6
07
2010
So, I’ve been on a large number of calls recently consulting with individuals seeking sponsorship. Usually before I dig into what SponsorPark can do for them to complement their efforts in connecting to sponsors, I like to hear a brief overview of what their sponsorship opportunity consists of, for several reasons – to make our conversation more efficient by ensuring I’m consulting with the most appropriate perspective, to address any issues they might be facing, and to ensure we truly are a good fit for their efforts. I truly think my job is thoroughly intriguing as I get to hear story after story of passionate efforts of people working very hard to make a difference in a hundred different unique ways… I love it. I have come across a surprising number of conversations with individuals who have confused venture capitalism with sponsorship. That being the case, I thought it would be a good idea to clarify the difference.
Sponsorship is the description of a type of partnership. A sponsor either provides financial support or in-kind support to a property or individual who has some kind of asset or benefit to offer in exchange. The kind of sponsorship that we support on SponsorPark is considered to be a marketing investment for a sponsor. It is not a donation out of the good of their hearts, it is not simply a tax right off, and it is not simply to keep the property alive – as tremendous as that organization’s efforts might be. It is a mutually beneficial relationship established for the growth of both parties, and addresses the unique nature of each individuals needs in a way that complements and develops each party. These sponsors are going to benefit their company in some way, whether it offers further brand recognition, or drives sales; ultimately it builds their bottom line.
The definition for Venture Capital (according to Wikipedia): “is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company.” I’ve mentioned before, the television show: The Shark Tank. This is a perfect example of a venture capitalist effort. These investors are going to benefit personally in some way, whether it be revenue sharing or decision making authority; and they have vested interest in providing the resources to make the new business or product successful.
There are ways that the two efforts are similar, there’s definitely a give and take effort in place, and benefits should result for active parties; incentive behind the investment and the ultimate gain is very different.