This week we celebrate Purim, a holiday whose main theme is WYSINWYG (What You See Is NOT What You Get). The good guys of the Purim story – Mordechai and Esther – are masters of manipulation and subterfuge as they turn Haman's (the bad guy) plot to destroy the Jews of ancient Persia on its head.

In order to capture the essence of the Purim experience each year, the holiday is full of wonderful customs such as being commanded to get so drunk that you can't tell the difference between Mordechai and Haman (a custom which I observe scrupulously), as well as masquerading and generally making a lot of noise.

However innocuous it is to masquerade as something you are not during Purim, this year the holiday takes place in the context of worldwide media attention focused on the stolen identities used in Dubai. It is simply a fact that the digital world we live in offers way too many opportunities for people to steal identities, commit fraud, undermine networks and applications, and access information that is not meant for their eyes. Thus, governments and corporations have no choice but to invest heavily in solutions that provide security for and facilitate the management of data, networks and applications.

If your company is part of that world, you should check out the MarketReach America seminar we are organizing on March 22 in Tel Aviv on Cyber Security and Data Management: US Market Opportunities and Challenges.

And, in the meantime, chag sameach to all.

Best regards,

Tina Ornstein, CEO
Signal Business Development (formerly Trendlines International)

Christmas, China, Two Jews, and a Christian

Cultures and cultural interpretations can seem awfully bizarre to strangers in a strange land.

I was in China last week for business meetings, along with two others from our office in the Galilee region in the north of Israel (the general area where Jesus grew up and ministered). Here we were, three guys that come from three rather different backgrounds; me, the Israeli-American, another Jewish Israeli who has lived in the States, and an Israeli Christian Arab who grew up in Germany, all experiencing Christmas in China.

Each of us arrived separately. I deplaned in Beijing to the sounds of western Christmas music playing on the PA. The fact that the Christian population of China is – at least as a percent to total – likely smaller than that of Israel, didn’t stop restaurant and retail store employees from dressing up as Santa Claus. In one restaurant the waitresses were in Santa outfits too; modified Santa suits with short skirts and tight tops; seemed a nice touch (Mrs. or Ms. Claus outfits, perhaps).

Christmas trees were everywhere and traditional Christmas music blared at us from the most unlikely places. But it was at the Sheraton Hotel lobby bar in Guangzhou that we witnessed a truly special blend of cultures. There, a Philippino band (Catholics all – we asked) serenaded us with Christmas songs. The bar was populated solely by Philippinos and Israelis, and this was the backdrop as we reviewed discussion points for our next day’s meetings.

I asked a Mexican and a German, (a Catholic and a Lutheran respectively), who work at the hotel in Guangzhou, about the Chinese understanding of Christmas. Why all the celebrations? What does Christmas actually mean to the average Chinese person? The answer was: it’s a party – a time to go out, be with friends and have fun. They said that Chinese Christmas is totally devoid of religiosity.

We would all do well to remember that we do not live in the various cultures we visit – we are tourists at best. Sometimes, we think we understand them, and sometimes, we know that we don’t. But if we aren’t locked into preconceived notions about a particular people and their customs, we can learn about them on a deeper level; hopefully gaining a better understanding of their motives, needs, and the expressions of their culture. Acting with the presumption of our own ignorance removes the arrogance of assumed understanding and leads to a more meaningful and fruitful outcome.

Wishing you all the most meaningful and fruitful outcomes for this coming year - Happy New Year.

D. Todd Dollinger, Chairman and CEO

A small news item caught my attention this morning. Rob Ashe, general manager of IBM’s business intelligence and performance management unit, noted that 1 in 3 managers admit to making business decisions without having the relevant information on hand. I assume that in most of these situations the managers were not being lazy about gathering information, but rather the information was not available, or not readily available. So how does one make business decisions when the information is difficult to come by?

Here are a few thoughts:

• Keep your eye on the 8-ball: It's very possible that at least some of the information that you are seeking is nice-to-have, but not a must. Focus clearly on what you really need to know to make a good decision.
• Partial information is better than no information at all: Gather as many data points as you can and then "connect the dots" to estimate your market size/sales forecast/price points, etc.
• Benchmarking: Identifying situations that are similar or equivalent to yours, and learning as much as you can about these business cases, is often an indirect but effective way to make better-informed decisions.
• Reach out to others: Work your networks to identify players who have "been there, done that" and can help you think through the issues.
• Trust your instincts: Not all decisions are improved by extensive information-gathering and analysis. In his book, "Blink", Malcolm Gladwell explores the nature of those decisions that we make in two seconds. He writes: "It's thinking--it’s just thinking that moves a little faster and operates a little more mysteriously than the kind of deliberate, conscious decision-making that we usually associate with 'thinking'."

