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News... MEDIA COVERAGE Entrepreneur Magazine Money Buzz 11/02 By Jennifer Pellet No Way In Good, old-fashioned barriers to entry are back. In today's tight capital market, it's becoming essential to show VCs, banks and other capital sources that your company has an advantage that will discourage competition, explains Steve Brotman, managing director at New York City-based Silicon Alley Ventures. "In the past, barriers to entry was sort of swept under the rug under the assumption that the first-in advantage was enough. But now VC firms are more concerned about competitive advantages like referable customers, partnerships with distribution channels or secure patents." For Ahin Savara, CEO of Burbank, California-based Filmport-an emerging firm that markets wireless and Web-based communications solutions to film and television production companies-letters of commitment (LOCs) from prospective customers proved a boon in approaching venture firms. "It helps show you have a real customer base," he explains. "It lets me go back to the VC and say 'Here's a list of clients who have committed to being involved with our services.'" Of course, barriers alone won't win that all-important funding offer, cautions Savara. "A clear path to profit and a strong management team are first and foremost. An LOC or a patent on A, B or C alone is not enough." more info... 
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