Corey Chambers on Preparing for Silicon Valley Investors to Provide Venture Capital to a Startup
How do we prepare for investors in our startup companies?
I am wondering this myself and I’m very grateful Corey Chambers just did an interview with me the answers a lot of these questions. And he’s offered to be the broker for me to look for investors for Uthena, what you’re about to watch or listen to if you’re on my podcast is the interview we had where we talk about all of these questions, how do you get an investor for your business? How does it work to use a broker? What things do you need to do to be prepared?
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These are things I didn’t even think, that I didn’t know I didn’t even know that I didn’t know these things. And now I’m much more prepared to present my company for investors. And with Corey’s help to actually find an investor for Uthena to build a startup I understand a lot of us building companies online “think about this“. How do you actually go about it? Especially if you don’t know anybody yourself?
The simple solution and ideal solution seems to be to find a broker and that’s where we look at and listen to Corey Chambers experience here on this video.
Corey is a business and real estate broker that makes a million-plus dollar deal in LA and Silicon Valley it which is in California, USA if you’re don’t know where I’m talking about. I’m very grateful Corey and I had an interview yesterday he used on my Jerry banfield.com.
I’ve got a free calendar where you can schedule calls with me now.
You can schedule up to seven days in advance. There’s one spot available every day and availabilities first come first serve. So right now, for example, there’s one day that’s available with a few different times on the calendar if you schedule, I’m very grateful Corey ended up scheduling with me after seeing this video I put up where to find investor for Uthena and that’s the topic of our conversation, because I had another call where it was suggested I look for investors.
And thankfully, instead of just trying to blast into it and hustle it myself, and I’ll go get these investors, I realized, I have no idea how to do that I’ve already got a lot of things to do, this is something I need help with. And it just seems amazing, that Corey is just popped up right away when I put that video up. And it’s good if you want to get investors, I imagine having a broker is the way to go.
Because the broker already knows people, the broker just like in real estate gets a percentage of the transaction. And it can even get a percentage of the company depending on the terms you set up. Thus, if you really do want some funding, I imagine you will find this helpful. This is my introduction. Now what we’ll do is transition you straight into the interview here with Corey, as we talk yesterday.
Corey: “Being kicked off you Uthena for being too successful. I mean, being kicked off you to me for being too successful is a great reason to start with Uthena. And I can see the success that you’re having with it. So I’m going to show it to me it looks like an easy, an easy choice and easy deal, easy transaction to raise your money. We’ve been managing money for a while from your you know, your statement, all that other good stuff they can do. Well, so that’s the main thing I wanted to talk to you about is actually, I’m going to actually offer to send you an agreement to make me at least for a short period of time, your broker for that. And, and then you can cancel it too. So if there’s someone that is doing a better job than me I make it happen. That’s the way that I do real estate also, I wanted to contract I get people to like a cancellation. So that way, they know that I have to work every day to earn their business, even after I have an agreement with them. But yeah, so I just I think it’s perfect because I’ve been wanting to be more of a business broker. Anyway, so it’s a good opportunity for me to be able to help you with that.”
Jerry: “Yes, that’d be great Corey, and you’re the only one I know that’s interested in helping me on this. You scheduled a call right away as soon as you saw the video. So I’d love to work with you. How does it work with you being a broker?”
Corey: “I’m in my as being a real estate agent. Sometimes, I’m going to use the same agreements and just change the words to help instead of helping you sell your home helping you raise your million dollars. That’s it so, but the percentage that I take is, is going to be less. So I’ll actually make more when I sell my home. But I’ll make the last one, I help you raise your million dollars. But that’s the way it should be. I think and I think it’s big, it’s a big opportunity for me to be able to help you with that.”
Jerry: “Yeah, I would love to do that. That sounds perfect to me.”
Corey: “Okay, cool. So that’s probably my job now to get to some details and an agreement. Unless you have some other questions.
Jerry: “Yeah, how do I’m interested to know like how this works from your end?”
Corey: “Well, I would ask for a percentage of if I help you get an investor, I’m going to ask the… Actually, I haven’t even broken it down. If if the I think basically it’s a small percentage out of the million dollars, or add to the million dollars, an extra few thousand dollars or 10’s of thousands of dollars for my commission for that, and then I don’t get any of it when your company makes a billion dollars, I don’t I don’t get any stock or any ownership of that at all. So that’s the way that works. But maybe in the future, I could help you with financial stuff going down the road as well.”
Jerry: “Yeah, that sounds like a great way to do it. I’m interested to know since I don’t know anything about this, like how does it work with an investor putting in money, like for company, how does that?”
