Entrepreneurs describe thrill of the money hunt

Clear vision of business essential, founders and angel investors assert.

As developers, entrepreneurs and job-seekers descended on downtown Austin this week for Austin Startup Week, sessions on startup funding drew interest from founders and those hoping to launch startups.

At the “Entrepreneurs Workshop” hosted by the Central Texas Angel Network, angel investors discussed the importance of founders having a clear story and being prepared for a rigorous due diligence process as they scale up their business.

The workshop featured three founders who’d secured angel funding through CTAN.

One of them, Doug Donovan, CEO of Interplay Learning, which provides VR-based trades training, said he first sought angel funding through CTAN in August of 2015. A splinter group was willing to invest in Interplay outside of the formal CTAN process, but Donovan said it wasn’t the right opportunity.

Then, in April 2016, Interplay landed a $1 million angel deal from CTAN and Tech Coast Angels. The difference on his second try, Donovan said, was that he showed an improved ability to communicate the company’s addressable market.

“You might have a lot of really good things going — your technology, your team — but if you don’t have all of it, and you’re not able to communicate effectively, which is a different skill set than running a business, then it’s hard to (succeed),” he said.

Jean Anne Booth, CEO of UnaliWear, which is developing a smartwatch for medically vulnerable