What actually happens when a venture capitalist meets a technologist with an idea? Is it really like the TV show Dragon’s Den?
In fact, the conversation that Electronics Weekly sat in on was nothing like the Dragon’s Den, there was none of the posturing and pushy machismo on the part of the venture capitalist (VC) and none of the startled rabbit, sweaty forehead appearance of the hopeful inventor.
After Mike Gera, a partner at Pond Venture Partners, and inventor Andrew Cordani - whose product is still in semi-stealth mode - had introduced themselves and talked about their background, the conversation was dominated by Cordani showcasing his patented electronic drumsticks. Gera prodded with a question or two, showed real interest in the technology but offered remarkably little in terms of judgement of the idea.
While Cordani has a product which appears to be a desirable and sellable product he has not been able to get the big firms interested.
“I have spoken to two of the biggest names in electronic musical instruments and they were not interested,” says Cordani. Gera responds: “It is about networking. It is very hard with the raw technology. You have to talk to the right person in the company who will see the value in the raw technology. The chances of getting this right person are remote.”
According to Gera, the challenge that Cordani faces is that he might have to develop the product further before he can prove that customers are interested, which will cost money.
In the end Pond did not invest in Cordani’s idea and Gera remained non-committal about the strength of the idea. It was later explained that this reticence was due to possible legal ramifications: if a VC gives specific advice, there could be some comeback if things go wrong at the start-up.
“He had ideas, focus and drive - all things we look for in a founder. This time around it is the company that does not fit the Pond portfolio,” Gera tells EW.
However, it left Cordani unsatisfied. “It was a good meeting but he didn’t give much away. I didn’t hear a sensible argument as to why they weren’t interested apart from ‘it’s not our bag’.”
Cordani continues to try and, er, drum up interest in his invention.
www.midisticks.com
www.pondventures.com