Corey: “Well, them they’re going to want to basically stock ownership is what they’re usually going to watch. And so that way, when it becomes bigger, they’re gonna, their stock value is going to go up. And also they’re going to, usually what they’re going to want to include with that is, is some coaching and, and help for you going forward as well, as usually part of the package.”
Jerry: “Excellent! From my point of view, the one big concern I have with an investor is the kind of control, I definitely can benefit from coaching and suggestions. But at the same time, I kind of have a vision, I see some of these other platforms, they kind of have this similarity of how they’re running stuff. And I’d imagine is because they’re having to appease their investors, like on certain decisions, like, the more I think about I think it was, they got rid of me on you to me to try and keep good relationships with their investors, like an investor might have said, “you know, get rid of these,” “these guys, not just me,” “but these other guys on and get rid of all these guys” and “you to make this platform look bad.” Now, that’s my one big sphere that investors that they see are to get an investor that kind of like wanted to be the boss and like other platforms, basically.”
Corey: “Yeah, So, that’s one of the terms that you’re going to look at. And what you want is to get multiple offers from different people who have different terms of some of them might want to have control of the whole thing. In some way, others are going to want 50%. And I think more the majority are going to be happy with less than 50% control and less than 50% ownership, which would make and give you most of the control? Because that’s the way it should normally be.”
Jerry: “Yeah, I’m not interested in anything. I don’t have the majority control on it.”
Corey: “Yeah, I’m that’s the way it normally is. So that’s good to have to control, the person who is required to do the things that make most of the decisions. But I’ve learned just recently that when as companies grow, they have to change really radically. And so the person who starts to match really is not always a person to be controlling certain aspects of it, when it’s, you know, 100 million or a billion-dollar. Because it’s completely, it becomes a completely different thing. So but I mean, usually the person who starts it can continue to be the brains behind the innovation and stuff, which, which is what you’re good at is your entrepreneurial, and your innovative thinking and your vision.”
Jerry: “Well, thank you for helping me see that.”
Corey: “I’m good at those things too. That’s why I can tell”
Jerry: “Yes, it’s takes one to know, one, as they say.”
Corey: “We have some of the same skills.So any anything else?
Jerry: “Oh, yes. So when, when an investor let’s say, how does it work with valuing the company? And then how, how much the investor gets? Like, how do you work all that out?
Corey: “Well, yeah, that’s what the investors are particularly good at is that they’re going to calculate the value and the unique selling proposition and the, and what is the, you know, and they’re going to project in the future of how big it can be? How much how big business can be, and how fast I could grow.”
Jerry: “Also their value calculation and how much they put in versus how much they give the company?”
Corey: “Yeah, they’re going to be better than that anyone? But it’s good. If there’s someone who’s specifically on our side, or if we feel that they’re going to be good at being on our side.”
Jerry: “Because it’s in their interest, of course, to calculate low and get a high percentage, and then when it does, well, they make the most money.”
Corey: “Yeah, but you probably have a few your own projections. And that’s kind of what’s going to probably mostly rest on that and, and negotiate that with what the investors want.
Jerry: “What kinds of expectations are what would I need to be available for in order to help you make it work?”
Corey: “Probably, if there’s any other information that you haven’t put on the line, maybe even some notes or something that could potentially be helpful. And then just to be able to stay in touch this, this is a great way of communicating. And I’ll make sure you have my phone number. I don’t know if I have sent you a direct message or email or anything. What’s best for me, I’m kind of a phone call person.”
Jerry: “I like phone calls too, so you can reply to my email with your direct information like the scheduling one. You put your texts, number of reminders that the one is that your direct, and I got your emails, all those the ones you want me to use?”
Corey: “Yeah, my 313 is my my main mobile number.”
Jerry: “Okay, good. I got all your so in your call request, that was perfect.”
Corey: “Okay, great. And then your email, that email confirmation is where I could reach you as well.”
Jerry: “For the legal structure, I currently have everything as a single-member LLC. That’s a disregarded entity as far as the IRS is concerned. So I’m on a schedule. See, I’m imagining if an investor would want like a separate company, created a stock on it.”
Corey: “Probably a separate LLC, and then issue stock and all that stuff. And they’re usually going to be experts at helping to do all that stuff. And then if you can afford another attorney, is a good idea as well. If not, then I can find someone who seems particularly suited to being extra helpful.”
Jerry: “My wife, an attorney, he might be available to help with that kind of things in terms of research at least.”
Corey: “Okay, cool. Have you done any California stocks now, because they’re now… Florida is known for being really business-centric, and less consumer-centric, and California is more consumer-like, so whoever is either paying the money or whoever is in a lower as, like less position sometimes get advantages in California, whereas in Florida, businesses usually hold all the cards.
