Four entrepreneurs. Five minutes. Thirty bankers and investors. A $1,200 crowdfunded cash prize.
The stakes were high at the Denver Metro Small Business Development Center’s (SBDC) pitch-focused Trout Tank, sponsored by Colorado Lending Source.
In just minutes, four entrepreneurs—from CXO Collective, Familiar Lounge, Safe Ride 4 Kids and Spinelli’s Sauce Co.—showed off their products, talked market share and margins and made their funding asks, hoping to convince lenders, investors and venture capitalists to either invest in their business or sign off on a small business loan or line of credit. They were, in some ways, bait for the “school” of 30 potential funders, but there were no sharks to be found among the 200 in attendance and those watching online.
“Our hope is that the entrepreneurs who present at the Trout Tank walk out with four or five bankers saying, ‘I want to do your deal,’” said Denver Metro SBDC Executive Director Abram
Sloss.
And it was Safe Ride 4 Kids that hit the mark, winning over the audience, which could vote for its favorites with $1 million in faux cash through a mobile app created by Brainspire.
“As a young, growing company, having 30 lenders and investors sitting in one room eager to learn about our businesses and help us reach our funding goals is an amazing gift,” said Safe Ride 4 Kids CEO and founder Greg Durocher. “Just in access and time savings alone, not to mention the credibility that being associated with the SBDC offers, Trout Tank is an incredible opportunity for any small business that is seeking funding to start or grow.”
In addition to wowing the audience, Durocher won over lenders and is working to close a loan.
Here’s what the pitching entrepreneurs learned from their time in the Tank:
Solve a problem for consumers. Durocher, a former firefighter, found himself at the scene of countless car accidents during his career. He wants to change that. Safe Ride 4 Kids distributes car safety products, including a safety vest for children 3 and older and tummy shield for pregnant women. “We help parents keep their children safe during the most dangerous activity they are exposed to every day—driving,” Durocher said.
Follow your passion. Familiar Lounge, a casual-dining café with a family game-night theme, was started by two business partners with experience in the food industry and a love for board games. Co-owner Chauncey Hutton told the audience, “This idea came from the desire to have all the things I love in one place—great food, family and board games.”
Know when to ask for help. Spinelli’s Sauce Co. has made a name for itself with its pasta sauce and dressings, which are distributed by grocery chains like Whole Foods and Kroger. But, in addition to funding, owner Chris Rogers was also looking for a partner “to bring their expertise and help us grow.”
Meet your customers where they are. CXO Collective founder Corbin Cowan aimed to “take a world-class franchisor and put them inside Walmart stores” with the mobile device repair shop Cellairis. “You’ve got a one-of-a-kind franchise opportunity,” Cowan said.
Prior to competing at the Trout Tank, each entrepreneur had to perfect his or her ask at a pitch academy led by Rockies Venture Club, go through a rigorous audition and interview process and receive one-on-one consulting.
Younger businesses also created their business plans in the SBDC’s LEADING EDGE program.
“I would strongly encourage any entrepreneur to commit to LEADING EDGE and the
process of competing in the Trout Tank,” Durocher said.
“It’s not just about getting in front of the school of 30, which is very valuable in-and-of itself. But, it’s about the process of distilling your vision down to 10 to 15 (presentation) slides and communicating your dream in a compelling fashion in just five minutes.”
Access to capital is an ongoing concern for businesses new and old, large and small, but one that’s evolving with angel investors and crowdfunding joining traditional lending and equity.
What may matter most is making those connections.
“Our job here is really very simple. We do one thing: we connect people,” said Denver Metro Chamber of Commerce President and CEO Kelly Brough. “We connect them to opportunities, to
jobs, we connect new ideas to sustainable business practices, and (at Trout Tank) we connected entrepreneurs to funding.”
Lindsey Bonadonna is a program coordinator for the Denver Metro Small Business Development Center.