Newly launched angel venture capitalist fund, H360 Capital is building up a full head of steam. Yesterday, the firm announced the addition of their newest partner Corey Rosemond.  In his new role as partner, Rosemond will be charged with leading H360 Capital’s Consumer Investment activities.

“We are very fortunate to have Corey Rosemond join our team. He is an exceptional individual with a great reputation in the consumer and gaming communities,” said H360 Managing Partner Hezekiah Griggs III. “His success at HP and Microsoft in particular provides unique insight to our portfolio entrepreneurs, and I look forward to his full engagement in our future interest as a firm.”

Rosemond brings extensive experience to H360 as the former Global Group Manager at Microsoft and HP’s former Business Development Director. A member of the gaming industry since 1997, Rosemond has worked on a number of platforms in both the hardware and software space. He’s also currently the Professor of Game Studies at The Guildhall at Southern Methodist University and acts as an advisor of Glitch Gaming Apparel.

“I’m excited about this opportunity, and honored to be a part of the H360 Team,” said Rosemond. “As a graduate of the Founder’s Institute, I recognize the importance of a firm like H360 in the venture capital space. I hope to bring a lot of my experiences, thoughts, and expertise to the H360 team as we began to help entrepreneurs realize their dreams.”

Yesterday HG3 Media founder, Hezekiah Griggs III announced the launch of H360 Capital, a venture capital firm. The new firm will focus on early-stage entrepreneurs in technology startups including social media, cloud computing and enterprise applications. Griggs will serve as H360 Capital’s Managing Partner which draws on Griggs’ experience as “America’s Youngest Media Mogul.”

“We’ve all experienced the success and failure of starting new ideas. I think that bodes well for us, as we help our entrepreneurs identify the map for success in their individual businesses,” said Griggs.

In addition to the firm’s launch, Griggs has also begun announcing his partners in his latest venture. The first partner is Brian Peters, co-founder and CEO of H3 Enterprises. A serial entrepreneur, Peter has been involved with over 30 startups and brings his experience in brand development, with a focus on content streaming and sharing. In his new position, Peters will be shift focus” to developing his expertise of Social Media with a specific concentration on emergent monetization models for the Social Media market.”

“The opportunity to help shape the way technology lives ‘with us’ is very exciting to me,” said Peters. “Mr. Griggs is a brilliant business man, and his vision for H360 is one that I am fully committed to. I am beyond enthusiastic about partnering with him [Griggs] and the other partners at H360. This is an exciting time in the venture space, and I’m glad to have an impact in it – moving forward.”

According to the press release, the new firm will be based in North Carolina. No word on which company the firm will fund first, but whoever it is, they will be privy to a wealth of information and experience that can help make them the next big thing in tech.

“My partners and I are collectively concerned about the diversity of thought, and the entrepreneurship climate that exists today,” said Griggs. “However, there is no greater time than now, to fulfill the promise of technology’s burgeoning presence in our lives, and how it will help shape the future of how we live.”

The South African branch of Microsoft has announced the first group of black-owned software development companies it will be investing $69 million in over a seven year period in a broad-based black economic empowerment equity equivalance program (BBBEEE). The program is one method South Africa is using to fix the imbalances set in place by apartheid. The investment is the largest made by an IT company in the country.

According to Microsoft South Africa Managing Director Mteto Nyati, “The investment directly addresses key challenges facing the government and South Africa – namely creating jobs, developing enterprises, building the local software economy and developing scarce technology skills.”

The companies that have been awarded the first round of funding were picked out of an applicant pool of 683 and are as follows:

• Pietermaritzburg-based Chillisoft, who create public health software solutions that assists in alleviating service delivery bottlenecks;
• Cape Town-based Maxxor, which creates consumer applications for mobile phones;
• Security solutions specialists BUI from Johannesburg; and
• Durban-based Home Grown Business Integrations, who create cloud-based software that boosts government service delivery to rural people.

Nyati says that the award is not a one-off affair. Microsoft partnered with venture capitalist firm Vunani will allot four months to work with the chosen companies to take them from their current business model to the “next level.” By choosing companies in the health care, security, education and mobile services, Microsoft hopes to take the first steps towards job creation, business and economic development as well as entrepreneurship in the black community.

The companies that weren’t chosen still have an opportunity to work with Microsoft. The company is potentially interested in working with the applicants, possibly inviting them to join the Microsoft ISV program.