Jerry: “Also, an investor might want something in California that set up a little for them.”
Corey: “There’s gonna be, there’s gonna be some minor differences, that could be important. But having your wife look at things is certainly better than not having to look at things like an attorney.
Jerry: “Or just imagine I might need to change the structure my business to be prepared for an investor, but there’s no reason to do that until investors ready.”
Corey: “Yeah. Uh-huh. And there, they’re generally most of them are going to have the whole plan to help you and all that stuff. So most of them are going to be good at filling in for people who don’t have accountants, attorneys, and stuff already.”
Jerry: “So likely will have a system that they do or with and, they’ll do all their companies.”
Corey: “Yeah, most of them are going to have a complete system and have you read it and make sure that you like it. And then you can request changes to it. There might be some who say, I just have the money and a little bit of advice, and you need to do everything else that could work also.”
Jerry: “That sounds like the best to me, I guess it would help too if one has more structure.
Corey: “There’s going to be fewer of those, there’s going to be more than have, they’re gonna want to hold plan and program awareness, there’s gonna be probably more.”
Jerry: “Alright, well, I’m interested that yeah, as you said, it’s definitely good to have some options. So you could have some perspective, like this investor wants this at one like and compare them.”
Corey: “So I see it as being very easy to sell you and the business. And fact, most of those investors say the number one thing they look at is, is the main person behind it which is you have some of them are gonna be looking at you much more than they’re going to be looking at the business.”
Jerry: “Well, I’ve prepared well for that.”
Corey: “Yeah, so that’s another reason why I’m so excited. Because, I mean, I could easily be all about a Jerry Banfield.”
Jerry: “How do you meet these people? Like, how are you? How is your network? Like, from my point of view, it looks very challenging to do what you do.”
Corey: “Oh, it’s gonna be a combination of, well, I’m a marketing person. So basically, I’ve been doing marketing for 49 years. So that’s part of what it is, is. And you, you know a lot about marketing too, because you do a lot of, and I’ve been doing online marketing since 1997. I’m familiar with everything that you taught, talk about as far as marketing is really easy for me to understand. Of course, other people may have a hard time following some of the marketing stuff. So yeah, that’s what I did. So much, my most real estate agents don’t make any money. Because they don’t know they don’t realize it’s sales, it’s sales and marketing as the most important things about it. Learning about real estate is important. But that’s because the sales and marketing bring in all the customers who have the money. So I was in I was in Silicon Valley for almost two years when I was in the Air Force. And I was hanging out with all of the people at Stanford University stuff, those were my buddies when I was in, I hung out with more of them than I did with Air Force buddies. So those are people who are all the tech people. And one of my closest friends in the world has been in the tech industry there for, you know, 40 years, I think. And so fortunate, I became friends with all those people. So I have the connections there. And then I’m going to be going back with the next few weeks, I’m actually meeting with one of the vice presidents of Wells Fargo Bank, to and I want to talk to him about your situation because he definitely knows investors in Silicon Valley startup investors. And some of them might want you to move to Silicon. Certainly be some that say, “Okay, well, you’re you can certainly do that from Sarasota, Florida, or anywhere else in the world,” or preferably in the United States. So we have the same laws.”
Jerry: “Yeah, definitely in the USA, that might be a tough sell, for the move, but you never know.”
Corey: “And then I’m going to be going back there in the next few weeks, to meet with more or fewer people and talk to them specifically about you. And your website.”
Jerry: “Do you have any recommendations for me to be best prepared for review? Do you see anything that you recommend I changed the, you know, like the look over or anything to do better, like get a new YouTube channel thumbnail or something?”
Corey: “I’m not gonna hand everything to me and looks really good so far? But I’m gonna spend more time on your websites to make sure that I have a good mixture, I’m going to really go over the part where you said, the things that are unique and better. Better than you, to me, that’s really important.”
Corey: “And that, let me write those down now to make sure I can find them and understand. Because that’s a that’s important. And what were those things, again, that you’d mentioned before that I saw on your video,
Jerry: “Udemy course bundles, you have a huge limitation. And platform selling correspondence course bundles one was our groups, the courses that are put together by theme or by the instructor. And then you can just pay like $50,$100, $200 for a whole bunch of courses. So it’s a big limitation on you may have to buy every course individually, they’re not in a good position to change that either. And Stock Commerce for examples doing really well-selling course bundles. So that’s one feature Uthena, it’s a big improvement over Udemy, and my aim is to have the biggest bundle of courses in the world because that commerce can’t do that. They have these e-learning companies that are won’t agree to that percentage, but students like you can imagine buying a complete like 10,000-course bundle for a few hundred dollars, like, you know, that’d be better than a college education.”
