I was a C++ tutor (total geek), and we were sitting in the the large computer lab in Guion (the science building).  Anyone in that building lived and breathed the sciences and we were affectionately referred to as “Guionites” pronounced “Guy-on-nites”.  Anyway, we were sitting in the computer lab amongst robust Dells and IBM PCs, with big old monitors, and a 1st year CS student was learning how to compile C++ code.  The exercise was to write a swapping algorithm, where two values were swapped between variables.  I could overhear the student behind me struggling, tweaking, changing syntax, and recompiling.  Error after error relentlessly surfaced.  Dr. Robeva was there, helping by throwing a few pointers (as in tips), over the student’s shoulder.  Finally, there was a big HORRAY as the student ran the compile command and it ran CLEAN.  Woo-hoo!  The student was thrilled, and as Dr. Robeva peered over her shoulder at the code and then the output, she said

Not so fast.  Just because your code compiled, does not meet the programming is correct.  In fact, your two variables did not swap         values at all – the intended outcome was not reached.  You only reached step 1 of the entire development process.

The student was puzzled, as she thought the entire point of the exercise was to get the right syntax in place so that the code would compile.  What she didn’t realize, was that compiling the code was only the first step, and the easiest step at that.  Now she had to take that code, debug her swapping algorithm, and ensure her underlying logic was solid enough to support a larger outcome than just running through the compiler clean.

I remembered that moment the other day as I was reflecting on my fundraising efforts, and how it is just one small step in building this business.  Getting the syntax right, getting the structure of the financing right, is a piece of the foundation, but I realize it doesn’t automatically mean the underlying model won’t need to be tweaked and iterated over (again and again).  My instinct tells me, this is the easy part, and actually producing the intended outcome of a big business is much, much, harder.  There is a sense of satisfaction when that code compiles, but the even greater satisfaction comes when your produce an algorithm that is innovative, aggressive, efficient, and actually contributes to a larger picture.

As Hubspot closed another 16M in Series C financing, this floated across tweet deck last week: @dharmesh: Startups: Closing a funding round is not value creation.  It’s the *opportunity* to create value.

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Unfortunately given that TheFunded is based on the west coast, most of their events on there as well. I’m on the east coast so I will not attending. But this is still worth the read and there’s some great results from a recent survey. Check it out below:

Hello,

The venture capital bubble has burst, and change is coming. Investments into venture funds are at a fifteen year low. There is increasing risk that innovative businesses will be unable to raise capital within 18 months, and TheFunded wants to do something about it. 82% of the Members are CEOs, and 75% are fundraising (see survey results below). The investors in venture funds, limited partners, are reading TheFunded weekly and reacting to the reviews. On February 18th, we are bringing together limited partners, venture capitalists, and entrepreneurs to discuss the Future of Funding. How do we want the future to look? Join us in the discussion.

– The Founding Member, http://www.thefunded.com

THEFUNDED EVENT CALENDAR
————————————————————
There are three events coming up: an exclusive “Future of Funding” conference, an improved “Showcase” event series for seed stage startups, and a launch of the Founder Institute in Seattle.

The Future of Funding: Feb 18, 2010, San Mateo, CA
– http://www.futureoffunding.com
– Members of TheFunded have 25 half price tickets to this intimate conference for top limited partners, leading venture capitalists, and entrepreneurs. Help shape the future of funding with the best minds in the industry.

Founder Showcase: Jan 14, 2010, Mountain View, CA
– http://foundershowcase.eventbrite.com
– Sign-up to pitch your company, meet your peers, talk to the media, andinteract with top-rated investors in this exciting Silicon Valley evening. Pitch tables are sold at cost, $350 each, and just a half dozen remain.

Seattle Founder Institute Informational Event: Nov 2, 2009 Seattle, WA
– http://institute-seattle.eventbrite.com
– Learn about the Founder Institute in this exciting evening at the University of Washington. There may even be a few special guests…

FOUNDER INSTITUTE APPLICATIONS DUE
————————————————————
If you know an entrepreneur that can benefit from experienced mentors helping their startup, then please invite them to apply to the Founder Institute. The San Diego, Washington DC, and Seattle semesters have applications due soon.

– San Diego Applications Due: Oct 27, 2009 (that’s now!)
– http://www.founderinstitute.com/apply/2

– Washington DC Applications Due: Nov 24, 2009
– http://www.founderinstitute.com/apply/4

– Seattle Applications Due: Nov 27, 2009
– http://www.founderinstitute.com/apply/5

SURVEY RESULTS
————————————————————
Over 300 Members filled out a recent survey. 81.7% are CEOs, just 29.1% are running their first startup, and 49.3% are on the West Coast of the US. Help TheFunded by filling out the nine question survey at http://bit.ly/1RpqX1. Survey results are below:

1. What is your role?
—————
81.7%  -  CEO
10.8%  -  CFO, CTO, COO
05.7%  -  Senior Executive
01.8%  -  Other

2. What best describes your experience with start-ups?
—————
29.1%  -  This is my first startup
23.7%  -  This is my second startup
23.0%  -  I have run multiple startups
12.2%  -  This is my first fundraising
11.9%  -  I have had multiple successes

3. What industry is your company in?
—————
16.9%  -  Software / B2B
14.7%  -  Internet / B2C
08.3%  -  BioTech / Health
07.9%  -  Social Networking / Community
07.9%  -  Other
07.6%  -  Digital Media / Content
06.8%  -  CleanTech / Energy
05.0%  -  Advertising
05.0%  -  Financial Services
05.0%  -  Games / Entertainment
04.0%  -  Mobile / Wireless
03.2%  -  Hardware / Electronics
02.9%  -  Communications / Networking
01.8%  -  Ecommerce / Retail
01.8%  -  Outsourcing / Services
01.1%  -  Security

4. What is the primary location of your company?
—————
49.3%  -  US West
25.2%  -  US East
12.2%  -  US Central
07.2%  -  Europe
03.2%  -  Asia / Pacific
01.8%  -  Canada
01.1%  -  Middle East / Africa
00.0%  -  South America

5. Are you currently fundraising or about to start fundraising within the next 3 months?
—————
25.4%  -  Not Fundraising
35.8%  -  Raising Angel
26.5%  -  Raising Series A
07.2%  -  Raising Series B
03.7%  -  Raising Series C or Later
01.4%  -  Raising Early-stage Debt

6. If you are fundraising, how much money are you looking to raise?
—————
01.4%  -   $10 MM US

7. How would you describe the profitability of your company?
—————
53.4%  -  Pre-revenue
13.4%  -  Unprofitable
15.9%  -  Almost Break Even
06.1%  -  Break Even
09.0%  -  Profitable
02.2%  -  Highly Profitable

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