'Funded' Doesn't Necessarily Mean 'Validated'
BY Wil Schroter, Entrepreneur.com, 14-02-2014
Image credit: Shutterstock |
If you spend enough time in startup circles, you may fall into the
trap of believing that your ideas bear no value without an investor
attached. And while investors may find pride in that thought paradigm, you certainly shouldn't.
Investors can support ideas with capital, but they aren't the end
game. They are a tool in the equation, not its result. If you're hearing
"no" on a regular basis and are becoming increasingly frustrated that
your idea isn’t getting the attention it deserves,
consider that you may
be seeking validation in the wrong places.
Consider the source. Investors are rarely
experts in the subject areas in which they’re spending -- though their
checkbooks may sometimes lead you to believe that they have more insight
than they actually do. In many cases, they are making a go/no-go
decision based on a short introduction email.
Maybe the investor is too busy to talk to you. Maybe they don't
really understand your space. Maybe they are over-committed on capital.
Maybe it's all of the above. Do you really want to use the 10 minutes
they spent thinking about your offer as a barometer for the value of
your company? I hope not.
History is a lesson. If you want a history lesson on
how frequently -- and painfully -- investors miss out on great ideas,
look no further than Bessemer Venture Partners, who brilliantly
published their “anti-portfolio.”
Instead of merely pounding their chests in achievement, Bessemer
published a list of how often they've missed out on some of the most
successful companies in the world, including Apple, FedEx and eBay --
ouch!
If a great venture capitalist like Bessemer can miss as often as they
have -- and on some of the most brilliant entrepreneurs and startups in
history -- imagine how easy it might be for investors to miss out on
your idea.
Related: Sofia Vergara's Fiancé Nick Loeb Launches Equity Crowdfunding Campaign for Condiments Company
Commentaires
Enregistrer un commentaire