Corey: “Alright, so Uthena has the ability, whereas Udemy simply does not have the ability to have the biggest month of courses in the world so that’s that’s probably the number one on the top so okay, cool. I gotta rewatch that video. What was the one where you went into that recently? You do a lot of videos you probably.”
Jerry: “Yeah, I could look I can look at and see if I can find you one.”
Corey: “I give you my history I’ll find it.’
Jerry: “Another key point with Uthena is the ability to have instructors build an entire business on Uthena instead of just selling courses. Udemy is extremely limited and the ability to in that respect you have to go off you Udemy basically. And it actually discourages instructors from even going on you mean promoting Uthena you can sell a video course, you can sell a membership for coaching, you can sell high-level services all on the same platform. Think about combining the best of like think about putting like Upwork and Udemy or Fiverr and Udemy together. And we can help with all that email by an instructor’s course we automatically sell your on those services. So there’s infinite resale potential to higher paying clients. Like, you could sell a $5,000 course on Uthena. Whereas on Udemy, it’s limited to $10 basically.”
Corey: “Yeah, I can see, you know, because that’s where potentially most of the money is.”
Jerry: “Probably the number one selling point them because the instructor is the most frustrated on you, to me can’t build your whole business there. No other platform allows you to do that either. So that to me is probably the number one selling point. And then I’m the example I sell my courses, I sell my course bundles. I sell $6,000 membership program, and I sell our least services on the same platform. And then the platform gets a percentage of everything.
Jerry: “And there’s nothing like that on the market.”
Okay, so then they’re probably going to ask you
in, they’re gonna ask you tough questions like, why do you think you can do something that Udemy can’t? And why if you want if Udemy doesn’t allow people to do something, maybe there’s a good reason for that. Maybe that meant that you’re going to lose money. If you let people run their businesses that way, using your platform. You gotta have an answer to those tough questions like that.”
Jerry: “Would be a good thing for me to work on to come up with answers like that.
Corey: “Cool. Well, that’s probably enough for me to digest right now answer those as well.”
Jerry: “Coey, how did you end up finding me?”
Corey: “Originally following you all about the statement. Really understand that because of you. And because I was in I’ve done well, a Bitcoin, as well. So because I was buying some Bitcoin when it was $100. And so I really have a because I haven’t background in tech and sales and banking, and payment processing coding, I’m a terrible coder, programmer, but I did a lot of it mostly, and then so I had this background that will and then I’m a libertarian. So I have this background that 100% match Bitcoin. So for when you’re talking about steem, and I was able to really understand what you were saying. Steam, it just has a couple issues. Are you already using mines? With a thorium? Is that a statement with Steem? But, I mean, that’s what I like what it looks like so far. It just needs to expand and get that critical mass mine does not have that in it.”
Jerry: “That seems to be in a difficult spot for everyone.”
Corey: “That’s how I found you. Plus you You’re better than almost anybody at talking to people. There’s, I mean, in fact, I can the only person I can think of that as good as you as Howard Stern. I just imagine there’s some other radio or TV personalities, YouTube personalities. But even the YouTubers, it doesn’t have the best opportunity to just talk to people, even though a lot of them are not that good at it. So you’re good at that, That’s what has drawn me to you. Is you talking about yourself and how it relates to other people.”
Jerry: “Thank you. Yes, very helpful. Help me focus on doing what I do. Well, I’m not going to other areas.
Corey: “And that’s it nice of yours that I can’t stand is the music, but I want to discourage people from making music.”
Corey: “I mean, the movies that I made been called the world’s worst movies and all that stuff.”
Jerry: “So good to be human, right? Yeah, you have your ups and you have your down, see.
Corey: “All right, so cool. So my job is now to start getting to get that stuff to you that I promised. So I’ll start working on that. Give me the work three days to seven days.”
Jerry: “Perfect. I will start coming up with some videos to make answering those tough questions that investors are going to ask by, you know why you are you, etc.”
Corey: “Okay. All right! Thank you so much. It’s really exciting to talk to you. And I look forward to helping you with your million dollar goal.”
Jerry: “Well, thank you for talking to me for like divine intervention. I put the video up to schedule this call. I’m like, Wow! that’s awesome.”
Corey: “Have a good day. Today definitely needs to be taken.”
Jerry: “I appreciate your help. ready for your email follow up.”
Corey: “Alright, have a great day, Jerry.”
Jerry: “Thank you. I’ll talk to you soon.”
Thank you very much for watching the entire interview or skipping ahead with Corey Chambers and me Jerry Banfield that we are honored. And hope this has been helpful for you today.
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