Yao Huang Dares us to "Run the Gauntlet"

Yao-Hui Huang is a highly entrepreneurial executive who works with businesses and startups in all industry segments, helping them to grow their organizations in a market-smart and cost-effective way. Her Company, The Hatchery, provides a unique opportunity for innovators to interact with a wide range of investors, present their plans, receive expert feedback, and pave the way for them to receive angel and institutional funding. I asked Yao about her venture:

1. Why did you co-found the Hatchery and what do you hope to accomplish with it?
I co-founded the Hatchery with the intent to develop an all-encompassing ecosystem capable of nurturing and supporting the growth of digital media companies within New York City. New York City offers a fertile ground for these companies to engage in expert knowledge exchange, communication and collaboration with entrepreneurs, investors and corporate executives. I wanted to be able to create a supporting organization and venue that allowed for venture collaboration amongst the best and brightest digital media professionals, entrepreneurs and financiers. That’s why we created the Gauntlet, the Hatchery’s bi-monthly showcase for emerging digital media companies. By keeping the attendance by invitation only and putting start-ups that apply to be featured through a rigorous vetting process, the events are unique forums for discussion, information sharing and deal-making. At the Gauntlet, chosen companies can gain interest from investors, learn about business development and create strategic partnerships. Before and during the showcase, companies are provided with feedback to improve and enhance their business models while also receiving coaching from experts in their fields.

2. How many women do you see run the Gauntlet, your seven minute product presentation for entrepreneurs? How well do they do?
I don’t see enough women run the Gauntlet. I would love to have more female entrepreneurs participate. About five to six women have taken part in the product presentation for entrepreneurs and they have all presented very well. Usually the women have captivating personalities and are very well-spoken.

3. What advice could you share with hopeful entrepreneurs based on the presentations you have seen?
First, I believe the go-to-market strategy is a key component in developing a successful business. Often times, entrepreneurs focus too much time solely on their product and believe in it so strongly that they think “if they build it, they will come.” It is important to develop and articulate an effective marketing strategy that will go out and captivate your target audience. Second, many digital media companies operate on the belief that as long as they are able to draw traffic, revenues will magically float in. Today, it’s not enough to say to investors that you rely on an advertising model to make your business work. Entrepreneurs need to incorporate multiple revenue streams that are realistically achievable. In light of the recent financial crisis, venture funding will be even more difficult to acquire and showing that you have a well-formed revenue model will help you beat out the competition. Third, be succinct when presenting to potential investors or partners. Often, presenters ramble or get stuck discussing points that one could address concisely.  Additionally, presenters could also fall into the trap of explaining too much. You need to find a balance between keeping your message short and to the point, while still explaining everything that is relevant to the audience.
4. How do you measure the Hatchery's success in helping start-up companies and New York’s digital media community?
The Hatchery has garnered a positive international reputation just over the last year and a half and we consider this to be a huge success for us. Moreover, in 2008, we have helped every company showcased at our Gauntlets to either receive financing, improve their business models, build connections, create partnerships, close sales or obtain press, all at no cost to the entrepreneur. All these benefits we provide for companies are important for their overall success, and in turn bring us closer to our mission. We have built a brand that is associated with quality networking, high-standards for technology and collaboration. As a result, the Hatchery’s Gauntlet is a highly sought-after presentation venue among entrepreneurs.
5. Do you concentrate on tech start-ups only, or do you see yourself broadening your target audience from tech companies to other businesses in the future?
Currently, the Hatchery concentrates on start-ups in the fields of tech, internet, mobile and software. In the future, we would like to broaden our target audience to include biotech and clean tech industries.
6. What are the biggest mistakes you think people make in trying to start a business?
I think it is important for entrepreneurs to make mistakes in trying to start a business because they all become learning experiences. That said, I believe that a strong team is the most important element of a successful business. I see many companies fail due to a weak executive team or the inability to manage disagreements amongst the staff. Fundraising, attracting customers, scaling, product development, marketing—these are all very doable tasks but can seem impossible if you don’t have a team that knows how to operate efficiently, drive progress and work collaboratively. In a successful team, there is selflessness, vision, perseverance and unity and these qualities will carry the business during times of pressure and strain.