Grants, Guidance, and Growth: The TAG Invest Connect Experience for Entrepreneurs

Intro: Broadcasting live from the Business Radio studio in Atlanta, Georgia. It’s time for Atlanta Business Radio. Brought to you by Kennesaw State University’s Executive MBA program, the accelerated degree program for working professionals looking to advance their career and enhance their leadership skills. And now, here’s your host.

Lee Kantor: Lee Kantor here, another episode of Atlanta Business Radio. And this is going to be a good one. But before we get started, it’s important to recognize our sponsor, CSU’s executive MBA program. Without them, we couldn’t be sharing these important stories. Today on the show, we have Larry McHugh. He is the co-chair of Tag Invest. Connect. Welcome, Larry.

Speaker3: Glad to be here, Lee.

Lee Kantor: Uh, for folks who aren’t familiar, can you share a little bit about tag invest connect. Can you talk about it a little bit?

Speaker3: Sure. Technology Association of Georgia is a member organization with 30,000 members. They do like 150 events a year. One of which is tag invest connect, which is part of their Bridge Builders program. And that will be coming up for the, I believe, the third year on October 23rd at Comcast headquarters in the battery. And it will start at 11 a.m. with chance for entrepreneurs to meet buyers from corporations in Atlanta like Home Depot, Cox Enterprises, BlackRock’s and major players in the community. And that will be followed by an Investor Connect session, where many individual investors from the Atlanta area will judge them, judge the entrepreneurs and their products, and the winner will get a $10,000 grant, not equity And the second place will be $5,000. So it’s a full day on October 23rd at Cox. I’m sorry. At Comcast headquarters.

Lee Kantor: So what was the genesis of the idea? There were so many pitch competition going on throughout the city. Why was it important for Tagg to do one?

Speaker3: Tagg is focused on entrepreneurship and inclusivity, and this is focused on underserved entrepreneurs, female and minority entrepreneurs, which get a fraction of investments from venture capitalists and even angel investors. So it’s an outreach to underserved entrepreneurs, and it’s been very successful. In fact, of the 1500 or so people who have participated in this program over the years. 62% of them have actually gotten some funding through the program. So it’s it’s very successful. It’s very focused. And the great community involvement is other people say Atlanta’s secret sauce is collaboration. And while there are 12 serious investors judging the presentations, I’m going to be reaching out to many more. So there will be a lot of capable investors in the room.

Lee Kantor: So what was kind of the criteria in order to be able to pitch.

Speaker3: Its beyond a minimum viable product? It has to have. The entrepreneurs have to have some paying customers some revenue and scaled for growth. And that’s what usually the investment is for, to do some outreach for marketing and promotion and production. Pretty basic stuff, but it’s not investing in ideas or individuals. It’s actual experienced entrepreneurs that have experience in their field and a product that’s up and running and some happy customers.

Lee Kantor: Now, what was kind of for you, the impetus to get involved at the co-chair level.

Speaker3: Um, that’s a fair question. I’ve been very involved in Atlanta’s startup ecosystem for about 13 years now, starting with Georgia Tech’s advanced Technology Development Center, the ATC. I’ve also served on the board of the Urban League of Greater Atlanta and supported their entrepreneurship program as well as development. And you mentioned that Kennesaw State Executive MBA program is the sponsor of this program. They all. Kennesaw also has a well funded entrepreneurship program sourced by Doug Shaw. And that that program is expanding on both campuses. Emory has a program. Uh, Georgia State has a program on the board there as well. So for the last ten years, exclusively, I’ve been volunteering to support entrepreneurs in several organizations around town. And it’s very personally rewarding, frankly, to to work with motivated, determined, smart people, and I learned stuff every day.

Lee Kantor: Now, you mentioned the criteria for pitching is to have sold somebody something. Um, is there kind of any niches or is it just kind of if they’re in technology, then this is the right place for them to consider participating.

Speaker3: Fair question. Um, yes. Technology. Uh, and that can be software as a service. That can be fintech. Uh, it can be medtech. Uh, put tech at the end of anything and you’ve got it. But, uh, edtech. Um, Atlanta’s ecosystem is thriving. Um, for example, the the startup awards are happening on October 9th. Recognize some of the key players in town. And it’s just a it’s just a great community with a lot of different people involved and a lot of collaboration as opposed to competition. I’ve lived in other places where it’s kind of a zero sum game, where the only time I can win is for you to lose. And it’s just not that way in Atlanta. I’ve seen multiple cases where direct competitors are very supportive of each other.

Lee Kantor: Now, how does the. So let’s walk me through kind of the day of the event. What’s going to occur on the day of the event on October 23rd?

Speaker3: Uh, very good. There’s a buyers brunch. Where, um, at 11:00, representatives from companies, um, like UPS, uh, Comcast, Home Depot, Georgia government, Blackrock, Honeywell, these, uh, enterprise companies will have people there to share what they look for in a product when they buy. And then the entrepreneurs will have an opportunity to ask questions and, uh, pitch their product to these buyers. So it’s it’s it’s not hypothetical. It’s real buyers from real companies. That’s at 11:00. And then, uh, later in the afternoon, probably around 1:00, we’ll start the pitch event, where they will get a chance to pitch to active investors, both B2B and B2C. And like I said, there’s a $10,000 first prize to that and a lot of capable investors in the room beyond the actual prize. So it’s really a great opportunity for a small group of entrepreneurs to meet with several different investors, both angel investors and venture capital investors.

