So you are starting a technology company. You have developed the product or App and are ready to build the business. You go to your lawyer to incorporate the business, and then tap into family and friends, and maybe a crowdfunding site, to get some seed capital. Soon you realize you need more money, and when you raise that money you need a Board of Directors. Unfortunately, your lawyer, family and friends have never run a successful technology company and don’t know how to help.

As I advise talented technology entrepreneurs that is the situation that I find many of them face. They often underestimate the value of building a strong network from the very start that will lead to the investment, advice, Board and customers to achieve success. Based on this experience, the idea for a guide to help entrepreneurs was born.

Over the last six months, working with Ryan McCarthy from the University of Washington’s Foster School of Business, we studied the Seattle Technology Ecosystem. Our objective has been to identify insights about the investor and professional advisor networks that exist in Seattle, and to create a guide to assist tech entrepreneurs in the Puget Sound area. We conducted over 32 interviews with key investors and advisors who are central to this ecosystem. In addition, we completed a great deal of research to pull together information that would provide helpful insights for tech entrepreneurs. It turns out there is a great deal of free information online if you can sort through it from how much to compensate key employees and board members, to how to value your company, and much more. The key findings from the study were as follows:

1. Putting together the right network of board members, advisors, and investors is critical from the very start.

2. The investment ecosystem in Seattle is small for seed capital from Angel investors but available locally. At the same time the pool of Venture Capital investors for growth capital is even smaller, and much of it comes from out of State. 3. There are approximately 15 key lawyers in town that are experts in technology start-ups. Working with them is critically important.

4. There is a group of professional advisors that are set up to help young, entrepreneurial companies.

5. Seattle is a great place to start a tech company, but identifying computer science talent is difficult. Recruiting talent often must include searches within Puget Sound, but also include recruiting from overseas.

6. Creating a strong technology ecosystem is essential to a strong Seattle business community.

In conclusion, the Seattle area is a great place to start a tech company, and it is getting stronger.  For entrepreneurs looking to take an idea from concept to a successful growth company requires the right connections, and access to the right networks. There is support in the community to help you navigate the Seattle networks.  Hopefully this guide can be your companion on your journey.

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Are you an entrepreneur or do you know someone who is?