The article below appeared in the May 2011 issue of Technology Transfer Tactics. Click here to subscribe.

Most TTOs and university start-ups have learned the importance of using the web to market their technologies – but what about using web marketing to land funding for those technologies or start-ups?

Traditional methods of raising funds for technology ventures are “done,” asserts Stuart W. Smith, CEO of The Entrepreneur’s Advisor, based in Lutz, FL, who says that web-based marketing to attract early-stage funding is now the way to go – a concept he’s starting a new business around. Smith, who has been involved in several start-ups and turnarounds, is currently a mentor at three business incubator centers and will be advising start-ups on this new, non-traditional approach to attracting investment dollars.

“Even as recently as a few years ago, the methods [of securing funding] they would suggest in graduate school included creating a business plan, doing some basic marketing, trying to get a road show in front of people, and hoping for the best; the Internet was not being used as a marketing tool,” says Smith.

Raising funds the traditional way, he continues, is very labor intensive, and often the IP owner or inventor wastes valuable time that could be spent on R&D. “Almost every business failure I’ve seen was due to lack of funds,” Smith says. “Either the inventor left things undone until it was too late, did not understand what it takes, or did not have the necessary experience or skills. Some who recognize that go outside for help, and that’s probably the worst approach, because a lot of people take advantage of scientists.”

Web marketing to potential funding sources, says Smith, should be integrated into your business and marketing plans early on. “The earlier you begin, the greater your exposure will be — and it will be great if you use Internet marketing,” he declares.

“I look at marketing your idea for fundraising the same way you would if you had a product to sell,” says Smith. “Let’s say I’ve created a new tanning device; I put a website out there and basically say ‘Come buy my device, place orders.’ You need a website for that — something that has global reach. You will have a marketing campaign strategy to try to get the word out to the most people possible. The same approach can be applied to raising funds.”

For obvious reasons, he continues, your site should not have not too much detail about your invention. “You only have to do a few pages — maybe five to 10 — with company information, snippets from your business plan, and potential applications, which will become your keywords. You can start by writing a post to talk about the need for this invention, write guest posts on any number of sites, and that will get you exposure and basically serve as your hook. You also need a well-thought-out process for pulling people in once they bite.”

Your site, he continues, needs pictures, and strong content that’s SEO-maximized. “That does take time; professionals charge good money for that and for good reason,” says Smith. “But they do it right, and in six months you can have a presence — rather than waiting two years.”

Becoming an ‘authority’

Even before you develop your site, however, you’ve got to do your research, says Smith. “Determine your target market — which is basic business market research,” he says. “Is it angels? VCs? Crowd funding? It’s impossible to do everything.” To reinforce your marketing efforts, he adds, once you’ve determined your target markets you can join professional associations, and join LinkedIn groups in the same space as your invention. “Try to establish your subject authority in that field,” he advises.

You can do that by participating in forums, writing guest articles, and most important of all, creating a blog. “Hubspot did a survey a couple of years ago that showed companies with blogs had 50% more site visitors, 97% more inbound links, and 434% more index pages –which is really important,” he notes. “They also found out that business blogging generally gets 126% higher lead growth.” (For further detail, got to http://blog.hubspot.com/ blog/tabid/6307/bid/5519/Blogging-Businesses-Experience-126-Higher-Lead-Growth-Than-Non-Blogging-Businesses.aspx and http://blog.hubspot.com/blog/tabid/6307/bid/5014/Study-Shows-Small-Businesses-That-Blog-Get-55-More-Website-Visitors.aspx)

SEO, he re-emphasizes, is critical. “The first four spots on organic results receive 52% of all click–throughs,” he notes. “You really want be on the first page, and preferably at the top.”

Blogging speeds that process up “big-time,” says Smith. “Without my post, how would you know I knew anything about a given topic?” he poses. “Without a blog, you may be an innovator, but how would anyone know what you’re working on? You do not want to give away the ship, but post enough to whet their appetite.”

If you merely post a PowerPoint presentation without a dedicated site and marketing, says Smith, “nothing will happen.” On the other hand, he maintains, a well-done website will draw “potential investors who are interested in your type of technology, and they’ll want talk to you. That’s where investors and quality leads come in.”

The bottom line, says Smith, is that your fund-seeking activity should focus on whatever generates the most leads. And Internet marketing, he stresses, “is much cheaper than farming out to grant writers — which is often not realistic. There are a million good ideas out there, and most of them do not get heard.”

When you set up a website and blog, he adds, it will often reach other researchers, who may think of other potential applications for your invention. “You never know what those applications might be, and you really need be open to them,” he advises.

Removing obstacles

Raising funds for a start-up can be a long, full-time process with many obstacles, says Smith, but Internet marketing can help remove those obstacles. “The greatest obstacle when seeking funding is the lack of qualified contacts,” he says. “If you really have a great idea in hand, you may be asked to go out to California or to Switzerland — and you have to be able do that. That takes money, and there are a lot of pretenders out there.”

Be aware that many individuals claim they represent investors, but are merely go-betweens who cannot make investment decisions themselves. “I’ve seen too many companies spend two months or more talking to somebody — only to find out they did not have money,” he shares.

But it’s not hard to find out if someone is serious if you know what to ask, says Smith. “Find out about their past professional investments and the criteria they use,” he suggests. “Find out why they’re interested in you, and what they can do about it.”

Pre-qualifying people is fairly easy using the web marketing approach, Smith adds. “You can set up a pre-qualifying questionnaire on your site that does not let the person go forward to the next section unless they have completed the required information.” This saves you from handling every call that comes in, he explains. (Editor’s note: Smith says that once his company launches, there will be a full-blown example of the questionnaire on its home page.)

Contact Smith at 813-345-4825 or stuart@theentrepreneursadvisor.com.