There are many different decision-making styles, some of which are more comfortable and some of which are less comfortable when it comes to making decisions under conditions of uncertainty. However, there is one decision-making style that I would urge you to avoid at all costs – procrastination. Making no decision is a decision in itself, and I personally have never witnessed a situation when putting off an important decision (whether due to lack of information or any other reason) helped move a business forward to achieve its objectives.

Best regards,

Tina Ornstein, CEO
Signal Business Development (formerly Trendlines International)

o   This year, once again, I was very proud of the strong and positive impression that our Israeli life science companies made on the investors and business partners that they met in the various venues and formats provided by the AdvaMed conference itself, as well as at the events organized specially by the Maryland/Israel Development Center.

o   The Israel Export and International Cooperation Institute (IEICI), drew steady traffic and David Furst, the IEICI life science executive, had numerous opportunities to promote Israel as a world-class player in the life sciences arena.

o   The recession in the U.S. is officially over and my impression is that the economic climate is definitely warming up. However, in light of the still high unemployment figures and the residual trauma from the financial and the housing crises, people are still cautious – but now, at least, cautiously optimistic. My sense is that it is a good time to initiate and/or renew business relationships in the U.S. – for Israeli companies in general and for life science companies in particular.

o   Bill Clinton, a keynote speaker at AdvaMed, spoke eloquently about the important role that advanced medical technology will and must play in reducing healthcare costs while improving healthcare outcomes. This message is key to understanding what will be driving the US healthcare market for the next decade and Israeli companies that align themselves accordingly will reap the benefits.

All in all, it was a great four days. Meaningful conversations were initiated between the Israeli companies and potential investors/partners. In future Trendletters we're looking forward to announcing tangible results.

Tina Ornstein, CEO
Signal Business Development

1. CEOs who have decided that the time is right to start a round and
   
   
2. from investors who like what a CEO brought them but sends the CEO to Signal because he requires that the story to be told in an "investor appropriate" manner that tells the story brilliantly while not missing the basics such as cash flow projections and coherent competitive analyses. 
   

• The process compelled us to think long and hard about our mission and vision, about how we are perceived by the market, and how we would like to be perceived by the market. It brought focus and clarity to our business.
  
  
• The open and lively sharing of points of view and overall sense of involvement in the process strengthened the team and built morale.
  
  
• After getting valuable inputs from the team, from the design studio, from trusted outsiders, it will only work if company management provides leadership and makes the final -- and sometimes difficult -- decisions.
  
  
• Karen Kozek, our own senior marketing communications consultant (who facilitated the process and developed the text elements) and our talented friends at Studio Oz (who provided the visuals and lots of good guidance) are an amazing team. It was fantastic to watch them in action -- this time on our behalf.

1. Begin positioning your company early as a partnering target by selecting investors, board members, and advisers who have relationships with your potential strategic partners.
   
   
2. Build awareness within your industry through participating in relevant conferences or trade shows, getting influential "champions" creating buzz about your product and your company.
   
   
3. When the time is right to approach your potential strategic partners, identify the relevant decision-makers and get someone in your network to make an introduction.
   
   
4. Make sure that you have professional materials (executive summary, presentation, etc.) that convey clearly what you do and what its market potential is.
   
   
5. Engage your prospective partners in an ongoing dialog that educates both sides. Easier said than done? You bet! Unfortunately there are no shortcuts, so company management must identify its strategic goals sooner rather than later and then work steadily to achieve them.
   
   
   

• Business strategies must be market-driven, based on a strong understanding of market needs, structure, and dynamics.
  
  
• Business decisions need to be tested and validated through first-hand contact with the market before becoming the foundations for medium- and long-term strategies.
  
  
• A business must develop a clear, nuanced grasp of its competitive landscape and be able to articulate its value proposition – and its unique selling proposition – in all the relevant market segments.
  
  
• Business plans must be based on reasonable, defendable assumptions that are grounded in experience, benchmarking, careful forecasting.
  
  
• Business partner searches are informed by a clear analysis of business objectives from the "partnership" and of the optimal partner profile.
  
  
• Care is taken in projecting a professional corporate identity that reflects key messages and positioning – and which is maintained in a timely manner as the business evolves.
  
  

• Be remarkable: Your message and how it is presented has to have enough "wow" that it will catch attention.
  
  
• Listen: Social media is not only a platform on which you can talk. It is also a place where you can listen, learn, solicit feedback. Be respectful: Don't abuse permission. Make sure that your message, its tone, and its frequency are appropriate for your target audience.
  
