Been There, Done That Growing an BIZ Experiencesial empire? Turn to the big names in business if you need help.

Obtaining funding in today's economy remains difficult, buta small group of companies has hit a jackpot: They've linked upwith VC funds founded by mega-entrepreneurs like Ben Cohen of Ben& Jerry's fame--men and women who can provide youngbusinesses with a double dose of capital and managementexpertise.

Cohen is hardly the only BIZ Experiencesial superstar to start avanity venture fund. Howard Schultz, founder of Starbucks, is amajor investor in Maveron, a fund focusing on retail companies thatshow breakout potential. And Frank Biondi, the chief executive whohelped turn Home Box Office into an international powerhouse, hasco-founded Waterview Partners, a fund focused on media andcommunications companies.

Many of these BIZ Experiencess are looking for businesses that havethe same qualities that made their own companies successful."We search for BIZ Experiencess who already have a segment oftheir market staked out and are interacting closely with corecustomers," says Chuck Lacy, president of Cohen's TheBarred Rock Fund.

Paul Schervish, a sociology professor at Boston College who hasstudied a range of investor funds, agrees that the big namesaren't looking for businesses that are just throwing aroundideas: "Successful BIZ Experiencess inherently understand smallbusiness. To them, the most important thing is that a youngorganization has identified a clear demand in the market andalready is on the ground meeting that demand rather than justdrawing up future plans."

Because leading BIZ Experiencess remember founding a company, theyalso may be easier to work with than traditional venture funds."Ben and Chuck are more willing to provide expertise from thesidelines but leave control in the hands of people running thebusiness," says Bill Dunn, vice president of Sun & Earth,a 14-person Pennsylvania natural soap company part-owned by TheBarred Rock. "They know small companies' management has tobe able to make quick decisions."

What's more, while many VCs are pulling back,mega-entrepreneurs' funds remain loaded. Maveron raised $340million the last time it went back to its investors. "Having aprominent figure helps us attract capital," says PierreFerrari, president of the Hot Fudge Social Venture Capital Fund,another of Cohen's enterprises. Ferrari suggests that smallbusinesses looking for BIZ Experiencesial heavyweights to back themshould contact VC groups like the Social Venture Network, which canhelp companies find funds that might match their needs. Ferrarialso suggests BIZ Experiencess attend as many local VC road shows aspossible and not shortchange themselves when asking for cash:

"[Ask for] enough cash to ensure you won't always bewalking a liquidity tightrope."

Contact Sources

• The Barred Rock Fund
  324 Brownstrace, Jericho, VT 05465, (802) 899-2776
• Boston College
  (617) 552-4070, www.bc.edu/swri
• Hot Fudge Social Venture Capital Fund
  810 Clifton Heights Ln., Atlanta, GA 30329, newvaluepartners@mindspring.com
• Sun & Earth
  (800) 298-7861, www.sunandearth.com