Lee Kantor: Now, so when you apply to pitch and then you pitch, is there any mentoring that goes on prior to that to give them kind of a leg up when it comes to pitching, or is this. Is that not included in this competition?

Speaker3: Well, just like Adventure Atlanta, it’s a competitive process where people submit an application to participate and they will be prescreened for selection there and then those that are accepted will get active mentoring and coaching right down to their their their PowerPoint deck and presentation skills. So yes, there’s direct mentoring of the people before they present.

Lee Kantor: And then you mentioned October 23rd is the day of the event. Is is it already kind of locked down of is it too late to to apply or is it still a.

Speaker3: No go on? Uh, Technology Association of Tours website, which is tag online and follow the event for Bridge Builders program and then tag invest connect application online.

Lee Kantor: So there’s still time to um, apply to pitch.

Speaker3: Absolutely, yes.

Lee Kantor: Now, um, have you been involved like you mentioned, this is just I think you said the third year of the event.

Speaker3: It’s. Yes.

Lee Kantor: Have you been involved in all three years I have.

Speaker3: Um. It’s been a great event. You know, it’s fun. You know, Larry Williams, the CEO of a tag he’s very involved in. Doctor Loretta Daniels is the executive director, and she’s in charge of all the education programs, this being one. And, uh, it’s a great program. I’m not sure where the genesis of it came, but I joined it in the early stages. And it’s it’s a very worthwhile organization and event.

Lee Kantor: Now, um, the are the judges, um, kind of VCs and investors. Is that who you have judging? So there are actual people that would put or could put kind of their money on the line?

Speaker3: Absolutely. Um, people like Aaron Hurst from Dogwood Ventures, LaVar Hassani from Bendy Capital Group, Junior Gaspard from Fulcrum Equity, Stig Mosley, the godfather of angel investing, Scott Lappin, who’s with uh, Tech Square Ventures and some others. So it’s a it’s a highly respected group of actual investors.

Lee Kantor: Now, are you finding that Atlanta is becoming a more hospitable place for VCs? Are you seeing some folks who exited, staying around to keep the flywheel going and keep investing in Georgia based companies?

Speaker3: Well, absolutely. Absolutely. Um, the people that have come out of the ATC and, uh, the Atlanta Tech Village, David Cummings was a successful entrepreneur who reinvested in starting, uh, Atlanta Tech Village. And he’s also invested in several of the companies that are unicorns. Um, you know, now worth over $1 billion. One example might be flock safety, which I think is worth $7 billion now. And I can remember when they were looking for their first round of seed funding with the Atlanta Technology Angels. So, um, Atlanta’s you know, it’s not exactly Silicon Valley by any means or New York. Um. That’s where the serious money is. But it’s a thriving tech ecosystem with some well-established investors and very successful companies. There’s numerous companies that started from nothing and are now worth billions of dollars, and they’re paying it back like like clock safety. Started a program, um, to invest in brick and mortar businesses.

Lee Kantor: So you’re seeing kind of that, um, successful exit and not just kind of leaving and going, you know, to retire somewhere in a yacht, but to actually stick around and, um, and, and kind of help the community, uh, grow and thrive.

Speaker3: Absolutely. It’s like I said, it’s a it’s a collaborative community. And I’ve reached out to numerous people to participate in events, not just, for example, the Startup Atlanta Awards. Um, the deadline has been extended to Thursday night and people can go on Startup Atlanta dotcom and apply there. And just last night I sent a note to 28 people very involved in the community. I heard back from many of them, several of whom have said they’re going to submit companies for recognition. And, uh, Hieronymus is going to do another plug, uh, Wednesday to promote the, the the extended deadline. Yeah, there’s, there’s there’s a real community of people that are willing to help each other and often, uh, without reward.

Lee Kantor: Now, you mentioned that you’ve been involved with this event, um, since its inception. Has there been a company that came out of one of the early, um, competitions that has gotten some traction?

Speaker3: You know, I can’t come up with any names for you right now, but I do believe that, uh, just last year, two companies got got funding, uh, from the actual event the day of the event, because there are a lot of investors in the room. And if there’s a Resonance with one of the investors. I know that at least two companies last year did. And, um. And on the other hand, the people that have participated. Uh, 98% were very satisfied with the program. So it’s done a lot of good.

Lee Kantor: Now, out of the people who apply, how many make it to the kind of the pitch competition on the 23rd.

Speaker3: I think we had over 40 applications and 5 or 6, uh, will be presenting on the 23rd.

Lee Kantor: So what do you need more of? How can we help you?

Speaker3: Um, people with a tech company that has, uh, a minimum viable product, some at least a handful of happy paying customers and are scalable. Ideally, an experienced entrepreneur that’s started another company, even if it wasn’t successful. Um, we have found that experienced entrepreneurs, uh, are more successful and in many cases. I know investors that say we’re betting on the the jockey, not the horse. In other words, the team, the entrepreneurs are more critical than the actual product in some cases.

Lee Kantor: And then the event is October 23rd. Do you know the deadline to apply to pitch?

Speaker3: I believe it’s the end of September.

Lee Kantor: All right. And then if they want to learn more, they go to tag online and then look for, uh, invest. Connect.

Speaker3: Yes. Under the Bridge Builders program then tag invest. Connect.

Lee Kantor: Well, Larry, thank you so much for sharing your story today. You’re doing such important work and we appreciate you.

Speaker3: It’s my pleasure. Lee, it’s always a pleasure talking to you.

Lee Kantor: All right. This is Lee Kantor. We’ll see you all next time on Atlanta Business Radio.