This is really exciting news for both PRWeb (recently purchased by Vocus) and Business Wire. Not only does it validate our approach to SEO which is nearly a decade mature, but it helps Business Wire leapfrog the other newswires in their SEO offering.

I do want to point out that SEO is not the entire story here. Prior to this agreement PRWeb was the only service able to deliver a social media press release. With the PRWeb / Business Wire partnership BW now offers PRWeb’s full suite of social media features including our patent pending implementation of TrackBack technology to its customers. Again, Business Wire will be offering both SEO and Social Media distribution through PRWeb’s proven platform.

No other newswire, not even PRN, has a social media distribution platform. (I will concede that PRN recently announced a partnership to help users author a social media release based on the SHIFT template, but it simply generates a document without the benefit of social distribution).

This is a big move/win for Business Wire.

Thanks again,

David McInnis
Founder, PRWeb

Angels are essentially high net worth individuals or small collectives. They want a good return (better than they can get at the bank or stock market) with reasonable risk (can be high at times) and the potential for a rapid flip or return strategy. They look at the cap rate of the company and its valuation. A reasonable valuation will more likely attract an angel who can get a decent equity stake for their money and thereby have the potential for a home-run. Angels also invest frequently in what they know or what they like (perception is very very important).

I was once told, “its all about the “wiz bang” – And, is it cool?” Does the business ring to the angel? For VC’s, it can also be about the wiz bang, but they review so many companies that are cool, it also has to have a real market, usually some real clients, and ties which will likely take the wiz bang business to the point where it can be acquired or flipped for substantial return.

I’m not so sure that hard and fast rules should be applied to either angel’s or VC’s, but good guidelines are essential to meeting objectives. Just as in applying for a job, you start with a resume, the pitch and the executive summary can either open doors or close them fast.

Also, the edge for some companies is in who introduces them to the angel, VC or institutional investor. Networking can be as critical as any other aspect of the funding acquisition stages.

I take issue with some VC’s who look at the formation format of the company and its law firm (big name). A start-up must be focused and must use funds wisely. A good demonstration of using funds wisely is keeping your burn rate to an efficient and attainable level. Sometimes, early on, hiring a big name law firm or professional consultants, accountants, or intermediaries can be very costly and not very productive. Look to the network and seek out inroads to the funders and the strong strategic partners through other avenues that will not tax the early funds and equity of the start-up. Some examples include:

a) Networking: Utilize business networking opportunities (e.g. online business networking, professional organizations or trade associations, affinity groups, and even friends and acquaintances who can introduce you to powerful and important resources)

b) Boards: Find the right business advisors to be on your board of directors and board of advisors. Neither of these boards should be passive, and and likewise, neither should be unmotivated. The participants should be able to open doors and ultimately be rainmakers for funding, introductions, and clients. Often board of advisor members will serve for relatively small equity or some promise for future benefit.

c) Strategic, but not Competitive Alliances (Use Leverage): Nobody ever said that every new business must work alone. Find compatibilities with other companies (of different stages) who can benefit from your companies products/services and the relationships and leverage the strategic benefits and value-add to provide inroads for funding, growth, business development and ultimately exit strategies.

Above are just a few potential roads which are not costly, but provide excellent mechanisms for either organic or viral growth and do not cost much or anything and which will likely (if planned and researched well) yield excellent returns.

Finally, the most paramount thing, in my estimation, a new business, especially one looking for capital can do, is to build a strong working business plan. Due diligence, strong models, competitive analysis, and good resource and leadership planning can be the difference between success and failure. Many new companies see business plans as a luxury or something for which they have no time. Quite the opposite should be their perspective as you would not go into uncharted territories without a guide, a current map, or today, a GPS navigator. Think this way with business planning and you will find your way, both in finance and sales.

These are just a few thoughts from the RBStrategist Interpretation.