Have you ever had a brilliant idea about a project, but realized that you didn’t have the funds necessary to make the idea become a reality? As a result, your great idea never gets off the ground and dies a slow death just staring at you from the screen of your computer. Well, Brooklyn-based Kickstarter has an intriguing platform which is here to help you. Kickstarter is designed with creative projects in the music, television, video, comedy, fashion, gaming and other categories in mind.  Don’t think of Kickstarter as a micro-lender or an investment firm. Think of it more as “micro-patronage” with built in levels of engagement.

A person or group will create a project, list the desired goal for funding and how many days the project will be open for funding. A recent example of the power of Kickstarter is when the founders of the Black Weblog Awards used the site to raise money for the 2011 edition of the awards. The goal of their campaign was to raise enough money to have a live awards ceremony with streaming video, trophies, and a private, catered reception.  Another great example can be found in Karon Vereen Davis (Spelman College) and Aletha Spann.

The two filmmakers have decided to create a short film about the Atlanta Child Murders back in 1979-1981. Titled, “Leaving Atlanta”, Davis and Spann have created a project on Kickstarter to raise funding for equipment rental, props, wardrobe, set dressing, editing, and other production expenses. The initial funding goal was $5,000 but the pledge amounts have already totaled $6,942 with approximately 36 days left in the funding period. Included in this total is a backer who pledged $1000 and four backers who pledged $500 towards this project. Curious about who these backers are? Simply click on the “backers” tab and then each specific backer has a hyperlink to their profile. Within the profile you can see what other projects a member has chose to back.

The rewards (basically how you, the pledgee, will be compensated for your pledge) range from a signed still picture from the short film with a thanks on the website ($10 donation) to a producer credit in the short film with a signed copy of the actual book, DVD and thanks on the website ($1,000 donation). Each project will have a unique set of rewards that the project creator has listed to match the donation amount. For some very affordable prices, you can become a part of the project you are actually investing in. This specific project has weathered the storm of 23 publishing rejections and is headed to a screen near you via the power of Kickstarter.

There are numerous questions and details with regard to the details of donating. Basically, you must use your “Internet street smarts” when deciding if and how much to donate. Many of the projects will have video testimonials which gives you better perspective of the goals and people behind the project. Kickstarter will make 5% of the funds raised for each project. If funding isn’t successful, then no fees are charged. Check out more pertinent info right here.

Kickstarter is a very interesting project which can be used by fledgling investors who are not financially able to make the larger investments we read about in the Wall Street Journal. Ironically, more knowledge and wisdom can be gained from becoming a investing member of Kickstarter. Take a look around, make an pledge and share your thoughts with us in the comments section.

By Brandi Tape

Many entrepreneurs and small business owners are looking for startup funding by acquiring bank loans but are met with roadblocks when attempting to secure credit. Less than half of all small businesses who pursued borrowed funds last year were rewarded the amount requested whereas, in the mid-2000s, a whopping 90% of businesses surveyed by the National Federation of Independent Business reported receiving the amount they needed.

Discount shopping giant Sam’s Club, in conjunction with Superior Financial Group, has begun to test an online program to help bridge the gap for its small business members. The program would provide loans available in amounts ranging from $5,000 to $25,000 for all business members that meet the required qualifications. In the findings of a small business survey initiated by Sam’s Club in November 2009, 15% of their business members had been turned down for loans needed to maintain their operation; this number had increased 12% since April 2009.

To read the full version of this article, please visit our sister site YBPGuide.

Comcast recently announced that it would put it’s money where it’s mouth is and allocate $20 million to a venture fund targeted to minority digital entreprenuers.

Coincidently,  this move comes in the midst of Comcast seeking FCC approval of their pending merger with NBC Universal (NYSE: GE).  Comcast (NSDQ: CMCSA) promised U.S. Rep. Bobby Rush in writing that it will establish a $20 million venture capital fund for minority entrepreneurs to develop “new media content and applications” when the deal closes. The new fund would be part of Comcast Interactive Capital. According to a letter to Rush, timed for Thursday’s congressional hearing in Chicago about the merger, the fund would “facilitate early stage financing of minority businesses.”

Comcast EVP David Cohen told Rush in the letter released by the company that there would be more details about the fund in the fall. The focus of the Chicago field hearing for the Subcommittee on Communications, Technology, and the Internet is “Comcast and NBC Universal: Who Benefits?”

