In the second part of his Diary of a Start Up, BigDogg Technologies CEO John Quigley offers advice on funding and recalls the chain of events which resulted in his entry to the software industry in the first place. To catch up on his first Diary entry, click here.
This diary – what’s in it for you?
Well, hopefully a few things. If you’re interested in hearing about how to successfully navigate through the quagmire of forms required for funding, you want some helpful advice on how to set up a company, or you just want to hear about the joys of start-ups – from hiring staff to securing office space, from product development and useful strategies particularly around leveraging SEO, SEM & Social Media (Twitter, Facebook, LinkedIn, viral etc.) for lead generation and to increase sales – then this is for you.
Funding
High-growth start-ups usually go hand-in-hand with high levels of risks. These are not risks the banks can immediately underwrite. Angels and venture capitalists might take those risks but not without taking a chunk of your business, sometimes with pretty aggressive terms attached, in return.
The Enterprise Boards can fill that gap in funding, making the difference between an innovation rocketing or nose-diving, but they’ve got to justify every penny to the tax-payer.
On the note of funding there are many breaks out there for innovative start-up companies such as:
•            Corporation Tax Exemption for the first three years
•            Tax advantages for Holding Companies
•            Research and Development Tax Credits
•            Accelerated Capital Allowances
•            Priming Grant
•            Seed Capital Scheme
•            Business Expansion Scheme
•            Enterprise Ireland Grants
Incidentally, we secured the largest funding of any company in Ireland so far this year from Dublin City Enterprise Board through the Priming Grant, which really helps a company like ours that has been literally “Bootstrapping†it up to this point. No venture capital funding for us yet (more’s the pity!) We’ve put some of our own funds into it, and have just secured some (very) modest bank funding. But more on that later…
By the way, did I mention that I’m the only one in the company that’s not being paid?? I haven’t actually had a salary for ten months at this stage…
Setting the scene – my exit from slavery!
After 15 years of servitude in high-pressure environments (mostly in middle to senior management) at some of Ireland’s largest organisations earning them tens of millions of euro, I found that money was no longer the main driving force for me. Yes, I enjoyed the money but when my wife became pregnant (with our beautiful son Noah) in early 2008, the apprehension levels about continuing in my current role along with a new-found “perspective†prompted my exit around September 2008.
I used to be the chicken but I’m now the pig – figuratively speaking of course
I needed real “peace of mind†to be seen as an innovator and wanted to work for a company I could really drive on my terms (as though I owned it myself but not quite ready yet – essentially a stepping stone to being fully committed!). Not to digress but I think this best describes what I mean: “In a bacon and egg breakfast, the chicken is involved but the pig is committed.†I used to be the chicken but I’m now the pig – figuratively speaking of course – 110%, bona-fide, committed!
All of the worrying, anxiety, self-doubt and even fear involved with leaving one job and getting confirmation of another all boiled to a 10-minute window in my life. Did you ever notice this in other areas of your life? When it comes down to it, all this anxiety is usually unfounded – right? The rationale reason being that the inevitable will happen whether you worry about it or not. Ultimately you cannot control a chain or series of events especially those that involve people! Doesn’t seem like that at the time though, does it?
Anyway, at 11am one cold September morning I had successfully negotiated my exit package with one employer and at 11.08 had confirmation from another that I was to start my semi-committed job two weeks after the birth of my son. Happy days!
My arrival in the software industry, whilst a breath of fresh air at the time, was unfortunately only a sojourn. The particular organisation that employed me couldn’t sustain my salary due to the economic downturn, so here I was eight months later, jobless with an eight-month old child and wife to provide for, a large mortgage, two car payments and huge “cash burn†in possibly the worst recession in Irish history. Not so Happy days!!
Next time in BigDogg Technologies’ Diary of a Start Up for JOE.ie, John Quigley will outline both the reasons for starting out on his own, and his requirements for the business.
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