This week’s episode of Funding & Disrupting presented by Oura Collective introduces you to Jeffrey Silverman. He is the Co-Founder and Managing Director of Laconia Capital. Keith interviews Jeffrey to get an insight into his venture capital journey and latest investments.
Jeffrey Silverman’s Fundraising Advice to Tech Companies
In the podcast, Keith asks Jeffrey Silverman what advice he gives to Tech Company Founders seeking capital. He openly answers and discusses what Laconia Capital looks for in companies that fit their policy.
Jeffrey says that companies should reach out if they are B2B companies at the seeding stage. He also clarifies that seeding stage companies are the ones generating $20,000-$50,000 of revenue. Jeffrey says that Laconia eagerly looks forward to investing in companies with the gist to replace an analog workplace with a digital one. He also addresses how Laconia Capital looks forward to companies providing digital solutions.
Keith continues to ask what companies need to do to catch the attention of Laconia. Jeffrey Silverman honestly answers and provides ways of reaching out to their company. He tells how warm introductions are great, but not everyone has the luxury to have them. Therefore, Laconia is very-very accessible to anyone and everyone.
Jeffrey Silverman even asks the listeners to get his e-mail id from his LinkedIn account and pitch them. Further, he tells how many prospects even direct message him on his Twitter handle. And, you can sign up for a mentoring hour on the official website of Laconia Capital. Jeffrey says that they get back to everyone. No matter whether they keep or pass on the pitch, they always answer the clients.
Jeffrey also emphasizes keeping the cold e-mail short and crisp. He asks the prospects to make a brief introduction, telling their pitch and ideas. He also jokingly asks clients not to send a fifty-page brief via mail.
Introduction and Investment to Noteworth Tech Company
In the detailed discussion with Jeffrey Silverman, Keith digs deep into Laconia’s Noteworth Tech Company investment. Keith asks the backstory and introduction of Noteworth to Laconia. Jeffrey tells how David, his business partner had a friend in Noteworth.
This person reached out to David in 2019 and gave an idea about Noteworth. He told Noteworth was a digital health care company of outstanding founders with some remarkable history. The concept looked unique to David. So, Justin, the founder of the Noteworth, came to Laconia with his pitch.
Jeffrey Silverman also told how Justin Williams had an amazing history and had worked in a pig farm and went to the military. Jeffrey refers to Justin Williams as a remarkable and thoughtful person. He came with this idea of Noteworth in 2019, but Laconia passed on the pitch. Jeffrey tells how they felt the idea was nice to have but not a must-have. They felt the medical industry was hard to get onboard.
However, Jeffrey says that they kept in touch with Justin and presented his ideas to some potential prospects. Justin came back in 2019, and Laconia passed on the pitch again.
However, in February 2020, with the onset of COVID in several countries, Justin felt that the pipeline for Noteworth was ripe. He knew it is a must to have a digital healthcare system.
Jeffrey Silverman honestly tells how COVID turned the idea from a “nice to have” to a “must-have” to help the patients directly communicate with the doctors. Laconia saw potential this time and closed the deal in early April.
Laconia Capital: Being the Lead Investors
When Keith asks Jeffrey about being the lead investor in deals, Jeffrey opens up about Laconia’s working style. Jeffrey gives some frank and helpful answers. He also says that Laconia leads 85-90% of its investments.
First, Jeffrey Silverman explains how Laconia focuses on the operational executions of a company. For them, it is not only about investing money but helping a company grow. Second, Laconia helps in the sales acceleration of the companies in which they invest. They focus on the sales funnel and pricing to yield profits. Third, Jeffrey believes working on the capital strategy of founders is critical. Investors need to check that capital is neither too much nor too little. Jeffrey also elaborates how relationships are far more crucial for Laconia than business.
Jeffrey also tells how they open their data systems for the founders. Laconia lets the founders add to their systems. He also openly says that they pass on a company if they do not see any scope of venture capitalism. Jeffrey believes there is nothing wrong with being honest with clients.
Relationships Between Jeffrey Silverman and Founders
When Keith asks Jeffrey Silverman about their due diligence process and investment strategy, Jeffrey speaks candidly. You’ll love the part where Jeffrey discusses his unique ways of performing due diligence to understand the founders better.
Admittedly, he is a student that enjoys observing others and draws upon his observations to make better decisions. He provides several examples, even comical at times, of how he positions himself to capture such vital information.
Jeffrey Silverman advises people about the different ways to reach him and Laconia. He believes people do not worry about warm introductions to approach Laconia. He asks people to visit their website and submit proposals to Laconia. Jeffrey also asks clients explicitly to send only a short paragraph of what they are doing, what stage they are at, and what they are looking to raise.
Laconia Story Notes
- Reaching Out to Laconia
- Qualities Tech Founders Should have
- Laconia Investment Strategy
- Relationships Between Investors & Founders
- Being Lead Investor of Noteworth Tech Company
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