Cohen’s letter also lists:

• Comcast’s promise to expand on its previous diversity pledges, especially when it comes to African-Americans
• A planned minimum of 10 new indie linear digital networks with African American majority ownership
• Training and mentoring programs for minority students, including African Americans
• A commitment to sale KWHY-TV in L.A. to a qualified minority owner

The National Journal reported,

the FCC has scheduled a July 13 public forum in the Windy City on the transaction, being reviewed by the agency and Justice Department.

So why is the Second City the first destination for both the commission and Congress? Comcast is the dominant cable provider in the market, owns a regional sports network there and would own Chicago’s NBC affiliate if the deal is approved. Plus, it’s a short airplane hop away from DC.

Yet it was in D.C. that a room full of minority digital owners convened at Black Web Media’s New Media Entrepreneurship Conference and discussed venture funding in our closing session. One of the key points brought out during the session is that increased venture funding in the media space would increase quality digital programming for and by blacks. And it will aide in the growth of small digital companies owned by minorities, specifically African Americans and allow us to develop properties that are competitive in the digital media space.

Nearly seven years ago, a business partner and I sat down in several offices of people who were much richer than us to present a business plan.

The business plan was bound with spiral binding, a glossy presentation booklet with catchy title, marketing buzzwords and phrases such as “three-headed distribution monster,” “walk with us,” and snazzy acronyms such as “J.U.M.P.”

More than all of the above we had a detailed breakdown of operational costs, projected salaries, marketing costs, potential return on investment and all that jazz.

We were proud of our booklets and eventually received a modicum of funding. In essence we sold the project, but we didn’t sell it because of our cute little booklets. In fact the people who funded us never even read the plan. They read us and we stayed in their face long enough for them to pay us.

You may not hear this from an advisor or consultant whose business is to find funding for you but it’s true. Write a business plan but don’t pitch that plan. What you are selling more than anything is you.

Take this guy, he wears cool wire-rimmed glasses, rocks jeans to work and swings deals for August Capital, a VC shop managing an estimated $1.3 billion portfolio of companies. This guy, whose name is David Hornik, says VCs tend not to read business plans in their entirety. They are too long, he says and usually your business, especially if it’s high-tech or trend oriented, will change quicker than you can get out of the traffic jam to get to the meeting. Okay I added that “traffic jam” but you get the drift.

The key is the Executive Summary of your plan, which most VC’s do actually read. Here’s what that summary should contain.

No. 1:  The fact that you’re you, and you did something and plan to do something else.

No. 2: The fact that you understand your business and that of your competition.

No. 3: That you have a proven product or service already making money or with customers ready to buy or be serviced pending the procurement of operational funds.

No. 4: That you are the next big thing or you are highly innovative on an existing business model.

At the end of the day your business plan should be your source document and you should be able to cite facts and figures from it verbatim, on the fly, without breaking the bank at the FedEx Office to make fresh little booklets.

There are many ways to get yourself in front of a VC firm, the most common is: meet people. More than any start-up financing realm, the world of VC is a world of referrals and gladhanding.

A few paragraphs up, I said we got it done by staying in front of these “richer than-us,” people and we stayed in front of them because along the way, people vouched for our ability. Indeed your credibility, viability and bankability as an entrepreneur can be made or broken by those who do or do not vouch for you.

When I got my first job out of college, a well respected mentor told me to be thinking about my second job the first day I showed up at work for my first job.

This didn’t mean I shouldn’t do the best I possibly could at my first job but that I should have a plan, a projected trajectory and a strategy to put in place that would help me garner experience to make that next step.

This scenario is similar to the thinking that should go into small business ventures where the procurement of outside funding or start-up and venture capital is desired or needed.

Think about the next step.

For instance, some entrepreneurs really have a dream to change the world, while others are starry-eyed and see dollar signs in sea of opportunity during a boom or a gold rush. Still others are calculatingly cold as in: first year get the funding, second year grow the business, third year get profitable, get out.

Thinking two and three steps ahead is crucial. If you want to make your business your life’s work, then the mentality is different than that of a serial entrepreneur more interested in ongoing innovation and flipping ideas than pulling all-nighters for years at a time and eating, living and breathing your business until an exit strategy presents itself.

Either way, it’s important to think about the exit before the entrance or upon and work that into the plan. Venture Capital advisers, funding organizations and firms have been known to ask entrepreneurs what the exit strategy is so you should know it.

Would you like to grow and be bought or would you like to grow to put yourself in a position to buy? Would you like to procure venture capital funding until your group becomes viable enough for an IPO or are you open to the world of small-cap and private M&A?

Mergers & Acquisitions (M&A), which this blog will touch on continually in the future, is one of the most viable exit and/or expansion options for start-ups.

