About Us
Market & Marketing Strategy
The Market
Washington, Oregon, Texas and Montana have all benefited economically from their capital matching networks, Northwest Venture Group (WA), Oregon Enterprise Forum (OR), The Capital Matching Network (TX) and TechRanch (MT) respectively. In most of these states, groups are 10 to 15 years old, and have evolved over the years to concentrate on the venture forums and educational offering, leaving the specific matching function to the private marketplace and in some cases moving away from the membership model (TCN). Nationwide, formal angel networks exist to meet the needs of the investors, and venture groups have formed to further the mission of readying entrepreneurs for equity investments.
Alaska’s venture capital market is a small, underdeveloped market niche currently only served by one organization, Alaska InvestNet. Prior to InvestNet, second-tier business education in Alaska was limited to basic classes on business planning, marketing, and finances provided by SBDCs and ARDORs. Because the private equity market is faced with specific challenges, the venture capital market has clearly communicated a need for expertise in transacting private equity deals. Alaska as a state is suffering from a substantial loss in population in 25 to 35 year old range. InvestNet addresses this “brain drain” by strengthening the Alaskan startup economy which will provide more competitive jobs to the age group.
Competitive Advantage
Alaska is one of the only three states in the nation without an active venture fund, providing AIN with the opportunity to establish itself as a market leader preparing entrepreneurs and investors for equity be offering second tier business education, facilitating business relationships, promoting venture capital formation, and thereby encouraging Alaskan economic development. Because InvestNet is the first entrant to the industry in Alaska, it is in the unique position of being able to define the market, rather then having to structure itself around competitors’ identities and service offerings.
Market Analysis
Alaska InvestNet’s customers are Alaska’s entrepreneurs, accredited investors and service providers. Eventually, Alaska’s entire economy is serviced as more start-up businesses are successful in creating wealth by providing more work for year-round Alaskan residents in the private sector. InvestNet conducts a survey annually to get feedback from its clients and define future development. Our market analysis shows that the overall satisfaction level of our events is high - 4 out of 5 on a satisfaction scale.
Entrepreneurs: A recent market survey revealed that entrepreneurs consider equity investment to be very important to the future of their businesses, especially with regard to keeping their businesses in Alaska. The majority of responses indicated that their businesses were either established with ongoing sales revenue or at initial commercialization. Entrepreneurs generally reported first hearing about InvestNet through referrals from Advisory Board members or through contact with the Executive Director. Entrepreneurs are generally optimistic about Alaska InvestNet services, reporting an increase in business knowledge after utilizing our services; however, the single most important reason reported for participating in InvestNet events was to network with potential investors.
Investors: The investors overwhelmingly listed networking opportunities with entrepreneurs as the most important reason in their decisions to participate and the average response for the level of importance of finding an equity investment was ranked 3 on scale of 5. They also indicated a strong level of interest in investing in Alaskan businesses. All but one investor noted they would recommend the organization to associates. One investor pool is made up of Alaskan residents who have owned their own business for an average of twenty years.
Service Providers: Providers noted that 95% of their customers were Alaskan businesses. Ranking their satisfaction with InvestNet engagements at an average of 4 out of 5, nearly half revealed that they had engaged in businesses relationships with InvestNet entrepreneurs or investors through their attendance at InvestNet events. The services in order of importance to the service providers were; networking with investors; networking with other service providers, technical knowledge from seminars, venture forums and conferences. Most service providers stated that they plan to recommend InvestNet to their associates. As one provider indicated, Alaska InvestNet is a “program which benefits all who participate.”
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