"What product is in this box that can solve the problem?" Lee Jones asks as she shows the crowd of several hundred investors
and business owners a plain, white box.
Jones, president and CEO of Eden Prairie-based Inlet Medical and Nazie Eftekhari, chairman and founder of Bloomington-based
Health EZ, are the two Twin Cities entrepreneurs chosen to present their companies to investors May 9 at the first Midwest
Springboard event at Northwestern University in Chicago. The national initiative is run by the non-profit, Washington D.C.-based
Springboard Initiative and aims to give females executives access to angel and venture capital networks and their funds.
Inlet Medical specializes in the development of laparoscopic instruments and kits for women's health problems. Jones is the
second speaker to take the stage May 9 and she has just 10 minutes to explain the company, its products and the business opportunity
it presents for investors. ...
It's not long after her presentation at the Allen Center that Jones has the opportunity to extend her pitch to an angel who
has approached her table in a room set aside for presenters.
"What's your current burn rate?" the angel asks. "Are you going to major medical schools first? Can you use it for
other purposes?" she asks, eyeballing and then eventually handling Inlet Medical's device displayed on the table.
"There are a lot of applications for this device, but we're a small company. We need to stay focused," Jones responds, quickly
zoning in on key points. ...
Jones outlines the company's history, and explains she expects the company will break even within six to eight months. Sales
last fiscal year were $720,00; Inlet is on track to do $1.3 million this fiscal year.
"We don't have any agreements with shareholders. We expect to be sold," Jones tells the investor.
As the conversation progresses, the angel begins to share her story. Her focus is medical devices; she lives in Chicago and sits
on the Evanston Hospital board; she scouts for angel groups in New York and Boston.
"You're much farther along than most with your financials," she tells Jones.
The angel walks away, satisfied with what she's heard. She has attended previous Springboard events in Silicon Valley,
Boston, and New York and is impressed with the Midwest event. She is equally impressed by Inlet Medical and Jones.
"It's a product that's a simple idea that's easily executed," she says, declining to be identified for this article.
It's focus on a large niche market and Inlet Medical's "seasoned CEO" appeal to her as an investor.
"There are good ideas, but execution is key," she says.
Gap between the coasts
It was no small task for Eftekhari and Jones to be invited to speak at the event. Out of the initial 230 applications there were
11 Twin Cities companies that applied. Nine made an early cut down to 75, and then Eftekhari and Jones made the final cut and were
required to attend a one-day preparatory "boot camp" in Chicago to hone their presentation.
Joan Moser, a Minneapolis public speaking consultant who coordinated local Springboard efforts and helped screen and coach applicants,
says Eftekhari and Jones made the final cut for several reasons.
"Investors are looking for something more substantial. They both have major customers paying them, they have a proven revenue
model and they have proprietary technology and products, " Moser explains.
She predicts they will fare well with Springboard investors. "The quality of the management team is important and they're both operationally far along."
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