As a start-up hopefully you are on the seller end of an acquisition. According to VentureSource in 2009, venture capital-backed companies raised a median $18 million in VC funding before entering into M&A deals.

Moreover, VentureSource says that the $7.3 billion generated by mergers and acquisitions (M&As) in the fourth quarter of 2009 is up 49% increase from the $4.9 billion raised in the same period in 2008.

Who said there isn’t buying and selling going on in a recession?

Think about it and make the next step.

The past can tell us a lot about where we are going. The past can also pre-sage history and fortunes to be made. Its mistakes and miscalculations can also be repeated. Nowhere is this truer than in business.

Believe it or not, you are neither the first nor the last entrepreneur who is destined for success, destined for failure or if you’re lucky, destined for both.

Yet, with the aforementioned resurgence of VC funding that is expected in 2010, you may think you can be the next Facebook, the next Amazon.com, the next Twitter, the next hot shot initial public offering, raking in the bucks. Or maybe you want out before the scrutiny. Maybe you want to be the hot new private VC darling with more rounds of funding than a drive-thru ATM in the parking lot of  a NASCAR race.

Think again.

Hype for an idea, the latest craze, the next killer app, the next breakthrough technology, can only last so long and only be ingratiating to a point with only so many businesses.

One need only consider the tech boom of the late 1990s and post-millennial “oughts,” as well as the housing boom – everybody was a real estate mogul weren’t they –  that helped create the latest Great Recession.

Don’t be part of the herd even if that herd appears to be blinging all the way to the public markets. Back your idea and zeal up with an actual revenue model and an intelligent trajectory to eventual profit and return on investments (ROI) for early funding entrants in your business.

Get it on paper now. If not in practice, in well-contrived theory. There are only so many hotnewidea.com’s and lastestcraze.net’s and “Trendy Inc.” companies that will slip through the cracks and make a few people rich as well as leave a lot of investors with rabbit ear pockets.

Still think what you have is new? Good,  but consider a 2004 Current Issues – that’s current issues – article by the New York Federal Reserve.

In the article, authors Stavros Peristiani and Gijoon Hong say the tech boom of the 90s that saw thousands of IPOs of companies with little or no earnings potential wasn’t a new phenomenon.

As far back as the early 1980s, the report says, pre-initial public offering private small businesses were showing signs of financial weakness and ill-timed public floats.  Then as it is now, a clearly demonstrated revenue and profit stream is essential.

Current issues indeed.

When it comes to figuring out whether a venture capital, finance company, angel investor or early-stage private equity firm is up to snuff, there is the non-academic approach and the academic approach.

First let’s look at the non-academic approach, common sense. First let’s check out the “what ifs.” For one, be leery of firms that are either too exclusive or let on like they are too exclusive for you.  Let them remain exclusive, inclusion and flexibility is the key in your financing partner, which is what they are; a partner in your business at the end of the day. Besides, a fund manager named Bernie Madoff was one of the most exclusive of them all, if you remember.

Moving right along, professionalism and organizational aptitude, or the lack thereof, should be a deal maker or breaker. Would you seek funding from a group if the web site of the financing firm in question is under construction? Would you want to give money to a company like that? The answer is: move on immediately. Next, if your initial contact has a business card with – or gives you an e-mail address containing — gmail, yahoo or hotmail as domain names, this is usually a huge red flag. This is usually a sign that he or she is just starting out like you, is too lazy to get a professional domain or is actually behind where you are. Or, in rare cases, this person is being overly secretive about giving out their contact info for the sake of being secretive. None of these reasons are good.

Plus by this stage in your funding research aims, you should know what your goals are and be savvy enough to read these signs.

Now for the academic approach, tracking performance, which is a bit trickier but there are ways to nail down the particulars.

In their mid-2009 scholarly article that few read except for other scholars, Richard Smith of University of California at Riverside as well as Roberto Pedace and Vijay Sathe of the Claremont Colleges lay out several criteria for tracking VC firm performance which are pretty on point from both a pedestrian and expert level.

They came to the conclusion – let’s give you the Black Web 2.0 version – that firms with the best exit strategy track record for the companies they fund, are among those to look at closest. Also don’t think that a VC firm that wants out after the initial investment is shady because that’s not necessarily true. This group of academics also found that VCs that get out of investments early, tend to outperform investment entities that retain a portfolio of start up companies over longer periods.

As this blog has stated before, experience and good experience in the industry you plan on entering or are already in, is a good barometer for the VC you want to hit up.