A recent crowdsource-driven funding contest promoted by a local bank in my area got me thinking about how banks in particular can find themselves on the sidelines of the entrepreneurship/startup movement as the costs to starting a business drop and as new and creative fundraising options become available.
One way that banks can become more active participants in the startup communities in their area is by hiring a startup advocate.
What would a startup advocate do?
A startup advocate would provide the bank with a personal, human presence within the startup community, including:
- Attending local startup meetups;
- Speaking at local incubators and other programs (similar to the TopGun Maine program I participated in last year) – not as a pitch for the bank, but as a resource for info about the complicated world of funding;
- Blogging/posting videos/podcasting with an eye on the local startup scene;
- Be available for “office hours”, where entrepreneurs can call, Skype, or meet for Q&A or just talking;
- Connect entrepreneurs with other people in their network where appropriate.
Who would make the best startup advocate?
Loosely defined, the role of a startup advocate would be filled by an entrepreneur at heart: Somebody with personal, hands-on experience inside a startup, ideally having co-founded or led one. That person would work for and represent the bank, but they should be known within the community and/or trusted as a personality unto themselves, not just as a mouthpiece for the bank.
It’s about adding value, not advertising.
Besides the obvious resource of capital (short and longer term), banks have other intangibles to offer startups: Advice and connections on the money side of the game can be immensely helpful to people who are more focused on bringing their ideas to life than learning the intricacies of funding.
Hiring a startup advocate whose mission is to actually know, understand, and help startups could be more effective and less costly for banks than simply dumping more money into traditional advertising or transparent gimmicks.