Case Study - Lazard Technology Partners

Client Situation.

Lazard Technology Partners (LTP), a mid-Atlantic venture capital firm holds an annual summit in which it brings together the leaders of each of its portfolio companies to share ideas, challenges and successes and to further educate them as to how to make their businesses successful. In so doing, LTP offers the participants a series of presentations from experts in various areas impacting the growth prospects of the participants businesses.

Challenges.

  1. LTP believed that although each of its portfolio company CEO had previously raised outside capital to support their company's growth, these CEOs needed further guidance in order to continue to be successful in securing future growth capital as their businesses expanded.

  2. LTP asked Lighthouse to gather together materials in the marketplace that could be helpful to CEOs and then to present the findings to the group. The challenge was that no such materials existed that were either complete or targeted at the needs of entrepreneurs.

  3. In the absence of appropriate material, Lighthouse had the idea but also the challenge of creating its own Entrepreneur's Guide to Raising Private Equity for this forum.
    · Lighthouse faced the additional challenge of convincing headstrong entrepreneurs in an up market (with a high availability of capital - read: the internet bubble), who had just raised money that they had more to learn about raising capital.

Lighthouse Role.

Lighthouse created its own unique Guide for entrepreneurs seeking to raise venture funding. The Entrepreneur's Guide to Raising Private Equity was Unique in several ways:

  1. Lighthouse outlined a clear process for raising venture capital where none had formally existed before.

  2. Lighthouse addressed the process from two perspectives - the entrepreneurs and the investors - offering the audience a unique insight to both the seller (entrepreneur) and the buyer (investor).

  3. Lighthouse created the Guide primarily in picture format so that busy entrepreneurs would both get through it and have a visual memory of its lessons.

  4. Lighthouse collected a series of tools as appendices to offer greater depth to those who wanted it and to bring the lessons to life.

  5. Lighthouse went further to create a unique presentation format in which Lighthouse indeed presented its own guide but then asked both a successful entrepreneur and an investor to tell their own sides to the story. This "reality check" on the advice provided by Lighthouse gave the entrepreneurial audience the objectivity and proof of concept they needed to buy into the Guide.

Successes.

· The Guide and the presentation received very favorable reviews when presented at the LTP summit.
· The presentation was then recommended for use at numerous industry symposiums and conferences after the summit.
· The Guide is in widespread use today by both entrepreneurs and the organizations that serve them.

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