  
• Be a connector: Take the time to build and maintain your network, establishing yourself as a connector among your clients, your friends, your colleagues ... and others.
  
  
• Be visible, be a participant: There's no point in lurking around the social media in stealth mode. Be visible, contribute – and then learn how to skillfully control and manage the assaults on your attention.
  
  
• And perhaps most importantly, provide your clients with opportunities to become your "raving fans," to recommend you and spread the word about your great product or service. This is what community-driven marketing is all about.

1. Develop your raise plan. Who are your ideal investors? And, who are your less ideal investors but still worth the effort? Identify multipliers to help you reach out -- contact by a credible and trusted “finder” trumps any cold call. (See #5 below about implementing your plan.)
   
   
2. Work on and adapt your story. Rework your elevator story. Review your investor presentation. You can’t afford not to get it completely right. You are competing against every other company raising money, and now -- worst of all -- you are competing against investors’ current market fears. A business plan that is not immediately compelling and does not clearly and dramatically make the argument that your vision will bring great return on investment will go nowhere.
   
   
3. Conserve cash. No one knows how long the funding environment will remain uncertain. Review all expenses and spend only on those core activities that will take your company through its next raise. Relentlessly focus on those activities that build value (for example, finishing a prototype).
   
   
4. Review your valuation. Valuations are down. You need to understand your value for this month’s environment, not last year’s environment. As Ray Catroppa of New York investor relations firm Cameron Associates, said recently: “America has been repriced.”
   
5. Work on your raise. Raising money is a process. Accept that. Redouble your efforts today. Your raise is job #1. Your raise will most likely take longer than it would have previously. You will need to talk to more people to get your raise completed. Network and look into programs where you can get in front of new audiences to tell your story.
   
   
6. Seek alternative funding. There is money available, but you need to know where to find it. Stay abreast of grant opportunities from the Israeli government and other sources.
   
   
7. Don’t despair. Companies are completing raises: Four of our Group's portfolio companies have completed raises since the beginning of September, as have Trendlines International clients. Our MarketReach America program was held in Baltimore the middle of September. At least 3 of the 13 participating companies received investment. 
   

• Navigating through a "difficult" environment and season. The current environment for raising money is often characterized as "difficult," and this difficulty is exacerbated by the time of year -- it's August (vacation season) and the Jewish holidays loom -- this year in October -- only some six weeks away.
  
  
• Dealing with the market uncertainties. One friend refers to the public capital markets as "sloppy," and no one truly knows what the near term holds for the world's stock exchanges. The IPO market is generally considered to be "closed."
  
  
• Allocating the right amount of time. Raising money is hard work. Lots of meetings. Lots of miles. Lots of time. It turns out that one truth about raising money is true: Raising money is a full-time job. For early-stage companies, we have an additional challenge: a "funding gap" -- raises in the low millions often require more effort than larger raises.
  
  
• Accepting the responsibility. Raises are the responsibility of CEOs and their boards. CEOs must know that raising money is "job 1."  Boards must provide leadership and support. Every company that succeeds raises money numerous times; learning how to do this well is critical for CEOs. Money can be found for most businesses most of the time.  It takes intensive efforts from CEOs and their boards.
  
  
• Networking and telling the right stories to the right people. Know this: Like us, money needs to "work"; money that is not "at work" cannot grow. Investors continue to look for the right opportunities; sophisticated investors allocate assets for speculative and foreign investment.

1. "Already": Nearly always unnecessary. (See also "It goes without saying" and "Listen.")
   
   
2. "Also": In most cases, this is a connector you can do without. Try going “also-less.” Take out the "also" and look at the sentence again – it’s that simple.
   
   
3. "And/or": Nearly 100% of the time, what you really mean is “and.” So, just write "and."
   
   
4. "But": An excellent word to use when you want to make excuses -- obvious excuses. Take a look at the sentence next time you write the word. You’ve heard the expression “no ifs, ands, or buts"? Well, you can use “ifs” and “ands;” but drop the buts. (Well, sometimes it's useful.)
   
   
5. "Honestly" (variation: "To tell you the truth”): When you say this, do you mean that everything you said before was not true? Even worse, in my opinion, is saying "I'm trying to be as honest as I can ..."
   
   
6. "It goes without saying" (variation: "Everyone knows"): If it "goes without saying" or "everyone knows," then you don't need to say it.
   
   
7. "You need to understand": When you say this, it suggests that your audience is incapable of understanding anything. You can say, however, "we need to understand ..."