who is managing the cash on a day-to-day basis. This is always an important role, but even more so today in the current market climate. I often act as a ‘virtual CFO’, developing financials models, raising debt and equity financing, and establishing goals and infrastructure for a startup without the resource drain of a full-timer.
SO, THANKFULLY, ENTREPRENUERS ARE FOCUSING BACK ON THE BOTTOM LINE?
Absolutely. I found that prior to the market drop, entrepreneurs would get fairly glassy-eyed when we would discuss financial models. In fact, many entrepreneurs weren’t even building financial models! We now see this practice was largely a short-lived, phenomenon.
YOU TEACH A CLASS ON ENTERPRENUERING THROUGH THE UNIVERSITY OF CALIFORNIA, BERKELEY- TELL US ABOUT THAT
I’ve taught a UC Berkeley extension class called “Financing the Software Venture” since 1995 here in the Valley. We focus on the key aspects of starting, financing, and building a successful technology company. It’s a great opportunity for an entrepreneur to gain insight on many key issues those too focused on technology or product development often overlook. I’m proud to say my alums have, to date, raised over $300m in venture financing in their own startups and many others have joined on as executives in other venture backed or public companies.
ONE LAST QUESTION STEVE- I KNOW YOU’RE AN AVID GOLFER- HAS YOUR HANDICAP RISEN OR FALLEN SINCE TAKING ON A VENTURE PARTNER ROLE AT IMINDS?
Sadly, my handicap has risen but that’s only because I’ve been spending my time with so many passionate entrepreneurs rather than on the links. It's a trade off I'm glad to make.
